American Lithium Reports Large Increase in Lithium Resources at TLC - Measured LCE Resource increases 25%; Indicated LCE Resource increases 129%
American Lithium Reports Large Increase in Lithium Resources at TLC -
Measured LCE Resource increases 25%; Indicated LCE Resource increases 129%
VANCOUVER, BRITISH COLUMBIA, December 1, 2022 – American Lithium Corp. (“American Lithium” or
the “Company”) (TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to announce an updated Mineral
Resource Estimate (“MRE”) that significantly increases the contained lithium resources for the Tonopah
Lithium Claims (“TLC”) project located in the Esmerelda lithium district northwest of Tonopah, Nevada .
This MRE was completed as part of the process of compiling the maiden preliminary economic assessment
on TLC (“PEA”) and will be incorporated into the Mine Plan within the PEA scheduled to be completed and
announced shortly.
Highlights: (see Table 1 New TLC MRE & Table 2 Original TLC MRE, below)
Link to: Figure 1 – TLC Project Mineral Resource Block Outline and Drill Hole Location Map (also see below)
• Measured + Indicated Resource LCE increases 64% from original April 2020 Mineral Resource Estimate
• Measured Resource - 4.2 Mt Lithium Carbonate Equivalent (“LCE”) (860 Mt @ 924 ppm Li)
• Indicated Resource – 4.63 Mt LCE (1192 Mt @ 727 ppm Li)
• Measured + Indicated Resource – 8.83 Mt LCE (2052 Mt @ 809 ppm Li)
• Inferred Resource – 1.86 Mt LCE (486 Mt @ 713 ppm Li)
• Base Case cut -off of 500 ppm Li employed – up from 400 ppm Li in the original resource due to
anticipated increased processing cost inflation between 2020 and 2022.
• Infill RC and Diamond drilling validates size and scale of existing measured core resource, expands the
core resource and defines areas of high-grade shallow mineralization.
• Using a 1200 ppm Li cut-off: Measured + Indicated mineral resource contains 1.60 Mt LCE comprising
214 Mt averaging 1,402 ppm Li, which should positively impact project economics.
• RC exploration drilling highlights deeper lithium mineralization to the west and northwest of the core
Measured resource and thinner, lower grade sections to east and south next to the sub-basin edge.
Simon Clarke, CEO of American Lithium states , “We are very pleased with the results of our 2022 drill
programs culminating in a much larger mineral resource at TLC which underlines our position as one of
the largest lithium projects in North America. In addition, the higher-grade shallow lithium mineralization
identified in our core Measured resource area provides focus for early production that should have a
positive impact on the economic potential of TLC. This will be reflected in a robust maiden PEA, which we
are in the process of completing in conjunction with DRA Global, and should help fast-track the Project’s
move through feasibility.
Of equal importan ce, the mineral resource block model and extensive new drilling has increased our
geological understanding of the complexity, geometry, depth and location of the TLC mineralized
claystone and has confirmed to us that American Lithium holds the most prospec tive ground for the
location of shallow lithium-rich claystone in the TLC sub-basin.”
Table 1 – New TLC Mineral Resource Estimate – updated November 29, 2022
Cutoff Volume Tonnes Li Million Tonnes (Mt)
Li (ppm) (Mm^3) (Mt) (ppm) Li Li2CO3 LiOH*H2O
Measured
500 506 860 924 0.79 4.2 4.78
1000 203 345 1255 0.43 2.29 2.60
1200 104 177 1401 0.25 1.33 1.51
Indicated
500 701 1192 727 0.87 4.63 5.26
1000 80 136 1148 0.16 0.85 0.97
1200 22 37 1328 0.05 0.27 0.30
Measured +Indicated
500 1207 2052 809 1.66 8.83 10.04
1000 283 481 1227 0.59 3.14 3.57
1200 126 214 1402 0.30 1.60 1.81
Inferred
500 286 486 713 0.35 1.86 2.12
1000 31 53 1151 0.06 0.32 0.36
1200 8 14 1315 0.02 0.11 0.12
• CIM definitions are followed for classification of Mineral Resource.
• Mineral Resource surface pit extent has been estimated using a lithium carbonate price of US20,000 US$/tonne and mining cost of US$3.00
per tonne, a lithium recovery of 90%, fixed density of 1.70 g/cm3 (1.43 tons/yd3)
• Conversions: 1 metric tonne = 1.102 short tons, metric m3 = 1.308 yd3, Li2CO3:Li ratio = 5.32, LiOH.H2O:Li ratio =6.05
• Totals may not represent the sum of the parts due to rounding.
• The Mineral Resource estimate has been prepared by Joan Kester, PG and Derek Loveday, P. Geo. Of Stantec Consulting Services Inc. in
conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with
the Canadian Securities Administrators NI 43 -101. Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that any mineral resource will be converted into mineral reserve.
Table 2 – Original TLC Mineral Resource Estimate – April 15, 2020
Cutoff Volume Tonnes Li Million Tonnes (Mt)
Li (ppm) (Mm3) (Mt) (ppm) Li Li2CO3 LiOH*H2O
Measured
400 400 680 932 0.63 3.35 3.81
1000 169 287 1256 0.36 1.92 2.18
Indicated
400 251 427 898 0.38 2.02 2.30
1000 95 162 1256 0.20 1.06 1.21
Measured + Indicated
400 651 1107 912 1.01 5.37 6.11
1000 264 449 1247 0.56 2.98 3.39
Inferred
400 213 362 912 0.33 1.76 2.00
1000 84 143 1228 0.18 0.96 1.09
• CIM definitions are followed for classification of Mineral Resource.
• Mineral Resource surface pit extent has been estimated using a lithium carbonate price of US10,000 US$/tonne and mining cost of US$2.00
per tonne, a lithium recovery of 80%, fixed density of 1.70 g/cm3 (1.43 tons/yd3)
• Conversions: 1 metric tonne = 1.102 short tons, metric m3 = 1.308 yd3, Li2CO3:Li ratio = 5.32, LiOH.H2O:Li ratio =6.05
• Totals may not represent the sum of the parts due to rounding.
• The Mineral Resource estimate has been prepared by Derek Loveday, P. Geo. of Stantec Consulting Services Ltd. in conformity with CIM
“Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities
Administrators NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty
that any mineral resource will be converted into mineral reserve.
Figure 1 – TLC Project Mineral Resource Block Outline and Drill Hole Location Map
Mineral Resource Estimation Calculation Methodology
The geologic model used for reporting of lith ium resources was developed using Hexagon Mining’s
geological modelling and mine planning software, MinePlan version 16.0 .4. The geologic model from
which lithium resources are reported is a 3D block model developed using the Nevada State Plane Central
Zone NAD83 coordinate system and U.S. customary units. Block size is 50ft-X, 50ft-Y and 20ft-Z. Modeling
method and approach is similar to that described in the prior Technical Report (Loveday, 202 0) but with
a re -interpretation of geologic controls on mineralization using the additional exploration data and
increased model size covering the expanded mineral claim boundary. A significant new addition to the
resource is the recognition of an additional lithium clay resource below a tuffaceous marker horizon.
A base case lithium resource cut-off grade has been calculated based on the economics of a medium size
(100 Mtpa) run-of-mine (ROM) surface mining operation that does not require blasting. Processing of the
mineralized material would be onsite extrac ting lithium from claystone using an acid digestion method.
Resources are reported from within an economic pit shell at 45 -degree constant slope using Hexagon
mining Pseudoflow algorithm. Maximum pit depth is limited to 1,000 feet (304.8 m) below surface. No
underground mining is considered.
The following mining, processing, royalty, and recovery costs, in US$, were used to derive a base case cut-
off grade to produce a lithium carbonate (Li2CO3) equivalent product:
• Mining costs US$3/tonne;
• Processing costs US$49/tonne;
• Royalties US$1/tonne;
• General and administration US$1/tonne; and Processing recovery 90%.
Revenue from a lithium carbonate product is estimated to be US$20,000/tonne for the cutoff grade
calculation. Using the above inputs an d Li 2CO3:Li ratio of 5.32, a base case cut -off grade for lithium is
estimated to be 500 ppm, rounded from 501 ppm. The base case cut -off grade of 500 ppm lithium is
greater than the prior (Loveday, 202 0) Mineral Resource Estimate (“ MRE”) of 400 ppm lithium, mostly
due to an increase in assumed processing costs when compared to the prior MRE.
The updated base case MRE represents an increase of 64 percent Li 2CO3 equivalent tonnes in the
Measured plus Indicated category (500 ppm Li cutoff) w hen compared to the prior MRE (400 ppm Li
cutoff). Inferred Li2CO3 equivalent tonnes have increased by 6 percent when compared to the prior MRE
for the base case.
Resource Estimate Parameters:
• Resource Update Effective Date – October 6, 2022:
▪ 29,757’ (9070 m) additional drilling from 53 drill holes (2020 to 2022)
▪ The new total of 39,062’ (11,906 m) from 82 drill holes (2019 to 2022)
▪ 8 Sonic holes – 2020 to 2022
▪ 35 RC holes – 2021 to 2022
▪ 10 Core holes – 2022
▪ 20 Core holes (2022) awaiting assays and not yet used in model
Quality Assurance, Quality Control and Data Verification
Diamond drilling was conducted by First Drilling of Montrose, Colorado using large diameter, PQ -size
drilling entirely vertical holes. Drill core samp les are nominally 5 -foot (1.53 m) length and are cut
longitudinally, and one half is cut a second time longitudinally with a diamond saw with one -quarter of
the core placed in sealed bags and shipped to analytical laboratories.
Reverse Circulation (RC) drilling was conducted by Harris Exploration Drilling and Associates Inc., of Fallon,
Nevada with 5.5-inch diameter face centred bit on vertical drill holes. Sampling was conducted using a
riffle splitter or a cyclone splitter depending on the moisture content of the sampled material. Sampling
was conducted over 5 -foot (1.52m) intervals with individual samples placed in sealed bags and
transported to the respective analytical labs.
Samples were shipped to either American Assay Laboratories (AAL) in Sparks, Nevada or Paragon
analytical laboratories in Reno, Nevada for sample preparation, processing and ICP -MS multi -element
analysis. Pulps and rejects are returned and retained by the Company. AAL and Paragon are ISO/IEC 17025
certified assay laboratories. The QA/QC program include s a comprehensive analytical quality assurance
and control routine comprising the systematic use of Company inserted standards, blanks and field
duplicate samples, internal laboratory QA/QC standard operating procedures, and cross check analyses at
other accredited laboratories. Downhole lengths (depths) for vertical drill holes are considered accurate
true depth intersections for the essentially flat-lying, to gently dipping TLC host stratigraphy.
Mineral Resource Estimate Preparation
The Mineral Resource e stimate has been prepared by Joan Kester, PG and Derek Loveday, P. Geo. of
Stantec Consulting Services Inc. in conformity with CIM “Estimation of Mineral Resource and Mineral
Reserves Best Practices” guidelines and are reported in accordance with the Canad ian Securities
Administrators NI 43 -101. Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that any mineral resource will be converted into mineral reserve.
Qualified Persons
Ms. Joan Kester, PG and Mr. Derek Loveday, P. Geo. of Stantec Consulting Services Inc. are Qualified
Persons as defined by National Instrument 43 -101 Standards of Disclosure for Mineral Projects , ha ve
prepared or supervised the preparation of, or ha ve reviewed and approved, the scientific and technical
data pertaining to the Mineral Resource estimates contained in this release, and will be preparing the NI-
43-101 Technical Report for filing on SEDAR within 45 days.
Mr. Ted O’Connor, P.Geo., Executive Vice President of American Lithium, and a Qualified Person as
defined by National Instrument 43 -101 Standards of Disclosure for Mineral Projects , has reviewed and
approved the scientific and technical information contained in this news release.
About American Lithium
American Lithium, a member of the TSX Venture 50, is actively engaged in the development of large-scale
lithium projects within mining-friendly jurisdictions throughout the Americas. The Company is currently
focused on enabling the shift to the new energy paradigm through the continued development of its
strategically located TLC lithium claystone project in the richly mineralized Esmeralda lithium district in
Nevada, as well as continuing to advance its Falc hani lithium and Macusani uranium development-stage
projects in southeastern Peru. Both Falchani and Macusani have been through robust preliminary
economic assessments, exhibit strong significant expansion potential and enjoy strong community
support. Pre-feasibility work has now commenced at Falchani.
The TSX Venture 50 is a ranking of the top performers in each of 5 industry sectors in the TSX Venture
Exchange over the last year.
For more information, please contact the Company at [email protected] or visit our website
at www.americanlithiumcorp.com for project update videos and related background information.
Follow us on Facebook, Twitter and LinkedIn.
On behalf of the Board of Directors of American Lithium Corp.
“Simon Clarke”
CEO & Director
Tel: 604 428 6128
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press
release.
Cautionary Statement Regarding Forward Looking Information
This news release contains certain forward -looking information and forward -looking statements (collectively
“forward-looking state ments”) within the meaning of applicable securities legislation. All statements, other than
statements of historical fact, are forward -looking statements. Forward -looking statements in this news release
include, but are not limited to, statements regarding the ability to appeal the judicial ruling, and any other statements
regarding the business plans, expectations and objectives of American Lithium. Forward -looking statements are
frequently identified by such words as "may", "will", "plan", "expect", "anti cipate", "estimate", "intend", “indicate”,
“scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”, “option” and similar words, or the negative
connotations thereof, referring to future events and results. Forward -looking statements are based on t he current
opinions and expectations of management are not, and cannot be, a guarantee of future results or events. Although
American Lithium believes that the current opinions and expectations reflected in such forward -looking statements
are reasonable based on information available at the time, undue reliance should not be placed on forward -looking
statements since American Lithium can provide no assurance that such opinions and expectations will prove to be
correct. All forward -looking statements are inh erently uncertain and subject to a variety of assumptions, risks and
uncertainties, including risks, uncertainties and assumptions related to: American Lithium’s ability to achieve its
stated goals; risks and uncertainties relating to the COVID -19 pandemic and the extent and manner to which
measures taken by governments and their agencies, American Lithium or others to attempt to reduce the spread of
COVID-19 could affect American Lithium, which could have a material adverse impact on many aspects of Americ an
Lithium’s businesses including but not limited to: the ability to access mineral properties for indeterminate amounts
of time, the health of the employees or consultants resulting in delays or diminished capacity, social or political
instability in Peru which in turn could impact American Lithium’s ability to maintain the continuity of its business
operating requirements, may result in the reduced availability or failures of various local administration and critical
infrastructure, reduced demand for the American Lithium’s potential products, availability of materials, global travel
restrictions, and the availability of insurance and the associated costs; the judicial appeal process in Peru, and any
and all future remedies pursued by American Lithium and its subsidiary Macusani to resolve the title for 32 of its
concessions; risks regarding the ongoing Ontario Securities Commission regulatory proceedings; the ongoing ability
to work cooperatively with stakeholders, including but not limited to local communities and all levels of government;
the potential for delays in exploration or development activities due to the COVID-19 pandemic; the interpretation of
drill results, the geology, grade and continuity of mineral deposits; the possibility that any future exploration,
development or mining results will not be consistent with our expectations; risks that permits will not be obtained as
planned or delays in obtaining permits; mining and development risks, including risks related to accidents, equipment
breakdowns, labour disputes (including work stoppages, strikes and loss of personnel) or other unanticipated
difficulties with or interruptions in exploration and development; risks related to commodity price and foreign
exchange rate fluctuations; risks related to foreign operations; the cyclical nature of the industry in which American
Lithium operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or
delays in obtaining governmental approvals; risks related to environmental regulation and liability; political and
regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment
and the effects upon the global market generally, and due to the COVID -19 pandemic measures taken to reduce the
spread of COVID-19, any of which could continue to negatively affect global financial markets, including the trading
price of American Lithium’s shares and could negatively affect American Lithium’s ability to raise capital and m ay
also result in additional and unknown risks or liabilities to American Lithium. Other risks and uncertainties related to
prospects, properties and business strategy of American Lithium are identified in the “Risks and Uncertainties” section
of Plateau’s Management’s Discussion and Analysis filed on January 19, 2021, in the “Risk Factors” section of
American Lithium’s Management’s Discussion and Analysis filed on January 29, 2021, and in recent securities filings
available at www.sedar.com. Actual events or results may differ materially from those projected in the forward -
looking statements. American Lithium undertakes no obligation to update forward -looking statements except as
required by applicable securities laws. Investors should not place undue relia nce on forward -looking statements.
Cautionary Note Regarding Macusani Concessions Thirty -two of the 169 concessions held by American Lithium’s
subsidiary Macusani, are currently subject to Administrative and Judicial processes (together, the “Processes”) in Peru
to overturn resolutions issued by INGEMMET and the Mining Council of MINEM in February 2019 and July 2019,
respectively, which declared Macusani’s title to 32 of the concessions invalid due to late receipt of the annual validity
payments. In November 2019, Macusani applied for injunctive relief on 32 concessions in a Court in Lima, Peru and
was succe ssful in obtaining such an injunction on 17 of the concessions including three of the four concessions
included in the Macusani Uranium Project PEA. The grant of the Precautionary Measure (Medida Cautelar) has
restored the title, rights and validity of those 17 concessions to Macusani until a final decision is obtained at the last
stage of the judicial process. A Precautionary Measure application was made at the same time for the remaining 15
concessions and was ultimately granted by a Court in Lima, Peru o n March 2, 2021 which has also restored the title,
rights and validity of those 15 remaining concessions to Macusani, with the result being that all 32 concessions are
now protected by Precautionary Measure (Medida Cautelar) until a final decision on this matter is obtained at the
last stage of the judicial process. The favourable judge’s ruling confirming title to all 32 concessions from November
3, 2021 represents the final stage of the current judicial process. However, this ruling has recently been appe aled by
MINEM and INGEMMET. American Lithium has no assurance that the outcome of these appeals will be in the
Company’s favour.