American Lithium to Fast-Track Completion of Pre-Feasibility Study for Falchani Appoints DRA Global as Lead Engineer and Plans Near-Term Update of PEA
American Lithium to Fast-Track Completion of
Pre-Feasibility Study for Falchani
Appoints DRA Global as Lead Engineer and Plans Near-Term Update of PEA
VANCOUVER, BRITISH COLUMBIA, March 6, 2023 – American Lithium Corp. (“American Lithium” or the
“Company”) (TSX-V:LI | NASDAQ-AML| Frankfurt:5LA1) is pleased to announce that it has appointed DRA
Global (“DRA”) as lead engineer to coordinate completion of a Pre-Feasibility Study (“ PFS”) on the
Company’s Falchani Lithium Project in Southern Peru (“Falchani”).
As part of this process, Stantec Consulting Ltd. (“Stantec”) will also prepare an updated mineral resource
estimate on Falchani which will involve the reclassification of existing resource categories, as well as
including new drill data from the recent hydrology drilling which commenced in August 2022.
The Company also announces that it has restarted additional hydrology drilling at Falchani , with full
support from the local communities. This drilling is part of the Environmental Impact Assessment (“EIA”)
that was commenced in August 2022.
The first step towards completing a PFS will involve updating the Company’s existing Preliminary Economic
Assessment (“PEA”) for Falchan i, which is expected to expedite the PFS process. The work required to
update the PEA started in the second half of 2022 with a focus on incorporating Sulphate of Potash and
Cesium by-products, which are expected to provide a valuable contribution to the project economics . It
will also incorporate the updated mineral resource data being prepared by Stantec.
As announced in June 2022 , work by the Australian Nuclear Science and Technology Organisation
(“ANSTO”) validated Sulphate of Potash as a viable and important by-product at Falchani. ANSTO is now
focused on adding Sulphate of Potash and Cesium circuits to the overall flow sheet, while maintaining /
increasing the impressive lithium extraction rates and battery grade purity. It is anticipated that this work
will be finalized in the near term.
Finally, the PEA will also be updated to reflect the material increase in lithium carbonate pricing since the
original report published in early 2020, which used a $12,000 per tonne LCE price. Recent studies on other
lithium projects globally have used up to US$24,000 per tonne LCE reflecting material price rises in the
commodity over the last 2 years and anticipated long-term pricing. Higher pricing is even more applicable
to Falchani given the potential to precipitate battery grade lithium carbonate through its flow sheet.
Simon Clarke, CEO of American Lithium state d, “We are very pleased to accelerate PFS work at Falchani
through the appointment of DRA Global to drive completion of what we believe will be a very robust
update to the existing PEA and to fast -track completion of the PFS process. Falchani is a unique, large -
scale lithium deposit on which a lot of exploration and development work has already been done . We
have been able to build on this through ongoing work at ANSTO and the launch of the EIA in August of last
year. At the same time, we are delighted to be able to restart drilling at the Project, and the fact that the
deposit is open in several directions gives us confidence in our ability to materially expand the mineral
resources at Falchani. The existence of other key targets in the area surrounding Falchani with similar
surface expressions, continues to fuel our belief that there are additional deposits on our concessions.”
Qualified Person
Mr. Ted O’Connor, P.Geo., Executive Vice Presiden t 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 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 con tinued 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 Falchani lithium and Macusani uranium development -stage projects in southeast ern 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.
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 respo nsibility 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 statements”) 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", "anticipate", "estimate", "intend", “indicate”,
“scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”, “option” and simi lar words, or the negative
connotations thereof, referring to future events and results. Forward -looking statements are based on the 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 Lit hium can provide no assurance that such opinions and expectations will prove to be
correct. All forward -looking statements are inherently uncertain and subject to a variety of assumptions, risks and
uncertainties, including risks, uncertainties and assumpt ions 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 American
Lithium’s businesses including but not limited to: the ability to access mineral properties for indeterminate amounts
of ti me, 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 insuran ce 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; the ongoing ability to work cooperatively with stakeho lders, 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 mi neral 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 f oreign 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 obt aining 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 Am erican
Lithium’s ability to raise capital and may 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 “Risk Factors” section of American Lithium’s Management’s Discussion and Analysis filed on June 28, 2022 ,
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 reliance 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 Cou rt in Lima, Peru and was successful 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 tit le, 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 gran ted by a
Court in Lima, Peru on 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) u ntil 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 appealed by MINEM and INGEMMET. American
Lithium has no assurance that the outcome of these appeals will be in the Company’s favour.