American Lithium Corp. (“American Lithium” or the “Company”)
(TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to announce
positive lithium results from mapping and sampling of two new
outcrop target areas in the Quelcaya region 6 kilometres (km) west
of the Falchani lithium deposit in the Macusani Plateau in
southeastern Peru. The Company is also pleased to provide an update
on upcoming exploration and development plans for these new areas
and for the existing Falchani Lithium and Macusani Uranium Projects
(“Falchani” and “Macusani”).
Highlights:
- Two new high
priority, drill-ready lithium target areas have been identified
west of Falchani through mapping and surface sampling.
- Drilling now
being planned to test these targets and focus on the discovery of
new lithium deposits.
- In-fill and
expansion drilling to begin at Falchani and focus on resource
re-classification (upgrading resource categories) and resource
expansion.
- Expansion
drilling to begin at Macusani to expand existing uranium resources
and test for new deposits.
- Permitting
process, including environmental and community permitting, underway
with goal of launching the above drill programs late June to
coincide with the end of the local rainy season.
Simon Clarke, Chief Executive Officer &
Director of American Lithium stated, “We are very excited with the
new lithium and uranium exploration targets generated by our
Peruvian team and are pleased with the progress made on permitting
required to reactivate exploration and development. Drilling is
expected to commence shortly. Having our own diamond drills
provides maximum flexibility while enabling us to control and
minimize drilling costs. We anticipate running three drill rigs
simultaneously.”
Dr. Laurence Stefan, President, Chief Operating
Officer & Director of American Lithium added, “The newly
discovered lithium target areas expand our exploration drill target
inventory separately from the large Falchani Lithium deposit. In
addition, the work we have planned at both the Falchani and
Macusani Projects should enable us to expand and re-classify our
existing resources at both Projects. We are optimistic that the
planned drill programs will further enhance both the lithium and
uranium potential of the entire Macusani Plateau region for the
benefit of all stakeholders. Our pioneering work in Peru in the
field of green energy metals will help strengthen the country’s
status as a prime mining jurisdiction.”
Outcrop Mapping and Sampling Results
DetailsIn Q3-Q4 2020 and Q1 of 2021, while adhering to
strict national and local COVID-19 regulations and with the support
of local communities, Plateau’s Peruvian technical team completed
surface exploration work consisting of prospecting, mapping and
outcrop sampling west of the Falchani Lithium Deposit in the
south-central portion of the Company’s project area. This work
resulted in the discovery of two new areas of outcropping and
sub-cropping volcanic-related lithium mineralization.
A total of 64 grab and trench samples were
collected from surface outcrop or subcrop buried under thin soil
cover from 2 separate areas located near Quelcaya Village, 6 km
west of the Falchani Lithium project area (for location map follow
link: Quelcaya Area Location Map). Samples were collected and
analyzed for a variety of volcanic rock types and returned highly
variable lithium grades ranging from 88 parts per million (ppm) Li
to 2,700 ppm Li. The selected nature of such sampling does not
necessarily reflect potential lithium contents expected from future
drill testing, but do indicate the presence of lithium
mineralization in new areas in a similar volcanic-related setting
but in different rock units and rock types than at Falchani.
The results of the mapping and sampling work
with lithium geochemical analyses for selected samples displayed,
along with interpreted provisional cross-sections for the Sapanuta
3 and Clark-Dyke Zones are summarized in the three figures linked
in this release. Outcrop descriptions and structural measurements
were used to interpret the local geology and produce maps and
sections. The cross-sections are provisional and will be used to
guide the drill targeting, which will more accurately establish the
subsurface geology.
Sapanuta 3 ZoneThe Sapanuta 3
Zone consists of shallow dipping, highly weathered volcaniclastic
tuffs very similar to those found at Falchani, but with lithium
grades ranging between 1,056-1,758 ppm Li. The tuff unit is exposed
in outcrop and appears to be intruded or cored by a small
subvolcanic intrusive exposed downslope, and in part, is overlain
by thin Macusani rhyolite. The extensive surface weathering /
alteration in this area may be responsible for the lower Li grades
observed in surface grab samples compared to Falchani, but it is
interpreted that this new tuff unit may have the potential to host
similar grades and thickness as Falchani in the subsurface, however
this will ultimately be confirmed through drilling. For further
details follow link: Sapanuta Interpreted Cross Section C-C'.
Clark-Dykes ZoneThe Clark-Dykes
Zone consists of a shallow dipping subvolcanic intrusive sill/dyke
unit with lithium grades ranging from 704-2,700 ppm Li. The
sill/dyke unit underlies a thin volcaniclastic tuff with lower Li
grades than the Li-rich tuff hosting Falchani-style mineralization.
It is interpreted that the sill/dyke unit appears to terminate in a
subvolcanic intrusion downslope to the southwest. The footwall
rocks underlying the Li-rich sill/dyke unit are rhyolite. While
different in style to Falchani, the crystalline nature of the host
sill/dyke unit suggests that upgrading should be possible through
simple rejection of coarser crystalline mineral phases (quartz and
feldspars that can represent up to 50% by volume of the rock)
through screening and/or flotation. This processing work and
initial leach testing work is currently being planned alongside
initial drill testing. For further details follow link: Clark Dykes
Interpreted Cross Section D-D'.
Samples were collected using geological hammers
with samples of 3-6 kilograms (kg) placed in sealed bags for
shipping to analytical labs in Lima. Sample site map coordinates
are recorded using hand-help GPS, outcrop descriptions and any
structural measurements are recorded, and samples described and
photographed by Company geologists.
Quality Assurance, Quality Control and
Data VerificationOutcrop grab samples are collected from
exposed outcrop, with samples placed in sealed bags and shipped to
Certimin’s sample analytical laboratory in Lima for sample
preparation, processing and ICP-MS/OES multi-element analysis.
Certimin is an ISO 9000 certified assay laboratory. The selected
grab samples are not necessarily representative of the grades of
mineralization hosted on the property. The Company’s Qualified
Person, Mr. Ted O’Connor, has verified the data disclosed,
including prospecting and outcrop sampling procedures and
analytical data. The program is designed to include a comprehensive
analytical quality assurance and control routine comprising the
systematic use of Company inserted standards, blanks and field
duplicate samples and internal laboratory standards.
Falchani and Macusani Drill
ProgramsDrill rigs will also be mobilized to Falchani and
Macusani. At Falchani, drilling will focus on in-fill and expansion
drilling with a focus on the re-classification (upgrading resource
categories) and expansion of existing resources. At Macusani
drilling will focus on newly prospected/mineralized areas extending
from several existing deposits and on new areas where sampling has
identified surface uranium mineralization (Please refer to Plateau
Energy news release dated January 26, 2021 for details).
Option Grant The Company also
announces the granting, subject to regulatory acceptance, of an
aggregate of 7,050,000 incentive stock options to certain officers,
directors and consultants of the Company (the
“Options”). The Options have a term of 5 years and
are exercisable at a price of $2.17 per common share.
Qualified PersonMr. Ted
O’Connor, P.Geo., a Director 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
LithiumAmerican Lithium is actively engaged in the
acquisition, exploration and development of 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 exploration and 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 projects in southeastern Peru. Both Falchani and
Macusani have been through preliminary economic assessments,
exhibit strong additional exploration potential and are situated
near significant infrastructure.
Please watch our informative project update
videos and related background information
at https://www.americanlithiumcorp.com
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website
at www.americanlithiumcorp.com. 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
For further information, please contact:
American Lithium Corp. |
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Email: info@americanlithiumcorp.com |
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Website: www.americanlithiumcorp.com |
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Neither 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 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 plans, objectives and
advancement of the TLC, Falchani and Macusani Projects (the
“Projects”), exploration drilling plans, in-fill and expansion
drilling plans, results of exploration and development plans,
expansion of resources and testing of new deposits, environmental
and social community permitting, 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 similar 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 Lithium 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 assumptions
related to: American Lithium’s ability to achieve its stated goals,
including the anticipated benefits of the acquisition of Plateau
Energy Metals Inc. (“Plateau”); the estimated costs associated with
the advancement of the Projects; 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 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; risks
related to the certainty of title to the properties of American
Lithium, including the status of the “Precautionary Measures” filed
by American Lithium’s subsidiary Macusani Yellowcake S.A.C.
(“Macusani”), the outcome of the administrative process, the
judicial process, 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 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 “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 reliance on
forward-looking statements.
Cautionary Note Regarding Macusani
Concessions
Thirty-two of the 151 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 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
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 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) until a final decision on this matter is obtained at the
last stage of the judicial process. A final date for the last stage
of the judicial process has not yet been set. If American Lithium’s
subsidiary Macusani does not obtain a successful resolution of the
Processes, its title to the concessions could be revoked.
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