American Lithium (LI) - End of Year Update & Investor Meetings, London

American Lithium Corp. is developing world-class lithium projects in the Americas and also has one of the largest underdeveloped uranium projects globally. The company has a near-term focus on mining-friendly jurisdictions and has an advantage when it comes to geographic and geological diversity in the development of world-class, scalable projects. 

Matt Gordon caught up with Simon Clarke, CEO, and Director, American Lithium. Simon has over 25 years of experience in building companies, capital markets, and growth strategies in the mining, energy, and energy technology sectors. He is the founder and former CEO at M2 Cobalt Corp. His educational credentials include an LLB and Diploma in Legal Practice from Aberdeen University, Scotland. 

Company Overview

American Lithium (formerly known as Menika Mining Ltd.) is a mining and exploration company focused on the development of its world-class lithium projects located in the Americas. The company is listed on the Toronto Stock Exchange (TSX-V: LI), the OTC Markets (OTCQX: LIACF), and the Frankfurt Stock Exchange. (FSE: 5LA1). The company was founded in 1974 and is headquartered in Vancouver, Canada. Lillooet Mining Ltd., Exploraciones Macusani S.A.C, and Minergia S.A.C are among the company's subsidiaries. 

American Lithium has lithium development assets in Nevada and Peru. The company also owns the worlds' fifth-largest undeveloped uranium asset called Macusani. American Lithium's primary focus is on its lithium assets. It considers itself as a lithium company with a high-potential uranium asset. 

Cash Position

American Lithium has a current market cap of $1Bn. Previously, the company largely had a retail investor base and over the past year, the company has had a growing number of institutional investors on board. This was a result of a recent capital raise which saw institutional investors including Roth, USA, Ali O'Donnell, London, and 2 Canadian Banks become a part of the company's shareholder base.

Following the acquisition of Plateau Energy Metals, the company has received renewed interest from the market. The company's Falchani lithium deposit and the Macusani Uranium Project has also gained attention from multiple market entities. 

The Lithium Market

The market pricing for lithium carbonate has appreciated from $6,500/t to $25,000/t in recent times. American Lithium had an early run in 2021 during which it acquired Plateau Energy Metals. 

In 2021, the company involved its ground team in Peru to share technical knowledge with the Nevada team. The Peru team's technical expertise is being employed at the Falchani asset in Nevada. Dr. Laurence Stefan, President, and CEO, along with Ted O'Connor, Technical Advisor, and Director, American Lithium have built the lithium asset in Peru over the past 15 years. 

The Macusani Uranium Project

American Lithium has taken measures to ensure a strong relationship with the local communities. Although the company has a pure lithium play, it is looking to achieve the right market evaluation for its uranium asset. The company plans to spin-off its uranium asset while retaining a decent stake, ensuring value generation for its shareholder base. 

The company is looking to spin out the uranium asset into an entity that would lead to advancement in the future. The Macusani Uranium Project is the 5th largest undeveloped uranium asset in the world. The operating costs for this project are cheaper than Kazakhstan, making it one of the cheapest uranium operations globally. Following the PEA (Preliminary Economic Assessment), the cost of uranium recovery was estimated at $17/lb. The company anticipates that following updated pricing for the PEA, there would be further reduction in the recovery costs. 

The Falchani Lithium Project

American Lithium's Falchani asset is currently being drilled through the company's owned rigs. The company has established multiple community agreements in the region and has garnered increasing support from the local population. The company's camp is based within the community and has received support in its operations. 

American Lithium also had a meeting with 6 community leaders and the President in regards to its lithium operations. Following the meeting, the company has received assistance towards advancing the lithium asset through strong support from the communities, and the local jurisdiction. 

The Falchani Lithium Project is situated in one of the poorer areas of Peru. The ongoing pandemic has made the situation increasingly adverse. The company is looking to build a lithium industry in Peru. This will include the development of local infrastructure in the region. 

This project has a strong potential as the finished product is pure and refined, ready for use in cathode and battery plants. Although the project offers a certain jurisdiction risk due to a changing political environment, American Lithium's Falchani project is a strong asset that provides diversity to the company's portfolio. The Falchani Project has a unique style of mineralization that is ideal for developing one of the purest battery-grade uranium projects. 

Drill Operations

At the Falchani Lithium Project, American Lithium is looking to launch the next phase of drilling operations. The company is also looking to carry out infill and extraction drilling, followed by an updated PEA. 

The company is looking to move its resource from inferred to M&I (Measured and Indicated). Additionally, the company is also looking to supply cesium and potash, 2 strong by-products of the lithium manufacturing process. These by-products were not included in the previous PEA. 

As per the global cost curve, the Falchani asset is becoming a project with a strong cost profile for the first quartile. Once the company moves its resource into the M&I category, it is looking to conduct a Feasibility Study. 

The TLC Lithium Project

American Lithium is looking to conduct a PEA on its TLC Lithium Project in the near future. The company plans to publish a maiden PEA resource by the end of Q1 2022. The company's Peru team that was responsible for developing the Falchani Project is sharing its knowledge and expertise with the Nevada team. 

The company had previously outsourced a part of its work to labs and took assistance from contractors. However, a major part of the technical expertise comes from the in-house team. American Lithium has a technically capable team along with the financial resources to advance both the Nevada and Peru projects simultaneously. 

The company anticipates the Falchani project would be the first in line for the Feasibility Study. Although, given the speed of permitting within the United States, the pilot work approval for the Project in a lab environment has the potential to accelerate the process. 

As the TLC project is based in Nevada, the company benefits from a strong mining jurisdiction. The permitting process is comparatively longer, but once the mine is built, the company can quickly enter production. American Lithium is currently looking for ways to fast-track the permitting process. 

The company's permit for the next phase of drilling was attained after a 12-month period. Given the company's strong environmental track record, there are expectations that the upcoming permits will be approved at a faster rate.

To find out more, go to the American Lithium Website