American Lithium Makes Significant New Lithium Discovery in Peru

About American Lithium

American Lithium Corp. is a lithium exploration and development company focused on advancing its projects in mining-friendly jurisdictions in the Americas. The company is headquartered in Vancouver, Canada and is listed on the TSX Venture Exchange.

American Lithium's flagship project is the TLC Lithium Claystone Project located in Nevada, where the company is advancing towards pre-feasibility. American Lithium also owns the large-scale Falchani Hard Rock Lithium Project and Macusani Uranium Project in southeastern Peru.

Highlights of the New Discovery

On September 26, 2023, American Lithium announced a significant new lithium discovery at its Quelcaya exploration project in Peru, located just 6 km from its flagship Falchani deposit.

The first drill hole at the Quelcaya target intersected a 222.5 meter interval of lithium mineralization averaging 1,560 ppm lithium, including a peak value of 2,668 ppm lithium. This is a substantial width of high-grade lithium mineralization.

The mineralization occurs in a different style compared to Falchani, being hosted in subvolcanic granitic rocks rather than volcanic tuffs. The crystalline nature of the granitic host rocks indicates potential for pre-concentration through standard methods like flotation.

Cesium and rubidium grades were higher than typical for Falchani, while potassium was similar. An 8 meter zone of anomalous cesium without lithium was also intersected in overlying rhyolitic cover rocks.

Significance for American Lithium

This new discovery has several important implications for American Lithium:

• It demonstrates that the Macusani plateau hosts multiple lithium deposits beyond just Falchani, increasing the lithium endowment and upside exploration potential.
• It shows that lithium is hosted not just in volcanic tuffs but also related granitic intrusions, opening up additional targets.
• The thickness, grade, and crystalline nature of the mineralization has favorable implications for mining and processing. Pre-concentration potential could allow production of a higher grade lithium concentrate.
• Additional drill results are pending which will provide more information on the size and scale potential of the deposit. The company is accelerating exploration.
• The proximity to Falchani provides obvious synergies for any future development, with the potential for a centralized production hub.

In summary, this is a very encouraging initial discovery that highlights the emerging lithium district American Lithium is consolidating in Peru's Macusani plateau. It adds resources, upside potential, and flexibility to the company's Peru lithium portfolio.

Investor Takeaways

For investors, American Lithium offers exposure to a portfolio of lithium assets in tier-1 mining jurisdictions, with near-term production potential at Falchani in Peru and a claystone project advancing in Nevada.

This latest discovery provides strong confirmation that American Lithium's Peru land package hosts multiple lithium deposits, enhancing the long-term growth pipeline.

The potential to improve lithium recoveries and concentrate grades through pre-concentration could be a game-changer in enhancing project economics. More work is needed to confirm this potential.

With lithium demand forecast to grow exponentially over the coming decade, exposure to assets that can be advanced quickly to production is key. American Lithium has the potential to be a low-cost producer from both its brine and hard rock projects to capitalize on the accelerating lithium market.

Backed by a strong management team with lithium expertise, American Lithium is well positioned to create value for shareholders through exploration, resource expansion, and development of its strategic lithium assets. This latest discovery provides further evidence of the significant lithium endowment and upside potential across the company's portfolio.

Conclusion

American Lithium's impressive new discovery in Peru highlights the emerging lithium district the company is consolidating in this prolific region. For investors, it signals strong potential for resource growth, project optimization, and long-term production expansion. With lithium demand set to accelerate globally, American Lithium offers exposure to strategically located lithium brine and hard rock assets that can be rapidly advanced. The company has the potential to be a major new lithium supplier thanks to these high-quality assets and continued exploration success, as highlighted by this latest discovery.