American Lithium Timeline 2023 - Major Lithium & Uranium Resources

About American Lithium

American Lithium Corp. is focused on developing large lithium and uranium projects in mining-friendly countries across the Americas. It is prioritizing enabling the clean energy transition by progressing its TLC lithium project in Nevada, Falchani lithium project, and Macusani uranium project in Peru which is one of the largest uranium projects in the world.

All three projects have undergone initial economic assessments showing strong expansion potential and benefit from community backing. Led by Simon Clarke, the company aims to establish itself as a major secure supplier of key inputs for decarbonization located close to North American and South American clean energy markets.

What Happened in 2023?

December

New Auditor for FY 2024

American Lithium announced the appointment of Davidson & Company LLP as its new auditor for the 2024 fiscal year. Davidson replaces Ernst & Young LLP. American Lithium appointed Davidson and authorized EY to fully respond to any inquiries from Davidson about the matter to facilitate the transition. 

The appointment of Davidson provides American Lithium with an auditor who has significant experience auditing mining companies as the company focuses on developing lithium projects in the Americas, currently advancing its TLC project in Nevada, Falchani and Macusani projects in Peru. 

Tonopah Lithium Project Expands with Higher Grade

Results from step-out drilling at its Tonopah Lithium Claims (TLC) project in Nevada are announced which significantly expanded the high grade near surface lithium mineralization footprint. Highlights included 73.1 metres averaging 1,148 ppm lithium in hole TLC-2222C, 81.4 metres averaging 1,135 ppm lithium in TLC-2321C, and 80.8 metres averaging 1,090 ppm lithium in TLC-2242. The drill results extended the measured resource area by 850 metres to the north which will further refine the pre-feasibility mine plan for TLC. 

Petitions on Company’s Disputed Mining Concessions 

Peru's National Geological Mining and Metallurgical Institute (INGEMMET) and the Ministry of Energy and Mines (MINEM) have filed petitions to the Supreme Court of Peru seeking to assume jurisdiction and overturn the unanimous Superior Court ruling that confirmed the American Lithium’s title to 32 disputed mining concessions. 

American Lithium remains highly confident that the petitions will be rejected and that justice will prevail. The company will take all appropriate actions to protect its interests to continue rapidly advancing the development of its Falchani lithium and Macusani uranium projects.

‍November

476% Increase in Measured & Indicated Lithium Resource on Falchani Project 

American Lithium filed an updated independent technical report for its Falchani Lithium Project in Peru, supporting the 476% increase in measured and indicated lithium resource announced on October 31, 2023. Highlights include a measured and indicated resource of 5.53 million tonnes lithium carbonate equivalent at a 600 ppm cutoff grade.

The substantially increased resource estimate was achieved by converting much of the previously inferred resources to the measured and indicated categories based on additional drilling and metallurgical test work. Awaiting approval of company’s environmental impact assessment would clear the path for completion of the pre-feasibility study expected by mid-year 2024 as initial production was planned at 24,000 tonnes per year LCE expandable over time.

Clear Path to Production After Court Win

American Lithium won a court ruling upholding its ownership of 32 disputed mining concessions in Peru, confirming its rights to valuable lithium and uranium deposits. The company planned to update economic studies and permitting for its Falchani lithium project, targeting the first production by mid-2025. 

The company scored a major court victory in November by upholding its ownership rights to 32 disputed mining concessions in Peru. The unanimous ruling rejected regulators' earlier claims that the company had failed to properly pay concession fees. With the court ruling in hand, American Lithium planned to update the preliminary economic assessment for Falchani within weeks, aiming to complete a PFS by May 2024.

Early submission of EIA-sd for the Falchani Lithium Project

American Lithium submitted its Semi-Detailed Environmental Impact Assessment Study (EIA-sd) for the Falchani Lithium Project ahead of schedule to Peru's Ministry of Energy and Mines. Approval of the EIA-sd, expected within the coming months, would provide American Lithium several benefits as it continued to advance Falchani. The EIA-sd would enable 420 drill platforms across Falchani, accelerating exploration and resource definition. Completion of a Final Environmental Impact Assessment Study, contingent on the conversion of mineral resources to reserves as part of a Pre-Feasibility Study, would enable full-scale mine construction and production of the 26-year mine life-envisioned Falchani project.‍

October

Q2 Financial and Operational Highlights

In its second quarter of fiscal 2023 ended August 31st, American Lithium continued to make progress across all projects:

• The company made a strategic investment in Surge Battery Metals, acquiring a 9.7% stake to enhance its claystone profile in Nevada. 
• Exploration drilling at the Falchani project in Peru intersected high-grade lithium up to 5,465 ppm and 12,610 ppm caesium.
• Tests at its TLC claystone project in Nevada indicated the potential to achieve over 99.5% lithium purity while maintaining over 80% recoveries, which would represent a major value boost.
• Significant new lithium discovery at its Quelcaya prospect near Falchani, with assay results revealing continuous high-grade mineralization.

American Lithium published its first annual ESG report and held CAD $21.9 million in cash by quarter-end. As American Lithium advances its projects towards production, the company is positioning itself as a potential lithium supplier to major battery customers in the U.S.

September

Drilling Continued to Expand Falchani Lithium Project

Drilling at American Lithium's flagship Falchani Lithium Project in Peru delivered strong results, intersecting long intervals of lithium-mineralized material with grades up to 5,025 ppm lithium and 8,290 ppm caesium. The drilling extended the mineralization footprint 400 meters west of the previous resource boundary, demonstrating additional resource growth potential. 

Favorable permitting environment under Peru's new administration has made revitalizing mining a priority. As Falchani's resources continued expanding alongside advancing permitting, the new drill results were incorporated into an updated mineral resource estimate being prepared by Stantec Consulting and will provide an updated view of Falchani's world-class lithium resource potential.

Macusani Uranium Project Gains Credibility

American Lithium's Macusani uranium project in Peru was elevated to the "prospective mines" category in the World Nuclear Association's Nuclear Fuel Report, meaning it is now considered economically viable and likely to reach production. This elevation is due to the project's large resource size of 124 million pounds of U3O8, projected low costs, and timeline to production. 

With its large resource, economics, Peru’s policy shifts, and strategic interest, Macusani appears primed for further advancement and has clear potential to become a long-life, low-cost uranium producer as the quality of the Macusani asset and Peru’s jurisdictions attract strategic investors.

Responsible Mining in Inaugural ESG Report

American Lithium published its first annual Environmental, Social and Governance (ESG) report, outlining the company's commitment to sustainable mining practices. The report covers American Lithium's policies and performance on key ESG topics during the 2022 fiscal year. It states that American Lithium had no environmental regulatory violations or incidents related to waste, spills or hazardous materials. The company's greenhouse gas emissions remained minimal given its early stage of exploration and development and proactively engaged with indigenous communities near its projects in Peru to negotiate land access agreements in its aim to integrate responsible mining practices as it advances the development of its lithium and uranium resources in the Americas.

Refined Processing Method for Lithium Project

Positive results from ongoing metallurgical test work on mineral samples from its Tonopah Lithium Claims (TLC) project in Nevada were announced. Test works focused on optimizing the processing flowsheet and resulted in improvements including:

• Higher lithium recovery of 84.8%, up from 80.9% in the Preliminary Economic Assessment (PEA),
• Higher purity of 99.59% lithium carbonate versus 99.4% in the PEA.,
• Lower leach temperature of 50°C, down from 90°C, which could significantly reduce energy costs,
• Potential for lower acid consumption during leaching

These enhancements to the process have the potential to lower operating costs and improve project economics compared to PEA estimates. American Lithium progressed TLC towards PFS while working on drill programs to expand resources, supported by nearby discoveries by others highlighting TLC's growth potential beyond its 5.37 million tonne lithium resource.

New Lithium Discovery in Peru

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 intersected averaged 1,560 ppm lithium, including a high-grade peak of 2,668 ppm. This discovery demonstrates the Macusani plateau's potential to host multiple lithium deposits, expanding American Lithium's regional lithium endowment.

Additional pending drill results will provide more data on the discovery's scale as American Lithium consolidates in Peru, adding resources, upside potential, and flexibility to its portfolio.

August

Pause on Macusani Spin-Out

American Lithium deferred the planned spin-out of its Macusani uranium project in Peru for now due to difficult market conditions. Meetings with investors showed strong interest in Macusani but unacceptable IPO terms in the current environment. Rather than rush into an unfavorable spin-out, American Lithium opted to pause for a moment and continue advancing Macusani itself. The company plans piloting work and discovery drilling in fall 2023 to further enhance Macusani’s value. American Lithium remains confident in the large resource, expansion potential, and strategic buyer interest. The company feels Macusani will gain maximum value as a separate public entity rather than selling now at a potential discount. With sufficient capital to fund near-term work, American Lithium plans to time the spin-out under improved market conditions, likely in 2023 or 2024. 

July

Q1 Results Highlights

American Lithium Corp. announced its financial and operating results for the first quarter ended May 31, 2023. The company is focused on advancing lithium projects in Nevada and Peru. In Q1 2023 highlights, American Lithium appointed engineering firms to lead pre-feasibility studies for its Falchani project in Peru and TLC project in Nevada. It also filed a preliminary economic assessment for TLC and received the first of three drill permits for Falchani, enabling the exploration of prospective targets.

‍Highest Grade Lithium and Cesium Samples Encountered at Falchani

American Lithium announced assay results from three diamond drill holes at its Falchani Lithium project in Peru under an ongoing Environmental Impact Assessment (EIA) hydrology drilling program. Highlights included intersecting the highest lithium and caesium grades seen from 1-meter samples - up to 5,645 ppm Lithium and up to 12,610 ppm Cesium.

The thick, high-grade lithium mineralization west of the resource along with the high cesium and lithium results allow expansion and provide valuable data to existing Falchani results. American Lithium continues to work constructively in Peru and anticipates further permits to expand resources, a key piece of an updated PEA targeted for late Q3 2023.

June

Investment in Surge Battery Metals

American Lithium completed its strategic investment of C$5.36 million in Surge Battery Metals, representing a 9.7% equity stake. As part of the investment, American Lithium received 13.4 million Surge units at $0.40 per unit, with each unit comprising one share and one 3-year $0.55 warrant. 

Additionally, American Lithium entered an advisory agreement with Surge under which it will provide technical guidance on the Nevada North Lithium Project and receive all relevant data. American Lithium’s Executive Vice President Ted O’Connor was also appointed to the Surge Board of Directors to represent American Lithium’s interests.

May

American Lithium Receives First of 3 Drill Permits for Falchani, Peru

American Lithium received the first of three permits from Peruvian authorities for drilling near the Quelcaya area located 5-6 kilometers west of its Falchani lithium deposit. This enabled the company to target new lithium mineralization on the best previously identified targets on the Macusani Plateau. Up to 8,000 meters of drilling is planned including discovery drilling at Quelcaya, deposit extension drilling west and northwest of the Falchani resource, and infill drilling to upgrade resources. Receipt of the permit provides validation of recent supportive government comments that mining in Peru is working “as normal” again and enables progress on lithium projects. ‍

April

US & European Battery Funds

While lithium prices have pulled back recently, American Lithium believes in longer-term fundamentals remain strong, attributing the pullback to market sentiment rather than supply and demand factors highlighting a prediction that two-thirds of US cars and light vehicles would be electric by 2032, representing massive growth in battery demand. 

American Lithium acknowledged challenges like ensuring sustainable lithium supply chains and developing more efficient battery technologies like solid-state batteries. Overall, the company was optimistic with many new players are entering the market, including automakers investing heavily in batteries which is driving innovation. The rapid growth in electric vehicles is also creating substantial opportunities for companies involved in battery production and lithium mining.

‍March

Fast-Track Completion of Pre-Feasibility Study for Falchani

Additional drilling restarted at Falchani to support the ongoing Environmental Impact Assessment. As a first step in the PFS process, the existing Preliminary Economic Assessment will be updated to incorporate potential sulphate of potash and caesium by-products, the new mineral resource data, and higher assumed lithium carbonate pricing reflecting recent market increases.  

American Lithium appointed DRA Global as the lead engineer to expedite the completion of a Pre-Feasibility Study (PFS) on the Falchani Lithium Project in Peru. As part of this, Stantec will update the mineral resource estimate to include new drill data and reclassify resource categories. American Lithium aims to accelerate the development of Falchani through the PFS while expanding the known mineral resources.

TLC PEA Report for Project Economics 

American Lithium filed an independent technical report on the Preliminary Economic Assessment (PEA) for its Tonopah Lithium Claims (TLC) project in Nevada. The PEA, completed by DRA Global and Stantec, demonstrated pre-tax NPV8% was $3.64 billion at $20,000/tonne lithium carbonate equivalent (LCE), including magnesium sulfate by-product sales boosted pre-tax NPV8% to $6.06 billion. The robust PEA and expedited feasibility work fast-tracked TLC's development. Overall, the TLC PEA demonstrates the potential for excellent project economics, with feasibility work underway to advance the project.

February

PEA and Uranium Spin Out

As the African Mining Indaba conference increased generalist investors’ interests in battery metals, American Lithium reflects on its fundamentals and achievements like the large TLC claystone lithium deposit in Nevada. Clarke reviewed the recently announced TLC preliminary economic assessment showing a $3.3 billion NPV, strong IRR, and favorable costs versus the Thacker Pass project. 

American Lithium committed to fast-tracking a preliminary feasibility study, pilot plant testing, completing the TLC preliminary feasibility study and spinning out the Macusani uranium asset to be its 2023 milestones.

January

Confirmatory Lithium Leaching and Lithium Carbonate Precipitation Test Results

American Lithium Corp announced results from confirmatory test work on lithium leaching and lithium carbonate precipitation using mineralization from its Tonopah Lithium Claims (TLC) project in Nevada. Key highlights included:

• Sulfuric acid leaching achieving 97.7% lithium extraction in just a 2-hour leach
• Overall lithium recovery from leach to primary lithium carbonate precipitation was 88.1%, with minimal lithium losses of 4.7% during neutralization and 4.9% during impurity removal and crystallization
• 99.4% purity lithium carbonate precipitation

With this TLC lithium carbonate precipitation results and ongoing optimization leach test work, this enabled the completion of flow sheets to produce battery-grade lithium carbonate/hydroxide for American Lithium.

Large Increase in Lithium Resources

Key highlights of the updated MRE included a 64% increase in measured and indicated resources to 8.83 million metric tonnes of lithium carbonate equivalent (Mt LCE). This comprised 4.2 Mt LCE in the measured category, up 25%, and 4.63 Mt LCE in the indicated category, up 129%. Inferred resources rose 5.7% to 1.86 Mt LCE. 

At a 1,200 ppm lithium cut-off grade, the measured and indicated resources contained 1.60 Mt LCE at an average grade of 1,402 ppm lithium, which American Lithium expects will have a positive impact on project economics.

American Lithium Receives Approval to List on NASDAQ

American Lithium Corp announced that it had received approval to list its common shares on the Nasdaq Capital Market. The company's shares were scheduled to start trading on Nasdaq on January 10, 2023, under the ticker symbol "AMLI". With this new listing, American Lithium's shares would cease trading on the OTCQB Venture Market but would continue being listed on the TSX Venture Exchange.

American Lithium Races to Supply EV Boom

With two major lithium projects, the TLC deposit in Nevada expected to cost $750 million, the larger Falcani project in Peru, and a significant uranium asset called Macusani, American Lithium was all set with its projects and industry outlook. With the electric vehicle and battery industries seeing massive growth, lithium demand is surging globally. American Lithium hoped to quickly advance its assets to production to establish itself as a major new supplier of lithium at the forefront of this boom and progress with plans to spin out its Macusani uranium asset to unlock hidden value for shareholders.