American Lithium's Massive Peru Lithium Resource Increase Unlocks Huge Production Potential

• American Lithium announced a 476% increase in measured and indicated resources at its Falchani lithium project in Peru, now totaling 5.53 million tonnes LCE.
• The resource increase was achieved by converting inferred resources to measured and indicated through additional drilling and metallurgical studies.
• Falchani can produce high purity battery-grade lithium carbonate through a simple processing flowsheet, without the need for further refinement.
• The company is advancing Falchani quickly, with the environmental permit expected soon to allow completion of a PFS by mid-2024. Initial production is targeted at 24,000 tonnes per year LCE.
• Exploration continues to reveal huge upside potential in Peru, with a new discovery at Quelcaya of over 250 meters of high-grade lithium mineralization.

About American Lithium

American Lithium is focused on advancing large-scale lithium projects in mining-friendly jurisdictions in the Americas. The company is currently developing its flagship TLC lithium claystone project in Nevada, as well as the Falchani hard rock lithium project and Macusani uranium project, both located in southeastern Peru.

Robust preliminary economic assessments have been completed on all three projects, demonstrating strong economics and significant expansion potential. The projects also enjoy strong community support.

American Lithium is actively engaged in pre-feasibility work at both the TLC and Falchani projects. The strategically located TLC deposit represents one of the largest known lithium claystone deposits in North America. Falchani has recently seen a substantial increase in measured and indicated resources, positioning it among the largest hard rock lithium deposits globally.

With three highly prospective projects in safe mining jurisdictions, American Lithium is strongly positioned to capitalize on rapidly growing demand for lithium and uranium to support the global transition to clean energy.

Interview with CEO & Director, Simon Clarke & President & COO, Laurence Stefan

Falchani Lithium Project Drives Substantial Resource Increase

American Lithium recently announced a major increase to the mineral resource at its Falchani lithium project in southeastern Peru. The updated measured and indicated resource estimate totals 5.53 million tonnes LCE (lithium carbonate equivalent), representing a 476% increase over the previous estimate. This positions Falchani as one of the largest hard rock lithium resources globally.

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. Importantly, the resource remains open for expansion at depth and along strike, providing significant upside to grow the deposit further.

According to CEO Simon Clarke, the Falchani resource increase demonstrates the hard work and smart thinking of American Lithium’s Peru-based technical team. Despite permitting challenges under the previous political regime in Peru, the company was able to advance drilling under approved environmental impact assessments that also provided critical hydrological and metallurgical data. This allowed much of the inferred resource to be upgraded to the measured and indicated categories.

Key Advantages of the Falchani Deposit

Unlike many lithium projects which produce lower value lithium concentrates, Falchani has demonstrated the ability to produce high purity lithium carbonate through a simple processing flowsheet. This provides a key advantage, as the lithium carbonate product will not require expensive further refining and can be sold directly to end-use markets.

Additionally, Falchani benefits from thick high grade mineralization amenable to simple open pit mining methods. With mineralization starting at surface and extending up to 300 meters deep, the deposit provides flexibility for a smaller higher grade starter pit before expanding to full scale production.

The deposit is also strategically located with excellent infrastructure. Peru has a long mining history and Falchani is accessible via paved highway and high voltage power lines. Abundant water is available from the nearby Tambo river. A skilled local workforce is also available in the regional cities of Puno and Juliaca.

Advancing Towards Production

With the substantially increased resource estimate, American Lithium is progressing Falchani rapidly towards production. The company is currently awaiting approval of its environmental impact assessment, which will clear the path for completion of a pre-feasibility study expected by mid-year 2024.

According to President Laurence Stefan, the Peru mine permitting process typically takes just 6 months once the EIA is approved, enabling a relatively fast track to production. The company is currently well funded to advance development, with approximately $30 million in working capital.

American Lithium is taking a staged approach at Falchani to manage project scale and capital costs. Initial production is planned at 24,000 tonnes per year LCE, expandable to 48,000 after 6 years, getting to 100,000 tonnes per year LCE once in full production. At this scale, Falchani would rank among the world's largest lithium mines.

The PFS will refine operating and capital costs for the starter operation. The relatively low strip ratio, high grades, and simple processing will provide low operating costs per tonne. The starter capex is expected to be manageable for the company to self-finance or arrange with a strategic partner.

Huge Exploration Potential in Peru

Beyond Falchani, American Lithium has only begun to tap the potential of its extensive land holdings in Peru. In September 2023, the company discovered a new high-grade lithium zone called Quelcaya just 20km from Falchani. An initial drill hole intersected over 250 meters of lithium mineralization, demonstrating the potential for another major lithium discovery.

Additional targets have been identified across the 150,000 hectare property package. According to Laurence Stefan, the region could represent a new lithium district on the scale of the legendary lithium pegmatite mines in North America and Australia. Systematic exploration and additional discoveries could position American Lithium with multiple lithium sources to support long-term growth plans.

Conclusion

With its recently expanded resource estimate, Falchani has cemented itself as a world-class lithium deposit that can form the cornerstone of American Lithium's growth plans. The project checks all the boxes in terms of scale, grade, metallurgy and infrastructure. Plus Peru offers a relatively straightforward permitting and development timeline compared to many competing projects.

The company is well positioned financially to continue advancing Falchani, with approximately $30 million in working capital and no debt. Exploration results also continue to demonstrate the huge upside potential within American Lithium's Peru land package.

As lithium demand accelerates in the coming years, projects like Falchani with clear paths to near-term production will be in high demand. American Lithium provides investors with a unique opportunity to gain exposure to a potential emerging lithium producer on the cusp of development. With further positive progress de-risking Falchani this year, American Lithium's share price could re-rate substantially higher. Investors with a bullish outlook on lithium should take a close look at American Lithium.