Vancouver, British Columbia — American Lithium Corp. (TSXV: LI) (OTCQB: LIACF) (FSE: 5LA) (“American Lithium” or the “Company”) following a highly productive 2018, is pleased to provide a look at plans for a sensational year ahead.
With rising interest in Nevada lithium, and particularly sedimentary-hosted lithium clay and claystone deposits as demonstrated by Lithium America’s Thacker Pass and Ioneer Ltd.’s (formerly Global Geoscience’s) Rhyolite Ridge projects, American Lithium is continuing development of the sediment-hosted lithium projects at our FLV project in Fish Lake Valley, the nearby TLC project near Tonopah, and evaluating additional opportunities across Nevada.
During 2018, American Lithium funded and conducted an ongoing basinal study of several regions of Nevada that hold promise to host sedimentary lithium resources. This year, American Lithium intends to undertake drilling at both its Nevada-based projects, along with rigorous testing to prove the most cost-effective method of leach production along with a number of related engineering studies aimed at building significant project value.
Adjacent to Ioneer’s Rhyolite Ridge Lithium claystone project which is currently undergoing advanced feasibility studies, American Lithium has moved quickly to become the dominant landholder in the region by acquiring over 22,000 acres of highly prospective lithium claims in Fish Lake Valley. American Lithium’s team has worked for several years to develop an extensive integrated geophysical basinal model that suggests the FLV project has claystone sedimentary parcels with the potential to host significant lithium mineralization at shallow depths offering potentially economic extraction opportunities.
In late 2018, 19 kilometres of seismic surveys, gravity surveys, delineation drilling, mapping and other basinal studies indicated that the potential lithium claystones of the FLV Project are up to 700 feet in thickness, much thicker than first envisioned. As a result, the Company expanded the FLV project holdings to the north and northeast on highly prospective ground. Initial exploration in the claim area utilizing a laser-induced breakdown spectroscope (LIBS) in-field analytical instrument identified outcropping lithium claystones with indicated grades averaging over 1,000 parts per million lithium (see news release dated Dec. 12, 2018). These values are comparable with the results seen at Ioneer’s Rhyolite Ridge project in what appears to be a contiguous claystone unit located to the south of American Lithium’s claims.
As a result, the Company is modifying its existing permits to drill thicker sequences to greater depths. American Lithium has selected a drilling contractor for the program and expects to begin a 5 to 10-hole program at FLV in Q1 2019. In addition to the claystone drill program, the Company is planning to retest core samples from 2016 brine drilling for lithium content in the playa clays and claystones. Solubility of the playa clays and claystones will also be tested to aid in defining and proving our advanced modeling of the project.
In 2018, American Lithium leveraged its basin modeling understanding of lithium claystone targets to secure the 1,550-acre TLC Project just a 30-minute drive to the east of FLV. The TLC claystone target is a near-surface, relatively flat-lying, free-digging target which is easily accessible and only 12 miles from the mining centre of Tonopah, Nevada. In addition, it is just south of the Crescent Dunes solar energy plant, the most economical source of electricity in Nevada.
Initial work at TLC confirmed the grade and extent of the lithium mineralization and has already resulted in the staking of additional claims. The TLC project is located close to logistics support, power and several options for water supply. The terrain is flat lying with a thin layer of sediments on top of the claystones, allowing for low stripping ratios to access the mineralized claystones for exploration and potentially future production.
At present, American Lithium has made application to drill a grid of shallow holes on TLC to determine the depth extension and thickness of the lithium-bearing claystones found at surface. The Company anticipates receiving a drilling permit during the first quarter and to commencing work shortly thereafter.
In connection with the ongoing development of the TLC project, the Company has commissioned a technical report in respect of the project, entitled “Technical Report on the TLC – Lithium Clay Property, Nye County, Nevada.” For further information regarding the TLC project, readers are encouraged to review the technical report, a copy of which is available on the Company’s website, americanlithiumcorp.com.
Mike Kobler, Chief Executive Officer of American Lithium, stated: “Exploration results in 2018 provided us with an exceptional basin model at Fish Lake and great assays to vector in on as we look to develop claystone lithium resources and to further demonstrate scale and production leachability. Our assessment and rapid acquisition of the TLC project, which is now under expansion, has positioned a second lithium claystone basin for rapid advancement. As all our tactical actions align, 2019 will be a watershed year for American Lithium’s long-term strategic plans for growth.”
About American Lithium Corp.
American Lithium is actively engaged in the acquisition, exploration and development of lithium deposits within mining-friendly jurisdictions throughout the Americas. The Company is currently exploring and developing two projects, the FLV and TLC Projects located in the highly prospective Esmeralda Lithium District in Nevada. These projects, within 30 miles of each other, are close to infrastructure, 3.5 hours south of the Tesla Gigafactory, and in the same basinal environment as Albemarle’s Silver Peak Lithium Mine, and several advancing deposits and resources including Ioneer Ltd.’s (formerly Global Geoscience) Rhyolite Ridge and Cypress Development Corp’s Clayton Valley Project.
The technical information within this news release has been reviewed and approved by Michael Collins, P.Geo., a consultant to the Company and a qualified person under National Instrument 43-101.
On behalf of the Board,
American Lithium Corp.
Michael Kobler, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the specific factors disclosed here. Information provided in this release is necessarily summarized and may not contain all available material information. All such forward-looking information and statements are based on certain assumptions and analyses made by American Lithium management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading “Risks Factors” in American Lithium’s most recently filed MD&A. The Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.