FALCHANI LITHIUM PROJECT, PERU

PROJECT OVERVIEW

Our advanced-stage Falchani project is the 6th largest hard-rock lithium deposit in the world. It benefits from a highly sustainable business model in a geopolitically “friendly” jurisdiction.   
Base Case

PROJECT HIGHLIGHTS

4.7 Years Payback

$ 0 B
NPV (8%), Base Case

IRR 19.7% (after-tax using USD$12k/t Li2Co3 selling price)

Low CapEx

$ 0 M
Initial Capital

High Cash Flow

$ 0 M
Life of Mine (LOM)

US$430M average annually

  • Low second quartile operating costs (per Benchmark Mineral Intelligence)
  • Scalable, 33-year mine life producing battery-grade lithium carbonate (“Li2CO3”)
  • Estimated to be 6th largest hard rock lithium deposit globally*
  • Resource estimate** based on only ~30% of target area

 

*Based on the Company's review of publicly available information as at March 2019

**NI 43-101 report titled the “Falchani Lithium Project NI 43-101 Technical Report – Preliminary Economic Assessment” prepared by John Joseph Riordan, David Thompson, Valentine Cotzee of DRA Pacific and Mr. Stewart Nupen of The Mineral Corporation

  • Robust metallurgical testing indicates conventional processing will produce a high purity battery grade (>99.5%) lithium carbonate

ADVANTAGES

Location Advantages

American Lithium has acquired Plateau Energy Metals as of May 11, 2021.

Excellent Infrastructure

  • Easy transport
  • Low cost power
  • Labour
  • Water
  • Close to Two Oceans highway

Supply Security (Peru)

  • Mining supportive jurisdiction
  • Responsible mining practices

Exploration Advantages

Quelcaya Target

  • Outcrop mapping and sampling ~6 km west of Falchani deposit
  • 1.5 km mapped extent; sampling average grade of 2,986 ppm Li

Tres Hermanas

  • Three ridges of outcropping Li-rich tuff, interpreted as tilted upright compared to relatively horizontal at Falchani East and West
  • Each ridge estimated at ~80m high x ~750m long east-west
  • Surface samples up to 4,452 ppm Li, trenching in progress

Regional Targeting

  • 6 km by 5 km interpreted collapsed caldera setting as target for future exploration
  • ~ 20 km West, multiple surface samples up to 5,100 ppm Li from large Li-rich tuff outcrop

MINERAL RESOURCES

In March 2019, American Lithium released an updated resource estimate that increased the resource by more than 90 percent.

Minor discrepancies due to rounding may occur. Cut-off 1,000 ppm Li Tonnes are Metric Li Conversion Factors as follows: Li:Li2O=2.153; Li:Li2CO3=5.323; Li2O:Li2CO3=2.473 Geological losses of 5% or 10% have been applied, based on geological structure and data density. The average geological loss is 6%.

1 NI 43-101 report titled “Mineral Resource Estimates for the Falchani Lithium Project in the Puno District of Peru” prepared by Mr. Stewart Nupen, of The Mineral Corporation dated April 18, 2019

JUDICIAL RULING VALIDATES OWNERSHIP OF OCACASA 4 AND ALL DISPUTED 32 CONCESSIONS - POSITIVE IMPACT ON ECONOMICS

ALTERNATE CASE

*After-tax, average annual at steady state throughput of 3mtpa, based on a selling price of $12,000/t Li2CO3

US$844M, NPV (8%)

Base Case: US$1.5B

IRR 18.8%, after-tax*

Base Case: 19.7%

US$4,333 per tonne OPEX

Base Case: US$3,958 per tonne

US$587M Initial Capex

Base Case: US$587M

4.6yrs payback undiscounted

Base Case: 4.7yrs

26 years mine life

Base Case: 33 years

US$3,418M life of mine (LOM)

*cash flow after-tax
Base Case: US$8,977M

US$198M average annual LOM

*cash flow after-tax
Base Case: US$430M

23,000tpa Li2CO3,
Y1-Y7

*steady state quality production
Base Case: 23,000tpa

41,000tpa Li2CO3,
Y8-Y26

*steady state quality production
Base Case: 44,000tpa (Y8-Y12)

Long-Term Supply Cost Curves for Lithium: 2025