American Lithium talks 2019 Nevada drill programs

Jan 9, 2019

2019-01-09 09:40 ET – News Release

Mr. Mike Kobler reports

AMERICAN LITHIUM KICKS OFF 2019 WITH DRILL PROGRAMS IN NEVADA

American Lithium Corp. has provided 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 its FLV project in Fish Lake Valley, the nearby TLC project near Tonopah and evaluating additional opportunities across Nevada.

During 2018, American Lithium financed and conducted a continuing 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.

FLV project

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 five-to-10-hole program at FLV in the first quarter of 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 the company’s advanced modelling of the project.

TLC project

In 2018, American Lithium leveraged its basin modelling 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, Nev. 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 continuing 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.

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, in the highly prospective Esmeralda lithium district in Nevada.

The technical information within this news release has been reviewed and approved by Michael Collins, PGeo, a consultant to the company and a qualified person under National Instrument 43-101.

We seek Safe Harbor.

https://www.americanlithiumcorp.com/news/