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VANCOUVER, British Columbia, July 27, 2020 (GLOBE NEWSWIRE) -- American Lithium Corp. (TSXV: LI) (OTCQB: LIACF) (Frankfurt: 5LA1) (“American Lithium” or the “Company”) a leading lithium exploration and development operator is pleased to announce the signing of a letter of intent to acquire a 100% interest in certain privately held lands and the accompanying 1,176 acre-feet of water rights (the “LOI”). The acquisition of the water rights will allow American Lithium to continue advancing its flagship TLC project, near Tonopah, Nevada, by guaranteeing a supply of water for any planned future development.
The water rights come from a 326-acre farm whose water rights are part of the same hydrographic basin as the TLC Project, Basin 137-a, or ‘Big Smoky Valley – Tonopah Flat’. The purchase of the farm is a critical step in securing the required makeup water for the innovative patent-pending lithium recovery process for TLC’s unique lithium bearing claystones. Work to date has identified a pit-constrained resource (at 400 ppm cut-off) of 1.107 billion tonnes measured and indicated (“M+I”) plus 362 Mt inferred containing 5.37 million tonnes lithium carbonate equivalent (“LCE”) M+I and 1.76 million tonnes LCE inferred (see American Lithium news release dated May 20, 2020).
In addition, ongoing metallurgical processing and testing by McClelland Laboratories Inc. has shown highly encouraging results in simplifying the process for recovering lithium, that the lithium is consistently highly leachable throughout the project and that average extraction grades of 87% lithium can be achieved in minutes of leach contact time without the use of agitation or heat (see American Lithium news release dated June 17, 2020).
Pursuant to the LOI, American Lithium has paid a deposit to an arm's length vendor of $15,000, to allow for a due diligence period until August 31, 2020. On completion of satisfactory due diligence, the Company will complete a definitive purchase wherein transfer of the property interest and the water rights will be finalized through payment of $1.3 million USD, over a four-year period.
Michael Kobler, CEO of American Lithium, stated, “the goal of the lithium recovery process that is and continues to be developed for the TLC project is to be as water efficient as is practically possible. That said, there is makeup water required, and our goal with this purchase is to supply all the makeup water for the project. Our vision of resource and water conservation within the TLC project fits in with this acquisition. Our target is to have minimal impact on the land and water of the area around the project, and our efficient lithium recovery process and water rights are aligned with this goal.”
About the TLC Property
The TLC sedimentary lithium discovery is an exploration and development project located 12 kilometres northwest of Tonopah, Nev., and easily accessible by paved highway. Work to date has identified a 5.3-million-tonne measured and indicated lithium carbonate equivalent resource, with an additional 1.7 million tonnes inferred, placing the Company's resource amongst a handful of potential lithium deposits in Western North America capable of development. TLC is near surface, relatively flat-lying and a free-digging lithium sedimentary deposit that the company expects to advance through an early-stage economic study in 2020. Just south of the Crescent Dunes solar energy plant, the project is favourably located for future production given the immediate access to some of the cheapest electricity in Nevada.
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 the TLC project located in the highly prospective Esmeralda lithium district in Nevada. TLC is 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 Bruce Kienlen, P.Geo., a consultant to the Company and a qualified person under National Instrument 43-101.
Please watch our corporate video at https://www.americanlithiumcorp.com/our-company/ and review our informative short project update videos and related background information at https://www.americanlithiumcorp.com/projects/tlc-nevada/.
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.