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Feature article May 27, 2016:

  

American Lithium Corp. Executing Large-Scale Strategy with Goal of Becoming Largest Resource Holder in Nevada

  

American Lithium Corp.

(TSX-V: LI)  (US: MNIKF)

 

For exposure to the lithium sector American Lithium Corp. offers exceptional risk-reward characteristics;

  • A pure lithium play, totaling 20,790 acres of brine claims, located in mining-friendly Nevada, USA, home to Tesla's Gigafactory.

  • Advancing the development of brines at the Fish Lake Valley Lithium Project, a newly assembled land package analogous in scope and size to neighboring Clayton Valley.

  • Li values at the Fish Lake Valley Project to date are comparable on par with Pure Energy Minerals, with values at a much shallower depth of almost from surface to 140 feet.

  • High values of companion minerals of boron and potassium in the brines will aid as future economic kickers for a lithium mining scenario. Testimony to its robustness, the project was once host to a historic boron brine operation (before the world knew Li would become the 'metal oil' of the 21st century). 

  • Highly experienced management team and skilled technical leadership.

 

 

Valuation Commentary: American Lithium Corp. (TSX-V: LI) (US Listing: MNIKF) is developing a lithium brine project in Nevada with world-class potential, approximately 25 km from Albemarle's Silver Peak (the only commercially producing lithium project in North America). The Company is executing on a large-scale strategy having assembled 100% of the entire heart of Fish Lake Valley structure (18,552 contiguous acres) that is believed analogous to the neighboring Clayton Valley structure (home to Albemarle, Pure Energy Minerals, and Lithium X), both valleys have similar hydrothermal enrichment models. American Lithium's Fish Lake Valley Project is advanced-stage and lithium values are encouraging enough for the Company to start to delineate the resource in the sediments of the brines, how big this gets is where things get interesting; the project exhibits hallmarks of major lithium resource presence with the footprint, scope, and scalability that will allow the Company to create a large critical mass presence -- something the market is thirsting for as global industrial manufactures look to ensure they have adequate domestic supplies of lithium to satisfy growing demands. American Lithium Corp. is the dominant lithium claim holder in Fish Lake Valley, and with the addition of the San Emidio Project located 100 km NE of Reno to its portfolio this May-2016, American Lithium Corp. now has a total of 20,790 acres of lithium brine claims in Nevada.

 

The Company is spearheaded by an experienced management team that is no stranger to major success, having individually employed well-timed visionary big-picture strategies at other companies. The team behind LI.V now was part of the same group that that were involved, long before the current lithium rush ever happened, with Pure Energy Minerals in its early-days; Pure Energy was recapitalized and advanced its flagship to resource (PE now hosts an inferred lithium resource of 816,000 LCE). Other past successes include major oil sand projects (e.g. Osum Oil Sands Corp. which attained a multi-billion dollar market cap) -- In short, American Lithium shareholders are in solid hands of people that are proven, technically savvy, responsible, prudent and plan with large-scale in mind.

Fig. 1. (above) American Lithium's Fish Lake Valley North bowl playa, in area of anomalous lithium / boron / potash brine mineralization.

 

American Lithium Corp. has ~42.3 million shares outstanding (post recent C$2 million financing), ~51.8M fully-diluted. The market cap is miniscule relative to the potential and the current share price presents an opportunity for shareholders to reap large returns as the Company advances to de-risk the Fish Valley Asset this Summer-2016 and prove its resource merit. Li values at the Fish Lake Valley Lithium Project to date are comparable on par with those found at projects in Clayton Valley such as Albemarle (Silver Peak) and Pure Energy Minerals, more importantly the values are at a much shallower depth of almost from surface to 140 feet. By focusing initially on the shallows the Company will aim to advance/re-risk the Project quickly and relatively inexpensively, then as encouraging results come in, potentially turn the shallows into a resource/reserve and move out deeper.

 

This Spring-2016 American Lithium Corp. announced the acquisition of the different pieces that make up the Fish Lake Valley land package that encompass the entirety of key structures of the South and North bowls, which contain the lithium-rich laden brines, and where gravity data shows distinct gravity lows. Previous owners included project generators that had been holding on to these coveted assets individually, waiting for the right suitor capable of meaningfully advancing the project with a cohesive strategy. In the North bowl American Lithium now has 100% control via 100% earn-in interest, with initial principal consideration already issued and development plan in place to attain 100%. In the South bowl the Company controls 100% via 80% earn-in interest.

 

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A robust hydrothermal enrichment situation exists in Fish Lake Valley

  

Neighboring Pure Energy has developed a model in Clayton Valley whereby Li concentrations are hydrothermally enriched along different fault lines, and so too, similarly, has American Lithium Corp. from the data collected at Fish Lake Valley. Past explorers of the two bowls in Fish Lake Valley approached from differing focus/perspectives; the south bowl playa and surrounding area was explored for the most part structurally (chasing other minerals), mapping structures in the process. The north bowl playa had been explored mainly peripherally (in the shallows, around the main body of the basin) for Lithium with great success, however past operators were not in a position to develop or explore further inward. American Lithium Corp. has the wherewithal to advance this to fruition and has the advantage of combining the data sets from both past explorers (which relate directly to each other) and correlate it to the understanding of the enrichment model that Pure Energy has proven.

   

Figure 2 a, b, & c (left);

 

a) Annotated area location map highlighting topographics, Northern Esmeralda County Nevada, lithium-bearing rocks in the ranges drain into the basins.

 

b) Inset (upper right); location map (click to access via Google maps).

 

c) Inset (lower left); gravity data shows a distinct gravity low (blue - violet color) in the heart of the Fish Lake Valley bowls.

Summary of Fish Lake Valley Claims (18,552 contiguous acres)

 

Figure 3. (above) American Lithium Corp.'s Fish Lake Valley Claims (18,552 contiguous acres). Fish Lake Valley is one of the most promising and largely undeveloped lithium brine basins in the State of Nevada.

Below is an overview of each section of the assembly that makes up the Fish Lake Valley Lithium Project claims

 

1) The North bowl playa (7,840 acres):

 

Figure 4a. North bowl

 

   

North bowl playa claims:

Fig. 4b (above) Partial map of near Surface Brine & Direct Push Drill Sample Locations, see NI 43-101 technical report [PDF] for expanded version, results, and analysis. In short, the Li values are quality, on par with Albemarle and Pure Energy Minerals.

  

Note how the drill holes (marked as blue dots) act as post marks, in the shallows, around the main body of the basin. Past operators were prevented from testing deeper due to wet conditions and needed to construct road access to go further inward. American Lithium Corp. will build access roads further in.

 

click to access

Q4 2015 NI 43-101

Technical Report

The valley fill sediments are thought to be 300 to 600 meters (985 to 1970 feet) thick at Fish Lake Valley based on the borehole and gravity data available. Data extracted from the 43-101 Technical Report on the Fish Lake Valley Lithium-Brine Project, November 30, 2015 indicate Lithium in sediments ranging in concentration from 116 ppm to 1040 ppm (average 540.7 ppm), boron from 110 ppm to 4070 ppm (average 1772 ppm), potassium from 0.7% to 2.24% (average 1.53%), and magnesium from 0.35% to 6.37% (average 2.09%). Sodium is abundant on the property with values ranging from 0.47% to >10% (upper detection limit). Brines tested to date also contain anomalous concentrations of the above listed elements, with lithium ranging from 0.81 mg/L to 150 mg/L, boron from <1 mg/L to 2670 mg/L, potassium from 30 to 13300 mg/L, and magnesium from 0.116 mg/L to 41.5 mg/L. In all, approximately 1080 meters (3545 feet) of direct push drilling was completed within 41 holes drilled at 25 sites. Depths probed ranged from 13.11 meters (43.01 feet) to 47.24 meters (154.99 feet). In addition 42 brine samples have been collected from hand held auger holes and surface waters. The property has proven to contain economically interesting lithium/boron/potassium brine mineralization. Important to note is that there is near total absence of magnesium in the brines, which is excellent as high levels of magnesium are problematic (costs go up significantly) when it comes to a production scenario due to its similarity to lithium.

 

 

Fig. 4c (above) Sonic drill – northeast section of playa looking northeast - 2012.

  

2) The South bowl playa (2,882 acres, A.K.A. the 'Atlantis' claims): The entity vending the Atlantis claims to American Lithium Corp. made the decision to acquire Atlantis after a review of geological mapping that showed the presence of lithium-bearing rocks in the ranges draining into the Property, and historical ground gravity data that showed a distinct gravity low in the heart of the Atlantis claims. The gravity low was interpreted as a strong indication for the presence of a sub-basin that could host lithium-bearing brines. Dr. John Oldow's more detailed gravity survey work in Esmeralda County in recent years better defined the historical gravity low as a deep, sub-basin, which led to the staking additional claims at Atlantis in January 2016, to expand the Property. Geophysical exploration at Atlantis in the form of additional gravity and electromagnetic surveys would assist in determining if conductive brines might be present at depth, followed by exploratory drilling of interpreted geophysical targets. As part of a regional lithium exploration program, the United States Geological Survey ("USGS") reported in Open-File Report 81-962 (1981) that historical drill hole FL-11a is located outside the eastern boundary of the Property, approximately 3 miles (4.5 kilometres) east of the centre of the interpreted sub-basin. Hole FL-11a was drilled to a depth of 450 feet (147 metres) and encountered lithium values in sediments ranging from 10 parts per million ("ppm") to 115 ppm and averaging 61.7 ppm for 67 samples analyzed. Lithium in sampled ground water ranged from trace at the end of the hole to 21 ppm at a depth of 55 feet (18 metres). American Lithium believes that drilling deeper holes at Atlantis within the area of the interpreted sub-basin could intersect aquifers potentially hosting trapped brines with higher contents of lithium than were encountered in the relatively shallow USGS hole drilled to the east of the gravity low anomaly. Also reported in USGS Open File Report 77-54 (1977) were the collection of 10 surface brine samples with lithium contents ranging 37 – 350 mg/l (ppm), averaging 159 mg/l (ppm), to the north of the sub-basin.

 

3) Fish South Lithium Property, Esmeralda County, Nevada (2,960 acres): The Fish South is a significant lithium brine exploration assets. Following completion of payments and share issuances, LI.V will hold an 80% interest in Fish South, subject to a 2.5% percent net smelter returns royalty in favour of the underlying property owner. LI.V plans to commence an initial work program during the second half of 2016.

 

4) 'Colorado Lithium Property', Esmeralda County, Nevada (~4,870 acres): 193 placer and 44 lode claims, American Lithium Corp. has rights to acquire a one-hundred (100%) interest in the Colorado Property, subject to a one (1.0%) percent net smelter returns royalty. The underlying holding company for the property (to be wholly owned by LI.V) is required make the following cash and common share payments (for these claims): an initial cash payment of C$200,000 (paid), and issue 400,000 common shares of the Company.

 

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Summer-2016 Development Plans for Fish Lake Valley: American Lithium Corp. will follow through with a development program in the range of US$1 million - $1.5 million for its Fish Lake Valley Lithium Project; building out ~3 - 4 miles of roads further into the playa (cost ~$15K/mile), and following additional ground gravity surveys, the team will probably set up a sonic drilling program, which is the most cost effective way (relatively inexpensive) to get the samples geologists need from the sediments. The team should be able to keep to under 5 acres of disturbed land, thus avoiding major permitting issues. The team will also conduct brine recovery, and evaporating testing. In short, the team will hone in on structures and sweet spots. A fault system has already been mapped leading directly through the claim blocks.

 

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Other area Nevada acquisitions:

American Lithium Corp. is accumulating a large, high quality portfolio of strategically located lithium brine properties in a region.

 

San Emidio Lithium Property located in north Nevada, Washoe County, Nevada (~2,240 acres): The San Emidio property was the focus of extensive exploration programs carried out over a four year period including a gravity geophysical survey completed in 2011, which indicates that an earlier discovered near surface lithium brine anomaly occurs on the west side of a basinal low. The proximity to a feature of this nature and the presence of lithium in the brines are criteria that are necessary for the formation of a Silver Peak style lithium brine deposit. Project generator Lithium Corporation completed exploration programs on the San Emidio property from 2009 to 2012, including sediment and brine geochemical studies, gravity geophysics, and two phases of direct push drilling. Anomalous lithium values were detected during the brine sampling program with assays ranging from trace to the highest lithium value of 81 mg/L. The gravity survey defined a basinal depression proximal to the San Emidio lithium in brine anomaly, similar to that seen in the area of the producing brine field in Clayton Valley, which is a direct analog of the San Emidio prospect. The direct push drilling confirmed the presence of lithium in the brines and outlined a lithium-in-brine anomaly approximately 1 km wide, and more than 5 km long, within which anomalous lithium enriched brines with concentrations ranging from trace up to 23.7 mg/L were encountered at depths ranging from 24 to 39 meters subsurface. As is the case at Clayton Valley, lithium concentrations in brines at San Emidio may be reasonably be expected to increase at depth. American Lithium Corp. has rights to earn an 80% interest in the San Emidio Property following an initial cash payment of US$100,000, and upon completion of exploration expenditures of not less than US$600,000, and the issuance of 300,000 common shares of the Company. Once 80% is obtained, it can acquire the balance of the property, subject to a two-and-one-half (2.5%) percent net smelter returns royalty, through the payment of US$1,000,000.

 

Brine is by far the easiest and lowest cost type of lithium resource to process (compared to rock and clays), generally easier to explore, has a small environmental footprint, is faster to put into production, and requires less capital. Below is expanded insight on American Lithium's Fish Lake Valley Lithium Project.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

Recent salient Company news releases

Location, Region, and Infrastructure

 

American Lithium's Fish Lake Valley Lithium Project is located in a stable mining-friendly jurisdiction, and has good infrastructure.

 

Fig. 5 (above) location map. The Fish Lake Valley Lithium Project is located in West Central Nevada, Northern Esmeralda county.

 

Mining-friendly state:

 

Nevada is unanimously agreed in the mining community to be a stable, mining friendly region and is ranked as a top-tier jurisdiction by the Fraser Institute. The state is known for access to public lands, streamlined permitting, and a supportive State government.

 

No Issues: Locally, there are no issues for the Fish Lake Valley Project. There has not been much development in the area, American Lithium Corp. are first-movers in Fish Lake Valley. There is a farming community to the far west of where the project is, but nothing where the project is. To the Nevada government the development in Fish Lake Valley would is considered welcomed, as it has been for others in neighboring Clayton Valley as activity leads to invigoration of the whole community and area, driving industry and business.

 

The experience Pure Energy Minerals has had in its dealings with the Nevada Department of Mines on its lithium project in Clayton Valley was one of excellent cooperation, especially since the innovative new lithium extraction technology proposed (Tenova Bateman LiSX technology) for the brines is highly-environmentally friendly (relative to Albemarle's antiquated evaporative method), highly-effective (a small scale pilot program achieved recovery of 99.6%), low-cost, and the technology actually upgrades the water, helping the area.

 

Local Infrastructure:

 

Access is excellent in Fish Lake Valley with all weather gravel roads leading to the property from Highways 264 and 265 and maintained gravel roads ring the Playa. Power is available approximately 9 miles (15 km) from the property and the village of Dyer is approximately 12 miles (20 kms) to the south and the town of Tonopah Nevada is approximately 46 miles (75 km) to the East.

 

 

Regional Geology and the Clayton Valley Model

 

 

Figure 6 (above) Idealized diagram of neighboring Clayton Valley - This model shows the different fault systems and different flows that enrich sediments along the faults, as flows gets closer to the faults they create brine enrichment coming up along the fault. The lithium brines are hosted within loose sediments (gravels, sands, silts etc.) that infill the extensive and deep basin.  Some geologists theorize that the system is actually self-generating, and this would help explain why Albemarle's Silver Peak which began producing in 1966 was forecast to have stopped producing over 15 years ago yet is still in operation today.

 

American Lithium Corp.'s development team is using a similar model for Fish Lake Valley and will be looking for fault structures. The logic and thought is that there is a solid track system of structures that will lead to really good enrichment and its coming all the way up to surface. This summer-2016 development program is expected to involve drilling a lot of shallow holes, lots of excavation work, and backhoeing toward resource at surface, plus the Company still has the classic play that exists in the valley according to the model deeper in.

 

Gravity lows

  

 

Figure 7 (above) - gravity data shows a distinct gravity low (blue - violet color) in the heart of the Fish Lake Valley bowls, Clayton Valley is the gravity low in the center of the image.

 

Claims covering the heart of the North bowl structure (7,840 acres):

 

 

Figure 8 (above) - Claims map north bowl structure. The terms of the formal agreement with the underlying vendor signed with 1032701 (wholly owned by American Lithium Corp.); payment of $300,000, issuance of 400,000 common shares of the publicly traded company anticipated to result from a Going Public Transaction, and work performed on the property by the Optionee in the amount of $1,100,000 over the next three years to earn an 80% interest in the property. 1032701 then has a subsequent Earn-In option to purchase The vendor’s remaining 20% working interest within one year of earning the 80% by paying the Company a further $1,000,000, at that point the Company would retain a 2.5% Net Smelter Royalty, half of which may be purchased by 1032701 for an additional $1,000,000. Should the Purchaser elect not to exercise the Subsequent Earn-In, a joint venture will be established. During the Joint Venture, should either party be diluted below a 10% working interest – their interest in the property will revert to a 7.5% Net Smelter Royalty.

 

 

Figure 9 (above) - North bowl playa image, lithium enriched salt pan.

 

Claims covering the heart of the South bowl structure (2,882 acres, A.K.A. the 'Atlantis' claims):

 

The following information on the South bowl is mainly from excerpts of the recent (May 9, 2016 news release from American Lithium).

 

Excerpt:

American Lithium Corp. has entered into an agreement to acquire all of the outstanding share capital of 1065604 BC Ltd. ("1065604"), a private British Columbia mineral exploration company that holds a right to acquire a series of 69 placer claims and 19 association placer claims, comprising a total of 2,882 acres, located in Esmeralda County, Nevada, and known as the Atlantis Property, ("Atlantis", or the "Property").
 

Michael Kobler, Chief Executive Officer of American Lithium, commented "We are excited about adding the Atlantis claims in Fish Lake Valley, growing our Nevada lithium portfolio to over 10,000 acres. By combining the geologic data sets generated by both Lithium Corp. and Nevada Sunrise Gold Corporation in the Fish Lake Valley, American Lithium has determined that the geologic and structural features are strongly analogous to the structural and geologic settings at Albemarle's Silver Peak Lithium-Brine operation at Clayton Valley, 25 miles to the southeast. Detailed gravity data acquired by Nevada Sunrise last season confirms gravity lows or basement troughs beneath both the Nevada Sunrise and the Lithium Corp acreage. The structural data confirms a bounding northeasterly striking fault, with northeasterly crossing faults, rich in hydrothermal enriching conduits. The team at American Lithium, given the new data, is now implementing a development program to exploit the Fish Lake Valley assets."
 

About Atlantis
Atlantis is located in a desert basin that exhibits similar geological and geophysical characteristics to the Clayton Valley basin where lithium brines are known to accumulate in faulted sub-basins, or "traps". Nevada Sunrise made the decision to acquire Atlantis after a review of geological mapping that showed the presence of lithium-bearing rocks in the ranges draining into the Property, and historical ground gravity data that showed a distinct gravity low in the heart of the Atlantis claims. The gravity low was interpreted as a strong indication for the presence of a sub-basin that could host lithium-bearing brines. Dr. John Oldow's more detailed gravity survey work in Esmeralda County in recent years better defined the historical gravity low as a deep, sub-basin, which led Nevada Sunrise to stake additional claims at Atlantis in January 2016, to expand the Property. Geophysical exploration at Atlantis in the form of additional gravity and electromagnetic surveys would assist in determining if conductive brines might be present at depth, followed by exploratory drilling of interpreted geophysical targets.
 

As part of a regional lithium exploration program, the United States Geological Survey ("USGS") reported in Open-File Report 81-962 (1981) that historical drill hole FL-11a is located outside the eastern boundary of the Property, approximately 3 miles (4.5 kilometres) east of the centre of the interpreted sub-basin. Hole FL-11a was drilled to a depth of 450 feet (147 metres) and encountered lithium values in sediments ranging from 10 parts per million ("ppm") to 115 ppm and averaging 61.7 ppm for 67 samples analyzed. Lithium in sampled ground water ranged from trace at the end of the hole to 21 ppm at a depth of 55 feet (18 metres). American Lithium believes that drilling deeper holes at Atlantis within the area of the interpreted sub-basin could intersect aquifers potentially hosting trapped brines with higher contents of lithium than were encountered in the relatively shallow USGS hole drilled to the east of the gravity low anomaly. Also reported in USGS Open File Report 77-54 (1977) were the collection of 10 surface brine samples with lithium contents ranging 37 – 350 mg/l (ppm), averaging 159 mg/l (ppm), to the north of the sub-basin.
 

In consideration for the acquisition of all of the outstanding share capital of 1065604, the Company will issue 4,533,334 common shares and will assume 1065604's obligations to Nevada Sunrise in respect of Atlantis. In order to complete the acquisition of Atlantis, the Company will be required to complete certain cash payments and exploration expenditures to Nevada Sunrise, as well as the issuance of up to 1,250,000 common shares over a period of three years.
 

All securities issued in connection with the acquisition of 1065604, and securities issued to Nevada Sunrise for Atlantis will be subject to a four-month statutory hold period. Closing of the acquisition of 1065604 remains subject to a number of conditions, including approval of the TSX Venture Exchange, as well as such other conditions as are customary in transactions of this nature.
 

About the 1065604 Nevada Sunrise Transaction
Atlantis is the subject of an option agreement between Nevada Sunrise and a Nevada-based property vendor. 1065604 has the option to earn an 80% interest in Atlantis from Nevada Sunrise, subject to a royalty in favour of the underlying property vendor, by making payments of cash and common shares to Nevada Sunrise, incurring exploration expenditures, and meeting certain other conditions, as follows:

  • An initial cash payment of US$48,000 (paid);

  • A further cash payment of CDN$100,000 within thirty days of entering into the option (paid);

  • Incurring exploration expenditures of not less than US$1,000,000, consisting of US$100,000 on or before the 1st anniversary, an additional US$250,000 on or before the 2nd anniversary, and an additional US$650,000 on or before the 3rd anniversary; and

  • Issuing 1,250,000 common shares of the Company, with 250,000 common shares issuable within sixty days of the acquisition of 1065604 by American Lithium, 500,000 common shares issuable on or before the 2nd anniversary, and 500,000 common shares issuable on or before the 3rd anniversary.

...click here for full copy from source

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San Emidio Lithium Property, Northwestern Nevada, Washoe County (2,240 acres)

 

 

Figure 10a. (above) - Photo of property. The claims cover the most prospective portion of the playa where ongoing sampling has determined anomalous concentrations of Lithium occur in sediments, and in brines.

 

Figure 10b. (above) - location map

Project generator Lithium Corporation completed exploration programs on the San Emidio property from 2009 to 2012, including sediment and brine geochemical studies, gravity geophysics, and two phases of direct push drilling. Anomalous lithium values were detected during the brine sampling program with assays ranging from trace to the highest lithium value of 81 mg/L. The gravity survey defined a basinal depression proximal to the San Emidio lithium in brine anomaly, similar to that seen in the area of the producing brine field in Clayton Valley, which is a direct analog of the San Emidio prospect. The direct push drilling confirmed the presence of lithium in the brines and outlined a lithium-in-brine anomaly approximately 1 km wide, and more than 5 km long, within which anomalous lithium enriched brines with concentrations ranging from trace up to 23.7 mg/L were encountered at depths ranging from 24 to 39 meters subsurface. As is the case at Clayton Valley, lithium concentrations in brines at San Emidio may be reasonably be expected to increase at depth.

 
American Lithium has entered into an agreement to acquire all of the outstanding share capital of 1067323 B.C. Ltd. To acquire an eighty (80%) interest in the San Emidio Property, 1067323 is required to make payments of cash and common shares, and incur exploration expenditures, as follows:
 

• An initial cash payment of US$100,000.
• Incurring exploration expenditures of not less than US$600,000, consisting of US$100,000 on or before the first anniversary, an additional US$200,000 on or before the second anniversary, and an additional US$300,000 on or before the third anniversary.
• Issuing 300,000 common shares of the Company, with 100,000 common shares issuable following the acquisition of 1067323, 100,000 common shares issuable on or before the first anniversary, and 100,000 common shares issuable on or before the second anniversary.
 

Once 1067323 has earned an eighty (80%) interest in the San Emidio Property, it can acquire the balance of the property, subject to a two-and-one-half (2.5%) percent net smelter returns royalty, through the payment of US$1,000,000.

 

San Emidio Lithium Property Project map Photos:

Fig. 11 - San Emidio property - looking east across playa

Fig. 12 -Direct Push drilling - Jan 2012

Fig. 13 -Hand auguring - surface brine sampling

Fig. 14 -San Emidio - looking SW across part of the playa

 

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Lithium demand growing ever stronger

 

Figure 15 (above) Lithium carbonate price chart

An upsurge in future lithium demand and tight market conditions has lead to an increase in spot prices from approximately US$7,000/tonne in September 2015 to over US$20,000/tonne in some instances more recently. However big industry players do not generally buy on the spot market as there is no commodity market for lithium products (like those for copper or silver), prices are set by negotiation between producers and customers subject to customer specific needs and price trends. These, in turn, are driven by big players in the industry.

 

There is enough lithium production capacity around the world right now to meet current demand. But the demand for the energy metal is growing at a dramatic pace, and the thing about trying to forecast demand of a technology trend that is changing the world is that it is easy to underestimate the voracity of demand. As it is now, Citigroup estimates worldwide lithium demand will increase 64% in the next five years alone, and longer-term lithium demand forecasts are even stronger. Multinational advisory firm Global Lithium LLC estimates that lithium demand will nearly quadruple in the next 10 years, which means production capacity will also have to quadruple to meet demand. Translation: There will be continued pressure on lithium prices to rise higher.

 

Demand can be met with capital infusion and its heading into this industry in a major way, as global industrial manufactures look to ensure they have adequate supplies of lithium to satisfy growing demands, and the push is on to secure domestic sources. Both the US government and big business have stated they want domestic sources of lithium as it is the future of energy. Naturally they want to avoid supply chain risk down the road, e.g. not beholden to foreign sources that can disrupt or hold ransom the supply chain.

 

 

Lithium super-cycle

 

Goldman Sachs has labeled Lithium "new gasoline". Lithium-ion batteries for electric cars, and energy storage systems have supplanted laptops, smart-phones, tables, and power-tools as the main drivers for demand. Driven by the rise of battery gigafactories, game-changing Powerwall, and energy storage businesses, the world is now at the beginning of a lithium super-cycle that is all about securing new supply. Despite higher lithium prices, battery prices have fallen dramatically, and are expected to continue falling as new players enter the market and gigafactory-style economies of scale come online. The economies of scale are expected to make unsubsidized electric cars as affordable as gas cars in the next six years, spurring widespread adoption. Goldman Sachs estimates electric vehicles (currently at ~3% penetration) will achieve 22% market penetration by 2025, the firm further estimates that a 1% increase in penetration should increase lithium demand by 70,000 tonnes of lithium carbonate equivalent (LCE) per year (that figure represents close to half of current global demand for lithium). Goldman Sachs believes that the lithium market could triple in size by 2025 just on the back of electric vehicles alone, there will also be a rise in hybrids on top of that.

 

Figure 17 (above) Tesla's Gigafactory under construction in Nevada.

 

Tesla's Gigafactory is expected to produce 50 Gwh in annual lithium-ion battery production by 2020. Tesla's Gigafactory is not a one-off, several other large-scale facilities coming online in the next five years will likely take global capacity much higher.

Figure 18 (above) Powerwall

  
Tesla produced less than 50,000 cars in 2015, however that is about to change as it ramps up to produce a more mass-market Model 3 (under US$40,000 retail, targeting the middle class) -- the new Model 3 already has ~400,000 pre-orders (as of April 21, 2016), and according to Benchmark Mineral Intelligence when that number hit 325,000 pre-orders (within a week after launch) the firm calculated that number alone will increase demand for lithium hydroxide by 20-30%. Elon Musk himself mentioned during the unveiling of the Model 3 that Tesla will be gobbling up much of the world's lithium supply with plans to produce 500,000 EVs per year. "In order to produce a half million cars per year…we would basically need to absorb the entire world's lithium-ion production." Tesla's soon-to-be-completed Gigafactory will produce more lithium-ion batteries than the rest of the world combined. This is only one company, and there are many players making an entrance; BMW has announced it is getting into the electric car business, Nissan has announced it plans to produce 150,000 vehicles per year, General Motors wants to be the first to mass produce an affordable version via its US$30,000 Bolt at the end of 2016.

 
Li-ion batteries are also the most popular technology for the growing distributed energy storage system (DESS) and behind-the-meter (BTM) market segments. These systems accounted for an estimated 12.0% of new system capacity announced in 2015, the highest percentage of any year on record. While market activity picked up in a number of regions during 2015, North America remains the largest market for newly announced ESSs. An estimated 1,653.5 MW of new ESSs were announced worldwide in 2015, with around 33.8% of this new capacity coming from North America. ##

 

   

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American Lithium Corp.'s Technical Leadership, Management, and Governance

 

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity. Below is an overview of some of the bios we could get our hands on, sourced from recent news and filings:

   

Michael Kobler, P.Eng, CEO and Director

Over the past 35 years, Michael Kobler has specialized in identifying, acquiring, developing and producing natural resource opportunities throughout the world as well as coordinating the design and construction of a number of infrastructure projects. He has served in a variety of roles for early stage companies including, Chairman, Chief Executive Officer, President, Technical Advisor, Engineer and Project Manager, and has been a founder and a major shareholder in a number of these ventures. Mr. Kobler has a strong record of success in the exploration, permitting and de-risking of resource projects. His expertise in identifying opportunities through detailed examination of all available information combined with his in-depth knowledge of permitting processes, including detailed environmental work, and dealing with issues related to water supply have positioned him for projects across North and South America.
 

Mr. Kobler has been involved with exploration and mine planning projects at El Pauji in Venezuela as well as mine planning and development projects for HW Mining at La Serena and El Teniente in Chile. In North America, he was involved in developing the mine at the Sacaton Shaft in Casa Grande, Arizona and helped develop the Amethyst Mine at Creede, Colorado for HW Mining.

 

In 2005, Mr. Kobler was a Co-Founder and the original CEO of Osum Oil Sands Corp. (“Osum”). In that capacity he coordinated the analysis and subsequent acquisitions of the original oil sands leases that form the core of Osum’s projects at Cold Lake and in the Saleski carbonates, both in Alberta. During his tenure with Osum, Mike oversaw the growth of the Business from start-up to a valuation approaching $500 million; he also hired his successors to ensure the smooth transition of the Company to its next phase of growth and an equity value approaching $2 Billion.

 

Alan Abrams, B.Sc., Director

Mr. Abrams brings over 35 years of experience managing personnel, projects, and operations within the natural resources and infrastructure industries, both domestic and international. He has a proven history of creating management teams, establishing strategic alliances and joint venture partners, risk management, contractual negotiations, attentive budget management, and overall profitability. Mr. Abrams has managed over $1 billion of infrastructure construction including mass transit, hydroelectric, wastewater, and strategic defense as well as multiple mine development projects in North and South America. He has extensive experience in underground mining in Nevada including shaft sinking and mine development projects at the Newmont Leeville gold mine and the Pumpkin Hollow Shaft copper project where extensive drilling and grouting operations were performed to control groundwater inflows. He has also worked in several underground salt and dolomite mines including the Whiskey Island salt mine in Cleveland. He is currently President of Subterra Solutions, Inc., an international consulting firm and is Vice President of the Underground Division for Atkinson Construction Company. Mr. Abrams holds a B Sc in Mining Engineering from the Montana College of Mineral Science and Technology.

 

Dana Brock, B.Sc. Geologist and Engineer, Vice President, Director

Dana Brock is a field oriented Civil Engineer, Geologist and Engineering Geologist. For over 30 years, he has performed and directed investigations, designed facilities and supported construction and remediation. His experience spans a broad range of projects in the U.S. and ten other countries, including facilities development for geothermal well fields (Calpine, Unocal Geothermal, Kiewit, CalEnergy, Coso Operators); exploration, drilling and resource management for low temperature and mineralized waters (Sonoma Mission Inn, City of Calistoga and 29 Palms, Crystal Geyser and Mendocino Mineral Water); private and municipal water supply, distribution, impoundment and disposal (Cities of San Francisco, Santa Rosa, and Burlingame, Kendall-Jackson Wines and DeLoach Wines); basin management and due diligence and technical support for legal issues involving geothermal and oil well fields, mineral prospects and underground construction (Deutsche Bank, Florida Power and Light, Mission Energy, Gordon & Rees and Los Angeles Metropolitan Transportation Authority).
 

Michael Kobler, Chief Executive Officer of the Company, commented "Dana's experience with water resources, aquifer characterization and development are unmatched. Being both an Engineer and geologist makes him uniquely qualified to help manage the Company's ongoing projects, from initial characterization, permitting through development. Dana and I have worked together for over twenty years, he was instrumental in the startup of OSUM Oil Sands Corp, a successful junior oil sands startup. Dana has that get it done attitude and project knowhow that American Lithium needs going forward."

 

Andrew Squires, B.Sc, Director

Mr. Squires brings over three decades of resource development experience in the energy and natural resources industries both domestic and international. In this time, he has established a proven history of success in creating strong management teams and helping grow new resource ventures into prosperous operations. His entrepreneurial spirit combined with his all-encompassing technical, operational, and financial knowledge on the logistics and complexity in this sector are the talents that have led to his success in helping create and monetize value in the resource development sector. Of recent note, Mr. Squires was part of the original executive team of Osum Oil Sands Corp., a successful junior oil sands company, in which he was instrumental in creating the team and helping raise over $1 Billion in private equity taking the company to commercial production. Prior to starting Osum Oil Sands, Mr. Squires worked for his own consulting firm providing services for clients including Exxon, Pemex, PetroCanada and Chevron. Mr. Squires' engineering and management skills were honed working for companies such as Dominion Exploration, Paramount Resources and Amoco. Mr. Squires is currently an executive advisor for Osum Oil Sands Corp., President of AXS Industries - a global energy investment advisory firm, a Senior Associate of Renown AMG (upstream energy asset management company), and is actively engaged in a number of start-ups and financings in the energy storage, oilfield equipment, and aerospace fields. Mr. Squires holds a B.Sc. in Mechanical Engineering from the University of Alberta.
 

Michael Kobler, Chief Executive Officer of American Lithium commented, "I've known Andrew for over 10 years. He was the boilerplate behind the Osum Oil Sands team where we successfully built a company from inception to over a $2 Billion producing commercial entity. I am confident that Andrew will provide many important contributions towards the execution of American Lithium's corporate strategy."

 

 

 

Note: This list is not intended to be a complete overview of American Lithium Corp. or a complete listing of American Lithium's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact American Lithium Corp.'s head office at: Ph (604).681.0004

 

Company's web site: www.AmericanLithiumCorp.com   SEDAR Filings: URL

 

     

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Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.

*Estimates of potential made by analysts and publications are non 43-101 and not from the Company.

 

     

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