- American Lithium (TSXV:LI) has enhanced its stock’s shareholder value with a new mineral resource estimate (MRE) for the Falchani lithium deposit in Peru
- The new MRE increases measured and indicated lithium carbonate equivalent by 476 per cent to 5.53 million tonnes (Mt) (447 Mt grading 2,327 ppm lithium)
- American Lithium is developing large-scale lithium projects in mining-friendly jurisdictions throughout the Americas
- American Lithium stock (TSXV:LI) has lost approximately 30 per cent of its value year-over-year, but has added more than 150 per cent over the past five years
American Lithium (TSXV:LI) has enhanced its stock’s shareholder value with a new mineral resource estimate (MRE) for the Falchani lithium deposit in Peru.
The new MRE, completed by Stantec Consulting Services, increases measured and indicated lithium carbonate equivalent (LCE) by 476 per cent to 5.53 million tonnes (Mt) (447 Mt grading 2,327 ppm lithium). Stantec’s NI-43-101 technical report for the updated MRE is expected within 45 days.
2023 Falchani MRE highlights
- Measured resource: 1.01 Mt LCE (69 Mt grading 2,792 ppm lithium)
- Indicated resource: 4.52 Mt LCE (378 Mt grading 2,251 ppm lithium)
- Inferred resource: 3.99 Mt LCE (506 Mt grading 1,481 ppm lithium)
- Base case cut-off lowered to 600 ppm lithium from 1,000 ppm because of strong project economics, including updated operating costs and US$20,000/tonne lithium carbonate selling price
The Falchani project features an NPV (8 per cent) of US$1.55 billion and will generate an estimated US$430 million in cash flow per year for a total of almost US$9 billion during its life-of-mine.
American Lithium will incorporate the MRE into an updated preliminary economic assessment (PEA) for Falchani slated for this month.
“We are extremely pleased with the results of our EIA drill program and the very large increase in resources at Falchani, which includes doubling the contained lithium,” Simon Clarke, CEO of American Lithium, said in a statement. “Falchani is now one of the largest hard rock lithium projects globally with the ability to produce high-purity battery-grade lithium carbonate.”
“The inclusion of potassium, cesium and rubidium in the resource block model provides the opportunity to include sulfate of potash and Cs-Rb potential by-products into future financial modelling of Falchani,” he added. “DRA Global has commenced mine plan modelling and updating capital and operating costs for the updated PEA, expected within the next several weeks. These strong and strategic updates to the PEA will enable us to fast-track the completion of the pre-feasibility study.”
New Falchani MRE (Oct. 23, 2023)
Previous Falchani MRE (March 1, 2019)
American Lithium is developing large-scale lithium projects in mining-friendly jurisdictions throughout the Americas. Its three flagship projects boast robust preliminary economic assessments with significant expansion potential.
American Lithium stock (TSXV:LI) is up by 2.07 per cent trading at C$1.48 per share as of 9:37 am ET. The stock has lost approximately 30 per cent of its value year-over-year, but has added more than 150 per cent over the past five years.
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