American Lithium Corp (AMLI)

[chico237]

American Lithium Shareholder Webinar | February 23, 2023

American Lithium Announces Positive Preliminary Economic Assessment for
TLC, Base Case – After-tax NPV8% US$3.26 Billion & After-tax IRR of 27.5%
https://americanlithiumcorp.com/wp-content/uploads/2023/01/NR_2023_02_01_TLC-PEA-Results-Announcement-FINAL.pdf
VANCOUVER, BRITISH COLUMBIA, February 1, 2023 – American Lithium Corp. (“American Lithium” or the “Company”) (TSX-V:LI | NASDAQ:AMLI | Frankfurt:5LA1) is pleased to announce the results of its maiden Preliminary Economic Assessment (“PEA”) for the Tonopah Lithium Claims (“TLC”) project located in the Esmerelda lithium district northwest of Tonopah, Nevada. This independent PEA was completed jointly by DRA Global and Stantec Consulting Ltd. (“Stantec”) and demonstrates that the TLC project has the potential to become a substantial, long-life producer of low-cost lithium carbonate (“LCE” or “Li2CO3”) with the potential to produce either battery grade LCE or lithium hydroxide (“LiOH”). The PEA base case envisions an initial 4.4 Million tonnes per annum (“Mtpa”) processing throughput expanding to 8.8Mtpa. The PEA alternative case is identical, but with added production of high purity magnesium sulfate as a by-product over life of operations. Unless otherwise stated, all dollar figures are in US currency.

TLC PEA Highlights (Base Case – Ramp-up Production Li only production):

Pre-tax Net Present Value (“NPV”)8% $3.64 billion at $20,000/tonne (“t”) LCE
After-tax NPV8% $3.26 billion at $20,000/t LCE
Pre-tax Internal Rate of Return (“IRR”) of 28.8%
After-tax IRR of 27.5%
PEA mine and processing plan produces 46 Mt LCE LOM over 40 years
Pre-tax initial capital payback period 6 years; after-tax payback 3.8 years
Average LOM annual pre-tax cash flow: $435 million; annual after tax cash flow: $ 396 million
Initial Capital Costs (“Capex”) estimated at $819 million
Total Capex estimated at $1,431 million; Sustaining Capital estimated at $792 million
Operating cost (“Opex”) estimated at $7443/t LCE inclusive of power credits
Simon Clarke, CEO of American Lithium states, “We are extremely pleased to announce a very robust maiden PEA for TLC. Our team has worked hard and spent considerable time getting an in-depth understanding of TLC mineralization and the best way to recover high purity lithium utilizing conventional processing methods with the latest techniques and best in class plant and equipment. A significant portion of the processing work has been done to pre-feasibility levels as we believe this will help us move quickly through the next phases of development. At 99.4% LCE purity, TLC offers the capability to produce either battery grade lithium carbonate or hydroxide with minimal additional refining.

In this PEA, we showcase a long mine-life utilizing only the highest-grade sections of the deposit, with the potential for additional production ramp-up and mine life utilizing our mid-grade and lower grade sections. Not only are the economics very strong for high purity lithium production, but TLC also has the potential to produce high purity magnesium sulfates as by-products for agriculture and other end uses. As shown in the PEA, even assuming conservative pricing, these by-products can add significant economic value. At the same time, we have focused our work on ensuring we continue to minimize environmental impacts and water usage in the mining, processing and production of lithium from TLC.”

TLC PEA Highlights (Alternate Case – Ramp-Up Production Li + Magnesium Sulfate production):

Identical LCE production scenario, but with added LOM average production of 1,681,856 tpa of magnesium sulfate (“MgSO4” – monohydrate and heptahydrate) by-products;
Pre-tax Net Present Value (“NPV”)8% $6.06 billion at $20,000/t LCE & $150/t MgSO4;
After-tax NPV8% $5.16 billion at $20,000/t LCE & $150/t MgSO4;
Pre-tax Internal Rate of Return (“IRR”) of 38.6%
After-tax IRR of 36.0%
Pre-tax initial capital payback period 5 years; after-tax payback 3.7 years
Average LOM pre-tax annual cash flow: $684 million; annual after tax cash flow: $ 591 million
Initial Capital Costs (“Capex”) estimated at $827 million
Total Capex estimated at $1439 million; Sustaining Capital estimated at $763 million
Operating cost (“Opex”) estimated at $7443/t LCE inclusive of power credits
Operating cost (“Opex”) estimated at $817/t LCE, inclusive of power & MgSO4 credits
PEA mine plan produces 46 Mt LCE and 64.9 Mt MgSO4 LOM over 40 years
Mine Life & Production

Simple truck and shovel open pit mining of the shallow resource underpins the scalable, long-life, lithium project producing approximately 24,000 tpa LCE over Years 1-6 expanding to 48,000 tpa LCE production for Years 7-19 years when mining ceases. Rehandling of the >1,000 parts per million (“ppm”) stockpile allows production to continue for Years 20-40.
Average LOM Production of approximately 38,000 tpa LCE for 40 years.
Targeted 1,400 ppm Li average feed grade pit-constrained resource supports mining for 19 years and processing >1,000 ppm Li stockpile for an additional 21 years.
1,400 ppm feed material beneficiation increases the head grade to leaching to 2,000 ppm Li.
LOM Strip Ratio (Waste:Ore) of 0.93:1 with a maximum final pit depth of ~325-350’, well above the water table depth.
Where possible progressive reclamation of mining areas is planned along with in-pit back-filling of waste rock and filtered tailings.
Sulfuric acid leaching using industry standard techniques and flowsheet produces high purity lithium carbonate to enable the production of battery grade LCE or LiOH.
PEA study estimates that for an additional $100M (Installed) Capex, and $406/t LCE Opex, a final conversion and refining processing step will enable the production of battery grade LiOH; or
End users have the flexibility of acquiring high purity LCE from TLC and converting it themselves to whichever product is required.
Magnesium sulphate (monohydrate) is an increasingly important fertilizer add-on product with a large and growing global market. High-purity hydrated products (heptahydrate & epsom salts) are used in the food, personal care and water quality industries.

Form your own opinions & conclusions above!

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Chico