American Lithium Corp. announced an updated Mineral Resource Estimate (?MRE?) that significantly increases the contained lithium (?Li?) for the Falchani Lithium deposit (?Falchani?) located in Puno, southwestern Peru from the previous March 2019 MRE. The updated MRE update was completed by Stantec Consulting Services Inc. (?Stantec?) as part of the process of updating the preliminary economic assessment (?PEA?) for Falchani and will be incorporated into the mine plan within the updated PEA.

DRA Global (Lead Engineer for the updated PEA and PFS on Falchani) is now finalizing the updated PEA with completion expected during November. The geologic model used for reporting of lithium resources was developed using Seequent?s Leapfrog geological modelling software, Leapfrog Geo version 2023.1. and Hexagon Mining?s resource modelling and mine planning software, MinePlan version 16.1.1. The geologic model from which lithium resources are reported is a 3D block model developed using the World Geodetic System (WGS) 1984 UTM Zone 19S and is in metric units. Block size is 20m-X, 20m-Y and 5m-Z. Modeling method and approach is development of a multiple ore percent standard block model with interpretation of geologic controls on mineralization based on exploration data.

A significant new addition to the resource is the recognition of an additional mineralized basement lithological unit below the lower mineralized volcanic breccia horizon. A base case lithium resource cut-off grade has been calculated based on the economics of a medium size (100 Mtpa) run-of-mine (ROM) surface mining operation. Processing of the mineralized material would be onsite extracting lithium from volcanic tuffs, volcanic breccias and a coarse felsic intrusion using an acid digestion method.

Resources are reported from within an economic pit shell at 45-degree constant slope using Hexagon mining pseudoflow algorithm. Maximum pit depth is limited to 300 metres (?m?) below surface. No underground mining is considered.

The following mining, processing, royalty, and recovery costs, in US$, were used to derive a base case cut-off grade to produce a lithium carbonate (Li2CO3) equivalent product: Mining costs US$2.5/tonne; Processing costs US$50/tonne; General and administration US$1/tonne; and processing recovery of 80%. Revenue from a lithium carbonate product is estimated to be USD 20,000/t for the cutoff grade calculation. Using the above inputs and Li2CO3: Li ratio of 5.32, a base case cut-off grade for lithium is estimated to be 600 ppm.

The base case cut-off grade of 600 ppm lithium is lower than the previous MRE (Riordan et al., 2020) cut-off grade of 1,000 ppm lithium, mostly due to an increase in the assumed LC price.