American Salars Lithium Inc. [CVSE: USLI; OTC: USLIF; FSE: Z3P; WKN: A3E2NY] reports that its technical team members will be on site conducting an environmental monitoring assessment as part of the continuing environmental study at the Pocitos 1 lithium brine project in Salta, Argentina. The continuing study is a key component in preparation for follow-on production well drilling and moving toward feasibility studies, pilot production and follow-on commercial production.
It was previously announced on May 28, 2024, that the vendor had completed its environmental baseline assessment report that will be used for a production EIA (environmental impact assessment). The report was the culmination of four months work by E & C Asociados, a specialist environmental consulting group.
The company further announces it has made the payments required by the Argentine mining authorities.
The project has a December 2023, prepared NI 43-101 mineral resource estimate (MRE) consisting of an inferred 760,000-tonne lithium carbonate equivalent (LCE). The mineral resource is contained on the Pocitos 1 block (800 hectares) in combination with the neighbouring Pocitos 2 block (532 hectares). American Salars does not own the neighbouring Pocitos 2 ground, which comprises 40% of the gross land package that makes up the resource; however, it is notable that all drilling to date has been completed on American Salars’ Pocitos 1 block.
The mineral resource estimate was prepared by WSP Australia Pty. Ltd. WSP has relevant lithium resource expertise and experience working on many of the major lithium resources around the globe. The resource model will have to be updated to reflect the proportional number of resources on Pocitos 1 concession as the aforementioned resource was shared with Pocitos 2. Additional work on porosity and permeability will also enhance the MRE estimate.
Nick Horsley, CEO and director, stated: “In the past 120 days, we have seen close to $9 billion announced lithium industry M&A [mergers and acquisitions] and strategic funding with the majority focused on Argentina and the Lithium Triangle. We are excited to be moving the Pocitos 1 project forward with the ongoing environmental assessments required by Argentina’s mining authority in preparation for production well drilling, feasibility studies with the company’s ultimate goal of moving the Pocitos project towards a pilot plant and commercial production.”
The Pocitos 1 lithium brine project is located approximately 10 km from the township of Pocitos, where there is gas, electricity and accommodation. Pocitos 1 is approximately 800 hectares (1,977 acres) and is accessible by road.
Collective exploration since 2017 totals over US$2 million developing the project, including surface sampling, trenching, TEM (transient electromagnetic) and MT (magnetotelluric) geophysics and drilling three wells that had outstanding brine flow results. Locations for immediate follow-up drilling have already been designed and identified for coming exploration.
Lithium values of 169 parts per million from drill hole PCT22-03 packer test assayed from laboratory analysis conducted by Alex Stewart were recorded during the project’s December 2022, drill campaigns.
Ekosolve Ltd., a DLE (direct lithium extraction) technology company, was able to produce 99.8% purity lithium carbonate, where extraction was above 94% of the contained lithium in the brine (158.86 parts per million) of lithium would have been recovered from 169 parts per million.
WSP Australia completed an update of the NI 43-101 report initially written by Phillip Thomas, qualified person, in June, 2023, and estimated on an inferred basis using a block model with 6% and 14% porosity for the clay and sand lithologies, respectively, and an MRE of 760,000 tonnes of LCE on the combined Pocitos 1 (800 hectares) and neighbouring Pocitos 2 (532 hectares) block.
The highlights of the NI 43-101 report were as follows: highest lithium value tested using packer sampling system was 169 parts per million lithium at a depth of 363 metres; the MT geophysics survey has discovered a large area to the west with a resistivity of 0.4 ohm-metre and a depth of more than one kilometre; Ekosolve DLE technology pilot plant test work at University of Melbourne achieved 94.9% extraction efficiency with brines at an average lithium concentration of 86 parts per million lithium, of which 80.76 parts per million were recovered.
Significant brine flow was recorded in 2018 wells PO1 and PO2 and brine and gas in PO3 drilled in November, 2022. The company will start a new drill/production well program when the permits are issued by the Salta Mines Department.
The company granted 1,925,000 stock options to purchase common shares of the company to certain officers, employees and consultants pursuant to the company’s stock option plan. Such options are exercisable into common shares of the company at an exercise price of 12 cents per common share for one year from the date of grant.
Pocitos 1 closing: As previously announced, American Salars entered into an agreement with Recharge Resources Ltd. [CSE-RR], whereby American Salars is acquiring a 100% interest in the Pocitos 1 lithium brine project by issuing to the vendor five million common shares subject to a 24-month escrow and assuming an outstanding tax liability of the original seller estimated to be no more than US$250,000.
The company has been updated that the seller has placed a lien on the project. Additionally, the vendor notified the company that the vendor has yet to receive substantial evidence to suggest that the US$250,000 in taxes was in fact paid by the seller. The company does not expect that this will impact closing and moving the project forward. It should be noted that the company is in contact the seller and will look to negotiate a fair settlement and will defend its position if necessary.
