VSA Capital Market Movers – American Lithium


VSA Morning Miner, 06/08/21

American Lithium

American Lithium (CVE:LI) has announced additional metallurgical results for the company’s Tonopah project in Nevada from the TECMMINE lab in Lima. The cooperation follows the recent acquisition of the Peruvian assets. The results on a third processing option; hydrochloric acid leach processing show the highest lithium recoveries to date at 95.1%.

This is the second acid-based process route which demonstrates strong recoveries at modest temperatures; the sulphuric acid route which achieved 92% recoveries was conducted at 80?C while the hydrochloric acid testing was conducted at 90?C. The third hydrometallurgical approach using a salt roast and water leaching yielded 82% lithium.

Optimisation of these process will continue into the latter part of the year to from the basis of the PEA. We see strong synergies being realised from the Peru acquisition with the use of the lab and application of previous testwork at Falchani to Tonopah. The metallurgical flexibility will mean that American Lithium can optimise the process and choose the flowsheet which performs best not only technically but economically and also in relation to the environmental impact. American Lithium will therefore be best placed to respond to future changes in environmental legislation and the dynamics of the reagent markets which go into these processes (the growth of the lithium market over the next decade has the potential to alter these significantly); we note the high level of recycling of hydrochloric acid which is possible under the latest method.

We reiterate our Buy recommendation and C$6.95/sh. target price.

Oliver O’Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: [email protected]

Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

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