American Lithium (TSXV: LI) is re-prioritizing its Falchani Lithium project, found in southern Peru. The firm this morning indicated that it will be fast-tracking the completion of a pre-feasibility study for the project.
As part of the effort to complete the study, DRA Global has been appointed as lead engineer on the project, while Stantec Consulting has been engaged to deliver an updated mineral resource estimate for the project. The revised resource estimate is expected to include the reclassification of current resource categories, while incorporating recent drill data from exploration conducted in 2022.
The company bills Falchani as an advanced-stage project that contains the sixth largest hard-rock lithium deposit globally. A preliminary economic assessment conducted on the project estimated that the project contains 0.2 MT of Li and 1.0 MT of Li2CO3 in the indicated category at 2,954 ppm lithium, and 0.7 MT of Li and 3.8 MT of Li2CO3 in the inferred category at 2,706 ppm lithium. The project is estimated to have a net present value of $1.55 billion, using an 8% discount, with an IRR of 19.7% after-tax.
The current PEA is expected to be update in conjunction with conducting the pre-feasibility study, the work for which reportedly began in the second half of last year. Potash sulfate and cesium by-products are expected to be included in the revised study, along with the updated resource estimate data. Hydrology drilling is also underway at the project.
Lastly, American Lithium is aiming to give the project a big boost in the form of revised pricing used for each tonne of LCE. The previous PEA was constructed using a price of $12,000 per tonne LCE, while the new study is slated to use a figure of up to $24,000 per tonne due to favorable pricing of lithium carbonate.
A timeline for the completion of the pre-feasibility study was not provided, although the updated PEA is expected to be released in the “near-term.”
American Lithium last traded at $4.07 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
