Assays Underway for Phase I at Lithium Co.'s Nevada Project

Source: Streetwise Reports 06/27/2024

American Salars Lithium Inc. (USLI:CSE) receives confirmation that a geochemistry laboratory has received samples collected during the Phase I exploration program at its 100%-owned Black Rock South lithium bring project in Nevada. One analyst says the stock is a Strong Buy.

American Salars Lithium Inc. (USLI:CSE) announced it received confirmation that a geochemistry laboratory has received samples collected during the Phase I exploration program at its 100%-owned Black Rock South lithium bring project in Nevada.

The company said ALS Geochemistry Laboratory in Reno received 121 samples collected from the project, which is 11 miles north of the Galt claim group under option to Surge Battery Metals, where samples as high as 852 parts per million (ppm) lithium have been found, and 72 miles north of Tesla’s Gigafactory.

American Salars will use the data to plan an upcoming Phase 2 at the site, which Chief Executive Officer R. Nick Horsley said, “compliments our established and growing lithium resources in Salta, Argentina.”

“The company continues to see strong M&A and strategic funding announcements across the lithium sector,” Horsley said. “American Salars and our expanding team of lithium experts believe now is the time to acquire lithium resources, which will position our shareholders for the coming green era.”

Technical Analyst Clive Maund told Streetwise Reports that the stock was a Strong Buy “for both fundamental and technical reasons.”*

“The entire San Emidio Desert basin is a highly prospective lithium exploration zone and is about 38 kilometers long and up to 11 kilometers wide at the widest point, with the central playa measuring about 8.5 kilometers north-south and 4.5 kilometers east-west,” he said.

“After a massive speculative runup in 2020 and especially in 2021, the lithium price fell victim to a severe bear market that ran from mid-2022 through the end of 2023,” Maund continued. “By the end of last year, this bear market had exhausted itself, and a basing process began that has continued up to the present.”

American Salars said 58 soil samples were collected across and around the Black Rock South property, and 63 prospecting samples were collected.

The samples will be processed using Boyd RSD rotary crushers and a splitter with a 180-micron (80 mesh) sieve, aqua regia digestion, and 41 multi-element ICP-AES analysis (code ME-ICP41).

Geology Similar to Brine Area to Southeast

In addition to its location near the Gigafactory, the project is 93 miles southwest of Thacker Pass, and 215 miles northwest of the United States’ only producing lithium mine, the Silver Peak lithium brine mine owned by Albermarle Corp.

Technical Analyst Clive Maund told Streetwise Reports that the stock was a Strong Buy “for both fundamental and technical reasons.”

“The claims cover a conceptual target for lithium brines, which is very similar to the published geology of the Clayton Valley lithium brine production area approximately 200 miles to the southeast,” American Salars said in a release. “The concept is consistent with generally accepted data and theories about the formation of lithium brine resources. The target area is lithium — brines hosted in basin-fill sediments.”

Surge’s exploration at the nearby Galt claim group included 51 playa sediment samples. Aqua regia leaching of them showed 68 to 852 (part per million) ppm lithium (a mean of 365 ppm), 5.3 to 201 ppm cesium (mean 72 ppm), and 35 to 377 ppm rubidium (mean 180 ppm), Emerita noted.

Results from two 7-foot-deep auger holes showed lithium, cesium, and rubidium concentrations in the range of 143.5 to 773 ppm Li (lithium), 56.8 to 102.5 ppm Cs (cesium), and 155 to 272 Rb (rubidium). Those elements often form an assemblage.

Acquisition of Pocitos 1 in Argentina

American Salars is focused on lithium projects in North and South America, with projects in Argentina, the United States, and Canada.

This month, American Salars announced its agreement to acquire 100%-interest in the Pocitos 1 lithium salar project earlier this month. The project, which consists of 800 hectares (ha) near the town of Pocitos, has a National Instrument 43-101 Mineral Resource Estimate (MRE) from December of 2023 consisting of an Inferred 760,000 tonnes lithium carbonate equivalent (LCE), which will need to be updated as 40% of it covers the neighboring Pocitos 2 block.

The company also has an NI 43-101 compliant inferred lithium resource of 457,000 tonnes LCE at its Candela II project on the Incahuasi Salar.

The Catalyst: Sparking the Energy Transition

Lithium is an important part of the energy transition for electric vehicle (EV) batteries and energy storage systems. The soft and silvery metal also strengthens alloys and serves as a high-temperature lubricant.

China dominates the market, which is projected to grow from US$2.5 billion in 2023 to US$6.4 billion by 2028 at a compound annual growth rate (CAGR) of 20.4% from 2023 to 2028, according to a report by Markets and Markets.

Lithium prices fell below US$13,000 a ton this month, the lowest in 35 months, according to S&P Global Commodity Insights data, CarbonCredits.com reported. [OWNERSHIP_CHART-11095]

But the consensus among market analysts points to a recovery in lithium prices in the fourth quarter of 2024, Fastmarkets reported.

“This optimism is grounded in expectations of increased activity . . . to meet end of year targets, strong battery production seen in March and April finally filtering through upstream and low inventory levels necessitating restocking,” the website noted.

Ownership and Share Structure

American Salars said it has 28.8 million shares outstanding and 5.5 million warrants, according to the company.

As for insiders, the CEO Horsley owns about 1.83 million, or about 7.37%, with 4666,666 warrants. Strategic investor Hillcrest Merchant Partners owns 1 million shares or 4.03%. There are no institutional investors, and the rest is retail.

Its market cap is CA$6.4 million. It trades in a 52-week range of CA$0.45 and CA$0.11.

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Important Disclosures:

1. American Salars Lithium Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Salars Lithium Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund source June 17, 2024

1. For the quote (sourced on June 4, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: USLI:CSE, )