Lithium Explorer Awaits Nevada Lithium Brine Project Results

Source: Streetwise Reports 06/13/2024

American Salars Lithium Inc. (USLI:CSE) announced it has finished a Phase I exploration program on its Black Rock South lithium brine project in Nevada. One analyst writes that the stock is on course to possibly break out to new highs.

American Salars Lithium Inc. (USLI:CSE) announced it has finished a Phase I exploration program on its Black Rock South lithium brine project in Nevada.

The project is located 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 noted 58 soil samples were collected across the property, 63 prospecting samples were collected, and land research was completed on the property and the region.

“Our Black Rock South Lithium Project was acquired for its potential to host a lithium-bearing aquifer,” Chief Executive Officer and Director R. Nick Horsley said. “We’ve barely scratched the surface of its potential and we eagerly await the assays to determine the next steps and a plan (for) a Phase II exploration program.”

The Catalyst: ‘Entire Basin’ Prospective for Lithium

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.”

A Great Neighborhood

The Blackrock South Lithium Brine Project is located 72 miles north of the Tesla Gigafactory, 93 miles southwest of Thacker Pass, and 215 miles northwest of the United States’ only producing lithium mine, the Silver Peak Lithium Mine owned by Albermarle Corporation.

American Salars said the claims cover a conceptual target for lithium brines very similar to the published geology of the Clayton Valley lithium brine production area approximately 200 miles to the southeast.

Surge’s exploration at the nearby Galt claim group included 51 playa sediment samples. Aqua regia leaching of them showed 68 to 852 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, the company said. Average crustal abundances found included 20 ppm Li, 3 ppm Cs, and 90 ppm Rb.

American Salars is focused on lithium projects in North and South America, with projects in Argentina, the United States, and Canada. The company’s primary focus is the expansion and development of its Argentina-based 3,000-hectare Candela II Lithium Brine Project which hosts an inferred National Instrument 43-101 457,000 tonnes lithium carbonate equivalent (LCE) resource open for expansion.

Horsley told Streetwise Reports that the company is looking at other projects in Argentina and starting some negotiations. “The plan is building a war chest of world-class lithium assets,” he said.

Optimism in Market

A soft and silvery metal, lithium is an important part of the energy transition for electric vehicle (EV) batteries and energy storage systems. It also strengthens alloys, serves as a high-temperature lubricant, and treats bipolar patients. [OWNERSHIP_CHART-11095]

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.

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 24.83 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$8.7 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

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, )