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Tuesday, Feb 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


American Lithium receives permit for additional drilling at new project in Peru

Drilling near the Falchani deposit in the Cusco Region will begin immediately

American Lithium receives permit for additional drilling near Peruvian deposit
American Lithium's President and COO Laurence Stefan at the Falchani Deposit. Photo via American Lithium

Vancouver-based American Lithium Corp. (TSX-V: LI) (Nasdaq: AMLI) (Frankfurt: 5LA1) has received permission from Peruvian authorities to start drilling for new lithium targets near its Falchani project in the country’s south.

The company announced receiving the first of three necessary permits from Peru’s Ministry of Energy and Mines (MINEM) on Monday and is now permitted to start drilling 5-6 kilometres south of the project in search of high-priority targets.

American Lithium will start drilling immediately and expects to obtain the final expansion and infill drill permits needed at the project in the coming weeks. The company currently has four diamond drills on site at Falchani and anticipates to complete up to 8,000 metres of diamond drilling consisting of 40 holes in the area.

Read more: MAX Power enters U.S. lithium sector with new exploration permits in Arizona

Read more: American Lithium to spin-out Peru uranium project into separate company

The company’s current intention is to complete its drill program at Falchani and nearby Quelcaya prior to starting drilling at the Macusani uranium project. American Lithium says drilling at nearby Macusani will likely follow the completion of the project’s spin out into its own independent public company previously announced in December.

“This is a very significant development for the company which validates recent supportive comments from the new government in Peru and enables us to target the discovery of new lithium mineralization on some of the best previously identified targets on the Macusani Plateau,” said American Lithium’s CEO Simon Clarke.

American Lithium also announced Monday that it has entered into a US$1 million agreement with Vancouver’s New Era Publishing in which the company will receive content creation, educational campaigns and marketing services for its business from New Era over the next four months.

Read more: Chile announces plans to nationalize its lithium industry

Read more: Sigma Lithium successfully produces first ‘green lithium’ in Brazil

American Lithium receives permit for additional drilling near Peruvian project

Project map. Photo via American Lithium

The news comes shortly after Peru’s worst mining accident in over two decades in which 27 miners will killed in an underground fire in the country’s south on Saturday. The mine in the Arequipa Region where the accident took place was operated by the small mining company Yanaquihua.

Peruvian government authorities have been voicing their enthusiasm for lithium projects in the country in recent days.

“A window of opportunity has opened and we want to take advantage of it,” said Peru’s Minister of Economy and Finance Alex Contreras last month with respect to lithium exploration in the country.

Peru’s MINEM announced in March that the country expected to host 74 new mining projects this year valued at approximately $596 million.

American Lithium shares rose by 0.71 per cent Monday to $2.82 on the TSX Venture Exchange.


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