American Lithium Minerals Inc. details its six lithium properties and the potential they hold to meet rising lithium demand.
In 2030, the global demand for lithium is expected to surpass two million metric tons of lithium carbonate equivalent, more than doubling the demand forecast for 2025. This lithium consumption will be strongly driven by the increasing demand for electric vehicles (EVs) and the batteries they require, in which lithium is an integral component.
Federal legislation in the United States encourages the production of EVs and their components. Key to this is access to the raw materials that are fundamental building blocks of batteries.
American Lithium Minerals Inc. (AMLM) is a mining and mineral exploration company that is part of the effort to supply the US with battery materials – in particular, lithium. Our lithium projects are all located in Nevada, US, centred around Clayton Valley, which is currently the only mine in the United States producing lithium, Albemarle’s Silver Peak Lithium Mine.
There has been good news recently for Nevada lithium production. Construction of the Thacker Pass lithium mine has begun, after Lithium Americas won the lawsuit brought by environmentalists and Native Americans to block the mine. The Department of Energy (DOE) has made a conditional commitment of $700m for Thacker Pass, and General Motors has committed $650m. DOE has also made a conditional commitment of $700m for the Rhyolite Ridge lithium/boron project (a former AMLM project), although that mine is still going through the permitting process.
It is AMLM’s view that, once Thacker Pass and Rhyolite Ridge are online producing lithium, lenders and investors will have the confidence to make more funds available for other Nevada lithium exploration and development projects – including AMLM’s six lithium properties.
Stonewall Flat Lithium
The AMLM Stonewall Flat Lithium project is located in Lida Valley, Nevada, which adjoins Clayton Valley to the south. Our joint venture partner for Stonewall Flat is Altair International (OTC: ATAO).
The Stonewall Flat Lithium project covers an area of approximately 1,260 acres on Stonewall Playa in Nevada’s Lida Valley Basin. This basin is located immediately south of the Clayton Valley Basin, near Albemarle’s Silver Peak Lithium Mine. The AMLM project is strategically located in the Nevada lithium supply hub, 306km southeast of Tesla’s Gigafactory near Reno.
In 1979, the DOE’s Division of Energy Storage Systems drilled in the northern playa of Stonewall Flat, penetrating mostly gravel and some beds of sand and terminating in muddy gravel at 250ft. The lithium values for the sediments ranged up to 121 parts per million (ppm) lithium (Li) and averaged 33.9 ppm lithium. One groundwater sample taken at 455ft was found to contain 160 parts per billion (ppb) dissolved lithium.
In April 2017, another mining company carried out an extensive near-surface geochemical sediment sampling programme, which published the following results: all 380 samples contained lithium with sediment assays ranging from 14.6 ppm Li and up to 187 ppm Li, with 19 samples over 100 ppm.
2021 sampling by Altair International confirmed the anomalous lithium values and the locations of the lithium anomalies. Stonewall Flat is prospective for a sedimentary lithium deposit or, possibly, a brine lithium resource.
The next step for this project will be to collect geophysical data – gravitational and, possibly seismic.
Two of our neighbours to the west, Dome Rock Resources and Nevada Sunrise (both companies unrelated to AMLM) have been busy drilling. Nevada Sunrise has reported very encouraging results from its Gemini Lithium Project in western Lida Valley, which AMLM believes bodes well for future drilling at Stonewall Flat.
The results announced by Nevada Sunrise for two drill holes at its ‘Gemini Lithium’ project were:
- GEM22-01 averaged 1,203.41 ppm lithium over 580ft (176.83m), from 320 to 900ft (97.56 to 274.39m) including 1.578.19 ppm lithium over 300ft (91.46m) from 480 to 780ft (146 to 237.8m).
- Gem22-02 averaged 1,101.73 ppm lithium over 730ft (222.56m) from 390 to 1,120ft (118.90 to 341m), including 2,217.69 ppm lithium over 130ft (39.63m) from 990 to 1,120 ft( 301.83 to 341.46m) and 3,304 ppm lithium over 50ft (15.24m) from 1,070 to 1.120ft (326.22 to 341.46m).
Sarcobatus Playa Lithium
Our Sarcobatus Playa Lithium project is located near Beatty, Nevada, adjacent to a major lithium discovery by Iconic Minerals known as ‘Bonnie Claire.’ The Bonnie Claire project was recently sold to Nevada Lithium. AMLM’s involvement in this area goes back to 2011. There is an available NI-43101 report prepared for a previous operator of this property.
Surface sampling during 2022 by American Lithium Minerals revealed average lithium values of 420 ppm, together with average boron values of 216 ppm. Our sampling confirmed previous sampling by Rainmaker Resources in 2017.
Sarcobatus Flat is a closed intermontane basin surrounded by largely volcanic mountains, some of which are lithium-bearing. The 1,400-acre project site is comprised of most of the Sarcobatus Playa (dry lake) and adjacent alkali flats to the north and east.
The Sarcobatus Flat is surrounded by the Stonewall Mountain to the northeast, Gold Mountain to the northwest, and the Amargosa Range to the south. The bedrock of these uplifted areas largely consists of volcanic tuff and ash that could be a source of economic sedimentary lithium or brine resource.
A similar geological setting occurs in Clayton Valley where lithium is produced from the subsurface. Surface samples of sediment in Clayton Valley, collected by the US Geological Survey (USGS), contained 100 to 300 ppm lithium, and are comparable to (although lower than) samples collected at Sarcobatus Playa.
The AMLM claims are immediately west of the Bonnie Claire project of Nevada Lithium, next to AMLM. Nevada Lithium’s website states that their property has a drilled resource of 18.37 million tons of lithium carbonate equivalent (LCE), which would make Bonnie Claire one of the world’s largest clay and hard rock lithium projects.
The AMLM Sarcobatus Playa claims are also adjacent to Loyal Lithium’s Scotty Project. In 2023, Loyal Lithium (AMLM is not affiliated with Nevada Lithium or Loyal Lithium) drilled three holes south of the AMLM claims, and Loyal Lithium reported the following results:
- SC23-001 averaged 813 ppm lithium over 385ft (117.35m), starting at a depth of 50ft (15.24m), with a maximum of 1,228 ppm lithium over an interval of 5ft (1.52m).
- SC23-002 averaged 1,106 ppm lithium over 270ft (82.30m), starting at a depth of 70ft (21.34m), with a maximum of 2,156 ppm lithium over an interval of 5ft (1.52m).
- SC23-003 averaged 1,237 ppm lithium over 410ft (124.97m), starting at a depth of 30ft (9.14m), with a maximum of 4,007 ppm lithium over an interval of 5ft (1.52m).
AMLM’s surface sampling found anomalous lithium results at a depth of one metre throughout our claim block. While this is very encouraging, it does not help in selecting an initial drill site. We plan to do a second round of surface sampling at a depth of two metres. We may also do closer-spaced sampling at the southern end of the claim block, as Loyal Lithium sited its best hole (SC23-003) just south of our claim line.
Claystone Hills Lithium
Claystone Hills Lithium is 30km west of Tonopah. The 1,140-acre claim block is adjacent to projects of two other lithium exploration companies, Jindalee Resources and Victory Battery Metals – not related to AMLM, and both reporting encouraging drill results. Claystone Hills is at the southern edge of Big Smokey Valley, which is immediately north of Clayton Valley. AMLM’s AL lode mining claims, included in the Claystone Hills Project, are prospective for a claystone lithium deposit.
The AMLM projects also extend into the Big Smokey Basin, in the vicinity of drilling by the USGS/US Department of Energy in the 1970s. The report for this project identified lithium in sediments and brines under or adjacent to the Smokey Valley Playa. This was the same government initiative that drilled the Stonewall Flat, AMLM’s project located in Lida Valley, immediately to the south of Clayton Valley. AMLM’s AW claims, also included in the Claystone Hills Project, are the apparent site of USGS borehole BS-14.
Jindalee Resources’ Clayton North project is immediately north of AMLM’s holdings. According to Jindalee’s website, first pass drilling at Clayton North resulted in intercepts of 1,093 ppm lithium over an interval of 6.1m and 1,006 ppm lithium over an interval of 11.2m.
AMLM’s interests are also immediately east and west of Victory Battery Metals’ Smokey Lithium Project. Victory reported the following results for its most recent hole 23-01.
- Hole 23-01: From 264ft to end of hole 536.5ft, intersected 695 ppm lithium in claystone,
including 858 ppm lithium over 210ft from 327ft to 537ft, 1023 ppm lithium over 137ft from 391ft to 528ft, and 1267 ppm lithium over 85ft from 434ft to 519ft. Hole 23-01 maximum intercept of 1620 ppm lithium occurred over eight feet from 464ft to 472ft.
West End Lithium
West End Lithium/Uranium is less than five kilometres west of Tonopah, Nevada, adjacent to a major lithium discovery by American Lithium Corporation, an unrelated company. Like Thacker Pass, West End had been known for many years to host uranium.
More recently, lithium has been discovered. Our joint venture partner for West End is China Donsheng International (OTC: CDSG).
Silverpeak Lithium
The Silverpeak Lithium/Uranium Project contains two brine or sedimentary lithium claim blocks (total of almost 700 acres) that are prospective for lithium. One of these areas was drilled by the U.S. Department of Energy (Borehole BS-13) and encountered lithium in both sediments and ground water.
Silverpeak contains another group of mining claims (480 acres) with a well-known hard rock uranium occurrence. Our joint venture partner for Silverpeak is USA Lithium Holdings, a subsidiary of Premier Development & Investment (OTC: PDIV).
Geothermal Flat (GF) Lithium project
Our recently acquired Geothermal Flat Lithium property (1,320 acres) is located well to the northwest of Tonopah, Nevada. It is near several hot or warm springs which ring the playa, as well as an operating geothermal facility.
Geothermal deposits are a well-known pathfinder for lithium. An initial surface sampling programme (depth one metre) located potentially anomalous (75 ppm lithium) areas in the easterly portion of the claim block. AMLM is planning to do closer-spaced sampling in this area.
Nevada lithium potential is huge
In many cases, AMLM has followed a strategy of acquiring mining claims adjacent to more advanced stage lithium projects. This allows AMLM to learn from its neighbours’ exploration efforts before funds are expended on its own drilling. The encouraging drill results and lithium resources of neighbouring projects are reported above.
However, AMLM cannot claim any lithium resource for its properties until adequate drilling has been done on them and cannot warrant the results announced by any other company.
The potential for lithium in Nevada is huge, and as this article has discussed, AMLM and other lithium mining companies are well on the way to maximising this potential, an encouraging indication of the ability to meet expected future demand.
Please note, this article will also appear in the sixteenth edition of our quarterly publication.
