DRILL-READY URANIUM TARGETS ADDED AT MACUSANI WITH SURFACE GRAB SAMPLES AVERAGING 18,270 PPM U (2.15% U3O8)

American Lithium Corp. has released positive prospecting, mapping and sampling results from the company's Macusani uranium project, located in the Puno region in southeastern Peru, and has provided an update on coming drilling plans for the project.

Highlights

• 2021 radiometric prospecting and sampling work has identified possible extensions to five existing uranium deposits and three new anomalies for drill testing;
• Results include over 90 grab sample with grades ranging from a low of 6.3 parts per million uranium to a high of 377,400 ppm U (44.5 per cent U3O8) with all samples averaging 18,270 ppm U (2.15 per cent U3O8);
• Drilling is planned at Macusani to expand existing uranium resources and to test for new deposits;
• Permitting process, including environmental permits and community access agreements, have been filed, with drilling anticipated to commence once exploration permit issued.

Dr. Laurence Stefan, chief operating officer of American Lithium, states: "The results of the radiometric prospecting and sampling program continue to confirm the exciting potential for further resource expansion at Macusani, which is currently one of the largest undeveloped uranium projects globally. Our uranium mineral concessions cover the majority of the entire Macusani uranium district, which contains all known uranium resources in Peru. We look forward to drill testing multiple targets starting next month."

About the Macusani uranium project

Macusani is a low-capex, large-scale predevelopment-stage uranium project containing significant measured, indicated and inferred uranium resources, and has a net present value (8 per cent) of $603.1-million, internal rate of return of 40.6 per cent and a 1.8-year payback (all after-tax at $50 per pound U3O8 selling price). The Macusani project has a large resource base with indicated resources of 95.19 million tonnes grading 248 ppm U3O8, containing 51.9 million pounds U3O8 and inferred resources of 130.02 million tonnes grading 251 ppm U3O8, containing 72.1 million pounds U3O8. Macusani is located approximately 25 kilometres away from the company's Falchani lithium deposit.

Details

Recently completed radiometric prospecting, mapping and sampling work successfully generated additional drill target areas on Macusani. This work has been integrated with previous exploration results completed earlier in 2021 to form the basis of the coming diamond drill program, expected to commence in October, subject to permitting being finalized.

The exploration work completed this season consisted of approximately 12,000 radiometric scintillometer station readings coupled with the collection of over 90 outcrop sample stations with associated geological observations. Radiometric prospecting was completed using SAIC Exploranium GS-135 plus hand-held spectrometers with sample station results recorded as counts per second (CPS) and map co-ordinates recorded using hand-held GPS. Additional site, soil and rock observations are also recorded at prospected sites. Radiometric stations were completed initially on an approximately 100-metre-by-100-metre grid, which was tightened to approximately 50 metres by 50 metres and farther to approximately 25 metres by 25 metres when anomalous radioactivity was encountered to delineated fracture and disseminated uranium mineralization zones and trends.

CPS measurements from hand-held spectrometers and scintillometers measure radioactivity of certain decay products of uranium, thorium and potassium, and are not necessarily a direct indication of uranium contents. However, experience and previous equilibrium and geochemical reconciliation work completed over the past 16-year history of the Macusani conclude that CPS measurements from radiometric prospecting can provide an indication of uranium mineralization with no thorium and minimal potassium interference. Background radioactivity of the host rhyolite volcanic flows is usually less than 200 CPS. Over 90 grab samples were collected from surface outcrop or subcrop buried under thin soil cover from prospected areas on the Macusani. Most sample sites had indications of radiometric or visible uranium mineralization, with attempts to collect a representative sample of the observed outcrop/subcrop; however, the selected nature of such sampling does not necessarily reflect potential uranium contents expected from future drill testing, but they do indicate the presence of uranium mineralization and mineralizing systems in the surface rocks collected.

The samples range in uranium contents from a low of 6.3 ppm U to a high of 377,400 ppm U (44.5 per cent U3O8). The average of all samples collected and analyzed is 18,270 ppm U (2.15 per cent U3O8). Uranium mineralization identified along fractures and disseminated within the host rhyolite matrix were collected using geological hammers with samples up to several kilograms placed in sealed bags for shipping to analytical labs in Lima. Sample site map co-ordinates are recorded using hand-help GPS, radiometric measurements recorded using hand-held spectrometers as described previously, sites and samples are described and photographed by company geologists.

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