SOURCE: American Lithium Minerals, Inc.

American Lithium Minerals, Inc.

February 16, 2011 08:30 ET

American Lithium Minerals Inc. Issues Corporate Update Letter to Investment Community

HENDERSON, NV--(Marketwire - February 16, 2011) - American Lithium Minerals Inc. (OTCBB: AMLM) (www.AmericanLithium.com) (the "Company") releases the following Chairman and CEO's letter.

It is my pleasure to release this update letter for American Lithium Minerals. We are extremely pleased with the progress of the company as a whole and in particular with the exciting drill results we have recently released (see release) on our Borate Hills, Nevada project. We are thrilled that the drilling to date has intersected the target mineralization over thicknesses totalling 200 to 300 feet and extending along a strike length of more than a kilometre. Assays returned lithium values up to 2500 ppm and averaging over 1500 ppm, these numbers are everything we had hoped for and more and are consistent with those found in the early surface sampling of the project. Although the economics of recovering these values remains to be determined, Chemetall Foote in nearby Clayton Valley, Nevada recovers lithium from brines containing 370 ppm Li and the world's largest, Chemical & Mining Co. of Chile, Inc. produces from brines running 1500 ppm. Moreover, the Borate Hills deposit runs over 1% boron which is equivalent to over 10% commercial borax equivalent, a valuable co-product. We have ramped up the schedule and will conclude the feasibility study soon. Here are some key highlights from 2010, all of which have set the base for American Lithium to become the premier North American lithium company.

  • 2010 turned out to be quite a remarkable year for AMLM. From effectively a standing start in January 2010 the Company achieved significant progress highlighted by the purchase of several grass roots brine projects and the acquisition of the Borate Hills properties all located in Nevada.

  • By far the most promising were the Borate Hills properties -- 3400 acres, 30 miles SW of Tonopah. This area has mineralization of Boron + Lithium in a combination of clay stone and volcano tuff.

  • In June, the Corporation entered into a joint venture agreement with Japan Oil, Gas, Metals and Mining Corporation (JOGMEC) whereby upon spending $4 million on pre-feasibility and feasibility studies JOGMEC would earn a 40% interest in the Borate Hills project.

  • In September, we began metallurgical work on the Borate Hills property and in December we began reconnaissance drilling over 13 holes with 3 rigs active on the site. We have recently released (see release) some very promising results and will now quickly commence our feasibility study.

  • We anticipated the results of this activity and we assembled an excellent operating team across all disciplines.

  • We expect much more positive news over the coming months, both from the drilling and metallurgy work on Borate Hills and other possible joint partnerships. We will also begin to develop some of our other exceptionally promising properties.

Hugh H. Aird
Chairman and CEO

The Borate Hills Project is a large co-product lithium and boron deposit located 20 miles west of the only producing lithium mine in North America. American Lithium and JOGMEC are currently completing an economic pre-feasibility study for the Borate Hills Project. 

The Nevada, United States location is strategic for the concentration of US manufacturing requiring lithium; including automotive batteries, power storage and consumer electronics; as well as a known mining state with excellent road, rail and power infrastructure. American Lithium is also active in grassroots exploration for lithium deposits in the Great Basin of the United States with ten other highly prospective projects in Nevada and Utah.

About the Borate Hills Project

The Borate Hills Project consists of the North and South Borate Hills Projects. The boron and lithium mineralization is contained in a strata-bound formation that is a combination of a claystone unit and a volcanic tuff. In the early 1980s, US Borax drilled the North Borate Hills Deposit and stated the project was the second largest boron deposit in the United States after their current producing borate mine, Kramer Borate in California. Subsequently, US Borax discovered the South Borate Hills Deposit in 1986.

About Japan Oil, Gas and Metals National Corporation (JOGMEC)

Japan Oil, Gas and Metals National Corporation (JOGMEC) was established on February 29, 2004 pursuant to the Law Concerning the Japan Oil, Gas and Metals National Corporation, which was promulgated on July 26, 2002. JOGMEC integrates the functions of the former Japan National Oil Corporation, which was in charge of securing a stable supply of oil and natural gas, and the former Metal Mining Agency of Japan, which was in charge of ensuring a stable supply of nonferrous metal and mineral resources and implementing mine pollution control measures.

About American Lithium Minerals

American Lithium Minerals is a U.S.-based mineral exploration company focused on the development of lithium and boron resources in Nevada. The company's key objective is to develop world-class lithium projects that will capitalize on surging demand for lithium-ion batteries, particularly for hybrid and electric vehicles. Lithium is a high-priority and strategic mineral for the U.S. The country's green energy legislation and long-term energy policies depend on developing a vibrant, domestic lithium-ion battery manufacturing sector.

About Lithium

As a result of lithium-ion battery demand for hybrid-electric and electric cars, the increase in demand for lithium carbonate is expected to increase four-fold over the next decade. High demand and low supply has already resulted in an increase in lithium carbonate (Li2CO3) prices. There is currently only one producer of lithium carbonate in the United States, Chemetall's Clayton Valley Operation. The Great Basin of the United States represents excellent potential for the discovery of new lithium brine deposits and American Lithium Minerals is well positioned for detection with its projects. Lithium is used for batteries, specialty glass, lubricants, pharmaceuticals and lithium alloys. Lithium ion (Li-ion) batteries have become the rechargeable battery of choice in cell phones, computers, hybrid-electric cars and electric cars. GM, Ford, Toyota, Dodge, Chrysler, Mitsubishi, Nissan, Tesla, Saturn and Mercedes-Benz have all announced plans to build Li-ion battery-powered cars. Demand for lithium-powered vehicles is expected to increase fivefold by 2012. The domestic automotive industry must secure a lithium source to supply the next generation of hybrid-electric and electric vehicles. Over 60% of cell phones and 90% of laptops use lithium batteries. The worldwide market for lithium batteries is estimated at over $4 billion per year.

Forward-Looking Statements

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • For Additional Information, Contact:
    Stephen Cook
    Vice President/Investor Relations
    Tel: 877-717-2656
    E-mail: info@americanlithium.com