HENDERSON, NV, March 3, 2011 /PRNewswire/ -- AmeriLithium Corp. (OTC Bulletin Board: AMEL; "AmeriLithium" or "the Company") is pleased to announce the Company received a further draw down from its $10 million finance agreement on March 2, 2011. The purpose of the significant draw is the continued development of the business through its exploration stages, in particular the currently progressing Lithium exploration program on its Nevada-based Paymaster Project, which is scheduled to commence its drilling program imminently.
The program is based on very positive results from several months of gravity and magnetic (EM) surveying that concluded in mid-September 2010 (all information from both stages of exploration is available at http://amerilithium.com).
The program's 3 initial holes will test areas of significant Lithium brine potential identified by the Company's exploration program (i.e., areas marked by gravity lows and low resistivity), followed by the remaining 5 holes depending on the initial drilling results. By penetrating the formations comprising the basin fill in Paymaster Canyon, the holes should allow AmeriLithium to examine and sample the stratigraphy and lithology of the sedimentary sequence; the nature and extent of the saturated zones; and the concentration of Lithium and other constituents in the groundwater in these target zones.
"With the third stage of our exploration program on our Paymaster Project imminent, we are in a very exciting time for both the Company and the Lithium industry as a whole," said Matthew Worrall, AmeriLithium's CEO. "It's also great to have sufficient funding to continue the development of the Company and its exploration work. We're definitely looking forward to seeing the initial results of the drilling program."
Additional drill program details are provided further below.
PAYMASTER PROJECT BACKGROUND
AmeriLithium's domestic Paymaster Project represents a 5,880-acre claim block adjacent to the Clayton Valley playa, where Lithium-rich brines and evaporates have been accumulating for more than 30,000 years, resulting in the highest Lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins.(1)
Clayton Valley is home to the only US-based Lithium producing plant, operated by neighboring Chemetall Foote Corporation, a subsidiary of Rockwood Holdings, Inc. The plant has been in production since 1967, producing an estimated 50 million kg (55,000+ tons) of Lithium to date from the region's rich brines.(2)
In early October 2010, rough preliminary volume estimates for AmeriLithium's Paymaster Project pointed to the potential for 7,500 to 26,000 tons of Lithium resource underlying the property. With Lithium carbonate trading in the range of $5,500-$6,000 per metric tonne based on a Q3 2010 report by Resource Capital Research,(3) AmeriLithium's potential Lithium resource on this single Nevada property could represent a market valuation from $132.8 to $144.9 million. The Company's Lithium holdings also include two other Nevada-based projects nearby, as well as claims in Canada and Australia.
8-HOLE DRILL PROGRAM DETAILS
During the drill program's planning phase, the size of equipment needed was of considerable significance. The large water well drilling rig suitable for completing the proposed drilling program is, of necessity, large and heavy. Since the soft, unconsolidated surface soils in Paymaster Canyon would make it difficult, if not impossible, to navigate the rig to areas where roads do not already exist, the Company has planned to use existing, improved and maintained roads to the fullest extent possible.
The first three holes (DH-1, DH-2, and DH-3) were placed to test the main gravity and EM anomaly in the north part of Paymaster Canyon. As with all the drill targets, this large, primary target was identified by the Company's prior exploration efforts, and lies in the area around gravity station 50 and EM stations 28, 29, 50, and 51.
The locations for holes DH-4 and DH-5 are in the area of the northern extension of the main gravity/EM anomaly, the target area at the north end of the elongate zone identified in the area of gravity stations 79, 80, and 81.
DH-6 is situated in the gravity low in the area of gravity station 21. DH-7 is located near the center of the small anomaly identified at gravity station 5. DH-8 is designed to test the extreme south end of the Paymaster property in the north end of Clayton Valley proper. The hole is proposed to be drilled on the road between gravity stations 262 and 263 while testing the gravity low and the very low resistivity anomaly found in this area by the geophysical surveys.
FOR MORE INFORMATION
More information on the Paymaster Project drill program, and additional information regarding the Company, can be found at AmeriLithium's corporate website www.amerilithium.com along with the facility to sign up for regular news updates.
ABOUT LITHIUM: Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses Lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses Lithium in alloys. Of particular interest is the use of Lithium for battery production, which has expanded significantly in recent years due to rechargeable Lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity Lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on Lithium-ion batteries.
ABOUT AMERILITHIUM: AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global Lithium industry. The Company is headquartered in Henderson, NV. AmeriLithium has amassed a Lithium portfolio consisting of ~724,000 acres, including three Nevada-based projects nearby the only Lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.
ON BEHALF OF THE BOARD OF DIRECTORS,
Matthew Worrall, Chief Executive Officer
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. AmeriLithium Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to AmeriLithium Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. AmeriLithium Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
(1) NI 43-101 Technical Report by Coast Mountain Geological Ltd for Rodinia Minerals Inc, Mar. 12, 2009
(2) Rodinia Minerals Inc website, Feb. 25, 2009
(3) Resource Capital Research - Rare & Minor Minerals Review 3Q10 Abridged (http://www.rcresearch.com.au/documents/rare-and-minor-metals/reports/0/australia/)
SOURCE AmeriLithium Corp.