Fish Lake Valley

San Emidio

One of the most promising & largely undeveloped lithium brine basins in the State of Nevada

  • Dominant land holder with 18,552 contiguous acres (7,508 hectares)
  • Historic Boron Mine – North Bowl Playa
  • Known & well understood lithium brine basin - Phase 1 Exploration Programs completed 2009-2015 including drilling & detailed gravity survey
  • Geological and geophysical characteristics analogous to Clayton Valley basin located to the southeast
  • North Bowl Playa Phase 2 Exploration Program restart 2H 2016, up to 13 drill holes
  • Dr. Oldow’s past Geological Model of North Bowl Playa confirmed gravity low & upcoming work to optimize South Bowl 2H 2016 exploration program

Fish Lake Valley is a large Nevada desert basin that exhibits similar geological and geophysical characteristics to the Clayton Valley basin:

  • Q2-2016 acquisition of 18,552 acre Fish Lake Valley land package includes North and South Bowl Playas
  • The acquisition encompasses the entirety of key structures of the South and North Bowl Playas, which contain the lithium brines, and where gravity data shows distinct gravity lows

The previously separate geologic data sets generated through past exploration programs on the North and South Bowl Playas are now combined, generating a greater understanding of origin and distribution of lithium brines in the basin.

Regional Overview

Over time interstitial waters in contact with buried tuffs in the basin have become enriched in lithium, and could possibly be amenable to extraction and processing by methods similar to Albemarle’s Silver Peak operation which is located in Clayton Valley, Nevada, which is 25 miles (38 km) to the SE of Fish Lake Valley.

Silver Peak is the only lithium carbonate brine producer plant in North America, and has been producing since 1966. After it opened Silver Peak was responsible for the closure of several Li enriched pegmatite mines due to the lower processing costs this method has over hard rock mines. Additionally brine mining has environmental advantages, such as minimal carbon footprint. The geological setting at Clayton Valley and Fish Lake Valley is comparable to the salars of Chile, Bolivia, & Peru.

Preliminary sampling in the Fish Lake Valley North Bowl Playa indicates that lithium-rich surface deposits are present that are on par to that seen at Silver Peak. Construction and supply access is excellent with all-weather gravel roads leading to the property from Highways 264, 265 and 266 and maintained gravel roads around the Playa. Power is available approximately 9 miles (15 km) from the property. The village of Dyer is approximately 12 miles (20 kms) to the south and the town of Tonopah Nevada is approximately 46 miles (75 km) to the East.

North Bowl Playa

Extensive Phase I Exploration Program

Determined geologic and structural features are strongly analogous to the structural and geologic settings at Albemarle's Silver Peak Lithium-Brine operation at Clayton Valley, 25 miles (40 km) to the southeast.

  • Q2 2016 - Acquired 100% interest in the North Bowl Playa - Fish Lake Valley property (7,840 acres [3172 ha])
  • Located in Esmeralda County, west central Nevada
  • Phase 1 Exploration included surface brine sampling, gravity geophysics and drilling
  • 3,545 feet (1080 m) of direct push drilling within 41 holes at 25 sites
  • Drill holes range from 42 ft. to 150 ft. (12.8 – 46m) in depth
  • 42 brine samples collected from hand held auger holes and near surface waters up to 150 ft (46m) depth.

National Instrument 43-101 report titled Technical Report, Fish Lake Valley Lithium-Brine Property, Esmeralda County, Nevada, Nov 30, 2015

In Sediment Concentrations:

  • Lithium 116 ppm to 1040 ppm (average 540.7 ppm)
  • Boron 110 ppm to 4070 ppm (average 1772 ppm)
  • Potassium 0.7% to 2.24% (average 1.53%)
  • Magnesium 0.35% to 6.37% (average 2.09%)

* The detailed disclosure contained in the NI 43-101 Technical Report is hereby incorporated in summary by reference in this presentation. The full text of the Technical Report may be accessed online under the SEDAR profile of Lithium Corp. at www.sedar.com

Brines tested to date also contain anomalous concentrations of

  • Lithium ranging from 0.81 mg/L to 150 mg/L
  • Boron ranging from <1 mg/L to 2670 mg/L
  • Potassium ranging from 30 to 13300 mg/L, and
  • Magnesium ranging from 0.116 mg/L to 41.5 mg/L

Fault Geometry

Fish Lake Valley

Handbook of Lithium and Natural Calcium Chloride – Their Deposits, Processing, Uses and Properties
Garrett, Donald E., 2004; Elsevier Academic Press

Fault geometry is critical in the development of lithium brine basins in that the structures may provide vertical conduits for fluid flow and may also represent aquitards controlling lateral flow in a segmented basin system. Understanding where these structures exist within the basin will direct the Company’s upcoming drilling program. Dr. Oldow, Ph.D., Director of the Ellison Miles Center for Geological Field Studies at the University of Texas, has been retained to develop a geological model of the Company’s 18,552 acre lithium brine project in Fish Lake Valley, Esmeralda County, Nevada. The geological model will provide detailed stratigraphic descriptions of the basin reservoir based on his previous work on exposed sections of the formation adjacent to the Company’s Fish Lake Valley lithium brine property.

Dr. Oldow’s work includes geologic mapping and the application of structural and stratigraphic analysis, along with potential field geophysics, GPS geodesy and terrestrial laser scanning to advance understanding of regional tectonics.

South Bowl Playa

Located in a desert basin that exhibits similar geological and geophysical characteristics to Clayton Valley where lithium brines accumulate in faulted sub-basins, or "traps"

Fish Lake Valley

  • Historic geological mapping shows the presence of lithium-bearing rocks in the surrounding mountain ranges draining into the Property.
  • Geophysical exploration at South Bowl Playa in the form of additional gravity and electromagnetic surveys is planned to assist in determining if conductive brines are present at depth, followed by exploratory drilling of interpreted geophysical targets.

The decision to acquire the property was based on a review of geological mapping that showed the presence of lithium-bearing rocks in the mountain ranges draining into the Property, and historical ground gravity data that showed a distinct gravity low in the heart of the South Bowl Playa.

The gravity low was interpreted as a strong indication for the presence of a sub-basin that could host lithium-bearing brines. Dr. John Oldow’s more detailed gravity survey work in Esmeralda County in recent years better defined the historical gravity low as a deep, sub-basin, which led to the staking of additional claims in January 2016, to expand the acquisition.

Geophysical exploration at the South Bowl Playa in the form of additional gravity and electromagnetic surveys are expected to assist in determining if conductive brines might be present at depth, followed by exploratory drilling of interpreted geophysical targets.

As part of a regional lithium exploration program, the United States Geological Survey (“USGS”) reported in Open-File Report 81-962 (1981) that historical drill hole FL-11a is located outside the eastern boundary of the Property, approximately 3 miles (4.5 km) east of the centre of the interpreted sub-basin. Hole FL-11a was drilled to a depth of 450 feet (147 metres) and encountered lithium values in sediments ranging from 10 parts per million (“ppm”) to 115 ppm and averaging 61.7 ppm for 67 samples analyzed. Lithium in sampled ground water ranged from trace at the end of the hole to 21 ppm at a depth of 55 feet (18 metres). Also reported in USGS Open File Report 77-54 (1977) were the collection of 10 surface brine samples with lithium contents ranging 37 – 350 mg/l (ppm), averaging 159 mg/l (ppm), to the north of the sub-basin.

American Lithium is planning the drilling of deeper holes at Atlantis within the area of the interpreted sub-basin that could intersect aquifers potentially hosting trapped brines with higher contents of lithium than were encountered in the relatively shallow USGS hole drilled to the east of the gravity low anomaly.

The Company is planning to restart exploration of the South Bowl Playa during the second half of 2016 including twinning of historical exploration drill targets, well brine sampling and geo-hydrological surveys with the goal of expanding upon and refining historical data.

Exploration & Development Plan

  • 2H 2016 - Follow through exploration and development program in the range of US$1 Mil - $1.5 Mil to focus on structures and sweet spots
  • Permitted to drill up to 13 test holes, up to 500 ft. (152m) in North Bowl Playa
  • Collect detailed brine chemistry samples to develop and optimize brine processing
  • Execute additional ground gravity surveys in South Bowl Playa
  • Follow with cost effective sonic drilling and brine sampling program to depths up to 200’. Collect detailed brine chemistry samples to develop and optimize distinct separation technology for Fish Lake Valley

Fish Lake Valley