American Lithium’s Falchani Pilot Plant Fully Commissioned and Operating

Falchani pilot-plant achieves 88.7% lithium recovery, surpassing prior PEA assumptions.

What the company is saying

American Lithium Corp. reports that the Falchani Lithium Project pilot-plant in Peru has all systems installed and operational, with commissioning of core processing stages completed. The company highlights laboratory bench test work using pilot-plant equipment that delivered an average lithium extraction of 88.7%, ranging from 88.0% to 89.9%, which is significantly higher than the 80.0% recovery rate used in the February 2024 Preliminary Economic Assessment. Management frames this as a major technical milestone, emphasizing that all key systems—impurity removal, controlled cooling, pre-neutralization, neutralization, crystallization, centrifugal separation, and consumables’ reaction management—are now individually validated and performing as expected. Dr. Laurence Stefan, President and COO, describes the results as very encouraging and credits the consistency of recoveries for increased confidence as the company moves toward full pilot-plant operations. The narrative stresses that lithium losses across all processing stages have been reduced to fractions of a percent per phase. The company also claims that Falchani’s low-impurity, volcanic-hosted mineralization supports a simple flowsheet capable of producing battery-grade lithium carbonate exceeding 99.5% purity, though no direct production data is provided for this claim. The announcement is technical in tone, focusing on process validation and operational readiness rather than commercial or financial outcomes.

What the data suggests

The disclosed data confirm that the Falchani pilot-plant is fully installed, with all core systems operational and individually validated. Laboratory bench test work using pilot-plant equipment in a semi-continuous process achieved an average lithium extraction of 88.7%, with a range from 88.0% to 89.9%. This recovery rate is materially higher than the 80.0% figure used in the February 2024 PEA, indicating a positive step in process efficiency. Lithium losses in the key processing stages—alum crystallization, pre-neutralization, neutralization, mechanical evaporation, and precipitation—were reduced to fractions of a percent per phase. The pilot-plant is expected to run continuously for over three months, processing 6–10 tonnes of Falchani mineralization, with results to inform future feasibility work. The company claims the process can produce battery-grade lithium carbonate exceeding 99.5% purity, but does not provide direct output data for this metric. No financial, cost, or commercial production figures are disclosed. The evidence supports strong technical progress but does not yet demonstrate commercial viability or economic impact.

Analysis

The announcement provides detailed technical progress on the Falchani Lithium Project pilot-plant, including specific recovery rates (88.7% lithium extraction) and confirmation that all core systems are installed and operational. These realised facts are well-supported by disclosed data. However, several key claims are forward-looking, such as the upcoming full end-to-end flowsheet validation, the expectation of continuous pilot-plant operation for 3+ months, and the use of results in future feasibility work. The tone is optimistic, with phrases like 'very encouraging' and 'strong confidence,' but the actual commercial or financial impact remains distant, as the pilot-plant is still in the validation phase and no economic or production outcomes are imminent. The capital intensity is implied by the installation and operation of a pilot-plant, yet there is no immediate earnings impact or disclosure of costs. The gap between narrative and evidence is moderate: technical progress is real, but commercial benefits are long-term and not yet demonstrated.

Risk flags

• ●There is execution risk in scaling from semi-continuous bench test results to sustained, continuous pilot-plant operations. Achieving consistent recoveries at scale is not guaranteed and may reveal unforeseen technical challenges.
• ●The absence of financial data, including capital and operating costs for the pilot-plant, leaves investors unable to assess the project's economic viability or the company's current financial position. This limits visibility into potential funding needs or project returns.
• ●Claims of producing battery-grade lithium carbonate exceeding 99.5% purity are not supported by direct production data, introducing a risk that actual product quality may not meet stated targets when scaled up.
• ●The timeline to commercial production is undefined beyond the three-month pilot-plant run, and future feasibility studies may alter project economics or reveal additional hurdles before development can proceed.

Bottom line

American Lithium Corp. has achieved a technical milestone at the Falchani Lithium Project, with pilot-plant recoveries of 88.7% lithium—well above the 80.0% used in its previous PEA. All core processing systems are now installed and operational, and the plant is set to run continuously for at least three months, processing up to 10 tonnes of ore. While these results validate the process at the pilot scale and suggest potential for improved project economics, the company has not disclosed any financial data, cost estimates, or commercial output figures. The claim of exceeding 99.5% battery-grade purity remains unverified by actual production data. Investors should focus on whether the company can maintain these recovery rates during continuous operation and whether upcoming feasibility work confirms economic viability. The most important takeaway is that technical risk has been reduced, but commercial and financial risks remain unresolved until further data is released.

Announcement summary

(TSXV:LI, OTCQX:AMLIF, FRANKFURT:5LA1) American Lithium Corp. announced that the Falchani Lithium Project pilot-plant has all systems installed and operating. The pilot-plant is being advanced by TECMMINE in Lima, Peru. Recent laboratory bench test work using pilot plant equipment in a semi-continuous process achieved average lithium extraction of 88.7%, with a range from 88.0% to 89.9%. This recovery rate is well above the 80.0% recovery utilized in the February 2024 Preliminary Economic Assessment (PEA). All flowsheet equipment is now installed and tested, and the company is advancing toward full end-to-end flowsheet validation at scale in a continuous mode to validate the bench-scale results. The pilot-plant is expected to run continuously at target rates for over 3 months, processing 6–10 tonnes of Falchani mineralization. Results from the pilot plant will feed into future project feasibility work. The company initially prioritized commissioning the plant’s core systems, which are all operational and performing as expected. The key core systems include impurity removal, controlled cooling, pre-neutralization, neutralization, crystallization, centrifugal separation, and consumables’ reaction management, all now individually validated. Lithium losses across the alum crystallization, pre-neutralization, neutralization, mechanical evaporation, and precipitation stages were reduced to fractions of a percent per phase, contributing to the 88.7% overall lithium recovery. Falchani’s volcanic-hosted lithium mineralization has naturally low impurities, supporting a simple flowsheet capable of producing battery-grade lithium carbonate exceeding 99.5% purity. Dr. Laurence Stefan, President and COO, stated that the results from the key core processing stages have been very encouraging and that the consistency observed gives strong confidence as the company moves rapidly toward full pilot plant operations. Mr. Ted O’Connor, P.Geo., a Director of American Lithium and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in the news release. TECMMINE E.I.R.L. is a Peruvian metallurgical consulting company based in Lima, Peru, with mineral processing and metallurgical testing laboratory facilities led by Eng. Jose Malqui. Alex Tsakumis is the Chief Executive Officer of American Lithium Corp.

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