Untapped Lithium Potential in Quebec: Pegmatites Beyond Expectations

1.  American Salars Lithium has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Salars Lithium.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) has entered into a Mineral Claims Purchase Agreement to acquire a 100% interest in the Leduc East Lithium Project in Quebec. The transaction, structured as an all-share deal, involves the issuance of 50,000 common shares to Quartier Minerals Ltd. The project spans 101 mineral claims across approximately 6,100 hectares (61 square kilometers) and is located about 35 kilometers north of Gatineau. The proximity of the project to established infrastructure enhances its accessibility for future exploration and development efforts.

The Leduc East Lithium Project is situated within a region known for its granitic and gneissic formations, which host pegmatitic mineralogy. Historical records indicate that 15 felspar pegmatite showings exist within the property, including 13 former feldspar and mica mines that operated between the early 1900s and the 1940s. Notably, five of these past-producing mines reported the presence of tourmaline, a key indicator mineral for lithium. Additionally, the project is positioned 4.5 kilometers east of the historic Mine Leduc property, where a non-compliant 2006 report estimated approximately 230 tonnes of material with 5.39% Li2O content, further supporting the area's lithium potential.

A February 26 report from Stockhead noted that while no lithium assays have been conducted at the site, the presence of mica and tourmaline strengthens the case for lithium mineralization. The publication emphasized that American Salars has moved swiftly to expand its lithium portfolio, recently acquiring the Jaguaribe project in Brazil, where high-grade rock samples of up to 3.72% Li2O have been reported. The company is actively identifying locations for immediate follow-up drilling at Leduc East to assess its lithium potential further.

Commenting on the acquisition, American Salars CEO & Director R. Nick Horsley stated in the news release, "The opportunity to acquire this portfolio of past-producing mines with thirty-five mapped pegmatites that were never assayed for lithium is an exciting proposition at these valuations. We have never been more optimistic about lithium's future, and American Salars is well-positioned to capitalize on its growing demand."

Beyond Leduc East, the company's lithium portfolio includes assets in Argentina, the United States, Brazil, and Nevada. American Salars holds two NI 43-101 compliant inferred mineral resource estimates: the Candela 2 Lithium Brine Project in Argentina, containing 457,000 tonnes of Lithium Carbonate Equivalent (LCE), and the Pocitos 1 Lithium Brine Project, which shares a mineral resource estimate of 760,000 tonnes of LCE with the adjacent Pocitos 2 block. While American Salars does not own Pocitos 2, all drilling used to establish the resource estimate occurred on Pocitos 1.

According to WSP Australia, which completed an updated NI 43-101 report on Pocitos 1, the project has demonstrated strong lithium flow rates, with values reaching 169 parts per million (ppm) in packer tests from the December 2022 drilling campaign. Testing by Ekosolve Ltd. has indicated that lithium extraction efficiency exceeds 94%, producing lithium carbonate at 99.8% purity.

American Salars: Expanding Strategic Lithium Assets Across the Americas

American Salars' acquisition of the Leduc East Lithium Project aligns with its broader strategy of securing high-potential lithium assets across North and South America. The company's investor presentation highlights key upcoming catalysts, including additional exploration work at Leduc East to validate historical data and assess lithium-bearing pegmatites. Given the presence of past-producing mica and feldspar mines, the company intends to conduct modern geochemical and geophysical analyses to determine lithium enrichment.

In Argentina, the company is advancing its Pocitos 1 and Candela 2 lithium brine projects. With over US$2 million in exploration expenditures at Pocitos 1 since 2017, planned activities include further drilling to refine the resource model and evaluate potential production pathways. The project benefits from existing infrastructure, with access to gas, electricity, and accommodations within 10 kilometers. Notably, flow tests at Pocitos 1 have exhibited sustained lithium brine discharge, supporting its potential for commercial extraction. Additionally, American Salars is progressing with environmental permitting efforts at Incahuasi Salar, where it holds an inferred resource of 457,000 tonnes of LCE.

The company's expansion into Quebec complements its portfolio by adding a hard-rock lithium component to its existing brine assets. Located within 275 kilometers of Bécancour's Battery Metal Park and lithium concentrator, as well as 300 kilometers from Sayona's NAL Lithium mine, Leduc East's strategic location enhances its potential value in the North American lithium supply chain. Given the increasing emphasis on localized battery materials production, American Salars' positioning within Quebec's mining-friendly jurisdiction provides a competitive advantage.

With lithium demand projected to rise amid global electrification trends, the company's diversified asset base offers multiple pathways for value creation. American Salars continues to evaluate additional acquisitions and strategic partnerships to enhance its exploration and development portfolio.

Lithium Market Shifts and Technological Advancements in Battery Development

According to a January 14 report from USA News Group, analysts projected 2025 as a potential turning point for the global lithium market following a two-year decline. The report noted that shifting supply dynamics were expected to reduce the existing oversupply, with projections estimating a surplus of roughly 80,000 tonnes of lithium carbonate equivalent (LCE) in 2025, down from nearly 150,000 tonnes in 2024. Experts from Benchmark suggested that US$116 billion in investments would be necessary by 2030 to meet anticipated electric vehicle (EV) production targets.

Fastmarkets, in a February 6 analysis, noted that the lithium market was expected to tighten in 2025 due to production cuts, changing demand patterns, and geopolitical tensions. The report cited Australian production cutbacks that began in January 2024 and gathered momentum throughout the year as several miners suspended operations. Paul Lusty, head of battery raw material analytics at Fastmarkets, stated, "Lithium market conditions — particularly during the latter part of 2024 — led to growing producer restraint, both in China and elsewhere."

A February 16 report from Cosmos discussed advancements in lithium-ion battery technology, particularly in lithium nickel oxide (LiNiO2) cathodes. Researchers at the University of Texas at Dallas developed a method to reinforce these cathodes using positively charged ions, which could help prevent cracking and degradation over repeated charge cycles. Dr. Kyeongjae Cho, Professor of Materials Science and Engineering at UTD, explained that strengthening the cathode structure might allow lithium nickel oxide batteries to achieve commercial viability. PhD student Matthew Bergschneider stated, "We'll make a small amount at first and refine the process. Then, we will scale up the material synthesis and manufacture hundreds of batteries per week at the BEACONS facility." These advancements could improve battery performance while reducing reliance on expensive and hard-to-source cobalt, a key component in traditional lithium-ion batteries.

Ownership and Share Structure

American Salars said it has 28.8 million shares outstanding and 5.5 million warrants, according to the company.

As for insiders, the CEO Horsley owns about 1.83 million, or about 7.37%, with 4666,666 warrants. Strategic investor Hillcrest Merchant Partners owns 1 million shares or 4.03%. There are no institutional investors, and the rest is retail.

Its market cap is CA$2.01 million. It trades in a 52-week range of CA$0.45 and CA$0.06.