Canadian explorer American Salars Lithium (CSE:USLI) has expanded its footprint in South America after picking up some lithium-cesium-tantalum (LCT) prospective ground in northern Brazil.
The company has struck an all-scrip deal to acquire all of the outstanding shares of 1447377 BC, which wholly owns the 180km2 Jaguaribe Project – an LCT deposit also hosting rare earth elements (REE) and a suite of critical minerals.
American Salars will issue 1447377 BC shareholders 3.5 million units comprising one common share and one common share purchase warrant exercisable at C$0.20 within three years.
1447377 BC will then become a wholly owned subsidiary of American Salars.
American Salars says the Jaguaribe Project, which is located in the Jaguaribe/Solonópole region in the State of Ceará, hosts “multiple extensive” lithium and REE-bearing pegmatite dykes.
Multi-elements analysis of 13 pegmatites sampled returned up to 3.72%, 554.5 parts per million (ppm) cesium, 135ppm tantalum and 177ppm niobium.
One sample also showed high values for rubidium (10,000ppm); tin (675ppm) and zinc (387ppm).
Initial fieldwork also detected two additional pegmatites that returned grades of 2.15% and 1.58% lithium, respectively.
This prompted the exploration and acquisition of the 10 claim blocks that make up the Jaguaribe Project.
All of these minerals except rubidium are on Canada’s list of critical minerals, but several other countries including Australia, China and the US have included rubidium on their lists of critical minerals.
American Salars CEO Nick Horsley, who is also a director and indirect shareholder of 1447377 BC, says American Salars continues to add highly prospective assets to its portfolio of lithium projects in North and South America.
“Brazil has been one of the global epicenters for lithium production and American Salars’ Jaguaribe project is located in a known pegmatite district and contains high-grade lithium samples and significant rare earth elements values,” he says.
“We will plan a much more significant exploration program to map pegmatites and further sample and define the geological values in this critical mineral rich area.”
The Jaguaribe Project covers historic artisanal mining sites previously mined for lithium, coltan (tantalum and niobium) and tin.
American Salars says an initial phase-one program uncovered multiple long and wide pegmatite dykes that measure up to 30m wide and up to 300m long that are largely unexplored.
The company has secured field crews, a Brazil-focused senior geologist and Québec-based hard rock lithium specialist QP Mitch Lavery to oversee a more extensive phase-two program.
The phase-two program will involve mapping the pegmatite outcrops and sampling new and known areas of mineralisation.
American Salars is in the process of engaging sampling crews and is working with local Brazil-based geological consultants to help plan a follow-up drilling program to evaluate the priority targets.
American Salars will be exhibiting at this year’s Prospectors & Developers Association of Canada (PDAC) event being held from 2-5 March in Toronto, Canada.
Mining.com.au is an official media partner for the upcoming event.
To register for PDAC 2025 click here.
Write to Angela East at Mining.com.au
Images: Unsplash
