AmeriLithium Receives Fourth Draw Down on $10 Million Finance

The purpose of the $200,000 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 about to complete its second stage.

The Controlled Source Audiomagnegtotellurics / Magnetotellurics (CSAMT/MT), electromagnetic (EM) surveying field work was completed on July 24, 2010 covering all of the initial survey locations previously sited by Hasbrouck Geophysics, as well as 18 additional EM stations that cover the south end of the property.

The locations all lie within the area of the main gravity anomaly identified during the gravity survey of Paymaster Canyon completed in early June 2010. The CSAMT/MT Survey grid is being situated to be perpendicular to the general northeast (NE) trend of regional geologic structure in the area to allow for more accurate location of structural features in the subsurface. In this case, the geologic structure in question is the NE-trending Paymaster Fault, which lies at the eastern edge of the Company’s Paymaster Canyon claims block.

Additional gravity surveying was initiated on July 25, 2010 and is intended to develop the mapping created in the previous survey. The additional work is designed to target an area in the southern part of the property that was identified as having a possible low.

"Initial feed back from Hasbrouck’s preliminary evaluation of the data is very promising, with indications of the presence of salts in the groundwater, and we are eagerly awaiting the full report. This report combined with the previous data from the gravity survey will give us the information required to create a very targeted drilling program," reported Matthew Worrall, AmeriLithium’s Chief Executive Officer. "Having the additional funds in place also allows us to continue with the momentum of our current exploration program."


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.

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.

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.

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 Lake Tahoe, 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.