AmeriLithium (AMEL): Time to Look for Undervalued Lithium Explorers

The Nevada-based AmeriLithium Corp. (OTCQB: AMEL) is positioning itself to join the leading players in the global Lithium industry.

AmeriLithium is best known for its Nevada-based projects but also has large projects in Alberta, Canada and Western Australia.  AmeriLithium is trading close to all-time lows and has a market of nearly $2.6 million, making it very attractive as a major turn-around candidate on any positive news.

PepsiCo Inc. (NYSE:PEP) announced on May 10, 2012 that the all-electric trucks introduced by PepsiCo’s Frito-Lay North America division have accomplished one million miles of driving purely on electric power.  This proves electric-driven vehicles are here to stay and the demand for Lithium will only grow.

While proponents and opponents of electric vehicles fought over how good electric vehicles are, PepsiCo drove its 176 all electric fleet produced by Smith Electric Vehicles one million miles over a two-year period.  The company estimates that they saved an estimated 200,000 gallons of diesel fuel.  It announced that it will order another 100 vehicles this year bringing their total to 286 all-electric vehicles.

The evolution of the lithium-ion battery has changed the market.  Batteries need less charge time, last longer, and are able to produce more horsepower than ever before.  With the success of Tesla Motors Inc. (NASDAQ: TSLA) in the auto industry and PepsiCo’s success with Smith Electric Vehicles delivering their product, the argument that electric doesn’t work is being left in the dust.  Lithium use is moving forward; AmeriLithium anticipates to be at the forefront.

The Nevada-based AmeriLithium Corp. (OTCQB: AMEL) has had its stock price driven down by shorts as many microcap companies have.  However, this is also, what makes it such an attractive situation for any investor looking to expand their green portfolio.  Trading around $.03 per share and with a market cap of close to $2.6 million, AMEL is highly attractive to an investor looking for a turnaround situation.  The company has projects in Nevada, Canada, and Australia where the future looks promising.

Their greatest opportunities are in Nevada where the company has four properties covering about 20,370 acres.  Three of these surround the only US-based lithium producing plant, which is operated by the neighboring Chemetall Foote Corporation. The plant has been in production since 1967 and has produced an estimated 40 million kg (44,000+ tons) of lithium through 2008 from the region’s rich brines. The Company’s recent detailed interpretive reports on the methodology and results of the CSAMT surveys for that area have produced results that may identify structures and stratigraphy that resemble the deposit model for lithium brine deposits in the surrounding areas.

The company is also sitting on over 600,000 acres with their Americana Property in Alberta Canada.  This property has the potential of an extension to the Leduc Formation and Beaverhill Lake Group strata/Swan Hills Formation.  The Alberta Geological Survey found that the formation waters contain potentially economic amounts of lithium.

Increased demand for lithium has not stopped AmeriLithium  AMEL (OTC.QB) from diversifying.  In Western Australia, the company has begun exploration and is progressing towards drilling in an area with an identified gold trend near one the country’s largest gold deposits at Boddington.

AmeriLithium’s targets in this exciting new gold province have positioned the company at the ground level of exploration.  With access to 175 square kilometers alongside previous gold discoveries, the prospects are good for large-scale gold mineralization.  Other companies active in the area are vying for resources and access, a sure sign of good prospects.

With potential good news coming from Nevada, the previous gold discoveries in Australia, and AmeriLithium’s extensive property in Canada, Amerilithium is poised to be a possible short squeeze play.
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