Explorer Snaps Up High-Grade Lithium in Argentina for Big Battery Gains

Source: Streetwise Reports 05/05/2025

American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) secures top-tier Argentina project with huge brine potential. See why this deal matters for the battery boom.

American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) announced on May 1 that it signed a Letter of Intent (LOI) to acquire a 100% interest in the Cauchari Minas Ines 01 Lithium Salar Project located in Salta Province, Argentina. The 1,235-hectare project sits at the southern end of the Cauchari Salt Lake and lies near notable lithium operations, including the Rincon salar owned by Rio Tinto. The company reported that surface samples collected 30 centimeters below the salt crust measured lithium concentrations of up to 383 parts per million (ppm).

According to American Salars’ CEO and Director R. Nick Horsley, “The potential of this section of the Salar de Cauchari is immense.” Horsley also stated that Cauchari is part of a “proven producing Salar operated by Exar — Ganfeng & Lithium Argentina that produces battery grade lithium carbonate.”

The Cauchari Salt Lake is part of a structurally controlled sedimentary basin with an aquifer estimated to cover over 250 square kilometers, with maximum depths reaching 500 meters along its eastern margins. While effective porosity – meaning the percentage of pore space contributing to fluid flow – has not yet been determined, the company notes in the announcement that similar basins typically range between 4% and 20%. Geological surveys indicate a shear fault zone through the concession that may act as an aquifer conduit, potentially enhancing brine flow.

Historical data describes the Cauchari Salt Lake as a significant borax producer, notably ulexite, and as having brines rich in lithium, potassium, boron, and rare earth elements. According to the company, brine concentrations near the northern boundary of its claim have reached lithium levels as high as 900 ppm, among the highest in the Puna region.

In a related update, American Salars also announced a settlement agreement with Ekeko SA to resolve a lien on its Pocitos 1 project. The company agreed to pay US$200,000 in cash, with US$130,000 due by May 15, 2025, and the remaining US$70,000 due by September 15, 2025. The Pocitos project, approximately 100 kilometers west of San Antonio de Los Cobres, includes an 800-hectare claim with an NI 43-101 inferred mineral resource estimate of 760,000 tonnes of lithium carbonate equivalent (LCE). This estimate is based on combined data from Pocitos 1 and the neighboring Pocitos 2 block, though American Salars clarified that it does not currently own Pocitos 2.

The company’s broader lithium project portfolio spans several jurisdictions, including the Jaguaribe hard rock project in Brazil, the Black Rock South brine project in Nevada, and multiple hard rock lithium properties in Quebec, Canada.

Positive Momentum Amid Shifting Market Conditions

The lithium industry showed signs of building positive momentum, even as it navigated recent market challenges. According to an April 7 update from Nasdaq, analysts expected the lithium surplus, which stood at an estimated 154,000 metric tons in 2024, to contract sharply to just 10,000 metric tons in 2025 and flip into a 1,500 metric ton deficit by 2026.

Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, explained that current price levels around US$10,400 per metric ton left about a third of the industry unprofitable, noting, “Prices can’t move much lower” without prompting further supply cuts, which positioned the market for rebalancing. Webb added that the long-term demand picture remained robust, supported by strong electric vehicle (EV) adoption and growing energy storage needs.

In a technical assessment from May 5, Technical Analyst Clive Maund offered a Strong Buy rating for American Salars.

In an April 22 report, Stockhead highlighted Argentina as a standout growth region within the global lithium landscape. Citi analysts projected a lithium carbonate equivalent deficit of 12,000 metric tons in 2026, rising to 34,000 metric tons in 2027, suggesting tightening supply.

Pursuit Minerals managing director Aaron Revelle pointed to the rarity of Argentina’s lithium resources, stating, “There is limited supply. That’s something I’m quite vocal about.” American Salars Lithium CEO Nick Horsley emphasized investor interest in the country, saying, “The smart money, I think, is looking at this as a real opportunity to buy while the supply chains are in a bit of a surplus.” Horsley also stressed Argentina’s infrastructure advantages, calling it “probably the number one salar in terms of infrastructure” with rail, highway, gas, and water access supporting development.

By May 5, NAI 500 reported that many industry leaders remained optimistic despite recent price declines. Julia Khandoshko, CEO of Mind Money, described the downturn as a “temporary dip,” underscoring that EV adoption trends were irreversible. Ryan Melsert, CEO of American Battery Technology, highlighted the accelerated pace of lithium battery factory construction in the United States, positioning the sector for strengthened demand. Additionally, Ernie Ortiz, president and CEO of Lithium Royalty, pointed to energy storage as a powerful demand driver, noting that the sector could potentially absorb much of the expected 17% growth in lithium supply during 2025. Ortiz explained, “You need prices to rise in order to incentivize that new supply response,” reinforcing the view that long-term fundamentals remained constructive.

Upcoming Drivers: Positioning American Salars for Growth

American Salars’s investor presentation outlines several near-term catalysts that may support its positioning within the global lithium market. At the Pocitos project, environmental studies are underway, following a phase where three drilled holes intersected the aquifer at depths of 365 to 407 meters, reporting lithium values up to 169 ppm. The company highlights that core logs tested for porosity showed results between 6% and 14%. Additionally, Ekosolve pilot plant testing has produced lithium carbonate with a purity of 99.89% and a recovery rate of 94.9% from Pocitos 1 material.

American Salars has also signed an LOI to acquire an additional 13,080 hectares on the Pocitos salar. Management plans to compile exploration data across all Pocitos tenements, update its NI 43-101 mineral resource estimate, and advance scoping and feasibility studies to evaluate the project’s path to commercial production.

Maund told Streetwise exclusively, “American Salars is believed to be at an outstanding point to buy here.

Beyond Argentina, the company holds promising assets in Brazil and Nevada. At its Jaguaribe project, surface sampling has identified lithium oxide (Li2O) grades as high as 3.72% within pegmatite dykes, while its Black Rock South brine project in Nevada has delivered soil sample results averaging 131 ppm lithium. The company notes that it is focused on applying direct lithium extraction (DLE) technologies at its Nevada site, which aim to reduce water input by filtering lithium directly from brines while allowing water to be reinjected into aquifers.

American Salars presents itself as a consolidator in the lithium exploration space, emphasizing its management’s experience and an active mergers and acquisitions pipeline. The company’s projects are positioned to potentially benefit from broader market trends, including lithium price forecasts and recent sector investments, although any forward-looking statements remain subject to numerous uncertainties and risks.

Analyst Highlights American Salars as Positioned for Lithium Sector Recovery

According to John Newell of John Newell & Associates on February 19, American Salars Lithium Inc. stood out as a company with potential to benefit following the recent lithium market correction. In his report, Newell observed that lithium sector valuations had declined sharply as increased supply weighed on prices and dampened investor sentiment. However, he noted that select lithium exploration companies, including American Salars, had taken steps to position themselves well for a potential rebound.

Newell emphasized that American Salars concentrated on lithium brine exploration within Argentina’s Lithium Triangle, one of the world’s most significant lithium-producing regions. He pointed to the company’s recent land expansion at the Pocitos project and its ongoing work to advance resource development as key factors strengthening its outlook. “Among the hardest hit in the correction were Atlas Lithium Corp. and American Salars Lithium Inc.,” Newell wrote, “both of which saw significant share price declines as lithium prices softened and investor sentiment turned bearish. However, technical indicators suggest these stocks may be in the process of forming a bottom, setting up for a potential recovery.”

Newell also referenced broader sector trends that could support companies like American Salars. He cited the expected tightening of lithium supply and continued demand growth from the electric vehicle sector as positive forces that might renew investor attention toward lithium exploration and development firms. With long-term lithium demand projected to rise meaningfully by 2030, Newell suggested that companies with well-located projects could be positioned to benefit from future market improvements.

In a technical assessment from May 5, Technical Analyst Clive Maund offered a Strong Buy rating for American Salars.

Maund told Streetwise exclusively, “American Salars is believed to be at an outstanding point to buy here for the following reasons: from late February it has reacted back across the large trading range that has formed since last August to the strong support near to its lower boundary, having been driven lower by a steeply falling 50-day moving average (which is set to flatten out soon) and this trading range is viewed as a base pattern that has formed following a severe bear market from the Spring 2024 highs at CA$0.45. [OWNERSHIP_CHART-11095]

We have seen heavy upside volume since February that has driven the Accumulation line strongly higher, with it making new highs some days ago, creating a major positive divergence by this indicator that is clearly bullish. Lastly, the price and its moving averages are now bunching closely together, which is a frequent precondition for a reversal. This is a powerful confluence of bullish factors — and American Salars is still at an excellent entry point. It is therefore rated an Immediate Strong Buy.”

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. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Important Disclosures:

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.
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( Companies Mentioned: USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN, )