Lithium Explorer Strikes Again with Big Brazil Find

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American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) has commenced a Phase 2 sampling program at its 100% owned Jaguaribe Project, a 180-square-kilometer hardrock lithium-cesium-tantalum (LCT) pegmatite property in northern Brazil's Ceará State. The announcement follows promising results from the initial sampling phase, where assays returned lithium oxide (Li₂O) grades of up to 3.72%, along with significant concentrations of rare earth elements (REEs) and other critical minerals.

Located in the Jaguaribe/Solonópole region, the project sits within a historically significant pegmatite district. Early exploration revealed multiple long and wide pegmatite dykes, some measuring up to 30 meters in width and 300 meters in length. Sampling during Phase 1 identified spodumene-bearing pegmatites with lithium grades of 3.72%, 2.15%, and 1.58% Li₂O. Additional samples contained 554.5 ppm of cesium, 135 ppm of tantalum, and 177 ppm of niobium. One sample showed elevated levels of rubidium exceeding 10,000 ppm, along with 675 ppm of tin and 387 ppm of zinc.

Company CEO R. Nick Horsley stated in the May 7 news release, "We are thrilled to launch the second phase of exploration at our Jaguaribe Project, building on the promising lithium and rare earth element (REE) discoveries from phase one." Horsley emphasized the project's strategic location, saying, "Brazil is a global hub for hard rock lithium production, and our Jaguaribe Project, located in a well-known pegmatite district, has already yielded high-grade lithium samples and significant REE values."

According to the company, the current phase aims to delineate new pegmatite outcrops and test both known and newly mapped areas. Field crews, including a Brazil-based senior geologist and lithium-qualified person (QP), are working with local geological consultants to support a future drill program.

Multi-element geochemical analyses conducted at SGS laboratories confirmed that pegmatite samples from the Jaguaribe site are consistent with standard LCT geochemical profiles. For instance, the VM-R-01 sample contained 1.54% Li₂O and exceeded benchmark tantalum levels by a factor of seven. While some surface samples showed lower lithium due to natural leaching, the company noted that subsurface levels in similar pegmatites have shown significantly higher concentrations during drilling programs in the region.

The Jaguaribe Project also benefits from favorable logistics and infrastructure, with road access to a major international airport and shipping port in Fortaleza just four hours away. The site itself is situated in arid farmland outside rainforest zones, which is expected to facilitate exploration and development.

Lithium Sector Sees Shifting Supply Chains and New Growth Potential

A Stockhead article published on April 22 highlighted ongoing optimism about Argentina's growing role in the global lithium supply chain. According to the report, electric vehicle sales in the first quarter of the year rose 29 % worldwide, with China leading at 2.4 million units sold, followed by 900,000 units in the European Union and 500,000 units in North America. Citing Citi's projections, the article noted that a lithium carbonate equivalent deficit of 12,000 tonnes was expected by 2026, growing to 34,000 tonnes by 2027. Pursuit Minerals' managing director Aaron Revelle explained that even small deficits could influence the market, saying, "If you look back at the major price surge, which was driven by an 8% deficit in the market, that peaked the price from US$10,000 to upwards of US$80,000 per tonne."

On May 5, Technical Analyst Clive Maund spoke with Streetwise Reports and provided a Strong Buy rating for American Salars. 

The same Stockhead report emphasized that Argentina's production was forecast to increase by 75% this year, supported by its strong cost position and favorable infrastructure. Revelle described the country's regulatory environment as highly supportive, stating, "Milei's probably produced one of the best political environments from a federal level with the introduction of things like RIGI." He added that these changes had helped attract large-scale investment.

A Global Mining Review article published on May 7 provided additional context about the global lithium market. François-Michel Colomar, Head of External Relations at Adionics, noted that despite short-term surplus forecasts extending to 2028 or beyond, demand for lithium was expected to remain strong due to both electric vehicles and large-scale energy storage systems. Colomar explained that technological innovations such as direct lithium extraction (DLE) were reshaping the industry, offering cost and environmental advantages over traditional methods. He added that lithium recycling was anticipated to play a growing role in developing a sustainable and circular supply chain, helping to diversify resources and support government clean energy targets.

In a Stockhead video posted on May 8, American Salars Lithium CEO Nick Horsley noted that major players had demonstrated sustained interest in lithium despite recent market fluctuations. Horsley pointed to significant investments made by Rio Tinto, stating that the company had committed over US$9 billion within the past four years, including US$7 billion in mergers and acquisitions, along with US$2.5 billion toward the Rincon development. He remarked, "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.

Looking Ahead at Jaguaribe and Beyond

American Salars' corporate presentation from March 2025 highlights the Jaguaribe Project as a cornerstone of its growing portfolio of lithium assets across the Americas. The company owns four lithium projects, including salar brine assets in Argentina and Nevada, and additional hardrock holdings in Quebec, Canada.

The Jaguaribe Project is particularly notable for its combination of scale, historical artisanal mining, and proximity to global battery markets. The company's strategy emphasizes securing large, underexplored pegmatite regions with high potential for LCT mineralization. The initial discoveries at Jaguaribe have already prompted the acquisition of ten claim blocks surrounding the area.

Elsewhere in the company's portfolio, American Salars continues to advance its Pocitos lithium brine project in Argentina, where a previous NI 43-101 report estimated 760,000 tonnes of lithium carbonate equivalent (LCE) across Pocitos 1 and Pocitos 2. Although American Salars does not own Pocitos 2, all drilling to date occurred on Pocitos 1, with the company planning to update the resource estimate.

Additionally, in Nevada, the company has completed a NI 43-101 report for its Black Rock South project, where 33 of 38 soil samples returned lithium concentrations exceeding 100 ppm, averaging 131 ppm. The company is exploring the potential for direct lithium extraction (DLE) technologies that could reduce environmental impact and increase efficiency.

With infrastructure in place and a diversified asset base spanning both hardrock and brine lithium projects, American Salars is positioned to continue advancing exploration efforts across multiple jurisdictions. The second-phase work at Jaguaribe represents a key step in expanding its Brazilian footprint and potentially identifying drilling targets for further resource delineation.

Analysts Highlight American Salars as Well-Positioned for Lithium Sector Upswing

John Newell of John Newell & Associates identified American Salars Lithium Inc. as a company with potential upside following the recent correction in the lithium market. In a February 19 report, Newell noted that lithium sector valuations had fallen significantly due to increased global supply, which weighed on prices and affected investor sentiment. He observed that certain lithium exploration companies, including American Salars, had taken steps to strengthen their positioning for a possible market recovery.

Newell pointed to American Salars' focus on lithium brine exploration within Argentina's Lithium Triangle, describing it as one of the world's key lithium-producing regions. He highlighted the company's land expansion at the Pocitos project and its continued progress in advancing resource development as key developments. "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's report also referenced broader sector dynamics that could provide support for companies in the space. He cited the anticipated tightening of lithium supply and steady growth in demand from the electric vehicle industry as factors likely to draw renewed investor focus toward exploration and development firms. With long-term lithium demand forecast to increase substantially by 2030, Newell suggested that companies with well-situated projects could be positioned to benefit as market conditions evolve.

In a separate technical analysis on May 5, Clive Maund spoke with Streetwise Reports and provided a Strong Buy rating for American Salars. Maund stated in his report to Streetwise, "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."

Maund added that significant upside volume since February had pushed the Accumulation line to new highs, noting, "This has created 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 31,430,605 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.