AmeriLithium (OTC.BB: AMEL) Looks to Join Australian Gold Rush
Nevada-based AmeriLithium Corp. (OTC.BB: AMEL) recently announced the start of exploratory drilling for gold in its Katanning, Western Australia holdings. The company will join the gold rush in the region with strong potential for success, given the deposits of gold that have been discovered circling their property. Companies like Newmont Boddington Gold (NYSE: NEM) and Ausgold Limited (ASX: AUC.AX) have proven reserves of 20 million and 5 million ounces in Katanning respectively.
AmeriLithium finished a geophysical study of its Australian holdings in July 2012, with geological indications consistent with the nearby proven reserves. The study included the identification of target drilling sites where 120-150 holes will be drilled in a close grid to locate gold deposits. The potential is timely given that gold prices recently hit a six-month high, making it even more attractive for investment.
The Katanning area demonstrates potential for mining millions of ounces of gold. In particular, AmeriLithium’s Bare Rocks license block is considered highly prospective due to a series of structural features (faults and shear zones) that appear to be relatively unique to the Katanning area.
Lithium Exploration and Demand Continue to Grow
AmeriLithium is primarily a junior lithium exploration company. The company has acquired exploration lands of approximately 720,000 acres, which includes Nevada-based projects, one project in Alberta, Canada, and three projects in Western Australia. These holdings form one of the largest portfolios among North American lithium exploration companies. Industry leaders include lithium giants Rio Tinto (NYSE: RIO) and Talison Lithium (TSX: TLH).
Recently released data show that the demand for lithium continues to grow. Companies like Talison increased sales by 3% over the past year and the average price of lithium concentrate rose to US$352 per ton, a 7% increase over last year. This growth in lithium is positive sign for AmeriLithium, whether or not they strike gold.
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Amerilithium is a publicly traded (OTCQB: AMEL) mining company committed to progressively developing into one of the leading U.S. companies in the global lithium industry. The Company is headquartered in Henderson, NV. Amerilithium has amassed a lithium portfolio consisting of approximately 719,779 acres, including four Nevada-based projects near the only lithium producing plant in the U.S., a large project in Alberta, Canada, and a project in Western Australia.