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WML.V: Wealth Minerals Provides Operational Update

02/28/2018
By Steven Ralston, CFA

TSX:WML.V

Executive Summary

• Current development effort – drilling campaign
• Drilling program at the Laguna Verde Project, which commenced in early December 2017, is in the closing stages 
• After the conclusion of the drilling at Laguna Verde, the drill crew will conduct other drill-testing programs, first at the Trinity Project, and thereafter at the Atacama Project

• Wealth Minerals (TSX:WML.V) fine-tuned its portfolio of lithium brine properties over last six months
• In January, entered into option agreement for the Pacana Concessions - 23 exploration concessions encompassing 5,700 hectares located within the Trinity Project
• Relinquished its 24.5% beneficial interest in the 39,404-hectare Seven Salars Project
• Relinquished its 100% interest in the option agreement for Pujsa, a 1,600-hectare property which was part of the Trinity Project
• Previously, last summer, entered into option agreement for 6,262-hectare land package at Laguna Verde (Salar Green and Union)

• The recent election in Chile resulted in a pro-business, pro-investment President who is expected to be very friendly to the advancement of lithium mining projects

Wealth Minerals will have a booth at 2018 PDAC (Prospectors and Developers Association of Canada) conference being held at the Metro Toronto Convention Centre from March 4th through 7th.

Operational Update

On February 20, 2018, Wealth Minerals provided a corporate operational update.

The company’s drilling program at the Laguna Verde Project, which commenced in early December 2017, is in the closing stages. Laguna Verde with the targets having been determined by analyzing the results of the Transient Electromagnetic (TEM) and gravity geophysical surveys completed earlier in 2017 (see RECENT GEOPHYSICAL SURVEYS section below). The drilling/evaluation program specifically targeted brines 220 meters below surface where groundwater samples are being collected as well as at 50 meter intervals downhole.

After the conclusion of the drilling program at Laguna Verde, the drill crew will conduct other drill-testing programs, first at the Trinity Project and thereafter at the Atacama Project. Recent geophysical surveys at those two projects (again see RECENT GEOPHYSICAL SURVEYS section below) have defined several near-surface brine targets.

Management has evaluated its projects and ranked them according to various characteristics, including the financial resources required to maintain the option agreements in good standing and the results of geophysical surveys. Consequently, management increased its land package at Laguna Verde by 6,262 hectares during the summer of 2017.

In this Operational Update, management announced that the company has relinquished its 24.5% beneficial interest in the 39,404-hectare Seven Salars Project, which is jointly owned by Talison Lithium Ltd. and San Antonio Sociedad Contractual Minera. The Agreement to acquire 49% of the outstanding shares of San Antonio had originally been announced on August 1, 2017; however, in the meantime, management concluded that the minority position did not afford sufficient control over the project’s development process.

Also, management relinquished its 100% interest in the option agreement for Pujsa, a collection of seven exploration concessions encompassing 1,600 hectares within the Trinity Project. It was determined that operational synergies between Pujsa and the other salars in the Trinity Project were insufficient

Management is extremely encouraged by the recent Presidential election of Conservative leader Sebastian Piñera in December. Mr. Piñera (who will assume office on March 11th) ran on a pro-business, pro-investment platform with plans to stimulate the economy by offering incentives to investors. In the mining sector, the timetable for granting permits is expected to be accelerated, especially for lithium mining projects. Mr. Piñera’s choice for Minister of Mines appears to be Baldo Prokurica, who has consistently advocated for a more liberal mining regulatory framework in order to attract both domestic and foreign investment for the development of Chile’s natural resources.

In addition, Wealth Minerals will have a booth at 2018 PDAC (Prospectors and Developers Association of Canada) conference being held at the Metro Toronto Convention Centre from March 4th through 7th.

Wealth Minerals

Management has recognized the increasing interest in lithium brines located with the Lithium Triangle, especially Chile. Rising prices of the lithium compounds, especially lithium carbonate, appeared to be forerunner of an expected potential future supply shortage of high-grade lithium to feed the demand being generated by Electric Vehicle (EV) manufacturers and builders of battery gigafactories. The company’s business plan is comprised of acquiring greenfield lithium concessions, advancing the properties through exploratory studies (brine sampling, geophysical surveys and drilling) to an extent that they appear technically feasibility and economically viable and then developing these properties into revenue generating operations.

Management is positioning the company to benefit from the upcoming expected growth of demand in the lithium space and continues to seek the acquisition of additional interests in prospective concessions.

READ THE FULL RESEARCH REPORT HERE.


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