Lithium Producer Makes Headway in Chile’s Atacama Desert

• Wealth Minerals has been exploring lithium projects in Chile for 6 years with the same experienced management team
• Their main project is Atacama Solar, one of the largest and highest grade lithium brines in the world with significant potential
• Their second project Oyagway is moving forward with a recent drill program and plans for a PEA in Q1 2023
• Wealth Minerals has also discovered a promising VMS deposit in Canada that could have significant value
• The company sees improved prospects under the new left-wing Chilean government and by partnering with local communities

Wealth Minerals Ltd. is positioned to capitalize on surging lithium demand thanks to high-potential projects in Chile’s lithium-rich Atacama salt flat. Led by an experienced management team, the Vancouver-based firm owns concessions covering 50,000 hectares in the heart of South America’s lithium belt.

“I’ve been in this business a long time and I think Wealth has sort of assets under its control that are much bigger than I’ve ever seen in my past,” said CEO Henk van Alphen.

With lithium prices hovering around $80,000 per tonne due to tight supply and growing electric vehicle (EV) battery demand, Wealth sees Chile as the ideal jurisdiction to advance development. The country hosts the world’s largest lithium reserves and is home to major producers like SQM and Albemarle.

Flagship Atacama Solar Project

Wealth’s flagship is Atacama Solar, the third largest salt flat in Chile at 46,200 hectares. Lithium is contained in underground brines, or salty groundwater. Atacama Solar stands out for having the highest lithium grades in Chile at 1,800 milligrams per liter.

“It’s a fairly large reservoir,” said van Alphen. “It will be eventually worth billions and billions of dollars to us.”

Atacama Solar’s lithium has been produced at a commercial scale for decades. Wealth is positioning to tap into deeper, untapped pools of lithium-rich brine. The company compares the estimated brine depths to the height of New York’s Freedom Tower at 541 meters.

Strategic Partnerships

Rather than using traditional evaporation ponds, Wealth plans to utilize newer technologies to produce lithium. The company has partnered with Fluor, an engineering firm recently acquired by Schlumberger, to find the optimal direct lithium extraction method. This aligns with Chile’s environmental policy direction.

Wealth is also collaborating with the local Oyagway indigenous community on its second major project, sharing concessions covering 8,000 hectares. “They’re very supportive of our project there,” van Alphen said. A preliminary economic assessment for the Oyagway project is slated for Q1 2023.

Major Discovery in Canada

Beyond lithium, Wealth has made waves with a major discovery at its Kootenay base metals project in British Columbia, Canada. An airborne survey revealed a 6 to 10-km-long geophysical anomaly overlaying massive sulfide mineralization.

“This is like what in the exploration business dreams are really made of,” said van Alphen, pointing to 20-meter-thick intervals of high-grade mineralization. “It doesn’t really get much better.”

An 80-hole drill program is planned for Q2 2023 to unlock the value of this deposit. Van Alphen likened the discovery’s potential to Robert Friedland’s early-stage nickel find at Diamond Fields in the 1990s, which propelled him to billionaire status.

Political Tailwinds

Some miners in South America have faced headwinds from rising resource nationalism, but van Alphen believes the election of Chile’s new left-wing government could work in Wealth’s favor. “It actually works to our advantage,” he said, because the administration is prioritizing partnerships with local indigenous groups like Oyagway. The previous conservative presidency favored lithium giants SQM and Albemarle.

Upside for Investors

Trading around $0.25 to $0.30 per share, Wealth has “a much better market capitalization” ahead following its PEA results according to van Alphen. With multi-billion dollar lithium assets and a promising base metals discovery, the company offers substantial upside potential as demand for EV battery metals accelerates.

“With any luck, we'll be my last name will be Friedland instead of Van Alphen,” the CEO quipped. “This is the kind of thing that happens when you keep on looking around.”

The Investment Thesis for Wealth Minerals

• World-class lithium assets in Chile's Atacama Desert with significant expansion potential
• Strategic partnerships strengthen operating approach and community relations
• Promising early-stage VMS discovery provides upside and asset diversification
• Improved regulatory environment in Chile favors domestic development
• Strong lithium demand/pricing outlook with EV adoption provides tailwinds