Wealth Minerals Ltd, Lithium Brines in Chile, White Hot

A recent article by Epstein Research highlighted Wealth Minerals (TSXV:WML; OTCQB:WMLLF; SSE:WMLCL; Frankfurt:EJZ).
As quoted in the article:

This is a new development in the sector because Chile had been a no-go zone for juniors until about 6-9 months ago.  Now it’s a, must-go-make-a-deal-immediately zone, and the stampede is just beginning.  First movers like Wealth Minerals (TSX-V: WML) / (OTC: WMLLF), Lithium Power Intl., LiCo Energy and Bearing Resources have a notable head start, but the number of players will likely double or triple before long.
To find out more, I tapped CEO Henk van Alphen of Wealth Minerals.  At the end of the interview, I was fortunate to be able to sneak in questions for Executive Director (Chile), Marcelo Awad and President Tim McCutcheon.
[ER]:  Is the endgame for Wealth Minerals simply to sell the company to the highest bidder later this year or next?  
Alphen:  We have every intention of advancing each of our projects as far and as fast as we can.  Along the way we expect to partner on some or all of our projects.  Interest in Chile, in lithium and in our concessions is increasing by the day.  We are in talks to lock down additional concessions, but we have nothing definitive to report at this time.  While the rush into jurisdictions like Nevada, Quebec/Ontario, even northern Argentina could be about to hit a brick wall, the opposite is true in Chile.  We have a very significant first mover advantage.
Recent transactions among newcomers and local companies are sending a clear message.  The price of playing poker in Chile has gone way up…..  Recently, a junior signed an agreement to earn a 50% interest in an exploitation concession in the Atacama.  The price of this poker hand?  Cash plus shares in the company worth about US$ 9 M.  To earn another 10%, the ante goes up again– another US$ 10 M.  This project is considerably more advanced then our green field Atacama project, but it’s smaller.  Ultimately, we feel this is good for first movers like us if it means followers get priced out of the market.
[ER]:  Are you looking at additional acquisitions?  Or, do you have enough on your plate? 
Alphen:  We currently have 5 projects about 55,000 hectares.  As long as we continue to strike great deals, we will go for it.  We don’t see signs of a slowing of interest in lithium brines in Chile.  We’re looking for transactions that complement our existing portfolio and increase our head start.  Each concession we control is one that a competitor cannot, unless they come to us.  This year will also be a lot about exploration and moving our projects forward.  Shareholders can look forward to brine sampling, geophysics and most importantly drilling, initially focused on the Atacama.
Atacama is host to the best environment for harvesting lithium brines on the planet.  We have both the highest grades and evaporation rates.  That means desired lithium concentrations from solar evaporation can be obtained 25% to 50% faster, and that’s why the Atacama has the lowest cost production in the word at around US$ 2,500 – US$ 3,000/metric tonne.
[ER]:  Marcelo, you are a well known and respected mining executive in South America, with 18 years at Codelco and 16 more at Antofagasta Minerals.  You could be actively involved in any company or sector… Why did you choose lithium, and why Wealth Minerals?  
Mr. Marcelo Awad:  That’s true, I have had the chance since I left Antofagasta Minerals to join big Companies, but I decided to build up a portfolio of Boards and Advising Roles.  Fortunately that decision went well.  With Henk we’ve known each other for years and last year he told me about his plan to acquire Lithium assets in Chile and asked me if would I assist him to do so.  I immediately got interested because I knew his ability and reputation as head of Wealth Minerals and also because I was reading about the Lithium market and the big potential Chile had based on the size of its reserves.  I told myself with my mining knowledge, this was a good opportunity to help both Chile and Wealth Minerals in the development of the Lithium business, which will certainly help the Chilean economy.
[ER]:  Tim, can you describe the differences among global lithium brine operations / proposed projects?  How does Wealth Minerals’ Proyecto Atacama project fit in? 
Mr. Tim McCutcheon:  There are several factors that determine the success of a lithium brine deposit.  One is size of the overall salar, each has a balance of water coming in and going out.  A challenge for extracting lithium is to ensure extracted brine is replenished.  Water is the mechanism that conveys lithium to surface for processing – no water means no lithium.  Larger salars have more water coming in, allowing more to go out, without harming a salar’s equilibrium.  Smaller salars face physical limits on how much processing capacity can be installed.  As the 3rd largest salar in the world, Atacama has tremendous lithium production capacity.
Grade is another critical factor.  Larger salars are older, so there’s been more time for lithium to be deposited, which translates to higher grade.  SQM’s grade is 2-3 times larger than many other global brine projects.  It’s no surprise that lithium brine extraction was pioneered in the Atacama.
A last factor is aridness.  There are many technologies, most unproven at commercial scale, to produce lithium from brine extracts, but by far the lowest-risk is open air evaporation.  The Atacama salar sits at low altitude compared to most other lithium-bearing salars.  And, it’s possibly the direst place on the planet.  Therefore, it has the highest evaporation rate, leading to the lowest production cost in the industry.

Connect with Wealth Minerals (TSXV:WML; OTCQB:WMLLF; SSE:WMLCL; Frankfurt:EJZ) to receive an Investor Presentation.