- Wealth Minerals' (WMLLF, Financial) application for a special lithium operation contract (CEOL) in Chile was declined.
- The Kuska lithium project boasts a Pre-Tax NPV10% of US$1.65 billion and a 33% IRR.
- Wealth Minerals is considering appealing the decision or applying through regular procedures.
Wealth Minerals Ltd. (WMLLF) has faced a setback with the rejection of its initial application for a special lithium operation contract (CEOL) under Chile's Fast-Track permitting policy. The application was declined because the company did not meet the requirement of holding 80% of the mining concessions within the 'referential Polygon' in the Ollagüe Salar area. Despite being the largest concession holder in the region, Wealth Minerals could not meet this condition.
The Kuska Project, wholly owned by Wealth Minerals, is rich in resources with 741,000 tons of Lithium Carbonate Equivalent (LCE) indicated resources grading at 175 mg/L, and 701,000 tons of LCE inferred resources grading at 185 mg/L. According to a recent Preliminary Economic Assessment (PEA), the project has a Pre-Tax NPV10% of US$1.65 billion and an impressive Internal Rate of Return (IRR) of 33%, with planned production of 20,000 metric tons per annum LCE over a 20-year mine life.
Following the rejection, Wealth Minerals is currently evaluating alternatives, which include appealing the Ministry of Mining's decision within the stipulated five business days or reapplying for a CEOL through regular channels outside the Fast-Track program. Wealth's management remains optimistic about advancing the Kuska project, emphasizing the significant economic and social value it represents for stakeholders, including Wealth shareholders, the local Indigenous Quechua Community, and the Chilean State.
