Wealth Minerals advances Kuska lithium project development with positive PEA results
Wealth Minerals Ltd. announced a significant advancement in its Kuska project (formerly Ollagüe project) at Salar de Ollagüe, Chile.
The Preliminary Economic Assessment (PEA) for the project was produced by DRA Global, in collaboration with resource experts from Montgomery & Associates and other qualified third-party consultants.
CEO Hendrik van Alphen expressed satisfaction with the PEA results, highlighting Wealth Minerals’ expertise in Direct Lithium Extraction (DLE) technology.
The Kuska project, based on the maiden resource report, estimates 741,000 tons of Lithium Carbonate Equivalent (LCE) indicated resources. Wealth Minerals also acquired an additional 2,500 hectares of mineral concessions adjacent to the original project area, which have yet to be explored for lithium.
The PEA outlines the project’s development towards a 20,000 metric tons per annum (tpa) LCE output over a 20-year Life of Mine (LOM). The company intends to use advanced DLE technology for converting lithium-bearing brine into battery-grade Lithium Carbonate (LC). The project’s phased approach includes an initial 10,000 tpa LCE operation, scaling up to 20,000 tpa LCE.
Advancing Lithium Extraction: Wealth Minerals’ Kuska Project Shows Promising Future
Wealth Minerals emphasizes sustainability, integrating process water recycling, waste treatment facilities, and renewable energy resources into the project’s design. The mining operation will focus on preserving salar integrity and water equilibrium, with a near-zero environmental impact approach.
The PEA estimates a pre-tax/pre-royalty Net Present Value (NPV10) of US$1.65 billion and an Internal Rate of Return (IRR) of 33%, with an after-tax NPV10 of US$1.15 billion and an IRR of 28%. Baseline Capital Expenditures (CapEx) are estimated at US$749 million, including additional exploration works and permitting costs.
The Kuska project’s positive PEA marks a significant step for Wealth Minerals in becoming a key player in the lithium production industry. The project aligns with Chile’s National Lithium Strategy and Wealth Minerals’ commitment to environmentally friendly extraction methods. This development promises to contribute to the global clean energy transition, supporting the growing demand for lithium in renewable energy and electric vehicle batteries.