Wealth Minerals Ltd. (TSX-V:WML, OTCQB:WMLLF) revealed it had uncovered a six-metre (m) thick zone of massive sulphide mineralization exposed at surface at its nickel-copper-zinc-gold Kootenay project in British Columbia, which, the company said, merits immediate follow-up exploration.
Also in the statement, the battery metals-focused group announced a flow-through non-brokered, private placing for gross proceeds of up to C$1.84 million and a non-flow-through offering for C$500,000.
"The discovery of a 6 metre wide zone of massive sulphides within a 6 kilometre-long trend of prospective Lardeau Group rocks significantly enhances the potential of the Kootenay project and warrants immediate follow-up exploration to maximize value for Wealth's shareholders," said Wealth's CEO Hendrik van Alphen.
"Wealth Minerals remains steadfast in its commitment to advancing its core lithium assets but also intends to leverage the Kootenay project, now a low-cost, technically driven, battery metals discovery to provide additional value to shareholders.
Costs
"Management is committed to keep the operating cost of the Kootenay Project low, and as soon as the project requires significant spending, we intend to divest of the Kootenay project via a spin-out or similar transaction to Wealth shareholders."
Wealth said the newly discovered zone contains iron sulphides (pyrite), copper sulphides (chalcopyrite-bornite) and zinc sulphides and carbonate (sphalerite and hydrozincite) and was identified during field evaluation of a six-kilometre long "highly prospective trend".
The Kootenay asset covers two claim blocks, including the Lardeau-Goldsmith block, covering 6,951 hectares, and the Ledgend claim block covering 1,728 hectares. The claims cover precious and base metal prospective lower Paleozoic greenstone and phyllite units within the Lardeau Group, which hosts Besshi-type volcanogenic massive sulphide (VMS) deposits north of Revelstoke, BC.
Proceeds from the flow-through financing, which will see over 6.81 million units offered for the subscription price of C$0.27 each, will be used to incur eligible 'Canadian exploration expenses' related to the project.
The non-flow through private placement will see 2.5 million shares issued at C$0.20 each for gross proceeds of C$500,000. All securities issued in both financings are subject to a four-month hold period
Wealth Minerals has interests in Canada and Chile, while the focus is on the acquisition and development of lithium projects in South America.
Lithium market dynamics and a rapidly increasing metal price are the results of profound structural issues with the industry meeting anticipated future demand, it says. In parallel with lithium market dynamics, Wealth believes other battery metals will benefit from similar industry trends.
Contact the author at giles@proactiveinvestors.com