One World Lithium sees huge potential at Salar del Diablo lithium brine project

Flagship Salar del Diablo project is a massive 103,450 hectare (400 square miles) lithium brine project located in the State of Baja California, Mexico. Geological similarities to Salar de Atacama, which produces nearly 30% of the world’s lithium supply Huge exploration upside to never-before-drilled southern half of the property What One World Lithium does: One World Lithium Inc (CSE:OWL) (OTCMKTS:OWRDF) is progressing what could be the world’s largest lithium brine property. Located in Baja California, northwest Mexico, the Salar del Diablo project is an expansive salt flat, or salar, with significant exploration potential. OWL owns an undivided 60% property interest, with the right to acquire another 30% for a total of 90%. The northern portion of Salar del Diablo was initially  explored, leaving 80%% of the over 103,500 -hectare property with a significant amount of exploration upside. The company currently owns a 60% property working interest. Once its Phase 3 drill program is completed, OWL will own an 80% property working interest with a onetime option on receiving a bankable feasibility study to purchase an additional 10% property working interest for a total property working interest of 90%. CEO Doug Fulcher has over 40 years of experience in mining and exploration. As the CEO of Abacus Mining and Exploration Corp, he spent several years advancing the Ajax deposit that was subsequently joint ventured  to  KGHM, the world’s largest copper producer. KGHM  undertook to spend a minimum of C$200 million, leaving Abacus with a 20% carried property interest. Founder Tim Brock, the founding shareholder is currently a strategic advisor to the board of directors. How it is doing: The drills are turning again at the Salar del Diablo. In April 2021 OWL announced it had started drilling the third hole (DDH-3) of a four-hole drill program as part of its Phase Three drilling program at the Salar del Diablo lithium brine property. Drilling at DDH-3, which is 50 kilometres south of DDH-2, will operate 24 hours a day. Depending upon the results, OWL said it may drill more diamond drill holes in the “immediate” area. The project’s operator Mike Rosko of Montgomery & Associates prefers drilling at DDH-3’s location as there is historic and current hydrothermal activity that are evident and is often a source of lithium, such as in the Lithium Triangle in Argentina and Chile, according to the company. The surface area of the hydrothermal activity at the DDH-3 location is around 20,000 hectares or 77 square miles. DDH-3’s total depth to sample brines or sediments where hydrothermal activity may have occurred is likely between 300 and 400 metres. There has not been any previous drilling at the south end of the property, so the expected time to reach the total depth at the DDH-3 location is unknown. Meanwhile, OWL is raising up to C$2 million to advance work at Salar del Diablo as well as funding a proof of concept program for a critical fluid separation technology.  The company is issuing up to 20 million units priced at $0.10 each, with each unit comprised of one share and one half-warrant exercisable at $0.15 for a three-year period following closing of the offering. OWL said it expects about $750,000 of the proceeds to go towards drilling the southern and potentially middle portion of Salar del Diablo, with another $750,000 earmarked for initial lab tests, design of and completing engineer design work for a pilot plant for the company’s critical fluid separation technology. The remaining $500,000 will be working capital. OWL has the right to own 100% of the separation technology, subject to a positive proof of concept program. In addition there will be a 2% royalty paid to a chemical engineer who was the genesis of this technology. The company also signed an agreement with FinnMedia AG to consult on business development in Europe and Asia. Inflection points: Phase Three drill results from Salar del Diablo program Advancements in lithium separation technology initiatives Further financing announcements Lithium price moves What the boss says: Doug Fulcher, OWL’s CEO, told investors recently that the company is looking forward to drilling Salar del Diablo. “Last year proved to be a very tough year for exploration companies to start and carry out their exploration programs,” Fulcher said. “Once OWL is funded, our company can complete Phase Three drilling without exploration disruptions waiting on further financing.”  Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas