DEVELOPING AFRICA’S LARGEST LITHIUM DEPOSIT
ASX : PSC
Prospect Resources Limited (ASX:PSC) is an Africa-focused battery minerals company based in Perth
with operations in Zimbabwe, and exploration activities in Zimbabwe and the DRC.
Prospect’s flagship project is the Arcadia Lithium Project located approximately 35km east of Harare in Zimbabwe. The Arcadia Lithium Project represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect’s experienced team, focusing on near term production of spodumene and petalite concentrates. An updated feasibility study is underway to optimise project economics, and reduce technical risk.
- 70% ownership of the Arcadia Project – conditional agreement in place to increase ownership to 87%
- 20+ year min life – Phase 1 -higher tonnage scenarios being investigated
- Strong offtake partner – Sinomine – 70% of Phase 1 Spodumene and Petalite concentrate
- Pilot plant demonstrates Lithium Carbonate potential at Arcadia
- Proven development team
- Zimbabwe – “Open for Business” – mining lease granted
- Excellent access to infrastructure – 35km East of Harare (capital city)
- African footprint – strong regional potential
Arcadia Lithium – Project Location & Infrastructure
The Arcadia Lithium Project is located approximately 35 km East of Harare, Zimbabwe in the high veld close to the long established Arcturus gold mine. Arcadia occupies an area of more than 14 km2 and consists of some historical lithium and beryl workings within an existing agricultural area partially surrounded by a number of hills rising some 50 m above the central basin floor.
The project’s elevation ranges between 1300 and 1420 m above mean sea level straddling the Thorn Vlei, Grazely and Lonely Park Estate Farms. The Project is located close to major highways and railheads, with the Beira Port being less than 450km away by rail/road transport. The proximity to Harare as a source of professional, skilled and semi-skilled labour, engineering skills and its location as a regional transport and services hub adds to the project’s economics.
Share Price Performance
Directors & Management
Sam Hosack – Managing Director
Hugh Warner – Executive Chairman
Harry Greaves – Executive Director
Chris Hilbrands – Chief Financial Officer
Gerry Fahey – Non-Executive Director
Zed Rusike – Non-Executive Director
Henian Chen – Non-Executive Director
Pershing Australia Pty – 11.7%
Sinomine International Exploration – 8.4%
MBM Capital Partners LLP – 7.1%
Elliot Holdings – 6.5%
BNP Paribas – 5.7%
The Arcadia Project
- Zimbabwe under its new Government is “Open for Business”
- Significant support from all relevant government departments
- Mining lease granted (approx. 14km2)
- Surface rights secured
- Environmental Approvals in place
- PFS Indicates the potential for Arcadia to become a globally significant producer
- Studies underway to optimise project economics and reduce technical risk
- Feasibility study to be updated before year end
- Higher production/throughput and capex outcome likely
- Arcadia has excellent access to strategic infrastructure
- Approximately 35 km East of Harare, providing convenient access to skilled and semi-skilled labour
- Less than 20 km of gravel road to sealed highway, which goes on 450km to Beira
- Grid power close by and soon to be connected to site (20MVA supply–sufficient for the lithium chemicals plant)
- Abundant groundwater available
JORC Mineral Resource and Ore Reserves
Since acquisition of the project in June 2016, Prospect has embarked on an aggressive, phased drilling program in order to delineate JORC compliant Mineral Resource estimates. The work has included diamond and reverse circulation drilling, geological mapping and channel sampling, topographic, geophysical as well as hydrographical surveys.
To date a total of 14 mineralised stacked pegmatites have been identified covering almost 100m vertical distance, with a strike of almost 4.5km SW-NE, by over 1km down dip.
Following announcement of a Maiden JORC Mineral Resource estimate in October 2016, the Mineral Resource estimate was updated again in July 2017 and was based on 196 drill holes representing a strike length of 2500 m and a downdip length of approximately 900 m. Further drilling undertaken after the Pre-Feasibility Study resulted in a 24% increase in the Mineral Resource estimates from the 2017 Pre-Feasibility Study. All Mineral Resource estimates were carried out by Digital Mining
Services, Harare in conjunction with Roger Tyler, site geologist and Competent Person. All Mineral Resource estimates were reviewed by The MSA Group in Johannesburg.
As of March 2018, the JORC compliant Mineral Resource estimates for the Arcadia Lithium Project were:
- A High-Grade Zone Mineral Resource estimate of 2 Mt @ 1.41% Li2O and 119 ppm Ta2O5 (1% Li2O cut-off), which is a 24% increase to the Mineral Resource estimate announced in the 2017 Pre-Feasibility Study (34.9 Mt @ 1.42% Li2O and 125 ppm Ta2O5 (1% Li2O cut-off)).
- The Ore Reserve estimate has been increased to 26.9 Mt @ 31% Li2O and 128 ppm Ta2O5, an increase from 15.8 Mt @ 1.34% Li2O and 125 ppm Ta2O5in the PFS.
ARCADIA MINERAL PFS HIGHLIGHTS
Prospect completed a detailed update of its PFS in March 2018:
Arcadia Main and Satellite Pit Designs
Dip Section Showing Progressive Pit Outlines