Name of the Project
Arcadia lithium project.

Location
Outside Harare, in Zimbabwe.

Project Owner/s
Prospect Resources (87%).

Project Description
An updated definitive feasibility study (DFS) on Arcadia, released in December 2019, confirmed the project’s strong financial and geological merits, positioning the company to be a leading producer of lithium and battery minerals.

The project’s total proven and probable reserves have increased from 26.9-million tonnes grading 1.31% lithium oxide and 128 parts per million (ppm) tantalum pentoxide in the 2018 DFS to 37.4-million tonnes grading 1.22% lithium oxide and 121 ppm tantalum pentoxide in the updated 2019 DFS.

The updated DFS envisages a 2.4-million-tonne-a-year conventional openpit mining operation, producing average concentrate of about 173 000 t/y of 6% spodumene, 24 000 t/y of chemical grade petalite and 98 000 t/y technical grade petalite at a concentrate grade of 4%, as well as 174 000 lb/y of tantalum at a concentrate grade of 25%. Mineral processing will be based on using conventional beneficiation techniques, including the gravity-based processes of dense-medium separation and spirals, to recover petalite and tantalite. Froth flotation will be used to recover spodumene.

Process tailings will be disposed of to an engineered tailings storage facility.

The project’s mine life has been extended from 12 years to 15.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from $511-million, at a 10% discount rate in the 2018 DFS, to $710-million in the updated 2019 DFS.

The pretax internal rate of return has increased from 44% in the 2018 DFS, with a payback of 2.5 years, to 71%, with a payback of 18 months in the updated 2019 DFS.

Capital Expenditure
The preproduction capital cost of the project has decreased from $165.2-million in the 2018 DFS to $162.4-million in the updated 2019 DFS.

Planned Start/End Date
The ground-breaking ceremony for the project was held in November 2018.

The project is expected to be completed in the third quarter of 2020, with commissioning from November 2020.

Latest Developments
Prospect Resources will raise A$6.5-million in a share placement to advance work at its Arcadia lithium project.

The company has received subscriptions for the placement of about 41.9-million shares at 15.5c each from institutional and sophisticated investors.

The placement has been strongly supported by the company’s biggest shareholder, as well as existing institutional shareholders, and new international and domestic institutions.

The funds raised will be used to complete the highly accretive acquisition of a further 17% interest in the project, as well as advance the development funding process following the optimised feasibility study and pilot plant operation.

An updated definitive feasibility study previously showed that the 2.4-million-tonne-a-year project would have a mine life of 15.5 years, with the capital cost estimated at $165-million

Key Contracts, Suppliers and Consultants
Roger Tyler (resource definition); ADP Marine & Modular (DFS – process design review, final engineering cost estimate, health, safety and environment management plan, project execution plan and quality management plan); DRA Global (process design); Gayle Hanssen (resource modelling); Adam Moodley (project geologist); Practara (geotechnical services); David Miller (mine planning and minerals marketing); Envirosmart (environmental-impact assessment); Constant Chuma (hydrogeological assess­ment); Mike Kitney (metallurgy); Blonton Management (tailings disposal facility design); Norconsult (electrical network analysis); JJ Transport (transport fleet study); Lee John (consultant metallurgist); Trevor Barnard (project manager); and Iain Sheasby (project modelling).

Contact Details for Project Information
Prospect Resources, tel +61 8 9217 3300 or email info@prospectresources.com.au.