Name of the Project
Arcadia lithium project.

Location
The project is located outside Harare, in Zimbabwe.

Client

African lithium developer Prospect Resources (87%).

Project Description
A definitive feasibility study on Arcadia has confirmed the project’s strong financial and geological merits, positioning the company to be a leading producer of lithium and battery minerals.

The project has total proven and probable reserves of 26.9-million tonnes grading 1.31% lithium oxide (Li₂O) and 128 parts per million (ppm) tantalum pentoxide ( Ta₂O₅). Total mineral resources are estimated at 43.2-million tonnes grading 1.41% Li₂O and 119 parts per million Ta₂O₅.

The DFS envisages a 2.4-million-tonne-a-year conventional openpit mining operation, producing average concentrate of about
212 000 t/y of 6% spodumene, 216 000 t/y of 4% petalite, and 188 000 lb/y of tantalum.

Mineral processing will be based on the use of conventional beneficiation techniques, including 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 is expected to have a 12-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $511-million  and an internal rate of return of 44%, with a payback of 2.5 years.

Value
The project will cost an estimated $165.2-million to implement.

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

Latest Developments
Based on the mine’s economics and financial strength of the project, Prospect is quickly advancing to finance, develop and start production at Arcadia.

The company has also started a prefeasibility study to test the viability of a lithium chemicals plant on site to upgrade the Prospect product and capture additional value from the lithium supply chain.

Key Contracts and Suppliers
Roger Tyler (resource definition);  ADP Marine & Modular (DFS – process design review, final engineering cost estimate, HSE 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); 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); David Miller (minerals marketing); and Iain Sheasby (project modelling).

On Budget and on Time?
Too early to state.

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