Name of the Project
Arcadia lithium project.

Location
The project is located outside Harare, in Zimbabwe.

Project Owner/s
Prospect Resources (87%).

Project Description
A definitive feasibility study (DFS) 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 and 128 parts per million (ppm) tantalum pentoxide. Total mineral resources are estimated at 43.2-million tonnes grading 1.41% lithium oxide and 119 ppm tantalum pentoxide.

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 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 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.

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

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
The Reserve Bank of Zimbabwe has approved Prospect Resources’ acquisition of an additional 17% interest in the Arcadia lithium project.

The transaction will increase Prospect’s stake in the project from 70% to 87%.

Under the terms of an agreement struck in October last year, Prospect will acquire the additional interest from Farvic Consolidated Mines in exchange for 94.97-million of its own fully paid ordinary shares, and A$1.18-million in cash.

“This transaction is value accretive for Prospect’s shareholders. By acquiring Farvic’s carried interest, we increase our share of revenue without increasing our share of costs,” Prospect MD Sam Hosack has said.

“Prospect is progressing discussions with multiple potential financiers at a rapid pace and the company is focused on progressing Arcadia and this transaction facilitates those discussions.”

Hosack has said that Prospect also has several value engineering activities under way that are expected to further strengthen Arcadia’s project economics.

Key Contracts and Suppliers
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).

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.