Name of the Project
Arcadia lithium project.

Location
Zimbabwe.

Project Owner/s
Prospect Resources (87%).

Project Description
A direct optimised feasibility study (OFS) has shown the strong potential of Arcadia to become a compelling long-life, large-scale, hard-rock openpit lithium mine.

The project has total mineral reserves of 42.3-million tonnes grading 1.19% lithium oxide and 121 parts per million (ppm) tantalum pent­oxide, and total mineral resources of 72.7-million tonnes grading 1.06% lithium oxide and 119 parts per million of tantalum pentoxide. The direct OFS envisages a development pathway that entails the construction of a 2.4-million-tonne-a-year plant in a single stage, unlike the staged OFS that considered the construction of two 1.2-million-tonne-a-year modules.

Average production in concentrate has increased from 133 000 t/y of spodumene in the staged OFS to 147 000 t/y in the direct OFS, technical petalite from 86 000 t/y to 94 000 t/y and chemical petalite from 22 000 t/y to 24 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project had a pretax net present value, at a 10% discount rate, of $465-million in the staged OFS and an internal rate of return of 35%, with a payback of 5.4 years from the final investment decision. In the direct, OFS the project has an NPV, at a 10% discount rate, of $1.02-billion and an internal rate of return of 61%, with a payback of 3.33 years from the final investment decision.

Capital Expenditure
The direct OFS estimates preproduction capital expenditure at $192.46-million.

The staged OFS required a total capital invest­ment of $212-million – $140-million for Stage 1 and $72-million for Stage 2.

Planned Start/End Date
Not stated.

Latest Developments
Prospect is reviewing funding options for Arcadia.

Key Contracts, Suppliers and Consultants
Lycopodium (direct DFS).

Contact Details for Project Information
Prospect Resources, tel +61 405 524 960 or email info@prospectresources.com.au.