PERTH (miningweekly.com) – The Arcadia lithium project, in Zimbabwe, could be in production as early as 2018, with a recent prefeasibility study (PFS) estimating that a capital investment of about $52.5-million would be required to bring the project into production.

ASX-listed Prospect Resources reported on Monday that based on a maiden ore reserve of 15.8-million tonnes, grading 1.34% lithium oxide and 125 parts per million tantalum pentoxide, the project will be developed into a 1.2-million-tonne-a-year mining and processing operation with a mine life of 15 years.

The PFS estimates that the Arcadia project will have an internal rate of return of 39%, and a pre-tax net present value of $139-million, with mine revenues expected to reach $2-billion over the life of the project.

“This result is a phenomenal outcome for Arcadia, our project team and importantly our shareholders,” said Prospect chairperson Hugh Warner.

“In the space of less than a year, we have developed Arcadia to a stage where we have defined a globally significant deposit containing highly sought-after lithium products in spodumene and petalite.”

Warner said on Monday that Prospect was confident that Arcadia would have the ability to produce battery-grade lithium, glass and ceramic grade lithium and tantalite products to the market by late 2018.

“Following government environmental and financial approvals and coupled with excellent results of this PFS, the development of Arcadia can now be fast-tracked. This is undoubtedly supported by the very low startup costs, which further places Prospect at an advantage to its peers.

“Prospect can now actively pursue and execute offtake agreements and pursue funding options to develop this quality asset.”

Meanwhile, Warner pointed out that significant value could also be added through an ongoing PFS into a lithium carbonate and hydroxide chemical plant that would make Prospect a vertically integrated producer of lithium products.

This PFS is due later this year.