Prospect Resources has issued a report on activities undertaken in the March 2021 quarter and its financial position at the end of the period.
Managing Director and CEO, Sam Hosack, comments:
“We are pleased to say that the March 2021 quarter, along with the beginning of the current quarter, has been a period of substantial progress for Prospect.
“We now have a clear, staged and lower risk pathway to progress the Arcadia Lithium Project towards development, construction and targeted high margin lithium production.
“We have also strengthened our Board and executive ranks with individuals of the calibre and experience to assist Prospect in successfully making this transition.”
- Pilot Plant to produce high purity petalite via proven DMS technology, with first production expected in Q2 CY2021.
- Finalised Staged Development Strategy with Stage 1 to be 1.2 Mtpa and Stage 2 expansion to 2.4 Mtpa to follow in due course.
- Appointment of Lycopodium to complete Optimised Feasibility Study, with expected completion in Q3 CY2021.
Financial and Corporate
- As at 31 March 2021, Prospect was debt free with a cash balance of A$4.2 million.
- Appointed experienced mining executive Mark Wheatley as Non-Executive Chairman.
- Appointment of Ian Goldberg as Chief Financial Officer and Joint Company Secretary.
- Agreement to extend Farvic Transaction, allowing Prospect to increase its equity in the Arcadia Lithium Project to 87%, subject to Prospect shareholder approval.
Subsequent to the quarter, the Company:
- Completed a successful capital raise of A$6.5 million (before costs) to fund the Farvic transaction, progress project funding and for general working capital; and
- Provided a progress update on the Pilot Plant, confirming approximately 70% of the EPC scope is complete and that it remains on schedule and on budget to achieve first shipment of high purity petalite samples by end of Q2 CY2021.
High purity technical grade petalite pilot plant
The Company has focussed the pilot plant on producing high purity, technical grade petalite using Dense Media Separation (DMS) in accordance with Arcadia’s existing Feasibility Study flowsheet.
The DMS flowsheet is considered the lower risk pathway to near-term production, as determined through detailed analysis by management and a number of external third-party experts.
The samples will also provide market recognition and price discovery within the premium high purity Petalite market, which is key to securing project funding and supporting investor confidence.
The Pilot Plant allows Prospect to provide industrial scale samples to potential offtake counterparties for their own product validation purposes and their continuing due diligence on Prospect and the Arcadia Lithium Project.
The Pilot Plant is considered a key asset for the Company. Its operation alongside future commercial operations are considered vital as it will allow for geo-metallurgical confirmation and optimisation for each ore type prior to feed into the commercial operation.
Subsequent to the end of the quarter, the Company provided an update that the Pilot Plant remains on schedule and within budget.
Approximately 70% of the EPC scope is complete, including:
- 100% of flowsheet and detailed engineering design completed;
- 100% of procurement completed (including DMS unit and crushing modules delivered);
- 90% of non-process infrastructure completed (i.e., laboratory and site accommodation).
- 75% of modular equipment pre-assembly and 25% factory acceptance tested for DMS and
- crushing modules;
- 75% of power supply completed (i.e., transformer and electrical reticulation).
- 75% of mining contractor mobilisation achieved; and
- 50% earthworks and civils completed.