ASX-listed Prospect Resources’ Arcadia lithium deposit has been identified as a priority mining development project by Zimbabwe's president and cabinet office.The Ministry of Mines and Mining Development has been tasked to identify certain projects to be implemented under the new Zimbabwe Government’s first 100 days programme using the Rapid Results Initiative.
Prospect Resources’ Arcadia lithium project has been identified as one of those key projects within Zimbabwe that can help turnaround the economy the company states in a press announcement.
The board is encouraged by the strong support being offered by the government of Zimbabwe to fast track Arcadia.
Prospect will be represented by members of the Zimbabwe and Australian team at the Mining Indaba Conference in Cape Town, where the company looks forward to promoting Prospect Resources and its Arcadia deposit.
“We will also be working in conjunction with the Zimbabwe Ministry of Mines and Mining Development to highlight the new business friendly environment of Zimbabwe.”
The Arcadia lithium project is Prospect’s flagship project which is located on the outskirts of Harare in Zimbabwe. It represents a globally significant hard rock lithium resource and has been aggressively developed focusing on near-term production of petalite and spodumene concentrates.
Following completion of the pre-feasibility study in June 2017, the company is now focusing on securing off-take and funding plans for development of Arcadia towards production, anticipated in the Q3, 2018.
Key outcomes of the PFS include a Life of Mine (LOM) of 15 years. The LOM is based on an ore reserve of 15.8 Mt grading 1.34% Li2O and 124 ppm Ta2O5.
Cash costs of USD 260/t lithia concentrate produced is envisaged over the LOM and a low start up capital expenditure of $52.5 million is envisaged.
The company is also evaluating the development of an integrated lithium chemical plant at Arcadia.