Name of the Project
Arcadia lithium project.

Location
The project is located outside Harare, in Zimbabwe.

Project Owner/s
Prospect Resources (87%).

Project Description
An updated definitive feasibility study (DFS) on Arcadia, released in December 2019, 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’s total proven and probable reserves have increased from 26.9-million tonnes grading 1.31% lithium oxide and 128 parts per million (ppm) tantalum pentoxide in the 2018 DFS to 37.4-million tonnes grading 1.22% lithium oxide and 121 ppm tantalum pentoxide in the updated 2019 DFS.

The updated DFS envisages a 2.4-million-tonne-a-year conventional openpit mining operation, producing average concentrate of about 173 000 t/y of 6% spodumene, 24 000 t/y of chemical grade petalite and 98 000 t/y technical grade petalite at a concentrate grade of 4%, as well as 174 000 lb/y of tantalum at a concentrate grade of 25%.

Minerals processing will be based on using 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’s mine life has been extended from 12 years to 15.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from $511-million, at a 10% discount rate, in the 2018 DFS to $710-million in the updated 2019 DFS. The pretax internal rate of return has increased from 44% in the 2018 DFS, with a payback of 2.5 years, to 71%, with a payback of 18 months in the updated 2019 DFS.

Capital Expenditure
The preproduction capital cost of the project has decreased from $165.2-million in the 2018 DFS to $162.4-million in the updated 2019 DFS.

Planned Start/End Date
The ground-breaking ceremony for the project was held in November 2018. The project is expected to be completed within 18 months from securing finance.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

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.

nrathjen@prospectresources.com.au