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PROSPECT RESOURCES LIMITED - Corporate Spotlight

Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus... Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe.More

Corporate Spotlight

Prospect has a strong, agile team split between Africa and Perth who have the optimal experience to build Prospect as Africa's leading mineral business.
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Interview with Sam Hosack, MD Prospect Resources

PSC DISCOVERS CAESIUM NEAR ARCADIA

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PROSPECT DISCOVERS CAESIUM IN SATELLITE BODIES TO ITS ARCADIA MINE

ASX Announcement 11th February 2020


 Highlights 

  • Significant caesium values returned from re-assaying of soil samples. 
  • Caesium values > 400ppm from soils around the Shabaash lepidolite bearing pegmatite. 
  • • Anomalies located 3km west of the planned Arcadia Mine Pit. 


African lithium company, Prospect Resources Ltd (ASX:PSC, FRA:5E8) (“Prospect Resources” or “the Company”) is pleased to announce the presence of significant caesium concentrations in soil, from a number of satellite bodies to Arcadia, notably the Shabaash. 


The identified caesium occurs within pollucite, a high value rare caesium mineral that forms in extremely differentiated Lithium-Caesium-Tantalum (“LCT”) pegmatite systems. Global supply is very constrained. The primary use of caesium is in Caesium Formate brine used in high temperature/high pressure oil and gas drilling. 


Prospect’s ground holdings at Shabaash consists of a block of three mining claims, covering some 50 hectares of open bushland. The Shabaash site is located 3km west of the planned Arcadia Pit. 


 Figure 1: Locality Map showing the Shabaash claim west of Arcadia ML.


Background to the Discovery 

The area is located within the east-west trending Arcturus limb of the Archaean age Harare Greenstone Belt. It consists largely of metabasalts of the Arcturus formation. 


As part of its satellite exploration and ground sterilisation programme, 14,000 soil samples were collected from the area surrounding the drilled resource in 2017 – 2018. Soil samples were collected every 20m on 100m spaced lines, surveyed north-south, but due to time constraints, assayed only for Lithium, by atomic absorption at Zimlabs, Harare. 


A number of lithium anomalies were defined, which were subsequently drilled in 2017 - 2018. All of these were subsequently drilled and proved to be mineralised pegmatites, albeit in some case too thin and low grade to be economic. The anomaly at Bermersyde, in contrast, was successfully drilled and, is now part of the reserve, and is the epicentre of the planned Northeast satellite pit. 


In December 2019, a small number (61) of stored pulps were selected for re-assay for caesium. These were selected from samples which had previously returned Lithium anomalies. 


These pulps were re-assayed successfully at UIS Analytical Services in Centurion, South Africa. 


From a statistical analysis of the results, 13 of them returned caesium results > 100ppm, and four anomalous returned > 400pm. Of these results, 1 sample was located within the Company’s Shabaash Claim holding. 


As indicated by an analysis of the correlation matrix, the caesium anomalies are related to, but not directly associated with the higher lithium values. The anomalies at Shabaash lie along the approx. 800m zone in Shabaash pegmatite area. 


It is strongly suspected that there is a swarm of east-west mineralised pegmatites (lepidolite + caesium bearing) lying under the agricultural field at Shabaash to the west. 


The only significant natural mode of occurrence of caesium is in the zeolite mineral, pollucite. It can be safely concluded that there are least reasonable concentrations of pollucite around and within the Shabaash pegmatite. 


A trenching programme into the pegmatite zone is planned by excavating at least 4 trenches, 30m long and 2-3m deep, across the strike of the anomaly. 


Although no statements as to the dimension and grade of the mineralisation can be made until it is followed up by trenching and / or drilling; the presence of pollucite is highly encouraging. There is increasing evidence for large scale mineral zonation around the periphery of the 4.5km long Arcadia petalite-spodumene mineralisation. The implications for the proceptivity of the greater Arcadia area, for hidden deposits (Cs/Ta/Sn) are immense. 


In addition, it is validation of the regional geological model, developed by our experienced successful exploration department, who continue to discover previously un-recorded deposits. 



CLICK HERE TO READ THE FULL ANNOUNCEMENT


INVESTOR PRESENTATION FEBRUARY

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ABOUT US

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ABOUT PROSPECT RESOURCES

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Leading Africa in the Battery Minerals Revolution 

 

Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe. 

Prospect has a strong, agile team split between Africa and Perth who have the optimal experience to build Prospect as Africa's leading mineral business.


Australian Team – financing, investor relations, corporate governance, offtake and marketing

  • Small and focused head office team
  • Deep financial market and transaction experience


African Team - development and exploration

  • Strong and experienced local team with a track record of discovering, proving, building and operating mining projects in Africa
  • Significant majority of the Prospect team is based on the ground in the region



PROJECT HIGHLIGHTS


Arcadia, a game changing lithium project

Arcadia Lithium Project represents a globally significant hard rock lithium resource. The project is being rapidly developed by Prospect’s experienced team, with the focus on near term production of petalite and spodumene concentrates.

  • 7th largest global hard rock lithium asset
  • Fully permitted to commence production
  • Strong project economics to drive returns for shareholders
  • Diversified markets across Europe, North America and North Asia
  • Close proximity to a skilled labour force and established infrastructure 
  • Operating in an established mining jurisdiction, with over 100 years of mining history
  • Offtake agreement and equity investment from Shenzhen Stock Exchange listed lithium chemical converter Sinomine Resources Group
  • Appointed Afreximbank to arrange and manage the primary syndication of a US$143m project finance debt facility 

 

 

On 12th Dec 2019, Prospect released an updated Definitive Feasibility Study (DFS) with the following key project outcomes:


  • US$710M pre-tax NPV10, up 39%. Confirming the value of the project and the opportunity for Prospect Resources
  • Exceptional profitability and healthy operating margins with US$168M average annual EBITDA for the first 5 years of operation  
  • US$162M capital expenditure estimate Including EPCM contract cost provision, and 14% contingency (including EAA*)
  • US$3.42B LOM revenue excluding tantalum credits, up 17%. Demonstrating the value to shareholders
  • 15.5 year mine life,further increasing Arcadia's exposure to long term EV demand
  • Substantially improving project returns with an internal rate of return (IRR) of 71% (pre-tax), up from IRR 44%



Click Here To View Prospect Resources Website

VIDEOS

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Interview with Sam Hosack, MD Prospect Resources - February 2020


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