Prospect Resources Ltd.: Presentation - Summary of Arcadia Pre-Feasibility Study
11.07.2017 | ABN Newswire
Perth - Prospect Resources Ltd. (ASX:PSC) provides the Company's latest Investor Presentation - Summary of Arcadia Pre-Feasibility Study.Corporate & Project Snapshot
Prospect Resources Ltd. (ASX:PSC) - Developing the Arcadia Lithium Deposit in Zimbabwe
- Cash OPEX US$ 320/t conc.
- Low CAPEX of US$ 52.5 M
- Average annual production of:
o 75 000t spodumene concentrate (6% Li2O)
o 155 000t petalite concentrate (4.1% Li2O)
o 88 000lb contained tantalite in concentrate (>25% Ta2O5)
Arcadia Lithium Project Location
- 35km East of Harare
- Mining friendly jurisdiction
- Excellent access to infrastructure, including roads, rail, power and skilled labour
- <20km gravel road to sealed highway & railhead to Beira, 450km away
- Mining and Environmental Approvals in place
- Abundant groundwater available
- Surface rights secured by Prospect and being developed for agriculture
Arcadia PFS Highlights
- Maiden Ore Reserve of 15.8Mt @ 1.34% Li2O & 125ppm Ta2O5
- Pit Inventory of 23.7Mt @ 1.34% Li2O & 124ppm Ta2O5
- Life of Mine of 20 years with a strip ratio of 2.79:1
- NPV10 of USD 139 Million, IRR of 39% and payback of 2 years
- LOM Revenue ~ USD 2 Billion
- Cash Operating Cost of USD 320/t conc.
- Low CAPEX/start up of USD 52.5 Million
Arcadia Lithium Project - CAPEX & OPEX
CAPEX
- Construction of 1.2Mtpa mine, plant and infrastructure estimated at USD 52.5 Million
- Costing based on local experience and independent consultants
OPEX
- Total OPEX USD 66/t ore milled
- USD 320/t lithium concentrate (inclusive of freight & port delivery charges to China)
Arcadia Lithium Project -Processing & Logistics
- Extensive metallurgical testwork completed
- Total recoveries 71%, process optimisation continues
- Simple open pit, and short haul to comminution and process plant
- Sufficient ground and surface water with grid power <3km away
Arcadia Financial Evaluation & Risk Assessment
- PFS pricing assumptions considered conservative
o 6% Li2O Spodumene Concentrate -USD 540/t
o 4.1% Li2O Petalite Concentrate -USD 400/t
Arcadia Lithium - Market/Sales/Chemical Plant
Lithium Market
- Lithium Market remains in supply deficit reflected in increases in lithium mineral and chemical prices
- Arcadia is expected to be one of the early new suppliers of lithium to world markets
Arcadia Sales Volumes
- Arcadia set to annually produce:
o >75,000t spodumene concentrate (6% Li2O)
o >155,000t petalite concentrate (4.1% Li2O)
o 88,000 lb contained tantalite in concentrate (>25% Ta2O5)
Lithium Chemical Plant -lithium carbonate and lithium hydroxide
- PFS underway to develop a lithium chemical plant at Arcadia
- Only lithium chemical plant outside Australasia
- Value add through downstream high value lithium products
- Geographically well placed to serve European, North American and Asian Markets
To view the full presentation, please visit:
http://abnnewswire.net/lnk/6F068KT2
About Prospect Resources Ltd:
Prospect Resources Ltd. (ASX:PSC) is based in Australasia with operations in Zimbabwe and is a publicly listed company. We are committed to creating value for Prospect's shareholders and the communities in which our company operates. Our vision is to build a Southern African based mining company of international scale.
Contact:
Hugh Warner Executive Chairman
Prospect Resources Ltd.
T: +61-8-9217-3300
Harry Greaves Executive Director
Prospect Resources Ltd.
T: +263-772-144-669
www.prospectresources.com.au