Prospect breaks ground at Arcadia

Harare – ASX-listed Prospect Resources has officially broken ground at the Arcadia lithium project, in Zimbabwe.

A 2017 prefeasibility study estimated that the project could produce 75 000 t/y of spodumene concentrate, ramping up to 123 000 t/y and 155 000 t/y petalite concentrates and 88 000 t/y tantalite concentrates over the life of the mine.

The project is estimated to have a 15-year mine life, and would cost an estimated $52.5 million to develop.

Prospect executive chairperson Hugh Warner on Monday said that the company was working to secure project financing from international investors and lenders.

“As Prospect reaches out to the international investment community to finance Arcadia, we are also working closely with the government of Zimbabwe to provide confidence of fiscal stability to Prospect, our investors and indeed the people of Zimbabwe.

Warner confirmed the Company’s ambition to grow the lithium minerals footprint in Zimbabwe.

He said that it was an honour to have His Excellency, The President, Mr. E.D. Mnangagwa, Vice-President Constantino Chiwenga and dignitaries attend as a sign of solidarity for the success of the Arcadia Lithium Project.

“Your presence today signifies the Zimbabwe Government’s commitment to attracting foreign investment in Zimbabwe and indeed to Prospect Resources.”

Warner said the next key milestone for the project is to secure finance from international investors and lenders.

“As Prospect reaches out to the international investment community to finance Arcadia, we are also working closely with the Government of Zimbabwe to provide confidence of fiscal stability to Prospect, our investors and indeed to the people of Zimbabwe.”

In May this year, Prospect Resources said it has secured more than $55 million in funding for the first phase of the Arcadia Lithium project in Zimbabwe and expects to produce concentrates for export going forward.

In August it announced that the Mining Affairs Board of Zimbabwe has issued to Prospect Lithium Zimbabwe (Pvt) Limited a Mining Lease covering the Arcadia Lithium Mine.

Australian-listed Prospect Resources, announced on Tuesday that its 70 percent owned Zimbabwe subsidiary, Prospect Lithium Zimbabwe (Pvt) Limited has received a $10 million Export Finance Facility from the Reserve Bank of Zimbabwe through CBZ Bank Limited.

In his opening address, the President, E.D. Mnangagwa said “the opening of this new mine is in line with my Government’s request to leapfrog the industrialisation and modernisation of the country. I commend Prospect Resources Limited for this milestone achievement which will go a long way towards the development of our country.”

His Excellency referred to Zimbabwe’s abundant and diversified natural resources industry.

He said that he is indeed excited by the coming in of companies such as Prospect, which will soon see lithium as one of the key mining sub-sectors for the turnaround of Zimbabwe’s economy.

Prospect Resources Limited (ASX:PSC) is an ASX listed, Africa-focused, Lithium and Battery Minerals company based in Perth with operations in Zimbabwe, and exploration activities in Zimbabwe and the DRC.

Prospect’s flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe.

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

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