Prospect Resources Ltd (ASX:PSC) has completed 18 holes and is still reverse circulation drilling at the Arcadia high grade lithium project in Zimbabwe.
While assays are still pending, completed drilling has been able to identify the thickness of the pegmatites, which range up to 51 metres.
Drilling is progressing rapidly at one hole per day and a second drill rig is currently being brought to site.
The drilling is working towards a maiden JORC resource expected to be complete before the end of October.
The project hosts the Arcadia Lithium Deposit, which is a historically producing mine and has an initial exploration target of 15-18 million tonnes at 3-5% lithium.
Assays are pending from both the completed 16 hole diamond program and the ongoing reverse circulation program.
Diamond program: 16 holes, 70 metres average depth.
Reverse circulation program: 18 holes ongoing, 62 metres average depth.
All but one drill hole intercepted pegmatites, hosting visible quantities of spodumene and petalite, known to host lithium.
The 18 reverse circulation holes drilled to date confirm the extension of the Main pegmatite and Lower Main pegmatite exposed in the old Arcadia pit.
Drilling has identified thicknesses of up to 10 metres in the Main pegmatite and up to 51 metres in the Lower pegmatite.
Pegmatites appear to extend to the east, north, north west and north east. They are flat lying and are less than 80 metres below surface.
Prospect has a dual focus on its high grade lithium and gold projects in Zimbabwe:
- Arcadia lithium project;
- God’s Gift lithium project;
- Gwanda East gold project; and
- Penhalonga gold project.
While Arcadia is the focus of exploration currently, the Gwanda East gold project, recently produced its first gold in April 2016.
Drilling to date at Arcadia has covered 6% of the exploration area and the ground now covers more than 5 square kilometres of mining licences.
Arcadia development timeline
Drilling is working towards the development of Arcadia in the following order:
- First JORC resource expected before the end of October;
- Mine feasibility study planned for completion prior to 31 December;
- First ore production planned for pre 30 June 2017; and
- Off-take discussions underway with over 5 Asian lithium producers and agreements are expected to be completed prior to 31 December.
The pending drill results from the two drilling programs leverages Prospect to lithium exploration success in an area known to host lithium.
All Arcadia lithium deposits have been the subject of previous exploration and have exhibited lithium bearing pegmatites.
The company’s exploration success to date helped support the recent $16 million raising, with strong demand from Chinese sophisticated investors, including those within the lithium battery production cycle.
The company is very well funded with $17.5 million cash, and is strongly supported by its major shareholders with the top 10 holding 54% of the total issued capital.
The board, management and advisors for Prospect includes three Zimbabwean residents and a number of people with experience working and living in the country.
The stock is trading up 840% year to date.
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