Sign up Australia
Proactive Investors - Run By Investors For Investors

Prospect Resources Ltd posts maiden lithium resource at company-maker Arcadia

Hugh Warner, chairman, commented: “This is a significant achievement and is just reward for the company’s strategy of acquiring, developing and running profitable mines in the Southern African region.”
Prospect Resources Ltd posts maiden lithium resource at company-maker Arcadia
Prospect Resources Ltd has defined a maiden resource.

Prospect Resources Ltd (ASX:PSC) has defined a maiden resource estimate of 36 million tonnes grading 1.17% lithium oxide and 107ppm tantalum oxide at the Arcadia lithium project in Zimbabwe.

Work has begun on a provisional mine plan, which will underpin the scoping study aiming for completion by the end of 2016.

Furthermore, drilling in progress since early October will look to extend the Mineral Resource estimate along strike and down dip.

Hugh Warner, chairman, commented: “This is a significant achievement and is just reward for the company’s strategy of acquiring, developing and running profitable mines in the Southern African region.”


Resource details

The Phase 1 and Phase 2 drill programs were primarily used to compile data for this JORC 2012 Mineral Resource estimate.

The resource contains 425,000 tonnes of lithium oxide and 9 million pounds of tantalum oxide.

53% of the total resource is within the Measured and Indicated categories.

The exploration target has been revised to 80-100 million tonnes grading 1.1-1.4% lithium oxide from 15-18 million tonnes at 3-5% lithium oxide.


Phase 3 drilling

Phase 3 drilling is underway, utilising three diamond and two reverse circulation rigs. 

Work is focusing on testing three new areas; the southwest and northeast strike extension of the deposit, in addition to the northwest down dip extension. 

To date 20 diamond holes for 2,400 metres and 12 reverse circulation holes for 1,100 metres have been drilled.

Arcadia lithium project

Drilling to date has covered 20% of the company’s mining licence area.

The drilled strike of the 14 stacked pegmatites extends more than 1.7 kilometres and 700 metres down dip.

The company’s ground position now covers more than 6 square kilometres of mining licences.


Analysis

Prospect’s maiden resource estimate at Arcadia establishes it as a significant lithium deposit globally.

While the grade is not as high as initially expected, the close to surface, flat lying nature of the resource combined with the large tonnage makes this deposit a company maker for Prospect.

Prospect remains leveraged to further upside at the project with drilling in progress and significant potential to increase the resource estimate from Phase 3 drilling.

The board, management and advisors for Prospect include three Zimbabwean residents and a number of people with experience working and living in the country.

Shares in Prospect are trading up 660% year to date, currently priced at $0.038.

The scoping study in progress is expected by the year’s end.





Register here to be notified of future PSC Company articles
View full PSC profile View Profile

Prospect Resources Ltd Timeline

Related Articles

potash-delivery.jpg
July 31 2017
As well as RHA and Zulu, the firm has assets in Mozambique and a stake in private firm Circum Minerals
picture of electric car
June 19 2017
Finncap estimates the shares are worth 11p on a risked basis or more than double the current share price.
no_picture_pai.jpg
July 10 2017
Find out more from Lithium Power International Ltd at the Proactive's CEO Sessions.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use