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Prospect Resources Ltd lifts lithium potential of project in Zimbabwe

Published: 12:10 06 Jul 2016 AEST

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Prospect Resources Ltd (ASX:PSC) has intersected a combined 9 metres of visible spodumene bearing pegmatite at the Arcadia Lithium Project in Zimbabwe.

Pegmatites are the primary source of spodumene, a lithium ore.

This second hole, is a 50 metre step out hole from the recently drilled first hole which intercepted 12.35 metres of visible spodumene bearing pegmatite.

The project hosts the Arcadia Lithium Deposit, which is a historically producing mine and has a very tidy initial exploration target of 15-18 million tonnes at 3-5% lithium.

Historical drilling in 1969 and 1981 confirmed the pegmatite extends at least 1,500 metres along strike with grades of 3.5-5.5% lithium.

Drilling continues as part of the current program which plans to drill 30 holes to average depths of 50 metres.


Arcadia Lithium Project

Prospect recently exercised an option giving it a 63% interest in the project located in one of the three well known lithium camps in Zimbabwe.

The Arcadia Lithium Project hosts shallow pegmatite extending over a 1,500 metre strike length.

The project also hosts a historically mined lithium deposit, which has produced over 15,000 tonnes of mixed lithium ore.

Drilling in 1969 and 1981 confirmed the pegmatite extends at least 1500 metres along strike with grades of 3.5-5.5% lithium.

Drilling is in progress and a second rig has been secured and will be brought onsite as needed.

Visible results from the first two drill holes are in line with expectations from historical data.


Drilling details

Drill hole ACD002 intercepted a number of visibly identified spodumene bearing pegmatites as follows:

- 0.60 metre upper spodumene bearing pegmatite from 10.20 metres;
- 7.75 metres Main Zone spodumene bearing pegmatite from 21.7 metres, well mineralised in
spodumene and petalite;
- 1 metre L1 Zone spodumene bearing pegmatite from 34.90 metres;
- 0.62 metre L2 Zone spodumene bearing pegmatite from 38.20 metres; and
- 0.1 metre quartz and beryl from 44.81 metres.

Assay results are pending.


Funding

The company is well funded having recently raised $2.67 million in a heavily oversubscribed placement at $0.014.

The Gwanda East gold project, also in Zimbabwe, recently produced its first gold.

The cash flows generated from this production will help to propel growth in gold production and lithium exploration and development.


Analysis

There are some wraps on this Arcadia project given its historical production, exploration target and large tonnage potential given the strike length and high lithium grades.

The exploration target may prove conservative given the project lies within one of the well known lithium camps, not far from Harare.

Zimbabwe has a history of lithium production.

 

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