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Prospect Resources Ltd secures option over historically producing lithium deposit

Today's option acquisition further solidifies PSC's presence within historical producing lithium areas, for a small initial consideration of US$50,000. The option adds to the company's Arcadia Lithium Project, also in Zimbabwe.
Prospect Resources Ltd secures option over historically producing lithium deposit

Prospect Resources Ltd (ASX:PSC) has further strengthened its position in proven lithium projects, after securing an option to acquire the God’s Gift Lithium Deposit, northeast of Harare in Zimbabwe.

The God’s Gift Lithium claims have a long history with intermittent production.

They were first pegged for beryl in 1952. From this date until 1992, a total production of 315 tonnes of beryl, 2.8 tonnes of tantalite and 17 tonnes of cassiterite was declared.

PSC said that records at the Geological Survey reported microlite grades up to 1.65g/t.

While mining records are incomplete, the company added that there is a series of shafts and open cuts which were developed, while in recent years, tantalite exploitation has been exclusively from eluvial deposits.


Consideration

The company has acquired a 4 month option to acquire, via its 70% owned Zimbabwe subsidiary Hawkmoth Mining & Investment (Pvt) Ltd, a 90% interest in the God’s Gift Lithium Project in consideration of US$50,000.

A further US$450,000 is payable on exercise of the option.


Details of God’s Gift Lithium Deposit

The mineralised pegmatites are associated with the granitoids of the Sutswe suite, which lie at the contact of the Mataki greenstone belt and older granitic gneisses.

A series of largely ESE – WNW trending parallel, flat lying pegmatites intrude country rock biotite schists and amphibolites.

PSC said their widths vary between 0.5 – to 30 metres, and exceed 600 metres in length. They are of the general Na-Li type, and exhibit well-developed zoneation.

The artisanal open cuts expose lithium bearing pegmatites and there are separate and overlapping tantalite and beryl rich zones.

In addition to petalite, tantalite and beryl, the deposit contains cassiterite, garnet and monazite.

The deposit has primarily been a tantalite target in the past, but the extensive pegmatite outcrops, make it an immediate lithium play.


Analysis


Today's option acquisition further solidifies PSC's presence within historical producing lithium areas, for a small initial consideration of US$50,000.

The option adds to the company's Arcadia Lithium Project, also in Zimbabwe.

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.

PSC has received strong support from the market for its Zimbabwe lithium strategy, with the shares in the company last trading at $0.063, more than ten times higher from the beginning of May 2016.

 

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