Prospect Resources Ltd (ASX:PSC) has received assays grading up to 4.37% lithium oxide from its first three reverse circulation drill holes at the Arcadia lithium project in Zimbabwe.
The drill program is now complete with assay results from a further 28 holes expected over the coming weeks.
Highlights from the first three holes included 3 metres at 3.05% lithium oxide and 17 metres at 1.46% lithium oxide.
Two diamond drill rigs are now back on site drilling metallurgical test holes with further resource definition drilling scheduled for late September.
Prospect is working towards generating its first JORC resource estimate before the end of October 2016.
Drill results details
Assay results from the first 3 reverse circulation drill holes returned a peak grade of 4.37% lithium oxide.
Hole ACR003 achieved a peak grade of 2.47% lithium oxide and included:
- 3 metres at 3.05% lithium oxide from 19 metres;
- 17 metres at 1.46% lithium oxide from 42 metres; and
- 2 metres at 2.07% lithium oxide from 64 metres.
Hole ACR002 achieved a peak grade of 4.35% lithium oxide and included:
- 11 metres at 2.03% lithium oxide from 24 metres.
Hole ACR001 achieved a peak grade of 2.51% lithium oxide and included:
- 10 metres at 1.50% lithium oxide from 19 metres.
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 scoping study planned for completion prior to 31 December;
- Off-take discussions underway with over 5 Asian lithium producers and agreements are expected to be completed prior to 31 December; and
- First ore production planned for pre 30 June 2017.
These reverse circulation high grade lithium assays grading up to 4.37% lithium oxide confirm the recent diamond results which also peaked at a high grade of 3.99% lithium oxide.
Results continue to confirm the high grade lithium potential of the Arcadia project where drilling to date has covered only 10% of the company’s exploration area.
With assays for 28 holes still pending, Prospect remains well leveraged to lithium exploration success in an area known to host lithium.
The drilled strike of the 14 stacked pegmatites now extends more than 1 kilometre and some 350 metres down dip.
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 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 have increased in value by 10x year to date.