12 Dec Prospect Resources publishes updated DFS for Zimbabwe lithium project
ASX-listed Prospect Resources has published an updated definitive feasibility study (DFS) for its Arcadia Lithium Project in Zimbabwe, increasing the estimated life of mine (LoM) revenues for the project.
The new DFS states that the LoM revenues will be US$3.42 billion over a 15.5-year mine life, compared to $2.93 billion over a 12-year period estimated by the original 2018 DFS.
Other updated metrics for the Arcadia project include a net present value of $710 million, 71% internal rate of return and an average EBITDA of $168 million over the first five years of the operation.
“The material upgrade to our DFS on a base case of 2.4 million tonnes a year development of the project is a significant achievement,” said Prospect’s managing director Sam Hosack.
“The DFS results position the company to secure a key role in the expanding global lithium market, and validates my believe that Arcadia is Africa’s leading lithium project with respect to its scale, grade and economics and management team.”
Prospect also announced a memorandum of understanding with Uranium One Group for offtake terms for at least 51% of future lithium production, along with potential equity investment.