Prospect Resources updates market on development plan for Arcadia lithium project

ASX-listed Prospect Resources has provided an update on the pathway to production at the Arcadia lithium project in Zimbabwe, after a detailed strategic review by management and a number of external third-party experts.

The review concluded that an initial smaller commercial scale production facility using the existing feasibility study DMS flowsheet to produce petalite samples will allow greater speed to market, higher technical certainty, significantly lower risk and a reduced capital and operating cost operation.

Prospect’s managing director Sam Hosack said: “The lithium market has shown signs of coming into balance which demands a rethink to secure best time to market.

“The staged development plan of 1.2 to 2.4 million tonnes per annum (Mtpa) reduces time to production by leveraging lower capital expenditure and will enable expansion in line with market growth.

“This development strategy allows risks to be managed effectively. Critically, Prospect maintains the ability to go direct to nameplate capacity of 2.4Mtpa should market conditions and funding activities allow.”

In addition, Prospect also announced an extension to the sale and purchase agreement with Zimbabwe-based miner Farvic, which upon completion will give the company an 87% equity stake in the Arcadia project.

Arcadia is a globally significant hard rock lithium resource comprised of high purity petalite and spodumene concentrates, and is one of the most advanced lithium projects in the world, with a definitive feasibility study, offtake partners secured and a clear pathway to production.