Zimbabwe to have largest lithium project in Africa

ASX-listed miner Prospect Resources is in the process of developing a $52, 5 million lithium project in Zimbabwe. Latest indications from the latest pre-feasibility study are that the Arcadia Lithium Project could be operational next year.

The project is located on the outskirts of Harare, and the group says it "represents a globally significant hard rock lithium resource and has been aggressively developed focusing on near term production of petalite and spodumene concentrates".

According to the group, "all local stakeholders have been consulted and have agreed to the proposed mine plan and development. In addition, the Zimbabwe Investment Authority (ZIA) issued Investment Licence Number 003496 to the Company, which now provides the company with access to several fiscal and investment benefits and incentives."

Prospect Resources, which also holds gold assets in the country, said it was practical to separate its gold assets from lithium assets into two separate subsidiary structures, each with their own ZIA license.

"The board believes that this structure will offer greater flexibility as to how the Arcadia Lithium Project can be financed and also how the company finances its gold assets," it said.

In a statement to the ASX, Prospect Resources chairman Mr Hugh Warner said: "We are now confident that Arcadia will have the ability to produce battery grade lithium, glass and ceramic grade lithium and tantalite products to the market by late 2018.

"Following Government environmental and financial approvals and coupled with the excellent results of this-PFS, the development of Arcadia can now be fast tracked. This is undoubtedly supported by the very low startup costs, which further places Prospect at an advantage to its peers. Prospect can now actively pursue and execute off-take agreements and pursue funding options to develop this quality asset".

Basing on a maiden ore reserve of 15,8 million tonnes, grading 1,34 percent lithium oxide and 125 parts per million tantalum pentoxide (according to the latest prefeasibility study), Prospect Resources anticipates that the project will be developed into a 1,2 million-tonne-a-year mining and processing operation.

It's also projected to have a mine life of 15 years. The miner has also proposed to construct a lithium chemical plant in the country. In tandem with the Arcadia-PFS, the Company has initiated a-PFS to evaluate the construction of a lithium chemical plant. The construction of a lithium chemical plant adjacent to the Arcadia mine has numerous benefits for both downstream consumers of lithium and the company.