Attractive Prospects in today’s Lithium pegmatite announcement
Editor’s note: Prospect Resources is a very high risk stock. Getting mining projects up and running in countries such as Zimbabwe is no simple feat for political and social reasons, and there may be challenges ahead. You need to fully inform yourself of all factors and information relating to this company before engaging with it.
Prospect Resources announced today the encouraging discovery of a new lithium bearing pegmatite within their Greater Arcadia High Grade project area located near Harare, the capital city of Zimbabwe.
An approximate 300m length outcrop of lithium-bearing pegmatite was discovered 1.5km down dip from the known strike.
This discovery is still in the beginning stages of the Arcadia project, with to-date drilling now covering approximately 12 per cent of the company’s total exploration area. The company are mobilising additional rigs to target this newly discovered outcrop, and an approximate 500m spaced scout drilling programme is underway to determine the overall size of the pegmatite system.
Of course none of this will amount to much in the way of profit unless the junior company can lock down lucrative offtake agreements. Earlier in September, Prospect advised it was in discussions with more than five Asian lithium carbonate and lithium hydroxide producers, with expectations that agreements will be completed prior to December 31.
The steady rise in the use of smartphones world-wide as well as predictions around the expansive use of electric cars as soon as 2020 mean the manufacture of devices which run off lithium-ion batteries are only set to increase. These factors should bode well for investors, providing the amounts of lithium in Prospect Resource’s exploration areas are as high as initial findings suggest.
The Perth-based company is set to carry out further resources definition holes. The findings from these holes will assist in Prospect’s planning around camp accommodation, a processing plant and the strategic placement of equipment.