Prospect fires the starter’s pistol on lithium play

Published at May 20, 2016, in Small Caps

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 (ASX:PSC) is getting serious on its lithium play in Zimbabwe – securing a diamond drilling rig for a July campaign.

The company told its shareholders ahead of a roadshow that it was planning on drilling 1500m in the form of 30 individual 50m holes in July and a further 1500m in September.

It’s more than a plan, though, with the company tapping Titan Drilling for the rig.

It effectively signals the first glimpse of the development plan on the asset, which it has an option on.

It announced that it had picked up the option on the Arcadia Project earlier this month, which has an initial exploration target of 15-18 million tonnes of pegmatite at 3-5% lithium oxide.

While there has been historical drilling on the permit, this was done before the JORC 2012 standard was in play and therefore PSC will need to do its own drilling to come up with a JORC Resource on the project.

PSC told shareholders at the time that intermittent production between 1954 and 1972 had produced over 15,000 tonnes of mixed lithium ore.

It also told shareholders today that it was on the lookout for additional lithium projects, looking at opportunities in Namibia and Mozambique in addition to other plays in the region.

On the gold front meanwhile, it said that development ore from its main Prestwood Mine was contiunuing to be stockpiled ready for processing.

It said the main drive at the mine was producing a diluted development ore grading at over 3 grams per tonne, with individual grades exceeding 10g/t.

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