Prospect Resources delineates further high-grade lithium oxide at Arcadia

Published at Aug 9, 2016, in Small Caps

Following on from last week’s encouraging announcement regarding the completion of 16 diamond drill holes at the Arcadia high-grade lithium deposit located in Zimbabwe, Prospect Resources has released results on Monday morning from channel chip sampling.

Management noted that all chips were collected from the weathered exposures of the historical Arcadia pit as well as from regional geological traverses.

Of 316 samples the peak grade was 4.37% lithium oxide. Looking at the broad spectrum of returns ranging from more than 1% to more than 4% there was a significant proportion above 2% with 123 samples in a range between 2% and 4% inclusive.

As recently highlighted by management, drilling to date has covered approximately 8% of the exploration area and the next 15 holes will more than double this land area.

The key takeaway in terms of the Arcadia deposit is the relatively high grades delineated to date, consistent with those achieved by other explorers in that region. Furthermore, all drill holes intercepted pegmatites, hosting visible quantities of spodumene and petalite.

In terms of share price performance, Prospect Resources has retraced after a three-fold increase in July when it peaked at 7.1 cents. Monday’s opening price of 5.7 cents may be considered by some investors as a useful entry point now that there is further clarity around recent drilling results.

However, there is the potential for further positive news from Prospect. Having raised $16 million in late July, the company is well-placed to fast track drilling at Arcadia and should upcoming results continue to prove encouraging there is the potential to move relatively quickly to a feasibility study, which would enable the company to order long lead time items required for plant construction.

That said, Prospect Resources should continue to be viewed as a highly speculative company with exploration results to date not necessarily an indicator of what is to come. There is also sovereign risk involved given that the project is located in Zimbabwe, a region that is prone to political instability.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X