Prospect unveils lithium plan

Published at May 12, 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) has switched gears again, this time electing to take an option on a lithium deposit in Zimbabwe.

The ASX-listed junior company told its shareholders today that it had taken an option on the Arcadia project, which has an initial exploration target of between 15 million and 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 that intermittent production between 1954 and 1972 had produced over 15,000 tonnes of mixed lithium ore.

Production from Arcadia

Production from Arcadia

The above production figures are not compliant with modern resource techniques, but demonstrate that there has been at least some production in the area in the past.

The pegmatite at Arcadia is reportedly exposed in a 100m long pit on a steep hill slope and has 3-10m thickness and “significantly is known to extend for at least 1500m along strike”

PSC has taken a two month option on the project through its 70%-owned subsidiary Hawkmoth Mining & Investment to grab a 90% share in the Arcadia project.

PSC said an “aggressive” drilling campaign is being planned over the next couple of months in order to develop a Mineral Resource at the project, with the forward plan to develop a feasibility study.

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