Australian-listed junior miner Prospect Resources Limited says the first product samples from its Arcadia Lithium project in Harare are in high demand from potential customers in Asia, Europe and United States and believes it will secure a market for its lithium.
Prospects Resources said it completed the pre-feasibility study for the Arcadia Lithium Project in the first quarter and delivered the first product samples to potential customers in the second quarter to June 30.
“I am pleased to say that demand has out stripped supply of our samples and so we are now preparing additional samples for delivery to more potential customers. Our team will be back in Asia in the coming weeks to continue discussions with potential customers and to meet prospective customers,” the company’s senior geologist, Roger Tyler said.
Arcadia would become Zimbabwe’s third lithium producer, after the Premier African Minerals-owned Zulu lithium project near Fort Rixon and Bikita Minerals in Masvingo.
Zimbabwe is already Africa’s largest lithium producer and fifth largest in the world after producing 900 tonnes in 2015.
Bikita holds the world’s largest known lithium deposits, estimated at 11 million tonnes.
Prospect closed the second quarter ended June 30 with 7.34 million Australian dollars ($5.86 million) cash in the bank and no debt.
Tyler said the company is now focusing on making off-take arrangements and sourcing funds to carry out its projects.
“The Company is now focusing on discussions with potential off-take partners, settling off-take terms, securing project finance and commencing mine development and plant construction in the shortest possible time so that we can be one of the first of the new wave of lithium producers in the world,” he said.
Tyler said exploration works at the Sally Gold Mine and the Prestwood Gold Mine, located in Gwanda, were done during the second quarter , with the Sally Gold Mine being cleaned out as part of the company’s exploration works.
“Gold bearing sands removed from the Sally Gold Mine as part of this clean out have been processed, with gold proceeds of $120 000 offsetting the majority of the exploration costs at the Sally Gold Mine to date,” said Tyler. – The Source