Modern Mining December 2018

LITHIUM

Prospect breaks ground at Arcadia

positioning Prospect to be a leading producer of lithium and battery minerals. Prospect believes the DFS provides a com- pelling basis for the company to drive towards completing additional project off-take arrange- ments (in addition to its existing off-take agreement with Sinomine), and securing proj- ect financing in anticipation of construction. Construction and mine development, to be managed by Prospect Lithium Zimbabwe (PLZ), is scheduled to be completed in Q3 CY2020, with commissioning from November 2020. Earlier this year (2018), Prospect appointed DRA to provide engineering services and upfront design for Arcadia and it also announced the appointment of J.R. Goddard as the earthmoving contractor for the project. Based on the proposed 2,4 Mt/a mining and processing operation, the DFS indicates that Arcadia – which has an estimated capex of US$165 million – will be a strong financial, high margin project with current forecast Life Of Mine (LOM) revenue of US$2,93 billion and average annual EBITDA of US$106 million over an estimated 12-year mine life. The project will have an average annual

The ground-breaking ceremony for the Arcadia lithium project of ASX-listed Prospect Resources in Zimbabwe took place in late November. The ceremony was attended by the President of Zimbabwe, Emmerson Mnangagwa, many dig- nitaries, including the ambassadors of Australia and China, project stakeholders, and staff and employees of Prospect. Speaking at the event, Prospect’s Executive Chairman, Hugh Warner, said the next key milestone for Arcadia would be to secure finance from international investors and lenders.

I n his opening address, President Mnan- gagwa said that the opening of the new mine was “in line with my Government’s request to leapfrog the industrialisation and modernisation of the country. I com- mend Prospect Resources Limited for this milestone achievement which will go a long way towards the development of our country.” Earlier in November, Prospect announced it had completed a Definitive Feasibility Study into development of Arcadia. According to the company, the results confirm the proj- ect’s strong financial and geological merits,

Hugh Warner, Executive Chairman of Prospect Resources, outlines the project to President Emmerson Mnangagwa at the opening ceremony.

20  MODERN MINING  December 2018