Prospect banks on new technology

Prospect Resources (Prospect) says it has acquired new technological equipment, high pressure grinding rolls (HPGR), which will reduce capital expenditure by US$2,3 million at its flagship Arcadia Lithium Project.

This comes after the miner completed its plant optimisation, ruling out that HPGR is a viable option for the Arcadia Lithium Project’s processing design. The technology is also expected to reduce operating expenditure by US$7 per tonne to US$278 per tonne while also increasing project net present value at a 10 percent (NPV 10) by US$22 million to US$533 million.

Sam Hosack, Prospects’ managing director, said the ongoing and focused value engineering initiatives have delivered positive outcomes and have demonstrated that HPGR technology can be utilised in the Arcadia Lithium Project’s processing plant.

“The advantages of HPGR technology are considerable, providing a significant reduction in complexity and operational resource demand.
“Including HPGR in the plant’s processing design will have a positive impact on the project economics, both with capital and operating costs,” he said.

The technology is expected to increase average annual earnings before interest, tax, depreciation and amortisation (EBITDA) by US$3 million to US$109 million. Hosack said the miner is focussing its efforts on identifying further cost reductions and operating improvements in order to strengthen the Arcadia Lithium Project’s economics.

Prospect was last week awarded special economic zone (Sez) status for its Arcadia lithium mining project, which will grant the project generous tax breaks and other concessions. The junior miner which applied for the status last year in November said the incentives and benefits to be received from the Sez status, reinforces the financial outcomes of the project outlined in the definitive feasibility study.

“Prospect is pleased to advise that its 87 percent owned subsidiary, Prospect Lithium Zimbabwe has received notification from Edwin Kondo, the Zimbabwe Sez authority chief executive officer that its application for Sez status was successful and has been approved by the Zimbabwe Sez Authority for its flagship asset, Arcadia,” the miner said.

Arcadia is Africa’s second-largest undeveloped lithium project. 
It is estimated to contain 610 500 tonnes of lithium oxide and 11,3 million pounds of tantalite pentoxide.It has an ore reserve of 26,9 million tonnes and has received its mining licence and environmental impact approval.

This comes as lithium has gained global prominence as the most valuable mineral for the future given its use in a number of areas including medicines and ceramics, but more importantly manufacture of electric vehicle batteries. Government granted Prospect a mining lease for 57 claims in the country.

The junior miner has committed millions in Zimbabwe’s lithium mining sector in the past year and is currently developing the assets.
Last year, the miner said it will start exploration of rare earth elements (REEs) at its Chishanya carbonatite project in Dorowa, in eastern Zimbabwe.

Prospect also operates Sally Gold Mine and Prestwood Gold Mine in Gwanda.

    Post a comment

    Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
    Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
    - Editor

    Your email address will not be shared.