Prospect’s Step Aside project on course

Prospect Resources has commenced exploration work at its Step Aside lithium battery
minerals project with rock chip sampling expected to be completed in the next few weeks.

The Step Aside project is situated 8km north of the Arcadia lithium mine and comprises an estimated 100 hectares on the Harare greenstone belt.

Recently, Prospect Resources, which owned 87 percent stake in the Arcadia Lithium project, sold its stake to a Chinese-owned firm, Huayou International Mining (Hong Kong) Limited.

The transaction comprised cash consideration of about US$377,8 million.

Following payment of US$26,8 million in Zimbabwe capital gains tax and US$8 million to Sinomine in relation to the termination of the offtake agreement between Prospect and Sinomine, US$342,9 million (inclusive of the deposit of US$20 million), in net proceeds were received by Prospect on completion.

Lithium has become a strategically important mineral globally given its growing use in electrical vehicle batteries, as the world transitions from combustible engines.

The mineral is expected to make a significant contribution to the Government’s US$12 billion mining industry by 2023, generating US$500 million.

In a statement, Prospect Resources said when rock chip sampling has been completed at the Step Aside project, trenching and drilling activities would then follow.

“The early stage of an exploration programme is underway at Step Aside, with rock chip sampling underway, with a trenching and drilling exercise to follow.

“Trenching and drilling will aid in determining subsurface strike extensions and will provide greater detail as to the thickness and strike length of any potential underlying pegmatite.

“Drilling is planned to be undertaken during the third quarter of 2022,” said Prospect in a quarterly activities report for the quarter ended March 31, 2022.

The potential of the Step Aside project has been confirmed by positive historical regional stream and soil sample geochemistry results.

Prospect said four mineralised pegmatites (igneous rock showing a very coarse texture) have been mapped from east to west within a meta-dolerite (grey, green dark ingenius) rock host.

These mineralised pegmatites are all roughly parallel to each other, lying in a north-south orientation and have dip angles of 40-45 degrees to the west.

Prospect Resources managing director and chief executive officer Mr Sam Hosack was quoted as saying: “Having successfully completed the transaction with Huayou, we have now shifted our focus to the next phase of the company’s growth plans, including further delineation of our Step Aside project and assessment of further prospective battery metal projects within Zimbabwe and the broader Sub-Saharan African region.”

He said they were at an exciting point in the company’s history.

“I look forward to renewed efforts of diligence and dedication from our talented team during the next quarter as we hit the ground running and assess the opportunities ahead of us,” said Mr Hosack.

The Prospect exploration team continues to develop a pipeline of prospective battery mineral targets.
The success and publicity associated with the transaction with Huayou resulted in an increase in opportunities being presented to Prospect.

“Project generation activities are underway and the company is well capitalised to identify, assess, invest and then advance those projects that have the potential to meet scale and grade criteria,” said the company.0Herald