Study confirms viability of Arcadia lithium project
Engineering consulting firm, Lycopodium, has completed a Direct Optimised Feasibility Study (Direct OFS) on Arcadia Lithium project,, which confirms strong technical and economic viability of the project under a single-stage development pathway to 2,4 metric tonnes per annum throughput.
In March this year, Prospect Resources developed a scope of work for an OFS, for staged development of the Arcadia Lithium Project, from a first stage of 1,2 Mtpa to 2,4 Mtpa.
Lycopodium was considered a good fit by Prospect Resources given its past relationship with the company and familiarity with the project, as well as being leaders in Australia and Africa in designing, costing process plants and implementing projects across a wide range of commodities, including lithium.
The Direct OFS capital expenditure has been prepared to a plus or minus 12,5 percent overall estimation accuracy. As with the staged OFS, the Direct OFS reflects the strong potential of the Arcadia Lithium Project to become a compelling long life, large scale, hard rock open pit lithium mine in Zimbabwe.
Prospect managing director, Sam Hosack, commented: “On behalf of the entire Prospect team, I am proud to announce completion of the Arcadia definitive optimisation process with release of the Direct OFS.”
“While the Staged OFS presented a strong development case for Arcadia with a lower upfront capital requirement, the single-stage build to 2,4 Mtpa was always expected to be more compelling in terms of capital and economic efficiencies. This expectation has been resoundingly validated by the outcomes of the Direct OFS.”
He said: “The Direct OFS further enhances Arcadia’s positioning as one of the world’s premier hard rock lithium assets, with outstanding projected returns under a range of lithium price scenarios.
“It builds on the detailed technical assessments undertaken as part of the DFS (2019) and Staged OFS (October 2021) in outlining a robust and highly attractive mine development case for Arcadia. As one of the only independent, shovel-ready projects globally without offtake totally locked up, it is unsurprising that interest in the current Arcadia strategic
partnership process being undertaken by Prospect is strong.”
The development of the Prospect’s Arcadia Lithium Project will strengthen Zimbabwe’s position among the top lithium producers in the world. The project is the largest lithium deposit in Africa comprising 808 000 tonnes of lithium oxide.
Zimbabwe is envisioning a US$12 billion mining industry by 2023.
Of the US$12 billion, gold, platinum and diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively. Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same. Lithium at US$500 000 while other minerals will constitute US$1,5 billion.-ebusinessweekly
