Prospect Resources Ltd (ASX: PSC, FRA:5E8) has announced that it has completed construction and commissioning of its Arcadia Lithium Project pilot plant in Zimbabwe, with production already underway. The plant is designed to produce technical grade (high purity) petalite samples for customers, with first delivery on track for June.
Initial production at the pilot plant is expected to last for three months, with ongoing production available based on demand.
Prospect Resources plans to achieve final production qualification with customers via high purity petalite samples produced at the pilot plant, coupled with spodumene samples supplied by a partner laboratory. The company is engaging potential clients in China, Japan and Europe to discuss spodumene offtake agreements, and assistance with project development.
Sibelco offtake agreement
The company announced in August 2020 that it had signed an offtake agreement with Belgium-based Sibelco N.V. The deal extends for seven years from the declaration of commercial production, and will see Sibelco purchase up to 100,000 DMT per annum of high quality, ultra-low iron petalite concentrate.
“We now look forward to delivering high purity lithium products to the downstream supply chain to complete respective product qualification processes”
Management Comments
Prospect Managing Director Sam Hosack said: “We have successfully demonstrated our capability to deliver this project in Zimbabwe. We now look forward to delivering high purity lithium products to the downstream supply chain to complete respective product qualification processes.”
“The development and operation of the Pilot Plant allows us to substantially reduce metallurgical risk for Arcadia, whilst demonstrating our ability to successfully operate in our jurisdiction, delivering increased confidence in the outcomes of existing technical study work and projected economics.”
“While lithium demand forecasts continue to be revised upwards, the supply base is falling further behind. Having secured all requisite development approvals, completed a Definitive Feasibility Study, and now producing high purity lithium samples, Arcadia is one of the very few shovel-ready lithium projects globally.”
Images: Prospect Resources Ltd
