Study values Prospect Resources' Zimbabwean lithium project at $929M

A direct optimized feasibility study for Prospect Resources Ltd.'s 87%-owned Arcadia lithium project in Zimbabwe generated a posttax net present value, discounted at 10%, of $929 million in the base case, with a 60% internal rate of return and a 3.3-year payback period.

The company said Dec. 14 that preproduction capital was estimated at $192.5 million based on the single-stage development of a processing plant with a capacity of 2.4 million tonnes per year. This compares to the preproduction capital of $212.4 million outlined by an October study that focused on constructing the plant in two stages.

The latest study forecast average production of 147,000 tonnes per year of spodumene concentrate, 94,000 t/y of technical grade petalite concentrate and 24,000 t/y of chemical grade petalite concentrate over the initial 18.3-year mine life.

Prospect Resources said the process to find potential strategic partners is on track after receiving nonbinding proposals in November.