Option on Good Days Lithium Project Exercised
Perth, Feb 28, 2018 AEST (ABN Newswire) - Prospect Resources Limited (
ASX:PSC) ('Prospect' or 'the Company'), is pleased to announce that it has exercised its option to acquire the Good Days Lithium Project, which was first signed on 12th June 2017.
Prospect's flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe. The Arcadia Lithium Project represents a globally significant hard rock lithium resource and has been aggressively developed focusing on near term production of petalite and spodumene concentrates.
The 8km2 Good Days lithium project is located in north eastern Zimbabwe and contains numerous mineralised pegmatites, including historical workings for spodumene and tantalite (amongst other minerals) at the Good Days and Jordywyitt mines. It is currently held by the Zimbabwean company Barrington Resources Pvt Ltd, who Prospect entered into an option agreement with in June 2017 to acquire a 70% direct interest in the project following a positive outcome from due diligence. The extension of this option agreement, until April 2018, allowed time for our team to regionally map and sample the remainder of the Good Days claims before a decision on whether to exercise the option agreement was made. With the positive changes occurring in Zimbabwe under the new Zimbabwe Government, Prospect elected to exercise the option early to give clarity to investors on the make up of our expanding lithium portfolio and to fast track exploration.
The project area is located approximately 30km east of the town of Mutoka in north eastern Zimbabwe and some 160km from the capital city, Harare, and consists of a swarm of Lithium-Caesium-Tantalum ('LCT') pegmatites which were historically worked for spodumene, beryl, tantalite, columbite, cassiterite, feldspar and lepidolite. Since the option agreement was first entered into in June, Prospect have drilled the known mineralised pegmatite zone to verify the historic geological model and undertaken two phases of soil sampling to identify other areas which may host economic lithium pegmatites. A total of 2,556 soil samples were collected from almost 51km of surveyed lines on the western extension to the previously identified Ford-Ntabeni lithium pegmatites swarm. These form a parallel zone to the Good Days pegmatite.
A total of 195 samples returned anomalous values; greater than the statistically determined threshold of 60ppm. 33 of these samples assayed greater then 100ppm, with a peak value of 8,531ppm. Three distinct 200m - 300m long anomalies have been defined on different pegmatites within the Ford-Ntabeni swarm.
In addition, the results of the 518 chip samples are equally encouraging. 24 of them have returned grades greater than 1% Li20, with three of them > 4%. These higher grades are from pegmatites within the Ford-Ntabeni and Good Days swarms.
The identification of anomalous lithium values in soil samples suggests that hard rock mineralisation may be present beneath the soil cover and increases the prospectivity of the Good Days project away from the site's historic workings. These latest results confirm the prospectivity of the greater area.
The discovery of further lithium mineralisation at the project would mean that the Good Days deposit would be a significant addition to Prospect Resource's strategic lithium resource base in Africa.
The Company intends to commence with a follow up exploration programme focusing on defining a JORC reportable Mineral Resource and generating material for metallurgical testwork. The next phase will consist of infill soil sampling followed by trenching, and where appropriate short hole percussion drilling.
About Prospect Resources Ltd
Prospect Resources Limited (ASX:PSC) is based in Australasia with operations in Zimbabwe and is a publicly listed company. We are committed to creating value for Prospect's shareholders and the communities in which our company operates. Our vision is to build a Southern African based mining company of international scale.
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