BY MTHANDAZO NYONI
PROSPECT Resources’ wholly-owned subsidiary, Promin Resource Holdings Ltd, has acquired a potential high-grade lithium deposit located approximately 8km north of Arcadia Lithium project, the parent company has revealed.
According to the company’s half year financial results for the year ended December 31, 2021, an exploration programme is underway.
“During the period, Prospect’s wholly-owned subsidiary, Promin Resource Holdings (Pty) Ltd, has acquired a potentially high-grade lithium deposit located approximately 8km north of Arcadia (Step Aside),” the firm said.
“The Step Aside claim comprises approximately 140 hectares and is located in the Harare Greenstone Belt, west of the Mashonganyika Fault. The potential of the area has been confirmed by positive regional stream and soil sample geochemistry results.
Four mineralised pegmatites have been mapped from east to west within a meta-dolerite host rock. These mineralised pegmatites are all roughly parallel to each other, lying in a north-south orientation and have dip angles of 40-45˚ to the west.”
The company revealed that an exploration programme is underway, with the commencement of rock chip sampling and if successful a trenching and drilling exercise to help with determining the sub-surface strike extensions.
“This will provide greater detail as to the thickness and strike length of any potential underlying pegmatite,” it said.
On December 23, 2021, the Australia–listed mining concern announced that it had, through its 100% owned subsidiary Prospect Minerals, executed a binding share sale agreement with Huayou International Mining (Hong Kong) Limited, for the sale of its 87% shareholding in Prospect Lithium Zimbabwe, owner of the Arcadia lithium project.
Huayou agreed to purchase Prospect Minerals’ 87% shareholding in Prospect Lithium Zimbabwe and associated intercompany loan for approximately US$377,8 million in upfront cash consideration.
Meanwhile, for the period under review, the company recorded a loss (including that incurred by the discontinuing operations) of A$2,4 million compared to A$1,2 million realised in the same period in 2020.
Also, it had net cash outflows from operating and investing activities (including those used in discontinuing operations) of A$5 018 000.
As at reporting date, the firm had cash and cash equivalents of A$20,1 million including the cash holdings within the disposal group classified as held for sale of A$212 000.
Prospect Resources Arcadia Lithium Deposit has been identified as a priority mining development project by the government.
The company’s lithium project has been identified as one of those key projects in Zimbabwe that can help turnaround the economy.
- Follow Mthandazo on Twitter @MthandazoNyoni