Prospect Resources has completed lithium exploration at Step Aside and Omaruru projects
Company to focus on new Mumbezhi project in Zambian Copper Belt
Lithium projects could be commercialised to fund Mumbezhi development
Metallurgical test work now underway at Step Aside
Special Report: With lithium drilling complete, Prospect Resources’ key focus now is the ‘rapid advancement’ of the recently acquired Mumbezhi copper project in Zambia.
Prospect Resources (ASX:PSC) has now reported the completion of Phase 4 diamond drilling at its Step Aside lithium project in Zimbabwe, and Phase 2 RAB and RC drilling at its Omaruru lithium project in Namibia.
Assays from the Step Aside drilling included:
13.0m at 1.68% Li2O from 75.5m (WinBin);
15.3m at 1.25% Li2O from 179.9m, including 11.0m at 1.60% Li2O from 182.0m (Pegmatite E);
5.0m at 1.68% Li2O from 149.0m (Pegmatite C); and
6.2m at 1.07% Li2O from 55.0m (Pegmatite D).
Phase 2 drilling at Omaruru has also concluded with results indicating further extensions to the Karlsbrunn Main deposit root feeder system from surface and further anomalous mineralisation along strike to the north of Brockmans including:
11m at 1.07% Li2O from 7m (Karlsbrunn Main);
20m at 0.63% Li2O from 7m, including 8m at 0.80% Li2O from 9m (Karlsbrunn Main);
3m at 0.74% Li2O from 56m (Brockmans), and;
3m at 0.51% Li2O from 46m (Brockmans).
“At every stage, these assets have indicated substantial additional mineralisation growth potential ready to be further uncovered,” PSC Managing Director and CEO Sam Hosack said.
Focus on advancing Mumbezhi copper project
The company acquired an 85% interest in Mumbezhi for US$6.5m in cash and scrip in late May, with the project sitting smack bang in the Zambian Copper Belt – one of the most prolific and prospective copper mining regions globally.
“With our key focus now directed towards the rapid advancement of the recently acquired Mumbezhi Copper Project in Zambia, we plan to reduce our exploration activities at Step Aside and Omaruru from the levels completed over the past 12 months,” Hosack said.
“Alongside this we will be undertaking a comprehensive review focussed on the range of potential commercialisation routes for these two attractive lithium assets.
“Step Aside may offer a near term sale opportunity to a number of strategic investors to help fund Mumbezhi and we are testing the market now at levels that would make a sale an attractive option.
“We would also have no hesitation to consider further development or a sale of this attractive asset later on when lithium markets have improved.”
Pic: Map of Phase 4 drilling at Step Aside (with Pegmatite E drill section profile shown). Source: PSC.
Looking forward
Notably, Step Aside is only a short distance from the Arcadia lithium mine and has been significantly derisked, representing an exciting, advanced exploration play with regional scale potential.
Metallurgical test work is in progress on spodumene-dominant Step Aside deposits, which could be monetised to potentially help fund Prospect’s priority exploration and development of the Mumbezhi project.
“The “WinBin” mineralised zone at Step Aside was an excellent discovery last year and enabled us to swiftly identify what we now know to be a significant co-joined mineralised pegmatite system that remains open in multiple directions and at depth,” Hosack said.
“With similar geological characteristics to the Arcadia deposit, located just 8km to the south, this system offers strong potential for amenability to processing via a conventional lithium flowsheet such as the Arcadia plant.”
The Omaruru Project (100% owned by Prospect) spend has also been reduced, with the company to consider several commercialisation strategies to unlock the project’s value over the longer term with improving lithium markets.
This article was developed in collaboration with Prospect Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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