Prospect Resources has developed a scope of work for an optimised feasibility study, for a staged development of the Arcadia Lithium Project, from a first stage of 1.2 Mtpa, to 2.4 Mtpa.
Lycopodium is considered a good fit by Prospect Resources given its past relationship with the company and familiarity with the project, as well as being leaders in Australia and Africa in designing, costing process plants and implementing projects across a wide range of commodities, including lithium.
Prospect’s MD Sam Hosack says:
“We believe that Lycopodium is the perfect partner for Prospect to align with on the Arcadia Project. Their broad capabilities, technical rigour, team of highly skilled engineers and designers, and track record in Australia, Africa and Zimbabwe provide a highly valuable service offering to Prospect.
“We are very pleased with the progress that the company is making towards delivering on its plan to build and operate a Pilot Plant to rapidly move Arcadia through optimised feasibility and into development.
“Prospect is determined to deliver on a clear development pathway in as short a timeframe as possible, whilst still ensuring that the technical and economic risks are fully understood and addressed.
“The staged development plan of 1.2 Mtpa to 2.4 Mtpa reduces time to production by leveraging lower capital expenditure and funding requirements.
“It also enables clear expansion in line with market growth. This development strategy allows project execution and market integration risks to be minimised whilst accelerating the pathway to first cashflow.
“Critically, Prospect maintains the ability to go direct to a plant capacity of 2.4 Mtpa should market conditions and funding activities allow. We look forward to providing regular market updates on the progress of the Optimised Feasibility Study over the coming months.”
Lycopodium Minerals Africa director Andrew Jakins says:
“Our historical relationship with Prospect’s management team and global involvement in Lithium projects makes Lycopodium a logical fit for the Arcadia Lithium project and one which we are excited to be a part of.
“It is Lycopodium’s strategic intent to focus on battery mineral projects that will contribute to the success of sustainable battery powered transport solutions, and thereby contribute to a greener environment through the reduction of greenhouse gasses.”
Lycopodium’s primary Scope of Work is the supervision of metallurgical testwork, optimisation of the staged 1.2 Mtpa to 2.4 Mtpa flowsheet, design for the process plant, as well as related infrastructure including site power reticulation and on-site water treatment and distribution.
The engineering work during this stage will enable formal quotations to be secured from the market, in order to define the Project CAPEX to a Feasibility Study level of accuracy (+/-15%).
The optimised feasibility study will include:
- Substantial Front-End Engineering and Design (“FEED”);
- Evaluation of modular potential to reduce development and operational risk;
- Review of market pricing for Spodumene and Petalite products;
- Reducing execution schedule risk in providing greater accuracy on key equipment selection and sizing; and,
- Analysis of resultant project economics.
The optimised feasibility study is expected to be completed in Q3 CY2021, with funding discussions being conducted in parallel.
The company is in discussions with its existing offtake partners and, as well as institutional financiers with respect to financing pathways for the staged development of Arcadia.
It is also in early-stage discussions with multiple strategic partners regarding joint development structures. The company believes that the use of a tier one engineering firm for the optimised feasibility study should assist in the process of securing funding for the project.
Prospect will also continue to retain the ability to go direct to plant capacity of 2.4 Mtpa, should market conditions and funding activities allow.