Only a few mines worldwide are able to serve the market for technical lithium with extremely low iron content, which achieves particularly high prices. The Arcadia mines of the Australian Prospect Resources (ASX PSC / WKN A1JW80) however, this is part of how recent tests demonstrated!
As it turned out, a spodumene concentrate with an iron oxide content (Fe2O3) of only 0.18% can be produced on Arcadia. This makes Arcadia’s spodumene one of the lithium products with the lowest iron content in the world and can be compared to Talison Lithium and their Greenbushes mine.
Metallurgical tests, which included flotation of the spodumene before the petalit flotation, were already carried out by a German special format in June and published at the end of June. The petalite and spodumene concentrate produced during these tests was then subjected to a magnetic separation step in order to reduce the remaining Fe2O3 content.
This means that Arcadia spodumene is now not only a premium product for the chemical market, according to Prospect Resources, but also represents the possibility of selling a spodumene and petalite mixture with extremely low iron content in the glass and ceramic market. The company assumes that this product will then achieve a top price on the market because it is able to adapt this mixture for each customer according to their requirements and thus deliver a finished product.
According to Prospect’s Managing Director Sam Hosack, such a move, rather than simply selling Arcadia spodumene to the chemical market, could further increase the economics of the project. Hosack also considers it positive that Arcadia has the only lithium pegmatite that complies with the Australian JORC standard and is able to deliver extremely low iron petalite, spodumene and tantalum products. The focus will now be on determining the positive effects of this development on the profitability of the planned mine.
This is the second time that Prospect has published news that could have a positive impact on the profitability of Arcadia (we reported). In our opinion – in addition to the discussions with Uranium One and Sibelco, for example – these are factors that make Prospect Resources stand out from the field of other lithium companies.
In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that clients, partners, authors and employees of GOLDINVEST Consulting GmbH hold or can hold shares in Prospect Resources and that there is therefore a possible conflict of interest. We can also not rule out that other stock market letters, media or research companies will discuss the values we recommend in the same period. Therefore, symmetrical information and opinion generation can occur during this period. Furthermore, there is a consulting or other service contract between a third party in the Prospect Resources warehouse and GOLDINVEST Consulting GmbH, which creates a conflict of interest, especially since this third party pays GOLDINVEST Consulting GmbH for reporting on Prospect Resources. This third party may also hold, sell, or buy shares in the issuer and would benefit from an increase in Prospect Resources shares. This is another, clear conflict of interest.
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