Prospect Resources passes second qualification for its technical grade petalite product
Prospect Resources Ltd (ASX:PSC) recently completed an updated definitive feasibility study (DFS) for its 87%-owned Arcadia Igneous Lithium Project, located in Zimbabwe.
Following the publication of this study, we highlighted our concern regarding the justification for the large (77.9%) increase in the average life of mine petalite concentrate price used in the updated DFS.
Prospect believes that the Arcadia Project has the potential to produce and sell a premium technical grade, ultra-low iron petalite concentrate, which it also believes will command a significant premium to the previous price used for chemical-grade petalite concentrate.
At the time of the DFS, we didnt have a great enough understanding of the price differential between technical and chemical grade petalite, and we still dont as its a niche market and there is limited data available on technical grade petalite pricing.
The announcement today goes some way to alleviate that concern by demonstrating the companys potential to sell a technical grade product, as samples of the potential product from Arcadiahave progressed through the secondary qualification process with one of the worlds largest glass-ceramic manufacturers, based in Europe; having said that, we still dont have enough information on the pricing differential.
For Prospect to pass the final step in the product qualification process, its technical petalite product needs a full test in a production kiln. This is expected to be undertaken later in 2020, once the pilot plant is constructed and larger volumes of product are available. This can be considered a very import futRead More – Source
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