Prospect Resources Ltd.: More High Grade Assay Results - Arcadia Lithium Project

Perth, Oct 21, 2016 - Prospect Resources Limited (ASX:PSC) (Prospect, the Company) is pleased to report assay results from RC drill holes at the Company's Arcadia high grade lithium project.

All results are expected to be included in the Company's maiden JORC reportable Mineral Resource planned for release by the end of October 2016.

Assay results returned a peak grade of 3.13% Li2O.

Significant intersections are summarised as (all true width):

- ACR019 - peak grade 3.13% Li2O with an Average Grade of 1.39% Li2O
-- 11m @ 1.21% Li2O from 35m
-- 22m @ 1.71% Li2O from 48m

- ACR018 - peak grade 2.56% Li2O with an Average Grade of 1.42% Li2O
-- 26m @ 1.42% Li2O from 51m

- ACR006 - peak grade 2.00% Li2O with an Average Grade of 1.14% Li2O
-- 18m @ 1.19% Li2O from 19m
-- 3m @ 1.45% Li2O from 42m
-- 3m @ 1.33% Li2O from 47m

Drilling to date has covered approx. 20% of the Company's Mining Licence area. The drilled strike of the 14 horizontally stacked pegmatites extends more than 1.7km SW-NE and some 700m down dip to NW and is open along strike and down dip. The Company's ground position now covers more than 600 hectares of mining licences. (See Claims Map in the link below).

The Company now has 3 diamond drill rigs and 2 RC drill rigs on site. These rigs are carrying out scout drilling, metallurgical test work drilling, infill drilling and sterilization drilling to determine the best location for mine process plant and tailings storage facilities.

Previously reported high grade lithium intercepts include: Peak grade of 4.35% Li2O. Significant intersections (all true width):

- ACR001 - Average Grade 0.99% Li2O
-- peak grade 2.51% Li2O
-- 10m @ 1.5% Li2O from 19

- ACR002 - Average Grade 1.56% Li2O
-- peak grade 4.35% Li2O
-- 11m @ 2.03% Li2O from 24m

- ACR003 - Average Grade 1.33% Li2O
-- peak grade 2.47% Li2O
-- 3m @ 3.05% Li2O from 19m
-- 17m @ 1.46% Li2O from 42m
-- 2m @ 2.07% Li2O from 64m

- ACR006 - Average Grade 1.14% Li2O
-- Peak grade 2.00% Li2O,
-- 18m @ 1.19% from 19m
-- 3m @ 1.45% from 42m
-- 3m @ 1.33% from 47m

- ACR010 - Average Grade 1.23% Li2O
-- peak grade 2.63% Li2O

32m @ 1.00% Li2O from 33m

- ACR011 - Average Grade 1.56% Li2O
-- peak grade 3.50% Li2O
-- 6m @ 1.46% Li2O from 32m
-- 29m @ 1.58% Li2O from 41m

- ACR012 - Average Grade 1.46% Li2O
-- peak grade 4.31% Li2O
-- 24m @ 1.46% Li2O from 54m

- ACR018 - Average Grade 1.42% Li2O
-- peak grade 2.56% Li2O

26m @ 1.42% Li2O from 51m.

- ACR019 - Average Grade 1.39% Li2O
-- peak grade 3.13% Li2O,
-- 8m @ 0.8% from 6m
-- 11m @ 1.21% from 35m
-- 22m @ 1.71% from 48m

- ACR020 - Average Grade 1.51% Li2O
-- peak grade 2.57% Li2O
-- 2m @ 1.49% Li2O from 22m
-- 5m @ 1.76% Li2O from 35m
-- 19m @ 1.60% Li2O from 43m

- ACR021 - Average Grade 1.29% Li2O
-- peak grade 2.43% Li2O
-- 4m @ 1.21% Li2O from 33m
-- 15m @ 1.42% Li2O from 66m

To view the announcement, please visit:
http://abnnewswire.net/lnk/938Z2N5K


About Prospect Resources Ltd

Prospect Resources Ltd (ASX:PSC) is based in Australasia with operations in Zimbabwe and is a publicly listed company. We are committed to creating value for Prospect's shareholders and the communities in which our company operates. Our vision is to build a Southern African based mining company of international scale.



Contact

Hugh Warner, Executive Chairman
Prospect Resources Ltd
T: +61-413-621-652

Harry Greaves, Executive Director
Prospect Resources Ltd
T: +263-772-144-669
www.prospectresources.com.au