Prospect Resources Ltd: JORC Resource at Arcadia Confirm Large Scale Lithium Deposit

Perth - Prospect Resources (ASX:PSC) is pleased to report the maiden JORC 2012 Code reportable Mineral Resource estimate for the Arcadia Lithium Deposit in Zimbabwe. The estimated Mineral Resource at Arcadia is 36.4 Mt @ 1.17 % Li2O, for 425,000 tonnes of contained Li2O (Table 1 in the link below). The Mineral Resource estimate also includes a large proportion of Measured, Indicated and Inferred Resources (fresh rock) at 31Mt grading @ 1.22% Li2O.

This positions Arcadia as one of the more significant size hard rock lithium deposits globally, with the ability to significantly increase resources as the deposit remains open along strike and down dip.

A maiden Mineral Resource has been declared containing:

- 36Mt grading at 1.17% Li2O (425,000t contained Li2O)

- 31Mt grading at 1.22% Li2O (Measured, Indicated and Inferred), classified as fresh rock

- 19Mt grading at 1.17% Li2O (Measured and Indicated), classified as weathered and fresh rock

SUMMARY

- Definition of a Maiden Mineral Resource estimate of 36Mt grading 1.17% Li2O and 107ppm Ta2O5 (for 425 000t of contained Li2O and 9 Mlb of Ta2O5);

- Measured, Indicated and Inferred Mineral Resources of 31 Mt grading @ 1.22% Li2O declared, comprising 86% of Total Mineral Resource (fresh rock)

- Measured and Indicated Mineral Resources of 19 Mt grading @ 1.17% Li2O declared, comprising 53% of Total Mineral Resource (weathered and fresh rock)

- Revised Exploration Target is 80 - 100Mt @ 1.1 - 1.4% Li2O

- Following the definition of the Mineral Resource estimate, work has begun on a provisional mine plan, which will underpin the Scoping Study aiming for completion by the end of 2016.

- Phase 3 drilling with 3 diamond drill rigs and 2 RC drill rigs has been active since early October with the aim of increasing confidence in, and extending the Mineral Resource along strike (both to the south west and northeast) , and down-dip.

- Less than 20% of the area under mining license has been drilled to date

- Numerous surface targets have been identified and are being tested

In response to this significant achievement by the Prospect team, Chairman, Hugh Warner had the following to say:

"Prospect Resources is delighted to be in a position to report the maiden JORC 2012 Code reportable Mineral Resource estimate for the Arcadia deposit in Zimbabwe. Bear in mind the option agreement to purchase a majority interest (90%) in the project was only signed on the 25th May. Drill rigs were onsite by the 25th June and a maiden Mineral Resource has been produced by the 31st October. This is a significant achievement and is just reward for the company's strategy of acquiring, developing and running profitable mines in the Southern African region."

The declaration of this Maiden Mineral Resource estimate at Arcadia establishes it as a significant lithium deposit globally. While the grade is not as high as initially expected from historical data, the close to surface, flat lying nature of the resource combined with the large tonnage makes this deposit a company maker for Prospect Resources.

Drilling: The original Phase 1 resource drilling programme undertaken in July, comprised 16 diamond holes, totalling some 1,387m. The focus was testing the down-dip and strike extent of the pegmatite in the old Arcadia pit. This had been exploited for lithium and beryl intermittently during the 1960s and '70s.

The programme not only delineated a Mineral Resource within this so-called Main Pegmatite, but identified a previously un-known body; the Lower Main Pegmatite, some 20m below. The Phase 2 RC drilling programme, initiated in August, showed that this body thickened dramatically to the east to over 30m thickness in parts.

Assays for only the first two phases of drilling were available for this Mineral Resource estimate.

Maiden Resource Estimation

The maiden JORC 2012 Code reportable Mineral Resource incorporates the results from the chip sampling of the old pit, the Phase 1 diamond drilling, Phase 2 RC, plus the first two holes from the on-going Phase 3 programme.

To view the announcement, please visit:
http://abnnewswire.net/lnk/F3TANQ7G


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