Prospect Resources Ltd receives new batch of high lithium assays in Zimbabwe

Prospect Resources Ltd (ASX:PSC) has received assays from four more holes drilled at its Arcadia high grade lithium project located in Zimbabwe.

Results included 32 metres at 1.00% lithium oxide with peak grades measuring up to 4.31% lithium oxide.

This follows assays from the initial five holes which graded up to 4.35% lithium oxide.

Assays from nine drill holes have been received with results from another 23 holes still pending.

The company intends to release its first JORC reportable Mineral Resource before the end of October 2016.


Drill results details

Assay results from the latest four reverse circulation drill holes returned a peak grade of 4.31% lithium oxide.

Significant intersections included:

- 32 metres at 1.00% lithium oxide from 33 metres peaking at 2.63% lithium oxide;
- 29 metres at 1.58% lithium oxide from 32 metres peaking at 3.50% lithium oxide;
- 24 metres at 1.46% lithium oxide from 54 metres peaking at 4.31% lithium oxide;
- 6 metres at 1.46% lithium oxide from 32 metres peaking at 3.50% lithium oxide; and
- 5 metres at 1.04% lithium oxide from 25 metres peaking at 2.01% lithium oxide.


Arcadia lithium project

Drilling to date has covered 12% of the company";s exploration area.

The drilled strike of the 14 stacked pegmatites extends more than 1 kilometre and 400 metres down dip.

The company";s ground position now covers more than 6 square kilometres of mining licences.

A scout drilling program is being prepared to determine the overall size of a recently discovered large scale lithium bearing pegmatite system.

Prospect intends to fast track the drilling of this new discovery as part of the wide spaced scout program.


Arcadia development timeline

Drilling is working towards the development of Arcadia in the following order:

- First JORC resource expected before the end of October;
- Mine scoping study planned for completion prior to 31 December;
- Off-take discussions underway with over 5 Asian lithium producers and agreements are expected to be completed prior to 31 December; and
- First ore production planned for pre 30 June 2017.


Analysis

The latest drill assays continue to confirm the high grade lithium potential of the Arcadia project where drilling to date has covered only 12% of the company";s exploration area.

With assays for 23 holes still pending and drilling at a new outcropping target to commence, Prospect remains well leveraged to lithium exploration success in an area known to host lithium.

The board, management and advisors for Prospect include three Zimbabwean residents and a number of people with experience working and living in the country.

Shares in Prospect are trading up 860% year to date.

<