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Perth, Oct 12, 2016 AEST (ABN Newswire) - Prospect Resources Limited (ASX:PSC) (Prospect or the Company) is pleased to announce the signing of an option agreement on the Fimpimpa West Copper/Cobalt Project, northern Zambia.

Highlights

- Fimpimpa West Copper/Cobalt Project lies within the Zambian Copper Belt

- The project is preferentially located close to existing road, rail and power infrastructure

- Initial Exploration Target of 15-25Mt at 1.0%-1.5% Cu.

- Vendors of Fimpimpa West are Zambian geologists and mining related persons.

- Prospect intends to build a portfolio of copper/cobalt projects, leveraging off the local knowledge and contact base of the Fimpimpa West vendors.

- Additional lithium and cobalt projects are currently under investigation
The Fimpimpa West Copper/Cobalt Project

The Fimpimpa Copper/Cobalt Project is a typical Copperbelt style, sedimentary stratiform type deposit. The deposit is hosted in the Lower Roan succession of the Katanga System. The project forms the eastern extension of a narrow small synclinal structure opening on the western side into the Fitobaula Open pit.

The Fitobaula open pit is currently in production by Konkola Copper Mines (KCM). The deposit being mined continues into the Fimpimpa area, with only a licence boundary separating the two.

The Fimpimpa west syncline is a westerly plunging asymmetrical structure along an east west trending axis. The sub outcrop has a strike length of almost 1,500m.

In the eastern end the nose of the syncline has a tight outcrop of about 150m and widens out towards the west to almost 700m width.

The north limb of the syncline appears to be overturned and dip to the north at between 35 and 60 degrees. Localized dips go up to 85 degrees The south limb dips vary from 35 to 55 degrees. On the eastern end the fold is virtually an isoclinal synclinorium (Coles 1964).

The north limb has an almost a semi- circular cross section.

Location

The Fimpimpa West Copper/Cobalt Project lies mid-way between Chililabombwe and Chingola mining towns.

Historical Exploration

The Mineral potential has been known since 1928. A number of geological investigations have been carried out in the area over the years. These range from Mapping, Geophysical surveys, Grid Geochemical sampling, radiometric survey, Pitting and Trenching.

Based on the Company's review of existing publicly available information (including historic exploration, past drilling and production history), Prospect believes that the potential exists for an Exploration Target of 15-25 million tonnes with grades ranging from 1.0%-1.5% Cu.

The Fimpimpa West Copper/Cobalt Project has been the subject of historic drilling, exploration however, the Company has not undertaken a detailed exploration programme nor a drilling programme. The Exploration Target is based on previously published data, much of which predates JORC 2012 and the Company's future exploration programme. The potential quantities and grades are conceptual in nature and there has been insufficient exploration to date to define a Mineral Resource. It is not certain that further exploration will result in the determination of a Mineral Resource under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code" (JORC 2012).

Details of the Option Agreement

The Company has acquired a 90 day option to acquire, a 90% equity interest in a special purpose vehicle (SPV) incorporated to own a 100% interest in the Fimpimpa West Copper/Cobalt Project in consideration of US$15,000. After exercise of the option, the Company shall for a period of 24 months, fund 100% of the exploration costs and complete exploration activities so that a Decision to Mine can be made.

An area of mutual interest (AMI) covering land within a 30km radius of the Fimpimpa West Copper/Cobalt Project applies whereby any properties acquired within the AMI shall be owned by the SPV for the benefit of all shareholders and Prospect shall meet the exploration costs.

Cobalt Strategy - Lithium Battery Cycle

The Fimpimpa West Copper/Cobalt Project forms the first piece of the Company's cobalt strategy. Prospect, along with our Zambian partners intend to identify and acquire additional acreage that is prospective for Cobalt deposits, with particular focus on near term production assets. As we move to the East of Fimpimpa West, the geology tends to shift from a copper/cobalt hosted environment to a cobalt hosted environment. As we build our operational capabilities within Zambia, we expect to see additional opportunities.

Further lithium and cobalt opportunities are being considered within Zambia and DRC.

To view the announcement, please visit:
http://abnnewswire.net/lnk/YUWOK584

About Prospect Resources Ltd

Prospect Resources Ltd ASX PSCProspect Resources Limited (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
Prospect Resources Ltd
Executive Director
T: +263-772-144-669
WWW: www.prospectresources.com.au



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