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Perth, Dec 6, 2017 AEST (ABN Newswire) - Prospect Resources Ltd (ASX:PSC) (the "Company") is pleased to announce a further increase in the Ore Reserve estimate at its flagship Arcadia Lithium Deposit in Zimbabwe to 26.9 Mt at 1.31% Li2O. The upgraded Ore Reserve is based on the Mineral Resource estimate announced to the ASX on 25 October 2017 (included in Tables 2 & 3).

Highlights:

- Ore Reserve upgraded to 26.9 Mt @ 1.31% Li2O

- 70% increase in tonnes compared to Pre-feasibility Study

- Ore Reserve hosts ~868 000 t contained lithium carbonate equivalent (LCE)

- Secures ore supply for +20 year mine life

- Upgrade reduces risks associated with grade control and orebody knowledge

Arcadia is the largest JORC Code reported lithium deposit in Africa - comprising ~808,000t contained Li2O (~2,000,000t contained lithium carbonate equivalent - LCE)

Mine designs were generated with the relevant modifying factors applied and subjected to a financial evaluation. Measured and Indicated Resources were converted to Proved and Probable Ore Reserves respectively. The Ore Reserve estimate for the Arcadia Project as at 6 December 2017 is outlined in Table 1 (see link below).

In response to the upgrade to the Arcadia Mineral Ore Reserve estimate, Mr Hugh Warner (Chairman) had the following to say: "This is another great result for our shareholders. Part of the reason for such a massive increase in our Ore Reserve is the effectiveness and detail of our exploration programme, the high percentage of diamond core holes relative to RC holes and the benefits of our detailed assay and XRD analysis programme - which combined, reduces risks associated with our orebody knowledge and helps with future grade control planning.

These are exciting times for Zimbabwe and for Prospect. During the past 10 days we have seen a peaceful transition of leadership in Zimbabwe and we have all read the positive remarks that the new President has made with respect to welcoming foreign investment. Harry Greaves (Executive Director) and I believe that Prospect is well placed to participate in and contribute to the rejuvenation of Zimbabwe. Prospect owns the largest JORC Code reported lithium deposit in Africa and we are working to bring this deposit into production in the shortest possible time. It is worth remembering that we have achieved this result in less that 18 months from our first drill hole. In fact, Sinomine and its technical team are onsite, in Zimbabwe, this week."

The Arcadia Lithium Project Pre-feasibility Study (PFS) announced by the Company on 3 July 2017, declared an Ore Reserve estimate of 15.8Mt grading 1.34% Li2O. The PFS identified significant volumes of Inferred Mineral Resource within or adjacent to the study's pit designs. A drilling programme to increase and upgrade the Mineral Resource estimate resulted in a 31% increase in the high grade (>1.0% Li2O) Measured and Indicated Resource estimate, as announced to the ASX on 25 October 2017.

In generating the updated Ore Reserve, the physical and cost parameters used in the PFS were applied including the appropriate modifying factors. Base case prices are derived from formulae applied in the proposed seven-year Offtake Agreement with Sinomine.

Pit shells and pit designs were generated using Whittle and Surpac software from which the Ore Reserve, as delivered to the process plant, was derived. The Ore Reserve is contained within three open pits comprising the Main Pit and two satellite pits. The resulting mine plan, completed to PFS level, details a project with a +20-year mine life based on an ore processing rate of 1.2 Mtpa. The mine plan is technically achievable, economically viable and robust under a range of pricing, physical and costs parameters scenarios.

Further details regarding the Ore Reserve estimate are included in Appendix A (see link below).

To view tables and figures, please visit:
http://abnnewswire.net/lnk/YFUFOAZO


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
Prospect Resources Ltd
Executive Chairman
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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