The Company owns:
· the Hodrusa-Hamre exploration licence – 100%;
· the Nova Bana exploration licence – 100%;
· the Rudno nad Hronom exploration licence – 100%;
· the Jasenie exploration licence – 100%;
· the Pukanec exploration licence – 100%;
· the Zlata Idka exploration licence – 100%;
· the Cejkov Zemplin exploration licence – 100%.
Based on historic production, drill assays, surface sampling and all known occurrences known over 1.0 g/t Au, exploration target ranges of tonnages and grades are estimated as:
35 - 30 million tonnes @ 3.5 - 7.0 g/t Au and 100 - 300 g/t Ag.
2.8 - 6.8 million ounces Au and 81 - 290 million ounces Ag.
The potential quantity and grade of an Exploration Target is conceptual in nature, there has been insufficent exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
In May 2019 the Company completed the procedural requirements to renew the 100% interest in the Hodrusa-Hamre exploration licence.
Located 200 kilometres east of Vienna, the 103.5km² Hodrusa-Hamre exploration licence covers the majority of the historic Hodrusa-Hamre/Banska Stiavnica mining district, the caldera of the Neogene Stiavnica Stratovolcano, hosting some 120 epithermal veins with the major veins reaching a length of 8 kilometres.
The Company’s rock chip assay result highlights from numerous vein systems in Hodrusa include:
· 29 samples averaged 7.80 g/t gold and 33.0 g/t silver from the Ignac-Rabenstein prospect;
· 138.00 g/t gold and 3,590.0 g/t silver from the Stefultov Stefan prospect;
· 47.30 g/t gold and 48.0 g/t silver from the Ignac-Rabenstein prospect;
· 58.60 g/t gold and 7,400.0 g/t silver from the Schopfer vein;
· 28.20 g/t gold and 3,210.0 g/t silver from the Schopfer vein;
· 12.50 g/t gold and 961.0 g/t silver from the Jan Benedickty prospect;
· 12.85 g/t gold and 404.0 g/t silver from the Kopanice prospect;
· 5.54 g/t gold and 8.7 g/t silver from the Jan Jozef shaft;
· 1.48 g/t gold and 60.4 g/t silver from the Banska Bela prospect.
Subsequent drill results up to 15 g/t Au from recent drilling on Ignac at Hodrusa Project. Ignac is within 400 metres of currently utilised mine infrastructure.
IRDD001: 4.0 metres @ 4.8 g/t Au and 22 g/t Ag, including 1.0 metre @ 13.7 g/t Au from 190 metres.
IRDD002: 0.4 metres @ 15.6 Au and 22 Ag from 174 metres.
IRDD002: 0.4 metres @ 8.31 Au and 117 Ag from 195.9 metres.
Exploration results have been encouraging with the most recent results including:
Bauch (1.0km along strike from Ignac Rabenstein) – 28.3 g/t Au and 582 g/t Ag.
Schöpfer – 5.0 metres @ 2.9 g/t Au and 401 g/t Ag.
Schöpfer prospect void model complete and now preparation for drilling to convert Exploration Target to a JORC Resource category commenced.
Klokoc (KKDD001) results (including 4.0 metres @ 2.35 g/t gold and 8.0 g/t silver from 187.0 metres and 18.0 metres @ 1.37 g/t Au and 8.0 g/t silver from 213.0 metres) validate the location of historic along strike intercepts.
Klokoc structure remains open to the north and south and will be further drill tested. This style is skarn with a feeder vein intersecting limestones.
A re-assay of the 1990s Banky drill core (VBR-7) returned 120.00 g/t gold.
VBR-7 was drilled vertically from the same position as Banky hole BKDD001 (dip 60°). BKDD001 results (including 1.0 metre @ 3.04 g/t gold and 75.9 g/t silver from 75.0 metres) encourage a vertical redrill of the hole.
Located 15 kilometres west of Hodrusa-Hamre, the 52.3km² Nova Bana and Rudno nad Hronom exploration licences cover an epithermal gold system with veining known to extend over an area of 3.8 kilometres by 1.6 kilometres associated with rhyolite intrusives and extrusives hosted by andesite volcanics on the flanks of the Stiavnica Stratovolcano.
In the Zubau/Anna prospect within Rudno project where approximately 14 metre deep winze was made in order to get production from below heritage level; however this has been abandoned shortly because of water pumping issues. The ore left in the blocks delineated by the winze reportedly contained 2,000-2,800 g/t gold + silver.
Modern exploration at Rudno was carried out by the government in 1980’s, but this was focused on base metals and porphyry-skarn mineralisation type. The target of the proposed drilling is steeply dipping low-sulphidation epithermal veins reportedly related to rhyolite volcanism. The veins are generally narrow (0.5-1.5 metres), striking N-S and steeply dipping to E or W. The exception is Anna-Zubau area, it was reportedly mined to 40 metres width. Rudno has not been systematically tested for gold by modern exploration methods yet.
The 29.4km² Jasenie exploration licence hosts a gold-tungsten project located approximately 90 kilometres northeast of the Hodrusa-Hamre licence area on the southern side of the Nízke Tatry mountains, north of Jasenie village. In the 1950s an 18 kilometre long and 400 metre to 1,000 metre wide scheelite-gold anomaly was identified at Jasenie.
In 2019 an open Resource Estimate was completed for Gold and EU critical raw material Tungsten – Gold at Jasenie Project for 235,000 Oz AuEq at a grade of 4 g/t AuEq1. Open high grade (>4 g/t Au) remain untested and currently planned for surface drilling at Jasenie. Drill planning underway to test a known high grade gold ‘skin’ on the margins for the systems has been permitted.
1 AuEq = Gold Equivalent =(gold grade x gold price tungsten grade x tungsten price)/gold price
Gold price US 39 per gram
Tungsten price US 300 per DMTU
Currency exchange rate of A 1 00 US 0 75.
A location where mining commenced in 1329, Pukanec is a gold silver project with the most workings within a project area of any in Slovakia. The low sulphidation epithermal mineralisation is hosted in andesites. Unlike most areas in Slovakia there is a 30 to 60 metre depth of supergene enrichment which was the focus of most historic production.
This project is famous for previous silver production. A total of 14 major and several minor veins are known to occur in the ore field, which stretches 9 kilometres in strike by 1 kilometre in width. Apart from silver and gold, Prospech expects to define significant antimony targets on grant of this tenement.
A newly granted 30.1 km² exploration licence Cejkov - Zemplin which is a high grade Ag Au system of veins with data collation underway at present. The asset was previously drilled by RTZ in the 1990s.
The Company’s principal focus is on gold silver and EU critical raw material resource definition at the Hodrusa-Hamre, Jasenie, Nova Bana and Rudno projects.
Prior to entering into the Earn-in Agreement with Atalaya, in late 2014, the Company conducted due diligence including collecting rock chip samples, in part to compare with the previous sample results achieved by Atalaya. Duplication of Atalaya sampling was limited by inevitable factors and it was not possible for the Company to duplicate the sample location of specific samples exactly. Nevertheless, samples collected by the Company which match with the most likely nearby Atalaya equivalent sample show no systematic bias and good correlation within the range of expected variability, thereby providing a degree of validation of the Atalaya geologic database.
Subsequently to entering into the Earn-in Agreement, the Company has continued with geological mapping, 3D digitisation of historical mining plans and voids and rock chip sampling to facilitate drill planning. Targets selected for drilling have been ranked by a matrix of factors including proximity to the Rozalia Mine (Ignac-Rabenstein, Banky, Stefan, Rozalia West) and potential to generate resource outcomes exceeding 1 million ounces of gold (Schopfer, Klokoc, Nova Bana).
· Gupna (NBDD002) reported the first visible gold from Nova Bana in modern times from a sample returning 5.82 g/t gold at 317.0 metres. Importantly a 50 metre wide feeder zone below known high grade workings has been delineated for future definition in the shallow precious metals zone.
· Schopfer. Target scale is 2.5 kilometres in length of variable width averaging 7 metres true width. Three dimensional remnant model completed to allow surface drilling of known high grade shoots. Average grades of historical production was 2g/t Au and 200 g/t Ag.