HODRUSA-HAMRE

Located 200 kilometres east of Vienna, the 101.92km² Hodrusa-Hamre exploration licence covers the majority of the historic Hodrusa-Hamre/Banska Stiavnica mining district, comprising the caldera of a Neogene-aged Stiavnica Stratovolcano.

The Hodrusa-Hamre exploration licence hosts some 120 known epithermal veins. The major veins individually have a total strike length of up to approximately 6 kilometres. The licence is located in a Natura 2000 “Level Two” protection area which means that exploration and mining activity is permitted, subject to consent requirements that technical works have to be consulted with the local environmental office and a permit required prior to technical works being undertaken. 

In 2016/17, a significant breakthrough in the geological understanding the Hodrusa-Hamre project area was the recognition that the orebody being exploited at the nearby, and still operating, Rozalia Mine, was controlled by major Detachment Fault (locally known as a Low Angle Normal Fault or LANF). The surface trace of the LANF falls mainly within Prospech’s Hodrusa-Hamre exploration licence. This understanding provides for a number of exploration and discovery opportunities and has already led to positive drilling results at the Ignac target.

In addition to the LANF-style targets, there are a number of large epithermal quartz vein targets which are related to horst and graben faulting within the caldera. These veins are strongly mineralised in gold and silver and many of them have been extensively mined historically, with a focus on the mining of high grade silver. One of the most prospective of these targets is the large Schopfer vein system which has the potential to deliver a significant gold-silver mineral deposit and is prioritised for drilling.

Hodrusa-Hamre exploration licence, targets and the LANF (Detachment Fault) shown in white.

Hodrusa-Hamre exploration licence, targets and the LANF (Detachment Fault) shown in white.

(a) Ignac

Located adjacent to the west of the operating Rozalia Mine, Ignac is considered to be closely associated with the LANF structure the up-dip extension of the structure currently being mined

(i)         Geology, Mapping and Sampling

Rock chip results from the Ignac prospect average 7.80 g/t gold and 33.0 g/t silver. Most of the samples were collected from historical spoil dumps but some underground access allowed chip samples to be taken from underground in situ veins. The average grade of these underground samples was 8.00 g/t gold.

(ii)        Drilling

In 2018 Prospech drilled 4 diamond drill holes at Ignac. All of the holes intersected gold and silver mineralisation.

Ignac drilling results.png

A higher grade shoot was defined by two out of four holes which intersected visible gold and grade-thickness accumulations of over 20 gram-metres of gold. IRDD004 contained intervals of epithermal breccias on the margins of the high grade shoot defined by holes IRDD001 and IRDD002.

The geometry and structure, thus defined, indicate that additional drilling at depth, along this pitch, in the plane of the vein may result in the discovery of an extension of the higher grade shoot.

Future drilling is planned to extend these visible and high grade gold intercepts along the LANF at depth towards the trend of the nearby Rozalia Mine.

High grade shoot defined by holes IRDD001 and IRDD002. Future drill planning for Ignac will follow the higher grades at depth to a probable flattening position into the LANF.

High grade shoot defined by holes IRDD001 and IRDD002. Future drill planning for Ignac will follow the higher grades at depth to a probable flattening position into the LANF.

Intervals from IRDD004 contained epithermal breccias on the margins of the high grade shoot defined by holes IRDD001 and IRDD002.

Intervals from IRDD004 contained epithermal breccias on the margins of the
high grade shoot defined by holes IRDD001 and IRDD002.

(b) Bauch

(i)         Geology, Mapping and Sampling

The Bauch prospect lies two kilometres along strike from Ignac and is considered to be a continuation of the same LANF related structure. Assays of up to 28.3 g/t gold and 582 g/t silver have been returned from rock chip samples taken by the Company.

Bauch is notable for stacked or repeated structural zones hosting gold and silver quartz breccias. At least three, sub-parallel, individual precious-metal bearing veins have been recognised.

Mapping and surface sampling are complete and this is a high-priority drill target.

High grade samples recovered from the Bauch prospect, 2 kilometres along strike from the Ignac prospect.

High grade samples recovered from the Bauch prospect, 2 kilometres along strike from the Ignac prospect.

(ii)         Drilling

The Bauch prospect has never been previously drilled.

Drilling permits are now in place which will allow exploration drilling to proceed in the second half of 2020. This target fulfils two criteria that Prospech rates highly, wide zones and shallow, high grade mineralisation.

(c) Anton Svatotrojicna (Au-Ag)

(i)         Geology, Mapping and Sampling

Prospech has collected a total of 17 grab samples collected from the Svatotrojicna shaft spoil heap. The samples returned assays averaging 8.6 g/t gold and 464 g/t silver. The peak gold assay was up to 52.6 g/t. This area represents significant strike-change flexure and is therefore highly prospective for structural dilation zones containing shoots of high-grade gold and silver mineralisation.

Access underground here is not possible and historical data is being reviewed to help drill planning.

Most of this target is related to a later, post-LANF, event of mineralised quartz filling horst graben bounding fault structures.

The Anton area is believed to be a large (>20m true width) vein breccia and has reported historical grades of at least 3 g/t gold and 300 g/t silver.

(ii)        Drilling

A good example of some of the historical records and how they are helping to guide modern exploration drill targeting is shown below. Applications for up to drill hole permits have been lodged.

Anton-Svatotrojicna long projection (upper panel) and plane view (lower panel)– Drill ready with 20 holes planned.

Anton-Svatotrojicna long projection (upper panel) and plane view (lower panel)– Drill ready with 20 holes planned.

(d) Schopfer

(i)         Geology, Mapping and Sampling

The Schopfer vein is an attractive target with estimated historical production of 1.0 million tonnes at 4 g/t gold and 400 to 500 g/t silver for a total 130,000 ounces of gold and 13 to 17.5 million ounces of silver.

Mining finished here in the 1950s when the emphasis shifted to base metal production.

The drilling target consists of hanging wall and footwall of the Schopfer vein and area around the intersection of the Schopfer with the Keleti and Klement-Štefan veins, as well as the main vein structure at depth.

The intersection of vein trends is observed to coincide with intensive historical underground exploration and mining, which is probably related to structural dilation zones hosting thicker zones of higher grade material.

(ii)        Drilling

Prospech has carried out limited, underground drilling at Schopfer to confirm the grades in remnant mineralised shoots. Drill hole SCDD001 ended in silver mineralised quartz due to friable drilling materials at 3.5 metres whilst targeting an area of stope which graded 58 g/t gold and 7,400 g/t silver. This target area is scheduled to be drilled from surface in 2021.

(iii)       Deposit Modelling

An independent review of the Schopfer prospect has been completed by independent consultant Tim Callaghan of Resource and Exploration Geology Pty Ltd. This work included geological modeling of the Schopfer lodes and old workings and made an estimate of an Exploration Target for the Schopfer prospect. The modeling was based on historical plans, cross-sections and assay data. Modern-day assay data from the Company’s drilling and sampling was also used in the model and estimate.  The Exploration Target is stated in the report to be 1 to 2 million tonnes at grades ranging between 2.5 to 3.5 g/t gold and 300 to 400 g/t silver.

The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. To ascertain the existence or otherwise of Mineral Resource according to the guidelines of the 2012 edition of the JORC Code, will require additional drilling over the 1.5 kilometre strike length of the Schopfer structure which is intended to be carried out over the next two years.

Plan view of a segment of the Schopfer vein showing the location of previous and planned Prospech drilling in relation to the topography and the historical workings. The Schopfer vein in this area dips at approximately 45 degrees to the east-south-e…

Plan view of a segment of the Schopfer vein showing the location of previous and planned Prospech drilling in relation to the topography and the historical workings. The Schopfer vein in this area dips at approximately 45 degrees to the east-south-east. Dimple marks (top right of the above new government LIDAR (laser) topography map) are previous workings.

(e) Rozalia West

(i)         Drilling

The Company has drilled one hole into the Rozalia West target. Drill hole (RW1) was designed to test the continuation of the Rozalia Mine ore body which is currently being mined. RW1 was considered to be a technical success as it intersected the mineralisation host sequence, and thereby supported the LANF concept.

Gold and silver assay results were anomalous but sub-economic throughout the target zone, which, given the variable nature of the Rozalia Mine-style ore shoots, was not an unexpected outcome.

The Ignac target (discussed above) is linked along the same 3D LANF structural feature to the Rozalia West hole and then, further down-dip to the third-party operating Rozalia Mine, as shown in the following schematic section.

A Schematic section showing the Rozalia Mine and drill hole RW1 to the west, just inside Prospech's exploration licence represented by the vertical blue line. The conceptual position of the Ignac prospect is also shown, hosted by the LANF complex wh…

A Schematic section showing the Rozalia Mine and drill hole RW1 to the west, just inside Prospech's exploration licence represented by the vertical blue line. The conceptual position of the Ignac prospect is also shown, hosted by the LANF complex which has the granodiorite in the footwall and volcano-sedimentary sequence in the hanging wall. Movement on the LANF is indicated by the white arrows.

(f) Kopanice

(i)         Geology, Mapping and Sampling

This vein system occurs close to the settlement Kopanice and is represented by Hlavná (‘main’) and Zlatá (‘golden’) veins. First records of mining activity were from 1523, with historic stope grades up to 26 g/t gold and 62 g/t silver in sections of Hlavná. The vein system and is being modelled in conjunction with recently completed drilling as described in the next section.

Recent rock chip and channel sampling returned assays of up to 17.2 g/t gold and 1,432 g/t silver, which were included in a preliminary geological model which assisted in the definition of a successful micro drilling program.

(ii)         Drilling

High grade gold and silver results were obtained from a 2019/20 winter-season micro drilling program at Kopanice. Prospech geologists believe that this vein has formed in a LANF at the top of a granodiorite intrusion and has similarities to the structural setting of the Rozalia Mine.

·         Hole KODD001: 1.2 metres @ 3.12 g/t Au and 146 g/t Ag from 0.0 metres.

·         Hole KODD004: 1.0 metres @ 12.35 g/t Au and 582 g/t Ag from 0.0 metres.

·         Hole KODD007: 0.8 metres @ 1.99 g/t Au and 91 g/t Ag from 13.6 metres.

Further compilation of results, including location of interpreted high grade shoot determined by holes KODD001, 004 and 007 has been completed which has allowed the design of a second phase drilling program to be prepared. This second phase program is anticipated to commence in early 2021, early in the Slovakian field season.

Kopanice.jpg
Kopanice 2.jpg
Core boxes from Microdrill program completed December 2019, the first time the surface occurrences of the Kopanice prospect have been drilled.

Core boxes from Microdrill program completed December 2019, the first time the surface occurrences of the Kopanice prospect have been drilled.

Competent Person Statement

The information in this Report that relates to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Mr Jason Beckton, who is a Member of the Australian Institute of Geoscientists.  Mr Beckton, who is Managing Director of the Company, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Mr Beckton consents to the inclusion in this Report of the matters based on the information in the form and context in which it appears.