Prospech : Hodrusa-Hamre IP Survey Completed

HODRUSA-HAMREIP SURVEY COMPLETED

only9 December 2021

use	 First large-scale geophysical survey at the Hodrusa-Hamre exploration licence
	 Designed to explore for potential Rozalia-style targets
	 Experienced Australian IP contractors
	 8 lines totalling 15.8 line-kilometres
	 3D inversion model completed
	 IP and Resistivity anomalies detected
	 Priority 1 targets planned for early 2022 drilling
personalWhilst recognising the potential of the LANF, until now, target generation was restricted to either

The Directors of Prospech Limited ('Prospech' or 'the Company') (ASX: PRS) are pleased to announce that the IP-Resistivity Survey covering a prospective portion of the Hodrusa-Hamre exploration licence has been completed and the raw data processed and modelled. A number of anomalies worthy of follow-up drilling have been identified.

Background

The shallow-dipping Rozalia Gold Mine (operating, third-party) is interpreted to be hosted within a large scale low angle normal fault ('LANF') structure. The up-dip extensions of the LANF project to the north-west, mostly into Prospech's Hodrusa-Hamre exploration licence.

targeting historical prospects or wildcat drilling.

ForThe additional information provided by the IP-Resistivity survey enables targeting of potential blind deposits along the LANF plane. Several such targets are evident.

IP Survey Specifications

The MIMDAS IP survey comprise 8 lines totalling 15.8 line-kilometres by Brisbane-based GRS Pty Limited. IP survey lines were mostly spaced 300 to 400 metres apart. The electrode configuration was pole-dipole, with receiver dipole spacing either 50 or 100 metres.

The readings collected included apparent chargeability, apparent resistivity and magnetotellurics. 2D and 3D inversion modelling has been carried out.

Level 2, 66 Hunter Street, Sydney NSW 2000 Australia

1. [phone] F: [phone]
2. 1. [e-mail]

Survey Results

A number of IP and resistivity anomalies have been detected by the survey (See Figure 1 below). In

	general, the IP responses could be described as moderate, which is in keeping with the low to
	moderate sulphide content of the expected mineralisation style. The Hodrusa-Hamre caldera rocks
	are, in general surprisingly conductive, which limits the survey depth of investigation when
	compared to more resistive terrains.
	The survey data is still being evaluated and the anomalies being ranked for drill testing during the
	2022 summer field season.
	A standout IP anomaly is situated 300 metres along strike from the Ignac prospect, between the
onlyIgnac and Banky prospects. The anomaly has a peak chargeability of 16 mV/V and is centred
	approximately 110 metres below surface (see cross section in Figure 2 and long section in Figure
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3).
	Ignac was drilled by the Company in late 2018 and encountered classic epithermal style quartz
	veining, visible gold and assays up to 15.6 g/t Au.
	Historic drilling of the Banky working also encountered high grade mineralisation of 120 g/t Au and
	Propech drilling at Banky intersected grades up to 3.04 g/t Au.
personalFor
	Recent in situ underground rock chip sampling located approximately 270 metres north-north-east,
	along strike from the target, assayed 36.2 g/t Au and 1,300 g/t Ag.
	SampleID	UTM_East	UTM_North	RL		Vein_Description	Comments	Ag_ppm	Au_ppm
	PR1578	341373	5371522	732	Fine grained grey qz. Fine BMS dissem + py	Stope pillar	183	5.55
	PR1579	341373	5371522	732	Fine grained qz bx. Fine BMS dissem, py, Ag - sulph	Stope pillar	81.8	1.06
	PR1580	341373	5371495	732	Fine grained qz bx. Fine BMS Fine dissem, py, Ag - sulph	Stope pillar	1300	36.2

Figure 1: Hodrusa-Hamre IP survey located in the eastern part of the Hodrusa-Hamre exploration licence. White lines with dots are the as-surveyed lines and IP receiver stations and the coloured blocks are the IP chargeability in mV/V at 100m below surface. The adjacent Rozalia Mine footprint is shown along with nearby historical mine workings such as Schopfer, Anton, Banky, Ignac and Bauch which are all located within the Company's exploration licence. Historical mine workings are coloured by RL (scale not shown).

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For personal use only

Figure 2: Cross section along IP line 12,400N. Shows a moderate IP anomaly centered just above the plane of the LANF model.

Planned hole PIGIP01 is designed to test this anomaly. The anomaly is along strike from Ignac and Banky mine workings.

Figure 3: Long section view of the IP anomaly shown in Figure 2. The anomaly is considered to be a valid drill target due to the strength of the IP response and the geological setting. Note that the IP survey did not extend far enough to cover the Banky workings due to the presence of habitations and infrastructure.

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Figure 4. The IP program has tested the immediate western extension, between Bauch and Banky, of the low angle normal fault adjacent to the third party producing Rozalia mine. Anomalies previously unknown have been defined and checked with some nearby sampling and are ready to drill in 2022.

Prospech Managing Director Jason Beckton comments:

"The completion of the IP Survey at Hodrusa-Hamre signals a new approach for the goldfield. It allows the Company to drill targets that may not have surface outcrops.

First pass evaluation of the IP and resistivity data indicates that it supports the LANF model and will allow for the development of a more detailed and nuanced structural model.

onlyImportantly the survey also provides Prospech with a number of targets that we plan to drill in the summer of 2022."

usepersonal

This announcement has been approved by the Managing Director, Jason Beckton.

ForFor further information, please contact:

Jason Beckton

Managing Director Prospech Limited [phone]

Competent Person's Statement

The information in this Report that relates to Exploration Results 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.

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JORC Code, 2012 Edition - Table 1 Banky North, Nova Bana

Section 1 Sampling Techniques and Data

Criteria

JORC Code explanation	Commentary

Sampling

onlytechniques

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• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Rock chip grab samples were collected from underground outcrops, spoil heaps and accessible surface and underground workings of quartz veins, and zones of silicification, within Neogene volcanics under the supervision of a qualified geologist.
• Sample locations were surveyed with a handheld GPS and marked into sample books. This is not possible underground so surveyed working are used to estimated coordinate.

Drilling

techniques personalDrill sample

recovery

 Drill type (eg core, reverse circulation, open-	 Banky North prospect has not been drilled.
hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details (eg core diameter, triple
or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).
 Method of recording and assessing core and	 Banky North prospect has not been drilled.
chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.

• Rock chips were described in hand specimen and photographs taken for reference.

ForSub-sampling techniques and sample preparation

	If core, whether cut or sawn and whether		Approximately 1 to 2 Kg of material from each rock chip
	quarter, half or all core taken.		was sent to the laboratory for analysis.
	If non-core, whether riffled, tube sampled,		All sampling done under supervision of a qualified
	rotary split, etc and whether sampled wet or		geologist.
	dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.

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