Prospech : Zemplin Prospect Phase 2 Drilling Commenced

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7 March 2022
	ZEMPLIN PROSPECT PHASE 2 DRILLING COMMENCED
	DRONE MAGNETICS COMPLETED
use	• Zemplin Phase 2 drilling has commenced
• New drill program tests strike and depth potential of previously discovered,
high-grade mineralisation (up to 1,220 g/t silver)
• Drone magnetics survey completed, with results to guide future exploration and
drill planning
• Highly detailed LIDAR topographical survey completed over the entire Cejkov-
Zemplin exploration licence
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Set up on the first hole of the Zemplin Phase 2 drilling program which is designed to test the strike and

depth potential of a fully preserved silver and base metal mineralised system.

The Directors of Prospech Limited ('Prospech' or 'the Company') (ASX: PRS) are pleased to advise that Phase 2 drilling has commenced at the Zemplin silver-lead-zinc prospect within the Cejkov- Zemplin exploration licence, located in the Eastern Slovakian neovolcanic belt.

Zemplin is a high-grade, silver rich epithermal vein system discovered by the Slovak Government and Rio Tinto in the 1990s, which, until recent drilling by Prospech, was never followed up.

This program follows the successful Prospech drilling in April 2021 which intersected over 40 epithermal veins hosted within zones of hydrothermally altered rhyodacitic and andesitic volcanics.

Level 2, 66 Hunter Street, Sydney NSW 2000 Australia

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The 2022 field season has commenced early at Zemplin, and ahead of planned drilling at the Company's flagship Hodrusa and Nova Bana tenements, due to its lower-level topography and more temperate climate.

Recently, the Company's geologists, together with French contractor Terremys of Strasbourg, completed a detailed drone magnetics survey which, whilst not critical to the planning of the Zemplin

onlyPhase 2 drilling, will guide future drilling within the Cejkov-Zemplin exploration licence. Results from the Phase 1 drilling at Zemplin include:

	•	CZDD001:	3.0m	@ 136 g/t Ag from 59.0m
		and	4.5m	@ 147 g/t Ag from 85.3m
		including	2.3m	@ 240 g/t Ag from 87.5m
	•	CZDD002:	6.0m	@ 30 g/t Ag from 111.0m
	•	CZDD003:	6.0m	@ 117 g/t Ag from 94.0m
For personal use		including	1.8m	@ 291 g/t Ag from 97.2m
•	CZDD004:	4.4m	@ 34 g/t Ag, from 49.6m
	and	4.3m	@ 201 g/t Ag from 92.5m
	including	0.5m	@ 1,220 g/t Ag from 92.5m

The main silver zone is now interpreted as being hosted in a series of parallel structures trending further west of north than previously interpreted. Drilling is planned at depth and along strike.

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A short video 'Prospech Limited - Field Update - March 2022 (ASX:PRS)'can be seen using the following link:

https://youtu.be/wm-ioe-T-44

Prospech Managing Director Jason Beckton comments:

only"The Zemplin prospect is an underexplored, high-grade, silver rich epithermal vein system which, unusually for the Western Tethyan mineral belt, is mostly covered by a thin layer of younger rocks or sediments. The drone magnetics, along with a recently completed, very detailed LIDAR survey will provide valuable data to assist in planning the follow up drilling and the discovery of new targets.

Further west, on the Company's flagship Hodrusa exploration licence, drilling is planned to start once the Zemplin program has been completed and the summer field season commences. Prospective drill targets include those derived from the recent, successful, IP geophysics survey over the detachment fault (or LANF) which hosts the nearby and actively mined Rozalia gold deposit. A

usenumber of IP anomalies have been defined and a first-pass drilling program has been designed and is permitted.

Another exciting target to be drilled in 2022 is the large gold-silver rich historic Schopfer mine. This mine closed when the communist leaders decided to focus on base metals at Hodrusa leaving documented evidence of high-grade gold and silver shoots remaining at depth. These shoots are the target for Prospech's new drilling campaign at Schopfer."

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

For 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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