Prospect Resources Ltd. provided an update on key activities at its Step Aside Lithium Project, located 8km north of the Arcadia Lithium Project. Background: Prospect's 100%-owned Step Aside Lithium Project is located within the Archaean Harare Greenstone Belt, approximately 35 km east of Zimbabwe's capital city Harare, with the claim covering approximately 100 hectares. Step Aside is 8 km north of the Arcadia Lithium Project, which was discovered by Prospect and holds a Mineral Resource estimate of 72.7 million tonnes grading 1.02% Li2O.

The Arcadia asset was sold to Huayou Cobalt by Prospect earlier this year for approximately $422 million cash. The Step Aside Lithium Project was however retained by Prospect to independently explore and advance. The Step Aside Project consists of a folded sequence of meta-sediments of the Gwebi and Mapfeni Members, of the Passford Formation.

These meta-sediments are intruded by north trending pegmatites, dolerites and quartz veins of the Mashonaland Suite, which make up the youngest rocks found within the Harare Greenstone Belt. Six visible mineralised pegmatites (denoted "A" to "F") have been identified within meta-dolerite host rocks at Step Aside. Individual pegmatites, geologically mapped at surface, are all generally parallel to one another, striking roughly north-south with dips of 40-45° to the west geologically mapped at surface.

Pegmatite A on the eastern side and Pegmatite D to the west are the widest, measuring 5- 15m thick and 4-20m thick, respectively. The strike lengths of the A, B, C, D, E and F pegmatite outcrops at surface, are between 50m and 120m long. Observations made previously by Prospect during drilling at Arcadia show that several parallel narrow pegmatites can coalesce into thicker pegmatites down dip, indicating the potential that parallel pegmatites outcropping at Step Aside could join to form a more comprehensive, lithium mineralised pegmatite system at depth.

Completed first-pass drilling: A scout RC drilling programme targeting the Step Aside pegmatite outcrops commenced in July, but progress was hampered by site access for the tracked rig and mechanical issues with the only available rig suited to the topography. A total of 17 RC drill holes for 783 metres were completed (including re-drills) through to mid-August, before the remainder of the drilling programme was completed with diamond drilling. A total of 13 diamond drill holes for 853 metres were completed up to 12 October.

Drilling to date has covered less than 10% of the Step Aside Project claim area, leaving significant potential for further lithium discoveries in this prospective ground holding. Pegmatite D was targeted by four RC holes and ten diamond drill holes. Results from Pegmatite D are very encouraging with all holes that reached their target depth intersecting lithium mineralisation, beside the northern-most hole CDD012.

Diamond drilling has confirmed that the pegmatite dips at between 60° to 75° to the west, steeper than was mapped at surface (40-45°). Mineralisation has been located over a lateral extent of 120m strike to date and is open both down dip and along strike to the south. Best results returned to date for Pegmatite D include: 6.1m @ 1.49% Li2O from 82.2m (CDD011); 9.0m @ 1.02% Li2O from 38.0m (CRC011B); 8.0m @ 1.09% Li2O from 53.9m (CDD001); 4.4m @ 1.43% Li2O from 52.6m (CDD006); and 6.0m @ 1.05% Li2O from 17.0m (CDD007).

A longitudinal cross section through Pegmatite D is shown below, indicating it is open to the south. Further drilling along strike to the south and at depth is being planned. Pegmatites A, B and C: Seven RC holes targeted Pegmatite A to the far east at Step Aside, with the best result of 7m @ 0.82% Li2O from 24m down hole in CRC001B.

Narrow mineralised intercepts were noted elsewhere for Pegmatite A, but the northern-most drill hole CRC004 did not intersect pegmatite in the position expected, indicating the pegmatite does not continue in that direction or has been structurally offset. Pegmatite B, to the west of Pegmatite A, contained narrow intersections of lithium mineralisation, but was also not intersected, where expected, at depth to the north (CRC007), which could also indicate a structural offset. Pegmatite C contained only narrow sub-grade lithium intersections as pegmatite stringers.

Pegmatites E and F: The Pegmatite E complex is centred about 220m north of Pegmatite D but is not interpreted to be along strike from it. Three diamond holes were completed below the pegmatite outcrop for Pegmatite E and whilst stringers of were identified at depth to the north, drill hole CDD013 contained two wide intersections of pegmatite containing lithium mineralisation. The topmost zone returned 4.3m @ 1.15% Li2O from 19.2m, whilst the lower zone returned 7.4m @ 1.28% Li2O from 43.6m down hole.

Pegmatite F, located 75m west of Pegmatite D, was not drill tested during the current programme. Future drilling planned: With the presence of high-grade, spodumene-rich mineralisation confirmed by the encouraging lithium assay results from Pegmatites A, D and E, a follow-up drilling program for Step Aside is currently well advanced in design and targeted to commence in the first Quarter of 2023.