Prospect Resources Secures Mining Licences for Mumbezhi Copper Project in Zambia

Prospect Resources has secured two large-scale mining licences for its Mumbezhi copper project in Zambia, ensuring 25-year tenure security. This project, with a maiden resource estimate of 107 million tonnes of copper, supports Zambia’s production goals. The company is positioned to benefit from mining tax incentives and plans further exploration and drilling to expand its resource base.

Prospect Resources, an Australian exploration and development firm, has successfully acquired two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in north-west Zambia. These LMLs ensure a secure tenure of 25 years, with options for renewal in subsequent 25-year intervals, establishing a foundation for project development, financing, and operational plans.

This acquisition mitigates risks associated with the project and sets it apart from Australia, where licenses are typically granted as a final step before development. Mumbezhi boasts a maiden mineral resource estimate of 107 million tonnes (mt) at a grade of 0.5% copper, which translates to approximately 515,000 tonnes of copper, supporting Zambia’s ambitious target of producing three million tonnes per annum (mtpa) by 2031.

Sam Hosack, the Managing Director and CEO of Prospect Resources, remarked, “The rapid grant of the LMLs over Mumbezhi is a testament to both the underlying opportunity presented by this asset as well as the professional and stakeholder-aware approach adopted by our team in Zambia.” He further noted that obtaining these licences marks a significant milestone in their progress at Mumbezhi, enhancing the project’s credibility.

Additionally, Prospect Resources is expected to benefit from Zambian mining tax incentives and can seek further investment incentives through the Zambia Development Agency framework. The company continues to explore the Nyungu Corridor and Kabikupa for their potential.

Drilling efforts are scheduled for the second quarter of 2025, aimed at expanding the copper resource base and advancing toward a large-scale mining operation. Hosack expressed excitement about recommencing drilling at Mumbezhi, particularly emphasizing regional opportunities within the extensive ground holdings, stating, “Priority targets for the upcoming programmes include the Nyungu ‘Corridor’, which remains broadly untested to date.” He concluded by underscoring the project’s location within a renowned geological environment, providing substantial opportunities for growth at Mumbezhi.

In summary, Prospect Resources has secured crucial licenses for the Mumbezhi copper project, ensuring long-term tenure and reducing risks associated with development. The significant mineral resource estimate supports Zambia’s production goals, while the company is strategically positioned to leverage investment incentives. As exploration continues with imminent drilling efforts, Prospect aims to expand its resource base and capitalize on opportunities in a well-established mining region.

Original Source: www.mining-technology.com