Prospect Resources has secured two large-scale mining licences for its Mumbezhi copper project in Zambia, providing long-term security and reducing project risk. With a mineral resource estimate of 107 million tonnes and plans for further exploration, the project aligns with Zambia’s goal of producing three million tonnes of copper annually by 2031. The CEO emphasized the importance of this milestone and the opportunities ahead.
Australian exploration and development firm Prospect Resources has successfully acquired two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project located in north-west Zambia. This substantial grant ensures a tenure of 25 years, which is renewable every 25 years. These licences are essential for advancing development, securing financing, and planning long-term operations.
By obtaining LMLs, Prospect Resources has significantly reduced the associated risks of the project, diverging from the Australian model where a mining licence is typically the last step before development initiates. The Mumbezhi project boasts an impressive maiden mineral resource estimate of 107 million tonnes (mt) at a grade of 0.5% copper, amounting to approximately 515,000 tonnes of copper, thus supporting Zambia’s ambition to reach a production target of three million tonnes per annum (mtpa) by 2031.
Sam Hosack, Managing Director and CEO of Prospect Resources, remarked on the swift grant of the LMLs, indicating that it underscores the important opportunity this asset offers. He noted the professional approach taken by the team in Zambia and highlighted that this achievement marks a significant milestone in the company’s journey at Mumbezhi, contributing to the credibility associated with this secure and advanced tenure form.
Furthermore, Prospect Resources stands to gain from Zambia’s advantageous mining tax incentives while also negotiating for additional investment benefits through the Zambia Development Agency framework. The firm’s exploration initiatives continue to uncover considerable potential across the Nyungu Corridor and at Kabikupa, with further drilling scheduled for the second quarter of 2025 to expand the copper resource base and to move toward a large-scale mining operation.
Additionally, Hosack expressed enthusiasm about the impending recommencement of drilling activities at Mumbezhi, focusing on regional prospects within the extensive property. The upcoming drilling programs will prioritize the Nyungu ‘Corridor’, which remains largely untested to date. He concluded by emphasizing that the project resides in a world-class geological region, as evidenced by the scale and longevity of nearby major copper operations, which presents significant opportunities at Mumbezhi.
In conclusion, Prospect Resources has made remarkable progress with the acquisition of large-scale mining licences for the Mumbezhi copper project in Zambia. This development not only secures long-term operational capacity but also presents significant opportunities for further resource exploration and production growth in line with Zambia’s national goals. As drilling recommences and exploration continues, the company is well-positioned to capitalize on its strategic location and the mineral wealth of the region.
Original Source: www.mining-technology.com
