Prospect Resources has secured two large-scale mining licences for its Mumbezhi copper project in Zambia, providing long-term tenure security. The project holds a maiden resource estimate of 107 million tonnes at 0.5% copper, supporting Zambia’s copper production goals. The company plans further drilling to expand its resource base and capitalize on mining incentives in the region.
Australian company Prospect Resources has received two large-scale mining licences (LMLs) for its Mumbezhi copper project located in north-west Zambia. These LMLs offer 25-year tenure security, which is renewable for further 25-year periods, serving as a foundation for the project’s continued development, financing, and operations. This licensing contrasts with the Australian system, where a mining licence usually signals the final step before development begins.
The Mumbezhi project boasts a maiden mineral resource estimate of 107 million tonnes (mt) with a copper grade of 0.5%, equating to 515,000 tonnes of copper. This resource is vital in supporting Zambia’s target of achieving three million tonnes per annum (mtpa) by 2031.
Sam Hosack, managing director and CEO of Prospect Resources, remarked that the swift approval of the LMLs reflects both the significant potential of the Mumbezhi asset and the effective approach taken by the Prospect team in Zambia. The issuance of these licences is viewed as a critical milestone in their operation, increasing the project’s credibility with this advanced form of tenure.
Prospect is also set to take advantage of Zambia’s mining tax incentives and intends to negotiate further investment incentives through the Zambia Development Agency framework. Continued exploration in the Nyungu Corridor and at Kabikupa indicates significant potential.
Plans for further drilling in the second quarter of 2025 aim to expand the copper resource and move closer to establishing a large-scale mining operation. Hosack expressed enthusiasm about the upcoming drilling at Mumbezhi, especially in exploring the largely untested Nyungu ‘Corridor’ as part of the company’s strategic focus on regional opportunities. He noted that the project is in a world-class geological area surrounded by substantial copper operations.
In summary, Prospect Resources has successfully secured critical mining licenses for its Mumbezhi copper project, which enhances its stability and development potential. The significant mineral resource identified supports Zambia’s ambitious production goals and positions Prospect favorably within the regional mining landscape. The company’s exploration strategy aims to broaden its resource base, while its alignment with government incentives bodes well for future growth.
Original Source: www.mining-technology.com
