Prospect Resources has obtained two large-scale mining licences for the Mumbezhi copper project in Zambia, providing 25-year tenure security. This milestone supports the company’s development and financing goals, contributing to Zambia’s vision of producing three million tonnes of copper per annum by 2031. The project features a robust mineral resource estimate and is poised for further exploration and drilling in 2025.
Prospect Resources, an Australian exploration and development firm, has successfully secured two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in north-west Zambia. The issuance of these LMLs provides the company with 25-year tenure security, which can be renewed for additional 25-year terms. These licences are crucial for advancing development, financing, and long-term operational strategies within the project.
The grant of these LMLs significantly mitigates risk associated with the project, a distinct contrast to the typical Australian mining licensing process, where a mining licence is usually the final step before development commences. With an initial mineral resource estimate of 107 million tonnes (mt) grading 0.5% copper, equating to 515,000 tonnes, Mumbezhi is well-positioned to contribute to Zambia’s ambitious target of producing three million tonnes annually (mtpa) by 2031.
Sam Hosack, managing director and CEO of Prospect Resources, expressed, “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 emphasized that the licensing represents a significant milestone, enhancing the credibility associated with this advanced and secure form of tenure.
Additionally, Prospect Resources plans to leverage Zambia’s mining tax incentives and negotiate for further investment incentives available through the Zambia Development Agency framework. The company’s exploration efforts persist in uncovering significant potential across both the Nyungu Corridor and the Kabikupa site, with drilling activities slated for the second quarter of 2025 to expand the copper resource base and move towards a large-scale mining operation.
Hosack indicated excitement regarding the resumption of drilling at Mumbezhi, particularly with respect to exploring the considerable regional opportunities across a vast prospective area. He noted, “Priority targets for the upcoming programmes include the Nyungu ‘Corridor’, which remains broadly untested to date.” Moreover, he highlighted the project’s location within a world-class geological region, suggesting a robust potential for development given the scale and longevity of surrounding major copper operations.
In conclusion, Prospect Resources’ acquisition of the large-scale mining licences for the Mumbezhi copper project marks a significant advancement in the firm’s strategic goals in Zambia. The established tenure security, substantial mineral resource estimate, and ongoing exploration prospects position the company to play a vital role in enhancing Zambia’s mining output aims for the future. The support from senior management further reinforces the potential for sustainable development in this promising region.
Original Source: www.mining-technology.com
