Prospect Resources has obtained two large-scale mining licences for its Mumbezhi copper project in Zambia. The licences grant a secure 25-year tenure, facilitating further development and financing. The project has a maiden mineral resource estimate of 107 million tonnes grading 0.5% copper, aligning with Zambia’s production goals. Ongoing exploration and drilling plans aim to enhance the resource base.
Prospect Resources, an Australian exploration and development company, has received two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in north-west Zambia. This license grant ensures 25-year tenure security, with provisions for successive renewals of the same duration, thereby facilitating further development, financing, and long-term operational planning for the project.
The acquisition of LMLs significantly reduces risks associated with the project and marks a departure from the Australian mining system, where obtaining a mining licence generally occurs as the final step prior to development. With an impressive maiden mineral resource estimate of 107 million tonnes (mt) at a grade of 0.5% copper, equating to 515,000 tonnes, Mumbezhi positions itself to contribute to Zambia’s ambition of achieving three million tonnes per annum (mtpa) by 2031.
Sam Hosack, managing director and CEO of Prospect Resources, emphasized the importance of this rapid LML grant, describing it as a demonstration of the asset’s inherent potential and the stakeholder-oriented approach of the team in Zambia. He noted, “The grant of these licences represents another major milestone in our journey at Mumbezhi, delivering the inherent credibility attached to this more advanced and secure form of tenure.”
Additionally, Prospect Resources is set to capitalize on Zambia’s attractive mining tax incentives and is negotiating further investment advantages through the Zambia Development Agency’s framework. Exploration activities continue in the Nyungu Corridor and at Kabikupa, with plans for additional drilling scheduled for the second quarter of 2025.
Looking ahead, Hosack expressed enthusiasm about the upcoming drilling phase at Mumbezhi, which will prioritize exploration in the Nyungu ‘Corridor,’ an area that remains largely untested. He stated, “Located within a world-class geological address, as established by the scale and projected life of the surrounding major copper operations, delivers us a compelling magnitude of opportunity at Mumbezhi.”
In summary, Prospect Resources has secured significant mining licences for the Mumbezhi copper project in Zambia, reinforcing the project’s long-term viability and strategic importance. The LMLs enhance operational security and minimize risk, supporting Zambia’s national goals in copper production. With promising mineral resource estimates and ongoing exploration initiatives, the company is poised to expand its operations significantly over the coming years.
Original Source: www.mining-technology.com
