Mumbezhi mining licences granted

Prospect Resources Ltd has confirmed the granting of two LargeScale Mining Licences (LML) covering the entire land holding at its flagship Mumbezhi Copper Project (Mumbezhi) in north-west Zambia.

The grant of the LMLs marks a significant transition for Mumbezhi and Prospect. It delivers an initial tenure security of 25 years, which is renewable for successive 25-year periods, significantly de-risking the project. This provides a strong legal and permitting framework for further project advancement, early development works, targeted financing and/or strategic partnership initiatives, and long-term operational planning.

The granting of these LMLs places Mumbezhi in a prime position to contribute meaningfully to Zambia’s target of producing 3 million t of copper annually by 2031. With a substantial maiden Mineral Resource estimate of 107 million t grading 0.5% Cu for 515 000 t of Cu for Mumbezhi (over the Nyungu Central and Kabikupa deposts) declared and significant additional regional resource expansion potential, Prospect is well-placed to support Zambia’s vision of becoming a leading global copper producer.

The LMLs provide for full-scale commercial mining, processing, and export of minerals, and in addition, the term of the LMLs provides the runway required to fully explore the large ground position, and pending success, upscale the project to improve on initial planned Scoping Studies.

They also qualify Prospect for aligned treatment with Zambia’s mining tax regime, which includes capital allowances, royalty structures, and VAT benefits. Finally, grant of the LMLs provides the opportunity for Prospect to negotiate investment incentives under the Zambia Development Agency (ZDA) framework.

Prospect’s ongoing resource growth efforts continue to reveal outstanding upside across the Nyungu ‘Corridor’ (at Nyungu North, where three key IP targets have been identified), at Nyungu South, West Mwombezhi, and separately at Kabikupa. With additional drilling planned for 2Q25, the company is confident in further expanding the mineralised footprint, to increase the copper resource base and advance towards a large-scale mining operation.

The rapid grant of these LMLs reflects the strong support of the Zambian Government and regulatory bodies for responsible mining development. Prospect is committed to working closely with stakeholders, including local communities, to deliver long-term economic benefits while upholding best-in-class environmental and social governance (ESG) standards at Mumbezhi.

Prospect’s Managing Director and CEO, Sam Hosack, commented:

“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. Like our recent tabling of a maiden Mineral Resource estimate and development of a substantial Exploration Target for the Project, the grant of these licenses represents another major milestone in our journey at Mumbezhi, delivering the inherent credibility attached to this more advanced and secure form of tenure.

“This milestone also aligns with Zambia’s long-term vision to cement its position as a leading global copper producer, reinforcing the nation’s ambition to grow copper output to three million t annually. With the LMLs in place, Mumbezhi transitions into a fully permitted asset, opening the path for further resource expansion, future mine development, production planning, and strategic financing discussions. This grant provides the long-term security and regulatory framework needed to unlock the full economic potential of the Project and contribute to Zambia’s broader resourceled industrialisation agenda.

“We are also excited about recommencing drilling at Mumbezhi shortly, with a particular focus on the regional opportunities across this large prospective ground holding. Priority targets for the upcoming programmes include the Nyungu ‘Corridor’, which remains broadly untested to date. 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.”