Prospect’s Mumbezhi Project Advances Amid Regulatory Approvals and Strategic Partnership Risks
Prospect Resources has declared a maiden JORC-compliant copper resource of 107.2 million tonnes at 0.5% copper at its Mumbezhi Project in Zambia, alongside securing a strategic A$15.2 million investment from First Quantum Minerals. This milestone advances the project towards development with Phase 2 drilling planned for Q2 2025.
- Maiden Mineral Resource Estimate of 107.2Mt at 0.5% Cu for 515kt contained copper
- Updated Exploration Target of 420-1,050Mt at 0.4-0.6% Cu inclusive of maiden MRE
- Environmental and Social Impact Assessment approved and two Large Scale Mining Licences granted
- A$15.2 million strategic investment by First Quantum Minerals securing 15% stake and technical partnership
- Phase 2 drilling program scheduled for Q2 2025 to expand resources and test new targets
Maiden Resource Declaration Marks a New Chapter
Prospect Resources Limited (ASX: PSC) has taken a significant step forward in its development of the Mumbezhi Copper Project in Zambia’s prolific Central African Copperbelt. The company announced a maiden JORC-compliant Mineral Resource Estimate (MRE) totaling 107.2 million tonnes at an average grade of 0.5% copper, equating to approximately 515,000 tonnes of contained copper. This initial resource is anchored by the Nyungu Central and Kabikupa deposits, with a substantial portion classified as Indicated, underscoring the quality and confidence in the deposit.
The grades and scale of the resource are comparable to world-class copper mines in the region, positioning Mumbezhi as a compelling emerging asset. The resource declaration follows an extensive Phase 1 drilling program that delivered thick, high-grade copper intersections, validating the deposit’s continuity and potential for expansion along a 16-kilometre Nyungu Corridor.
Exploration Upside and Strategic Approvals
Beyond the maiden resource, Prospect updated its Exploration Target to a range of 420 to 1,050 million tonnes at 0.4 to 0.6% copper, inclusive of the MRE. This reflects significant upside potential supported by over 30,000 metres of drilling, geophysical surveys, and innovative termite hill geochemical sampling. Notably, the company’s re-interpretation of historical Induced Polarisation (IP) geophysical data from Anglo American has reaffirmed IP as an effective exploration tool in the region, guiding new high-priority drill targets such as Nyungu South.
During the quarter, Prospect secured critical regulatory milestones with the approval of the Environmental and Social Impact Assessment (ESIA) by the Zambia Environmental Management Agency and the granting of two Large Scale Mining Licences (LMLs) covering the entire Mumbezhi project area. These approvals provide tenure security for 25 years, renewable, and establish a robust legal framework for advancing towards mining and processing operations.
Strategic Partnership with First Quantum Minerals
In a vote of confidence in the project’s potential, First Quantum Minerals Ltd, a globally recognized copper miner, has committed approximately A$15.2 million through a placement, acquiring a 15% stake in Prospect. This strategic investment not only strengthens Prospect’s balance sheet, standing at A$6.5 million cash with zero debt at quarter-end, but also brings First Quantum’s technical expertise to the Mumbezhi exploration and development efforts via a dedicated working group.
First Quantum’s involvement is expected to accelerate exploration activities and enhance technical collaboration, positioning Prospect to unlock further copper discoveries and value creation at Mumbezhi.
Looking Ahead: Phase 2 Drilling and Metallurgical Work
Prospect is poised to commence its Phase 2 drilling program in Q2 2025, focusing on expanding the maiden resource at Nyungu Central and Kabikupa, while testing new targets such as Nyungu North, Nyungu South, and West Mwombezhi. This program will predominantly involve diamond core drilling, with some material earmarked for metallurgical testing to assess processing characteristics and recoveries, particularly for copper and potential by-products like cobalt and gold.
Metallurgical studies are already underway, with initial results expected in May 2025. These efforts will be critical in defining the project’s economic viability and informing future development strategies.
Portfolio Rationalization and Corporate Position
While Mumbezhi remains the flagship asset, Prospect has scaled back activities on its lithium projects in Zimbabwe (Step Aside) and Namibia (Omaruru), focusing on monetization and commercialisation strategies to unlock value. The company’s disciplined capital management and strategic partnerships underscore a clear focus on advancing its copper assets in a market increasingly driven by electrification and green energy demand.
Bottom Line?
With a robust maiden resource, strategic backing from First Quantum, and regulatory approvals in hand, Prospect Resources is set to accelerate Mumbezhi’s journey from exploration to development.
Questions in the middle?
- How will Phase 2 drilling results impact the size and classification of the Mumbezhi resource?
- What metallurgical recoveries can be expected for copper and potential by-products like cobalt and gold?
- How will First Quantum’s technical partnership influence Prospect’s exploration and development strategy?
