How Prospect Resources’ $18.5M Boost Fuels Mumbezhi Copper Expansion

Phase 2 Drilling Advances Mumbezhi Copper Potential

Prospect Resources Ltd has made significant strides in the June 2025 quarter at its flagship Mumbezhi Copper Project in Zambia. The company launched an ambitious Phase 2 drilling program, targeting approximately 18,000 metres across fifty diamond drill holes and 140 exploratory aircore holes. This program aims to extend and upgrade existing mineral resources at Nyungu Central and Kabikupa deposits, while also generating maiden resource estimates for new prospects such as Nyungu North and West Mwombezhi.

Early assay results from Nyungu Central have been encouraging, revealing thick intersections of copper mineralisation consistent with Prospect’s geological models. Notably, drill hole NCRD009 returned 49 metres at 0.52% copper from 314 metres depth, including higher-grade intervals exceeding 0.79% copper. These findings validate the structural interpretation of mineralised zones and suggest further upside potential within the deposit.

Metallurgical Testwork Supports Simple Processing Route

Complementing the drilling success, metallurgical testwork on sulphide samples from Nyungu Central has delivered promising results. Using a straightforward flotation process, the tests produced high-grade copper concentrates with recoveries exceeding 90%. A fresh composite sample achieved a concentrate grading 33.3% copper after two cleaning stages, with cobalt also present as a valuable by-product.

Importantly, the testwork demonstrated that coarser grinding (up to 250 microns) can be employed with minimal loss in copper recovery, potentially lowering future plant capital and operating costs. The presence of graphitic carbon, often a processing challenge, was found not to impede concentrate quality when appropriate reagents were used.

Strategic Investment and Board Strengthening

Prospect Resources bolstered its financial position through a strategic placement raising approximately A$18.5 million, led by global copper miner First Quantum Minerals. First Quantum acquired a 15% stake and has appointed Matt Pascall, a seasoned mining engineer with extensive experience in Zambia, to the Prospect board as a non-executive director. This partnership brings valuable technical expertise and regional knowledge, enhancing Prospect’s exploration and development capabilities at Mumbezhi.

Alongside this, Prospect maintains a robust cash balance of around A$21 million and zero debt, positioning the company well to accelerate its exploration activities and advance the project towards development.

Broader Exploration and Lithium Asset Updates

Beyond Mumbezhi, Prospect has scaled back exploration at its lithium projects in Zimbabwe and Namibia, focusing on monetisation strategies amid subdued lithium market conditions. Meanwhile, ongoing exploration at Mumbezhi includes airborne electromagnetic surveys and comprehensive soil geochemical sampling to identify new copper targets across the extensive licence area.

With further assay results and metallurgical data expected in the coming months, Prospect is poised to refine its resource estimates and progress towards a scoping study that could underpin a future open-pit mining operation.