Exploration target underpins huge potential supporting Prospect’s new Mumbezhi copper resource

Prospect Resources’ maiden copper tally significantly derisks its Mumbezhi project
Updated exploration target shows huge untapped upside
Zambia looking towards the mining sector to drive its economic growth

Special Report: Prospect Resources has reached a huge milestone in derisking its Zambian Mumbezhi project, with a whopping 515,000t contained copper maiden resource.

The initial 107.2Mt resource, calculated at a 0.2% Cu cutoff, comes at a 0.5% copper grade which Prospect Resources (ASX:PSC) says is analogous to its world class neighbours.

Zambia is home to some of Africa and the world’s largest copper mines, notably Barrick’s Lumwana and First Quantum’s Kansanshi and Sentinel operations.

The maiden resource came from two deposits with substantial growth potential, shown in Prospect’s twinning release of an exploration target ranging from 420Mt to 1050Mt and grading between 0.4-0.6% Cu.

The resource notably includes higher-grade components of 69Mt at 0.53% Cu at the 43% indicated Nyungu Central deposit and a fully Inferred 18Mt at 0.57% Cu for Kabikupa, both completed at a 0.3% cutoff.

Prospect managing director and CEO Sam Hosack said the company was absolutely delighted with a maiden resource which reflected a lot of hard work by its team.

“In combination with the revised exploration target for the broader Mumbezhi Project, it demonstrates the strategic scale of the potential opportunity before us at Mumbezhi. Something I have always had high conviction about at this copper asset,” Hosack said.

“This maiden MRE represents a huge milestone in the de-risking pathway for Mumbezhi but is only the beginning of what Prospect plans to deliver.”

Hosack said the next major step for Q2 is second phase drilling, focusing on growing both the Nyungu Central and Kabikupa deposits and testing the significant regional potential lying across the tenure, which includes three high-potential anomalies interpreted immediately north of the Nyungu Central deposit.

“I would like to offer my congratulations and admiration to the entire Prospect exploration and geological team on this achievement,” he said.

Mumbezhi momentum

Prospect now looks toward the granting of two mining leases covering the entirety Mumbezhi this quarter and a scoping study now on rails for Q4.

Induced polarisation surveys have proven an effective and cheap tool for finding copper targets within a Nyungu Corridor which Prospect considers very underexplored.

The company sees the high-prospectivity anomalies identified last year as a strong base to quickly build its mineralisation footprint, but a particularly repeatable targeting tool for this part of the Central African Copper Belt should soon find new quarry.

The belt is one of the largest and most prolific mineralised sediment-hosted copper provinces globally, with Zambia itself already standing as Africa’s second-largest copper producer. Its stated aim is to lift copper production from 800,000t to 3Mt by 2031, no mean feat and one reason discoveries like Prospect’s will see strong support from government.

The nation appears to be very interested in attracting new investors and is counting on the mining sector to drive its economic growth in the wake of its worst drought in living memory last year.

While the majors are hungry for copper, finding good projects in stable jurisdictions has proven a challenge, but looking for them around some big-time producers in Zambia could certainly be an option.

Mumbezhi is strategically located alongside First Quantum’s Sentinel mine, which produced over 230,000t of copper in 2024. Pic: PSC

Prospect’s team has, importantly, been here and done it before in southern Africa.

Its well-timed move into neighbouring Zimbabwe led to the discovery and development of the Arcadia lithium mine.

As lithium prices ran to record highs across 2021 and 2022, Prospect sold its 87% stake to China’s Zhejiang Huayou Cobalt for over $500m, near on perfectly timing its exit from the lithium market.

PSC is now aiming to front run the growth story in African copper, with Zambia in particular emerging as a focal point in the region for the contest for critical minerals between the US and China.

This article was developed in collaboration with Prospect Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.