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Firering Strategic Minerals (LSE:FRG) announced on Tuesday that its subsidiary, Limeco Resources, has been granted a new 392.51-hectare exploration license adjacent to its current site in Zambia. This expansion is projected to significantly enhance Limeco's existing mineral resource estimate (MRE) by an additional 60 to 70 million tonnes, thereby reinforcing the project's long-term potential.
The Limeco project, located 22 kilometers west of Lusaka, is on schedule to commence quicklime production by the fourth quarter of this year. The project already possesses a substantial limestone resource of 73.7 million tonnes, with a high calcium carbonate content of 95.3%. The addition of the new license is set to extend Limeco’s production capacity, currently estimated at 600 to 800 tonnes of quicklime per day, and support operations for several decades.
The board noted that this strategic development aligns with Zambia's broader objective of increasing copper production, as quicklime is a crucial component in the copper extraction process. The expanded resource base will enable Limeco to scale its operations and meet the growing demand in the Zambian Copper Belt.
The project has begun generating positive operating cash flow through ancillary revenue streams, and the first of eight planned kilns is expected to come online by late 2024. Full-scale production ramp-up is anticipated in 2025.
The potential increase in Limeco’s mineral resource estimate was identified through a review by Earthlab Exploration and Mining Consulting, an independent geological consultancy. The review provided conservative estimates, ensuring a robust foundation for the project’s future success.
Yuval Cohen, Chief Executive Officer of Firering Strategic Minerals, expressed enthusiasm about the new license, highlighting that it significantly expands Limeco's scale of opportunity. The project’s current license supports the production of 600-800 tonnes of quicklime per day for approximately 30 years. As phased production begins later this year, Limeco is positioned to become one of the largest quicklime producers in the region, strategically supporting copper producers in the Zambian Copper Belt, which currently depends on imported quicklime from South Africa.
With Zambia's ambitious target of increasing copper production to 3 million tonnes annually by 2030, up from 760,000 tonnes in 2022, Limeco’s expanded capacity could play a crucial role in achieving this goal.
As of 1009 BST, shares in Firering Strategic Minerals had risen by 1.14% to 3.29p.
