Firering subsidiary Limeco wins new Zambia exploration licence

3rd Sep 2024 10:35

(Sharecast News) - Firering Strategic Minerals announced on Tuesday that its subsidiary Limeco Resources has been awarded a new 392.51-hectare exploration licence adjacent to its current site in Zambia.

The AIM-traded firm said the expansion was expected to significantly boost Limeco's existing mineral resource estimate (MRE) by an additional 60 to 70 million tonnes, further strengthening the project's long-term viability.

It said the Limeco project, 22 kilometres west of Lusaka, was on track to start quicklime production by the fourth quarter of this year.

The project already boasted a substantial limestone resource of 73.7 million tonnes, with a high calcium carbonate content of 95.3%.

With the new licence, Limeco's production capacity, currently estimated at 600 to 800 tonnes of quicklime per day, could be extended to support operations for a number of decades.

The board said the strategic development aligned with Zambia's broader goal of boosting copper production, as quicklime plays a critical role in the copper extraction process.

It said the expanded resource base would enable Limeco to scale its operations to meet increasing demand in the Zambian Copper Belt.

The project had already started generating positive operating cash flow through ancillary revenue streams, and the first of eight kilns was set to come online by late 2024.

Full-scale production ramp-up was expected in 2025.

The company said the potential increase in Limeco's mineral resource estimate was identified through a review conducted by Earthlab Exploration and Mining Consulting, an independent geological consultancy.

It was based on conservative estimates and would provide a solid foundation for the project's long-term success.

"The addition of this new licence adds to Limeco's already substantial scale of opportunity by extending our mineral resource from Limeco's existing licence, which currently provides for production of between 600-800 tonnes of quicklime per day for around 30 years," said chief executive officer Yuval Cohen.

"Set to begin phased production later this year, Limeco will be one of the largest quicklime producers in the region and is strategically positioned to support copper producers in the Zambian Copper Belt, which currently rely on imported quicklime from South Africa.

"With Zambia's ambitious goal of increasing copper production to 3 million tonnes annually by 2030, up from 760,000 tonnes in 2022, Limeco's expanded capacity could be instrumental in achieving this target."

At 1009 BST, shares in Firering Strategic Minerals were up 1.14% at 3.29p.

Reporting by Josh White for Sharecast.com.