The Government of the Republic of Zambia has granted a 7,757 square kilometer package of new exploration licenses to Canadian-copper giant Ivanhoe Mines (TSE: IVN) (OTCMKTS: IVPAF).
Executives for the company said on Tuesday that their idea behind the license package is to look for an extension of the Central African copperbelt.
Ivanhoe signed a memorandum of understanding (MOU) in September with the Republic of Zambia’s Ministry of Mines and Minerals Development. Since then, the Ministry of Mines has helped Ivanhoe’s geological team identify the prospective licence package and granted access to existing geological data.
The Ministry also shared results from the ongoing country-wide airborne geophysical survey.
Ivanhoe’s geological team will start exploring for new copper deposits in three types of geological settings: Basement Domes, Katangan-age sediment-hosted copper systems, and iron-oxide-copper-gold (IOCG) systems.
In the Democratic Republic of the Congo (DRC), the western edge of the Central African Copperbelt contains the Western Foreland Shelf, home to major copper deposits like the Kamoa-Kakula Copper Complex and the Makoko and Kiala discoveries.
Ivanhoe believes the same type of rock formations found in the Western Foreland Shelf extend southwest into Zambia and Angola. The company also holds exploration licences covering more than 22,000 square kilometres in Angola.
At the same time, Ivanhoe is pushing forward with its massive exploration program in the Western Forelands.
The company plans to invest USD$50 million in its 2025 exploration program, making it the largest in Ivanhoe’s history. The program includes 102,000 metres of diamond drilling and 18,000 metres of reverse circulation (RC) drilling. Ivanhoe aims to release an updated Mineral Resource Estimate for the Makoko area next month.
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Government supports exploration through partnerships
Zambia attracts mining companies with its rich mineral resources, particularly copper, which accounts for the majority of the country’s exports. Its mining-friendly policies, stable legal framework, and competitive tax incentives create a favourable investment climate.
The government actively supports exploration through partnerships and geological surveys, reducing risks for companies entering the market. Zambia’s well-developed infrastructure, including road networks and access to power, further enhances its appeal.
“This new investment in copper exploration is not only about achieving our government’s vision of over 3 million tonnes of copper production by 2031, it’s also about unlocking opportunities, empowering communities, and ensuring that our resources benefit every Zambian,” said Hakainde Hichilema, the president of the Republic of Zambia.
Additionally, its strategic location within the Central African Copperbelt positions it near world-class deposits. Meanwhile, ongoing reforms aim to streamline permitting processes and encourage sustainable mining practices, ensuring long-term industry growth.
Like the Kamoa-Kakula Copper Complex and the Western Forelands Exploration Project in the DRC, Ivanhoe’s Zambian licences represent an underexplored potential extension of the Central African Copperbelt. Ivanhoe’s geologists worked with the Ministry of Mines and used their deep knowledge of the region to selected these licences.
In the late 2000s, BHP Billiton conducted airborne geophysical surveys over parts of Ivanhoe’s licence package as part of a broader exploration program across western and central Zambia, targeting IOCG-style mineralization. BHP exited its African operations in 2015, and no exploration work has taken place on these licences since then.
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Airborne magnetics survey will boost Ivanhoe’s exploration efforts
In August 2024, the Zambia Ministry of Mines launched a country-wide airborne geophysical survey including over Ivanhoe’s new licence package.
This high-resolution airborne magnetics survey will accelerate Ivanhoe’s exploration efforts by saving six months in data acquisition time and costs.
Like Kamoa-Kakula and the Western Forelands, Ivanhoe’s licences have seen little exploration because Kalahari sand cover conceals buried mineralization.
The central part of Ivanhoe’s newly approved Zambian licence package holds strong potential for copper deposits buried beneath Kalahari sands.
Ivanhoe will hire environmental consultants to complete key environmental baseline studies and prepare an Environmental Management Plan (EMP) in 2025.
Ivanhoe will also begin engaging with local communities before deploying field teams for ground surveys and drilling. At the same time, the company will conduct a review of historical and airborne geophysical data alongside the EMP process.
Ivanhoe plans to carry out an extensive aircore and auger drilling program to gather soil geochemical data, along with additional airborne and ground-based geophysical surveys.
These efforts will allow Ivanhoe’s geological team to map the giant licence area in detail. It will identify the extent of the Basement Domes, Katangan sediments, and felsic magmatic intrusives beneath the surface. Once this work is complete, the company will begin generating targets for future diamond drilling.
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