TIDMGLR
RNS Number : 7166M
Galileo Resources PLC
01 May 2018
01 May 2018
Galileo Resources Plc
("Galileo" or "the Company")
Glenover Phosphate-Update
Galileo (AIM: GLR) is pleased to announce that further to the
Heads of Agreement ("Heads") announced 5 February 2018,
negotiations with a major phosphate/fertiliser producer ("MPP") are
continuing positively to finalising a Definitive Supply agreement
("DSA") to supply, for up to 15 years, raw phosphate rock
("Phosphate Rock") in the form of flotation concentrate from the
Glenover phosphate project (the "Project"). In this regard, MPP has
progressed the Conditions Precedent testwork, stipulated in the
Heads, with results to date MPP deem satisfactory. MPP expect to
complete over the next two months a remaining Condition Precedent,
namely the production of a 30-tonne bulk sample of phosphate rock
for further testing in its fertiliser process. The Project is
located in the Limpopo Province of the Republic of South
Africa.
The Company also announces, that Glenover's Environmental Impact
Assessment/Management Programme ("EIA/EMP") in relation to its
application for a mining right, which application was accepted
(announced 5 February 2018) by the Department of Mineral Resources
("DMR") is progressing on schedule: draft version of the EIA/EMP
has been submitted to interested and affected parties for comment
(closing date 18 May 2018) before final submission of the EIA/EMP,
expected on 26 May 2018, to the DMR.
Highlights
-- All criteria to facilitate the Project towards the objective
of commencing production continue to be met
-- Negotiations continue positively with MPP on a DSA for long
term (minimum 15 years) supply of Phosphate Rock
-- Testwork, a Condition Precedent by MPP, to confirm
suitability of the Phosphate Rock for its phosphate/fertilsier
process has progressed with positive results to date acceptable to
MPP.
-- A final Condition Precedent to test a bulk 30-tonne sample of
phosphate rock in MPP's process is scheduled over the next two
months
-- The EIA/EMP for the Project in terms of the Mining Right
Application remains on schedule: draft EIA/EMP has been submitted
to interested and affected parties for comment (closing date 18 May
2018) and final submission to DMR is expected 26 May 2018
-- Rare-earths (and niobium) in the tailings of any future
processing of Phosphate Rock by MPP, would be available to Glenover
for recovery and further beneficiation
-- On successful grant of a Mining Right, Galileo will increase
its beneficial interest in the Project to 38% from current 36%
Colin Bird CEO commented: " We are happy to be able to report
that negotiations with the MPP on all matters relating to the
defintive supply (offtake) agreement, an important hurdle,for the
Project, are continuing positively towards execution. The EIA/EMP
for the Project is on schedule for submission to the DMR on 26 May
2018. I am pleased to say that we continue to meet all the criteria
to facilitate our aim to commence production from the Project. We
will keep the market advised of progress on the Project.
Editor's Note
The Heads included the following material terms:
- MPP requires further pilot scale work to determine the
suitability of the Phosphate Rock in its process as one of the main
conditions precedent, and further capital expenditure by the MPP
for the second phase pilot scale test work will be subject to the
Parties agreeing on the main commercial terms in the Heads (These
have been agreed);
- The Flotation Plant will be built at the mine site and funded and owned by Glenover;
- The MPP will purchase Glenover Phosphate Rock (33% P(2) O(5)
content) at international market prices;
- The Heads is subject, among others, to the second phase of
Investigation comprising technical and pilot plant work, including
the production of 30 tonnes Phosphate Rock for piloting by MPP
(this remains outstanding) , being successful and to the
incorporation of the terms of the Heads into a Definitive Supply
agreement ("Condition Precedent"); and
- The termination date of the Heads is 30 April 2018 or the
signature date of the Definitive Supply Agreement, which (ever) is
earlier
The above Conditon Precedent is expected to be carried out by
MPP over the next two months. Therefore the time-lines above for
concluding the Heads/Definitive Supply Agreement has been agreed to
extend to 30 June 2018 in order to facilitate fulfilling this
Condition Precedent.
The Glenover Project
The Project is located approximately 90 km northwest of the town
of Thabazimbi in the Waterberg region of Limpopo Province in the
Republic of South Africa. The Project comprises an inactive
phosphate mine comprising a SAMREC compliant 10.37 million tonnes
(Mt) grading 18.73% phosphate (P(2) O(5) ) including an inferred
2.685 Mt surface stockpiles of phosphate ore grading 22.21 %P(2)
O(5) and a measured and indicated 7.4 Mt grading 17.51 %P(2) O(5)
in an apatite (phosphate mineral)- breccia core remaining in the
previously mined open pit. The open pit is approximately 100 metres
deep with a surface width of approximately 200 metres.
Glenover Phosphate Resource (SAMREC compliant) (1)
Resource Resource Tonnage P(2) O(5)
Class Mt (%)
--------------------------- ------------------------------- -------- ----------
Apatite-Haematite Breccia Measured
---------------------------
Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Total Measured & Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Inferred 0.274 15.83
----------------------------------------------------------- -------- ----------
Surface Stockpiles Inferred 2.685 22.21
--------------------------- ------------------------------- -------- ----------
Total Measured indicated & inferred 10.37 18.73
--------------------------- ------------------------------- -------- ----------
(1) Data contained in the Preliminary Economic Assessment (PEA)
referred to in RNS announcement of 07 March 2013 "Results of
Glenover PEA"
Further details as set out in past announcements are available
from the Company's website, www.galileoresources.com, which details
the Company's project portfolio as well as a copy of this
announcement:
You can also follow Galileo on Twitter: @GalileoResource
Technical Sign-Off
Andrew Sarosi, Director of Galileo, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
ENDS
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Galileo Resources PLC
Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628 3396
and Joint Broker
Roland Cornish/James Biddle
Novum Securities Limited - Joint Broker
Colin Rowbury/Jon Belliss
Tel +44 (0) 20 7399 9400
Technical Glossary:
Inferred Mineral Resource: that part of a Mineral Resource for
which volume or tonnage, grade and mineral content can be estimated
with only a low level of confidence. It is inferred from geological
evidence and sampling and assumed but not verified geologically or
through analysis of grade continuity. It is based on information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that may be
limited in scope or of uncertain quality and
reliability.
Indicated Mineral Resource: that part of a Mineral Resource, for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level of
confidence. It is based on information from exploration, sampling
and testing of material gathered from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological or grade
continuity but are spaced closely enough for continuity to be
assumed.
Measured Mineral Resource: that part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable information from
exploration, sampling and testing of material from locations such
as outcrops, trenches, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological and grade
continuity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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