TIDMGLR
RNS Number : 9593D
Galileo Resources PLC
15 October 2018
For immediate release
15 October 2018
Galileo Resources Plc
("Galileo" or "the Company")
Star Zinc Project - Phase-2 Drilling Programme Update
Galileo, further to its announcement of 14 August 2018, is
pleased to announce completion of its phase-2, 1000metre (m)
diamond-drilling programme and reports on the preliminary (a)
independent assay results ("Preliminary Results") from for an
initial 8 diamond drill holes (Initial DDHs) on its highly
prospective 80.75%-owned Star Zinc Project ("Star Zinc") in
Zambia.
Highlights
-- Completed the phase-2 drilling programme comprising 24
diamond drill holes (DDHs) totalling approximately 1000m to depths,
from surface, of between 25m and 105m downhole
-- Preliminary Results from four of the Initial DDHs -
predominantly from the eastern body of the deposit- intersected
high-grade mineralisation of between 14% Zn and 26% Zn and good
widths. The other five of the initial DDHs intersected grades and
widths similar to those reported in phase 1
-- SZDD030 (1) intersected 15.46% Zn over 23m downhole (from 14m
to 37m) including 26.21 %Zn over 12m downhole (from 21m to 33m)
-- SZDD032 intersected 14.32%Zn over 12m downhole (from 10m to
22m) including 22.69% Zn over 7 m downhole (from 12m to 19m)
-- SZDD034 intersected 9.38% Zn over 5m downhole (from 11.5 m to
17 m) including 23.1% Zn over 2m downhole
-- SZDD036 intersected 6.37% Zn over 13m downhole (from 13m to
26m) including 23.59% Zn over 3m downhole (from 18m to 21m)
-- Elevated germanium (Ge) assays of up to 45 ppm recorded;
generally being associated generally with high-grade zinc
values
-- Furthermore, portable hand-held XRF spectrometry ("pXRF")
results (b) on a further 9 of 11 DDHs (2,3) (mainly from the
western body of the deposit), showed significantly more persistent
higher pXRF Zn grades ranging from 12% Zn to 40.4.5% Zn and widths
of up to 19m downhole (see table 2 below)
-- The transfer to Galileo of the 15% interest (indirectly
14.25% in the Star Zinc project) in Enviro Zambia Ltd. (EZL),
currently not held by Galileo, is progressing pursuant to the
agreement announced on 13 September 2018. On transfer Galileo will
hold 95% and the Government 5% of Star Zinc
-- The Company intends to develop, as soon as practicable, a
work programme with the objective of meeting the requirements for
the application of a small scale mining licence for Star Zinc
1 western side of open pit
(2) still to be independently assayed
(3) 2 DDHs with no significant mineralisation
(a) subject inter alia to Quality Assurance -Quality Control
assessment
(b) average of regular spaced point readings (3 times) over the
mineralised intersection. Whole length core samples will be
submitted for independent and complete assay and will be announced
in due course
The two phases of drilling, are believed to have defined the
general limits on mineralisation on the currently targeted resource
area, though there are still potential additional drilling targets,
which may be warranted to test later, subject to
resource/optimisation/financial modelling. These targets include
several geophysical gravity highs, outcropping hematite bodies and
beyond the fringes of defined mineralisation, south east of which,
for example holes SZDD034 reported 5.5m @ 9.4% Zn from 11.5m and
SZDD036, 13m @ 6.7% from 13m.
Licence
Star Zinc's large-scale exploration licence 19653-HQ-LEL was
renewed on 24 August 2018 for a further three years.
Colin Bird, Chief Executive Officer, said: "This has been an
extremely satisfactory drilling program, which has effectively
delineated the mineralisation limits of the current targeted
resource area. Good results have been obtained in both the eastern
and western "ore" bodies, with the latter suggesting significantly
higher grades than in the east. We believe we have extended the
zone of mineralisation from that reported previously and expect, on
incorporating these latest boreholes in the current model, to show
an increase in contained metal. The previously announced programme
objectives (April and May 2018) have been achieved. We did not
pursue, to any extent, identifying a possible feeder source because
the programme, as it developed, was directed, amongst other things
to focus on defining the parameters necessary for an open pit
design. Our understanding of Star Zinc's geology and controls has
increased. We intend now to proceed to scoping study stage to
include resource modelling of the data and an initial pit design.
The Company believes it has adequately delineated a resource to
design an open pit and generate a maiden JORC compliant resource
estimate. The Company has engaged an independent consultant to
undertake this exercise. When the Company entered into the Term
Sheet agreement to acquire Star Zinc (31 August 2017), it undertook
that on proven success it would provide ore feed for the Kabwe zinc
project. An offtake agreement to this effect is under discussion
and negotiation."
Table 1 Initial independent assay drilling results (C)
Hole_ID SZDD From (m) To (m) Width (m) Zn_ % Ge_ ppm Ag _ppm
029 3 4 1 0.51 0.5 11
--------- ------- ---------- ------ -------- --------
7 8 1 0.43 2 13
--------- ------- ---------- ------ -------- --------
12 13 1 0.41 1 6
--------- ------- ---------- ------ -------- --------
030 0 10 10 4.27 6.45 6.8
--------- ------- ---------- ------ -------- --------
030 14 37 23 15.47 14.39 4.39
--------- ------- ---------- ------ -------- --------
21 33 12 26.21 23.16 5.25
--------- ------- ---------- ------ -------- --------
031 0 2 2 0.45 2 4.5
--------- ------- ---------- ------ -------- --------
031 5 30 25 2.98 1.92 8.96
--------- ------- ---------- ------ -------- --------
031 18 19 1 10.78 8 33
--------- ------- ---------- ------ -------- --------
032 0 5 5 0.46 2.8 3.8
--------- ------- ---------- ------ -------- --------
032 10 22 12 14.32 14.96 16.66
--------- ------- ---------- ------ -------- --------
032 12 19 7 22.69 24.28 22.14
--------- ------- ---------- ------ -------- --------
033 0 12 12 1.4 2.625 6.08
--------- ------- ---------- ------ -------- --------
034 11.5 17 5.5 9.38 9.55 8.18
--------- ------- ---------- ------ -------- --------
034 13 15 2 23.1 23 7.5
--------- ------- ---------- ------ -------- --------
035 16 21 5 2.4 0.5 2.75
--------- ------- ---------- ------ -------- --------
036 0 1 1 1.45 3 3
--------- ------- ---------- ------ -------- --------
036 7.4 8.65 1.25 0.97 2 12
--------- ------- ---------- ------ -------- --------
036 13 26 13 6.7 11.05 18.69
--------- ------- ---------- ------ -------- --------
036 18 21 3 23.59 45.4 12.66
027 No significant intersection
----------------------------------------------------------
028 No significant intersection
----------------------------------------------------------
(C) Analysis by Accredited Intertek Genalysis Laboratory
Services: Zn and Ge by peroxide fusion finish with ICP-OES/MS; Ag
by 4-Acid digestion with MS. Analyses subject QA/QC quality
assurance/checks
Table 2 pXRF drilling results (d) for holes that intersected
mineralisation (subject to independent assay)
Hole ID EOH (e) From To
SZDD (m) (m) (m) Drill Width (m) pXRF_Zn%
038 56.7 35 52 16 11.8
-------- ------ ------ ---------------- ---------
038 56.7 35 45 10 18
-------- ------ ------ ---------------- ---------
039 62.7 36 52 16 15.44
-------- ------ ------ ---------------- ---------
039 62.7 44 51 7 29.18
-------- ------ ------ ---------------- ---------
040 44.9 23 41 18 21.88
-------- ------ ------ ---------------- ---------
040 44.9 25 38 13 29
-------- ------ ------ ---------------- ---------
041 55 14 21 7 5.4
-------- ------ ------ ---------------- ---------
041 55 34 49 15 18.26
-------- ------ ------ ---------------- ---------
041 55 36 47 11 24.3
-------- ------ ------ ---------------- ---------
042 38.9 0 7 7 1.35
-------- ------ ------ ---------------- ---------
042 38.9 24 31 7 15.5
-------- ------ ------ ---------------- ---------
043 35.7 15 28 13 16.50.
-------- ------ ------ ---------------- ---------
043 35.7 19 24 5 40.3
-------- ------ ------ ---------------- ---------
044 38.6 30 32 2 14.72
-------- ------ ------ ---------------- ---------
044 38.6 30.86 32 1.14 26.81
-------- ------ ------ ---------------- ---------
045 44.6 17 20 3 18.8
-------- ------ ------ ---------------- ---------
048 51.7 30 49 19 26.63
-------- ------ ------ ---------------- ---------
048 51.7 31 47 16 31.51
-------- ------ ------ ---------------- ---------
(d) average of regular spaced point readings (3 times) over the
mineralised intersection . Whole length 1/4 core samples will be
submitted for independent and complete assay and will be announced
in due course
(e() EOH - end of hole
Note pXRF Zn Determinations:
2-3 Single Point Determinations on 1m
of Whole Core Averaged
No lower cut-off grade applied
No high grade cut off applied
Minimum Intersection drilled width of
3m
Internal dilution not considered
No Criteria Applied
Represent a Relevant 'Total Mineralised
Interval'
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman +44 (0) 20 7581 4477
Andrew Sarosi, Executive Director +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad
Roland Cornish/James Biddle +44 (0) 20 7628 3396
---------------------
Novum Securities Limited - Joint Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
---------------------
Star Zinc
The Star Zinc project "(Project") is a historical small-scale
open pit mine from where, reportedly, low tonnage, but high-grade
willemite (a zinc silicate mineral) was extracted intermittently in
the 1950s to 1990s.
The Project is located approximately 18km NNW of Lusaka (see
Figure 3.1 below), and is accessible via the tarred "Great North
Road" and a good all weather graded road, with the journey time
from central Lusaka of approximately 30 minutes (traffic
allowing).
There is adequate power, water, rail & telecommunications,
with the International Airport at Lusaka, less than 45 minutes
away.
The Mines and Minerals Development Act, No 11 of, 2015, which
grants a Large Scale Exploration Licence (LSEL), governs the
mineral tenement. The Act provides for an initial 4 years with a
further two 3-year extensions totalling 10 years, with a mandatory
50% reduction of licence area at the completion of the 1st grant
and 2nd grant periods respectively. The first renewal period
initially expired 13 August 2016 but was extended to 13 August
2018. The LSEL was renewed on 24 August 2018 for a further 3
years.
In the 1960s, geologists of the Northern Rhodesia (now Zambia)
Geological Survey mapped the Project.
At Star Zinc, two main fracture trends are present, one E - W,
and another N - S. Both set of fractures are nearly vertical and
are irregularly mineralised. Willemite generally replaces the host
rock marbles in the form of massive ore bodies, but it occurs also
in veins
In addition, karstic (pertaining to landscape underlain by
limestone which has been eroded by dissolution, producing ridges,
fissures, sinkholes and other characteristic landforms)
mineralisation and red soils (terra rossa) are locally heavily
mineralised with detrital willemite and supergene zinc minerals.
Zinc values measured in soils at Star Zinc reach up to 15,600 ppm
and are accompanied by the pathfinder elements Ag (silver), Pb
(lead), Ba (barium), Sb (antimony) and Cd (cadmium). The karst
infill has a zinc (Zn) content up to 45wt.% Zn, up to 35wt.% Fe and
up to 5g/t Ag.
The mineralogical assemblage of Zn non sulphides includes a
whole number of minerals: the main economic phases present are
Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn- Pb
carbonates (smithsonite, cerussite), hydrated Zn- Pb carbonates
(hydrozincite, hydrocerussite) and Zn- Mn- Fe- oxides (zincite,
franklinite, gahnite).
Limited independent metallurgical testwork by others has clearly
shown that the willemite present at Star Zinc is amenable to acid
leaching with positive results for two samples tested. Zinc
leaching efficiencies obtained ranged from 89% and 92%. The
testwork indicated polymerisation of dissolved silica in the
leachate.
In summary, Star Zinc has good potential to become a viable
project.
Note: the information about Star Zinc is sourced primarily from
Competent Person's Report for the Star Zinc Project, Zambia;
Wardell Armstrong, January 2016
Glossary
Detrital loose fragments or grains that have been worn away from rock
Calcite mineral of calcium carbonate
Dolomite mineral composed of calcium magnesium carbonate
Dolomitic pertaining to dolomite
Floats pieces of rock that have been removed and transported
from their original outcrop
Germanium (Ge) semi metal element commonly used in the
semiconductor industry, wide-angle camera lenses and fibre
optics.
Hematite reddish-black mineral consisting of ferric oxide. It is
an important ore of iron.
ICP-OES/MS inductively coupled plasma - optical emission spectrometry/mass spectrometry
Karst landscape underlain by limestone (calcium carbonate),
which has been eroded by dissolution, producing ridges, fissures
and so on
Karstic pertaining to karst
Leaching chemical process of solubilising metals in rock into solution
ppm parts per million
XRF Spectrometer analytical instrument for determining chemical
composition using x-ray fluorescence spectrometry
Supergene pertaining to processes or enrichment that occurs
relatively near surface
Willemite zinc silicate ore mineral
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END
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