TIDMGLR
RNS Number : 7359U
Galileo Resources PLC
07 December 2021
For immediate release
7 December 2021
Galileo Resources Plc
("Galileo" or "the Company")
Option and Joint Venture Agreement over
Shinganda Copper-Gold Project, Zambia
Galileo Resources plc ("Galileo "or the "Company") is pleased to
provide details regarding an Option and Joint Venture Agreement
entered into on 6 December 2021 with Garbo Resource Solutions Ltd,
covering the Shinganda Copper-Gold Project, Zambia comprising Large
Scale Exploration Licence No. 22990-HQ-LEL (the "Project")
Highlights
-- Option agreement gives Galileo the right to earn an initial
51% interest in the Shinganda copper-gold project in central
Zambia, subject to any necessary Zambian regulatory approval, by
spending US$0.5m on exploration and evaluation over two years
-- The Company can subsequently increase its interest through
entering into a Joint Venture to develop a mining operation,
ranging from 65% interest for a large deposit of greater than 1Mt
of contained copper equivalent, up to an 85% interest in a smaller
deposit of less than 200,000 tonnes of contained copper
equivalent
-- The project area covers part of a major 10km structural trend
with two previously developed small-scale open pit copper-gold
mines
-- Very limited historic drilling on the property is reported to
have intersected 1.07% Cu over a true width of 28.3m at shallow
depth within supergene copper oxides
-- Drilling on the structure off-property to the west by Vale
S.A. recorded 2m @ 3.93% Cu, 1.72 g/t Au
-- Historic grab sampling in an exploration pit towards the
south of the Project area by Vale S.A., with reported assay values
of 10.45% Cu, 11g/t Au, will be followed up in the field by Galileo
for confirmation purposes
-- Galileo plans to review past exploration data followed by a
drilling programme focussed on testing the tenor and extent of the
shallow copper/gold mineralisation indicated by previous drilling
and nearby mining
Colin Bird Chairman & CEO said: "This project fits the
Galileo model in that the licence areas have good copper and gold
intersections from previous campaigns. The agreement gives us the
opportunity for new deposit discovery and/or small mine production
potential.
We look forward to working on this project commencing early in
the New Year."
Summary
Galileo has entered into an Option and Joint Venture agreement
with Garbo Resource Solutions Ltd ("Garbo"), a private special
purpose UK company established to hold the Shinganda copper-gold
property located in Central Zambia. The property is held as a
large-scale exploration licence No. 22990-HQ-LEL, covering an area
of 186.76km(2) , by Garbo Resource Zambia Ltd., which is 99.4%
owned by Garbo.
Historic Exploration
There has been quite an amount of historic exploration on the
licence and small-scale open pit mining just outside the licence to
the E-SE ('Western Sun pit' and 'Moxico pit') along the Gerhard
trend (E.SE-W.NW), which extends for at least 10km. This trend
appears to be a large, near-vertical fault/shear zone. The Gerhard
trend is marked by a strong magnetic linear and soil geochemical
anomaly, reflecting a zone of hematite-magnetite mineralisation,
along with associated copper-gold, which probably represents a
hydrothermal system driven by intrusives at depth. Apart from the
two developed pits off the property to the east, the main showing
of interest is the Shinganda prospect on the Shinganda property
which was tested by two historic angled drillholes across the fault
structure which is 35m wide in this area. The shallower hole
intersected a reported 28.3m true width interval assaying 1.07% Cu
within the oxide zone at about 50m vertical depth which appears not
to have been followed up. Drilling suggests that mineralisation may
fade out at depth. Drilling off-property by Vale S.A. is reported
to have intersected shorter intervals of higher grade up to 2m @
3.93% Cu, 1.72g/t Au. It is also reported that an exploration pit
in the southern part of the Shinganda property yielded a sample
collected by Vale S.A. assaying 10.45% Cu, 11g/t Au (Source:
Competent Persons Report on Garbo Resource Solutions Limited in
North-Western Province, Zambia by Coffey Geotechnics Ltd, March
2019 - page 53). This report will be followed up by Galileo in the
field for confirmation purposes.
Project Potential
The Company believes that there may be considerable further
potential around the Shinganda target, as previous drilling there
appears very limited (just 2 holes known) and there remains
considerable untested strike potential. Higher copper-gold grades
are recorded to the west in the ex-Vale property, and two open pits
were previously developed along the Gerhard structure to the east.
The target for Galileo would be primarily supergene-enhanced
shallow copper-gold mineralisation which is amenable to small to
medium scale open pit mining development and that can be readily
tested by shallow drilling.
Project Licence
Licence No. 22990-HQ-LEL is in its initial 4-year term which
expires on 22 August 2022. An exploration licence is valid for a
period of four years. It may be renewed for two further periods not
exceeding three years each but the maximum period from the initial
grant of the licence shall not exceed 10 years. A holder of an
exploration licence shall relinquish 50% of the licence at each
renewal.
Summary of Option Terms
An Option and Joint Venture Agreement has been signed with Garbo
on the following summary terms:
i. Galileo may earn an initial 51% interest in the Project by
spending US$500,000 on exploration, including drilling and
evaluation studies, over a two-year period, subject to any
necessary Zambian regulatory approval.
ii. Galileo may withdraw without penalty at any stage during the Option period
iii. At any time during the Option period Galileo may elect to
move forward to a Joint Venture to more fully evaluate and, if
warranted, develop the Project.
iv. Should the parties decide to advance the Project to
feasibility study, then Galileo will pay the cost of such a
study.
v. Galileo's share of profits from a mining operation will vary,
depending on the projected size of the deposit, ranging from 85% if
the project has the potential of greater than 50,000 but up to
200,000 tonnes of contained copper equivalent, to 65% if the
project has the potential for more than 1,000,000 tonnes of
contained copper equivalent.
vi. On decision to mine, each party will be responsible for
funding of the development pro-rata to its equity holding in the
Joint Venture
vii. Should Garbo fail to finance its share in the development
of the Project, 100% ownership of the Project will revert to
Galileo and Garbo will be granted a 2% net smelter royalty on
commercial production
Technical Sign-Off
Technical information in this announcement has been reviewed by
Edward (Ed) Slowey, BSc, PGeo, Technical Director of Galileo. Mr
Slowey is a geologist with more than 40 years' relevant experience
in mineral exploration and mining, a founder member of the
Institute of Geologists of Ireland and is a Qualified Person under
the AIM rules. Mr Slowey has reviewed and approved this
announcement.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581
4477
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628
Roland Cornish/James Biddle 3396
----------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
----------------------
Shard Capital Partners LLP - Tel +44 (0) 20 7186
J oint Broker 9952
Damon Heath
----------------------
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Technical Glossary
"fault/shear zone" Plane of failure in faulted body of rock
"hematite" A mineral composed of ferric iron oxide
"hydrothermal" Descriptive of hot magmatic emanations rich
in water
"intrusives" Bodies of igneous rock that invade older rocks
"magnetite" A magnetic iron oxide, Fe(3) O(4)
"soil anomaly" A concentration of one or more elements in
soil that is markedly higher than background
"supergene" Descriptive of a mineral deposit, weathering
or alteration formed by descending solutions
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