Galileo Resources PLC Nevada Projects Update (3334N)

TIDMGLR

RNS Number : 3334N

Galileo Resources PLC

25 October 2016

For immediate release

25 October 2016

Galileo Resources Plc

("Galileo" or "the Company")

Nevada Projects Update

HIGH-GRADE GOLD MINERALIZATION FROM INITIAL SAMPLING

AT FERBER PROJECT IN NEVADA - DRILLING COMMENCES ON SILVERTON

Highlights

-- A significant number of rock-chip samples (11 out of 23 samples) return gold values exceeding 0.2 g/t

   --     Seven of these 11 samples exceed 1.0 g/t with a high of 10.8g/t 

-- Ferber Project mineralization, characteristic of productive gold skarn deposits, occurs marginal to a Late Eocene intrusion, with jasperoid mineralization characteristic of Carlin-type gold deposits occurring distal to the intrusion

   --     Our Silverton Project JV partner Orogen Gold plc ("Orogen') commences drilling 

Galileo is pleased to announce that initial rock-chip sampling (23 samples) at its Ferber gold project ("Project') in north-eastern Nevada has returned significant gold values of up to 10.80 g/t. The Project comprises a land package of over 300 unpatented mining claims and 19 leased patented claims covering approximately 25 square kilometres. The Company also announces that Orogen, our farm-in partner on the Silverton gold-silver project, has commenced drilling on this property.

Colin Bird Chairman and CEO said: "Historical exploration including drilling encountered both gold and copper at Ferber. We have approached this Project with a clean sheet and the results of this preliminary sampling are very encouraging. We intend to follow this up with more detailed geochemical sampling with a view to identifying drilling targets. These encouraging results together with Orogen's announcement of commencement of drilling on Silverton are exciting for the Company since US exploration companies are showing much interest in the gold and copper potential in Nevada."

Galileo's consulting geologist on the project, Dr. Jacob Margolis, states: "The Ferber intrusion-centered gold system is broadly similar to productive gold deposits elsewhere in north-central Nevada, where Carlin-style gold mineralization and gold skarn mineralization are genetically related to Late Eocene intrusions similar in age to the Ferber stock. This large district requires a broad approach aimed at recognizing geochemical zoning, delineating district-scale structure and understanding the stratigraphy. Integrating these three components should serve as a vector to quality exploration targets".

Results

An initial suite of 23 samples collected over an area of 6 km by 2 km yielded significant gold, with assay results on additional samples pending (Table 1). Seven of the samples exceeded 1 g/t Au, reaching 10.8 g/t. The highest-grade sample contains greater than 1% Bi and 167 ppm Te, indicative of the mineral hedleyite, a characteristic mineral in productive gold skarn deposits, such as those at McCoy and Fortitude in north-central Nevada, which also flank Late Eocene intrusions. Preliminary analysis of the new data, together with historic results, indicate a geochemical zoning from more copper-rich gold mineralization with a high Ag-to-Au ratio (Ag:Au) marginal to the central stock to distal, copper-poor, gold mineralization with relatively low silver and a lower Ag:Au. One sample of jasperoid from this distal setting yielded 9.8 g/t Au with a Ag:Au of only 1.3; an historic sample from the same area assayed 11.7 g/t Au with a Ag:Au of 1.5. A sample of jasperoid over 1 km from the central stock yielded 325 ppb Au.

Table 1. Selected gold-mineralised samples

 
 Sample            description              type     Au ppm   Ag ppm 
          gossanous-saprolitic 
   1       zone in marble                  outcrop   1.420     0.13 
          dark brown Fe-ox stained 
           gossanous jasperoid and 
   2       marble, pieces to 8"             dump     0.229     0.16 
          gossanous, silicified 
           jasperoid breccia, pieces 
   3       to 18in                          dump     9.760    12.80 
          marble with local gossanous 
           silicified zones marginal 
   4       to altered dike                 outcrop   2.900    16.15 
          gossanous silicified 
   5       jasperoid                        dump     1.570    14.60 
          sheared gossanous marble 
   7       and jasperoid                   outcrop   0.147    25.00 
          strongly-limonitic jasperoid, 
           locally gossanous; surrounded 
   8       by alluvium                      dump     0.494    159.00 
          gossanous jasperoid in 
   9       marble                           dump     0.114    62.80 
   10     gossanous skarn in marble        outcrop   0.062     7.71 
          haematite-goethite stained 
   11      siliceous skarn,                 dump     1.265    570.00 
          siliceous gossan, weak 
   12      skarn                            dump     1.275    184.00 
   18     gossanous siliceous skarn         dump     0.603    302.00 
          gossanous soft to siliceous 
   13      skarn                            dump     10.800   136.00 
          strongly Fe-ox stained 
   14      jasperoid                        float    0.095    383.00 
          Soft haematitic locally 
   15      siliceous gossan                outcrop   0.132    32.60 
          Iron-stained chalcedonic 
   16      jasperoid                       subcrop   0.325    95.40 
 

These initial results indicate that the project offers an opportunity for the discovery of intrusion-proximal gold skarn mineralization as well distal Carlin-style gold mineralization. In addition to mineralization marginal to the stock, silicification also occurs along district-scale structures at the edge of alluvial cover distal to the intrusion, offering the potential for concealed mineralization.

Ferber

The Ferber district contains jasperoids (silicified limestone) and siliceous skarns marginal to a Late Eocene, multi-phase intrusive complex. The Kinsley district, 21 km to the southwest and being explored by Pilot Gold, contains a similar geologic environment: a similar-aged intrusion with proximal skarn and distal Carlin-style gold mineralization. New gold mineralization with an average grade of 6 g/t, was discovered recently at Kinsley in stratigraphy well below that hosting lower-grade, shallow mineralization. Historic widely scattered and shallow drilling at Ferber failed to properly test mineralized structures with angle drilling or test stratigraphy for additional hosts to mineralization.

Dr. Jacob Margolis is the qualified person as defined by National Instrument 43-101 and has reviewed the technical content of this news release.

Silverton Drilling Programme

As envisaged under the Farm-Out Agreement, Orogen Gold plc has recently announced a proposed 1200m drilling programme at Silverton, funded by Orogen, and Galileo looks forward to announcing results of this programme as and when available.

Further details are available from the Company's website which details the Company's project portfolio as well as a copy of this announcement: www.galileoresources.com

You can also follow Galileo on Twitter: @GalileoResource

Approval

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. He has approved the release of this announcement.

Glossary

 
 Ag             silver 
-------------  ----------------------------------------------- 
 Au             gold 
-------------  ----------------------------------------------- 
 Bi             bismuth 
-------------  ----------------------------------------------- 
 Pb             lead 
-------------  ----------------------------------------------- 
 Te             tellurium 
-------------  ----------------------------------------------- 
 breccia        rock consisting of angular fragments 
                 of stones cemented by finer material. 
-------------  ----------------------------------------------- 
 Carlin style   Carlin-style gold deposits are sediment-hosted 
                 finely disseminated gold deposits. 
-------------  ----------------------------------------------- 
 chalcedonic    relating to chalcedony - an ultrafine 
                 form (crystalline structure visible 
                 only when magnified) of silica 
-------------  ----------------------------------------------- 
 Eocene         a division of the geologic timescale 
                 lasting from 56 to 33.9 million years 
                 ago 
-------------  ----------------------------------------------- 
 float          rock that is not found in situ at an 
                 outcrop i.e not attached to an outcrop 
-------------  ----------------------------------------------- 
 g/t            grams per tonne 
-------------  ----------------------------------------------- 
 gossan         intensely oxidized, weathered or decomposed 
                 rock, usually the upper and exposed 
                 part of an ore deposit or mineral vein 
-------------  ----------------------------------------------- 
 goethite       various forms of hydrated or unhydrated 
  haematite      iron oxide minerals 
  limonite 
-------------  ----------------------------------------------- 
 intrusive      action or process of forcing magma 
                 between or through existing rock formations, 
                 without reaching the surface 
-------------  ----------------------------------------------- 
 magmatic       relating to molten rock (magma) from 
                 within the earth's mantle 
-------------  ----------------------------------------------- 
 marble         a crystalline metamorphic form of limestone 
-------------  ----------------------------------------------- 
 metamorphic    relating to rock that has undergone 
                 transformation by heat and/or, pressure 

-------------  ----------------------------------------------- 
 outcrop        a rock formation that is visible on 
                 the surface 
-------------  ----------------------------------------------- 
 ppb            parts per billion (1000ppb=1ppm) 
-------------  ----------------------------------------------- 
 ppm            parts per million equivalent to g/t 
-------------  ----------------------------------------------- 
 saprolitic     relating to soft, thoroughly decomposed 
                 and porous rock 
-------------  ----------------------------------------------- 
 skarn          calcium-bearing silicate rocks of any 
                 age most often formed at the contact 
                 zone between magmatic intrusions and 
                 carbonate sedimentary rocks such as 
                 limestone 
-------------  ----------------------------------------------- 
 stratigraphy   in geology - study of rock layers (strata) 
                 and layering (stratification) 
-------------  ----------------------------------------------- 
 subcrop        part of a geological formation that 
                 is close to the surface but not outcropping. 
-------------  ----------------------------------------------- 
 tonne          1000 kilograms 
-------------  ----------------------------------------------- 
 

For further information, please contact:

 
 For further information, 
  please contact: Colin       Tel [phone] 
  Bird, Chairman              4477 
 Andrew Sarosi, Technical   Tel [phone] 
  Director 
 Beaumont Cornish Limited 
  - Nomad                     Tel [phone] 
  Roland Cornish/ James       3396 
  Biddle 
 Beaufort Securities 
  Limited - Broker            Tel [phone] 
  Jon Belliss / Elliot        8416 
  Hance 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLEAKELADSKFFF

(END) Dow Jones Newswires

October 25, 2016 02:00 ET (06:00 GMT)