Galileo Resources PLC Study increases Concordia potential size (8065H)

TIDMGLR

RNS Number : 8065H

Galileo Resources PLC

22 August 2016

For immediate release

22 August 2016

Galileo Resources Plc

("Galileo" or "the Company")

Study Increases Significantly Concordia Potential Size

Galileo (AIM: GLR), the exploration and development mining company, is pleased to announce the completion of an exploration desktop study, (previously announced near completion on 15 June 2016), which has identified and ranked seven high priority additional prospective copper targets within the Concordia Project with the potential of accommodating a significant volume of possible copper mineralised host litholigies. The study was conducted by independent multifaceted South African geological and mining consultant Minxcon Consulting (Pty) Ltd ("Minxcon"): http://www.minxcon.co.za/.

Highlights

-- An additional twenty seven prospective copper targets identified within the Concordia Project area in addition to the seven regarded as high priority targets

-- The seven high priority targets present potential for shallow, near surface, open pit copper mineralised zones

-- The targets including those as high priority for exploration by the Company and Minxcon currently host conceptually 798.55 million host lithology tons, estimated to contain 50% mineralised host at a mean grade 0.57% Cu

-- All the targets studied are based on areas of existing documented and/or mapped copper occurrences that have the potential for extensions along strike and/or dip

   --     Other identified areas are currently under investigation to increase project size potential. 
   --     Definitive Induced Polarisation (IP) geophysics to commence during 3(rd) quarter 2016 

Colin Bird Chairman and CEO said "We are delighted with the progress on the Concordia project. The area is huge and our open pit model was never previously investigated in this area. The targeted conceptual tonnage and copper grade compare very favourably with global projects currently being developed or at an advanced feasibility study stage. Other additional areas within the Concordia concession that fit our model have been identified for further investigation. The Company continues with reiterative analyses of the base data and targets consequently continue to change priority against our internal model criteria. We are highly encouraged with the results so far and the next stage exploration with IP geophysics is planned with a view to closer definition of the mineralised targets before undertaking confirmatory resource definition drilling".

Following on previous preliminary modelling, Minxcon conducted a desktop study on some thirty four targets to identify and rank prospective areas. Minxcon sourced additional historical data, conducted an independent re-interpretation of existing data, and identified seven prospective, copper targets within the Concordia Project with the potential of accommodating a significant volume of possible copper mineralised host lithologies. Five of the targets identified, present potential for shallow, near surface, open-pit copper mineralised zones. Minxcon has ranked these high priority targets in the order shown in Table 1 below. The Minxcon and Galileo teams grouped some selected targets based on synergies relating to coherent geological structure, geophysical anomalies and relative locality into the eastern Homeep Trend, the western Shirley Trends and the Henderson area.

Table 1 : High Priority Targets Identified During the Minxcon Desktop Study (a)

 
               Project                 Strike   Width   Depth   %Cu        Lith Tonnes          Cu Tonnes 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
                                         m        m       m      %             Mt                  Mt 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Homeep                                 5000    38.8     300    0.58               168.56               0.49 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Koeëlkop (incl. Whytes' West)     4000    30.0     300    0.57               104.40               0.29 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Henderson                              1500    38.8     300    0.58                 50.57              0.15 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Ring Dyke                              2000    38.8     300    0.58                 67.43              0.19 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Tweefontein                            2000    38.8     300    0.58                 67.43              0.19 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Klondike                               2000    25.0     300    0.63                 43.50              0.14 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Henderson North                        1000    38.8     300    0.58                 33.71              0.10 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Shirley                                5000    38.8     300    0.58               168.56               0.49 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Horneman                               1100    38.8     200    0.58                 24.72              0.07 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Kliphoog North                         1300    38.8     200    0.58                 29.22              0.08 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Hester Maria                           1800    38.8     200    0.58                 40.46              0.12 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 Total                                                                             798.55               2.31 
------------------------------------  -------  ------  ------  -----  --------------------  ---------------- 
 

(a) Notes (Table 1): Copper tonnes reported equates to approximately 50% of potential host lithology being mineralised (based on current available data)

The above desk top study followed on from the previously announced preliminary initial modelling on the four target areas; namely Wheal Julia and Koeëlkop (announced 29 March 2016), Whyte's West (announced 13 April 2016) and Klondike with a new identified prospect Homeep East (announced 10 May 2016). The high level estimates generated previously for these four historically drilled prospects are collated in table 2 below. Of note is the low percentage of the total strike modelled (based on available historical data) against the interpreted true strike.

Table 2: The Results of the Non-Compliant Mineral Resource Estimates Conducted by Minxcon

 
    Prospect        Cut-off Grade   Tonnes   Cu Grade   Cu Content   Metres Modelled   % Strike Modelled 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                        % Cu          Mt        %       Tonnes              m                  % 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
 Koeëlkop*         0.2          10.9      0.35       38,238          1,400               35 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                        0.35         4.2       0.51       21,205 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
 Wheal Julia            0.2          62.6      0.44      275,459           750               37.5 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                        0.35         37.7      0.55      207,863 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
 Whyte's West*          0.2          34.6      0.39      135,918           390               9.75 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                        0.35         15.1      0.54       81,894 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
 Klondike               0.2          2.5       0.57       14,263           700                35 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                        0.35         2.1       0.63       13,141 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
      Total                   0.2    110.6     0.42      463,878          3,240              40.5 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
                             0.35     59.1     0.55      324,103 
----------------  ---------------  -------  ---------  -----------  ----------------  ------------------ 
 

Notes (Table 2):

   *   Combined Strike Modelled  = 44.75% as in portions of the targets in question 

Minxcon Disclaimer: "Minxcon has ranked the targets resulting from the desktop study in table 1, based upon its perception of the data available to them at the time of the desktop study. The above tables are subject to change with the progression of exploration activities. The above targets represent areas of documented and/or mapped copper occurrences (based on existing data), or in some cases even historical mines (Henderson (Jubilee Mine), Homeep and Wheal Julia) and have the potential for extensions along strike and/or dip. The figures in the tables presented should in no way be misconstrued to represent compliant Mineral Resource estimates nor to represent the definition of a compliant Exploration Target in terms of the various Reporting Codes, as all tonnages, grades, depths and strikes are highly conceptual in nature at this stage and require the proper exploration practices in order to prove their existence or to convert them eventually to a compliant Mineral Resource."

General

Galileo has the right to earn-in a 51% beneficial interest in the Concordia copper project, by way of 51% beneficial shareholding in Shirley Hayes IPK (Pty) Ltd ("SHIP") on expenditure of ZAR10million (approximately GBP500 000) over 14 months on exploration and development. SHIP holds the copper prospecting rights to the 36,373-hectare (364 km(2) ) Project Area in the OKiep Copper District in the Namaqualand Complex in the Northern Cape Province of South Africa.

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

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENDS

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.

For further information, please contact:

 
 Galileo Resources PLC                  Tel [phone] 
  Colin Bird, Chairman 
 Andrew Sarosi, Executive               Tel [phone] 
  Director 
 Beaumont Cornish Limited               Tel [phone] 
  - Nomad 
  Roland Cornish/James Biddle 
  Beaumont Cornish ted - 
  Nomad 
  Roland Cornish/James Biddle 
 Beaufort Securities Limited - Broker   Tel [phone] 
  Jon Belliss 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 22, 2016 07:40 ET (11:40 GMT)