Galileo Resources PLC Concordia Copper Project Update (3520U)

TIDMGLR

RNS Number : 3520U

Galileo Resources PLC

17 January 2017

For immediate release

17 January 2017

Galileo Resources Plc

("Galileo" or "the Company")

Concordia Copper Project - Consolidation of Geophysics Data

Galileo (AIM:GLR) is pleased to announce that is has now received the consultant's reports from both Geospec Instruments (Pty) Ltd ("GI") and Minxcon Consulting Ltd ("Minxcon") thereby consolidating all geophysics data generated during the Company's field and induced polarisation (IP) geophysics exploration programme in 2016 for the Concordia Copper Project (the "Concordia Project or "Concordia") in the Northern Cape Province of South Africa (previously referenced in 15 December 2016 announcement). Interpretation and 3D (three dimensional) wire frame modelling of the data has identified a number of shallow and deeper high-chargeability (a) zones in both Homeep and Shirley geological Trends, which will be used for the selection of drill targets, the focus of which will be to establish the relationship between the delineated geophysical signatures with underlying geology and to possible copper grades associated with these physical features.

Note (a) : Chargeability effects are frequently associated with the presence of disseminated sulphide mineralisation and therefore high-chargeability zones represent potential drill targets

Highlights

-- Initial consolidation report of all geophysics data for 2016 received for the Homeep and Shirley geologic Trends

-- Chargeability 3D model for Homeep East prospect in the Homeep Trend (Grid Block 1 of 3 in the Trend) correlates well with historic exploration drilling locations and mining activity (small area) although the best anomalies appear to be currently untested

-- Three of the best geophysics signatures (anomalies) in areas untested and hence provide prime targets for initial exploration drilling

-- Other high chargeable zones modelled and delineated in Block 1 are directly to the north, west and south of Homeep East mine with the south extension corresponding well with historic activity

-- Modelling of the Koeëlkop prospect (Grid Block2) using slightly different model parameter settings has placed the chargeable sources in relatively close proximity to historic metallic sulphide mineralisation intersections

-- Whyte's West prospect (Grid Block 3) produced the highest apparent chargeability values of the 3 Grid Blocks surveyed over the Homeep trend: chargeability values close to 30 mV/V

-- The most pronounced chargeable zones on Whyte's West, trend west-north- west (over 1.2km strike length open-ended) with an intersecting north-south zone (around 1km strike length)

-- Grid Block 1A in the Shirley Trend produced discreet chargeable bodies trending linearly north-south zone of more than 900m strike, that correlate again well with historic drilling locations. Grid Block 2 in the Shirley Trend detected significant chargeability anomalies over the south-western quadrant of the block. The anomalies are open-ended.

On the basis of these results, the Company expects to commence drilling in the first quarter of 2017.

   Colin Bird, CEO   commented: 

"These results are very pleasing, especially since only about 15% of the concession has been tested with IP geophysics. Of particular note is that the initial modelling of historical data pointed to potential new targets, the results for which have exceed our expectations: the high incidence of geophysical anomalies are of significant size with strong suggestion of the presence of sulphides. The geophysics shows the potential for near surface bodies and an increase in chargeability at deeper levels. This is particularly encouraging for Galileo, as most emerging copper producers are confined to either mining limited tonnage of high grade or bulk tonnage of low grade: Our results suggest we could be targeting a mix of the two and it is always beneficial to have a high-grade component in any bulk mining operation. The initial drill programme will be designed to establish a correlation of the geophysics with sulphides and attach potential copper grades to chargeability levels. I look forward to our drill test programme with the hope that we will advance to resource definition."

South African based Geospec Instruments - Geophysics Consultant commented: IP anomalism was detected on all the grids surveyed over the Homeep and Shirley Trends. Good correlation of chargeability with known sulphide intersections and/or historical drilling targets, as well as the presence of significant untested chargeability anomalies, indicate a region that is very prospective for potential copper mineralisation.

MINXCON - Geology Consultants commented: Minxcon is positive as regards the current finding of the 3D IP Survey conducted. A total of 13 possible high chargeability drilling targets have been identified on the Homeep Trend and another two on the Shirley Trend. Many of these targets appear in close proximity to historical mining and exploration activity, however at least 3 of these targets were not historically identified or tested. Areas of high chargeability appear to be closely associated with potential host rock outcrops, thus providing further support to the possibility of finding potential zones of disseminated sulphide mineralisation. At this point, drilling targets will have to be prioritised and test drilling conducted.

Images of the geophysics' signatures, and 3D-modelling results from both raw data and those generated from the inputs into datamine are available on Galileo's website.

Concordia Exploration: Background

Following a strategic joint review of Minxcon's independent assessment of exploration potential on 34 possible prospects on the Concordia Project, and their ranking in terms of prospectivity, the Company prioritised four main areas: the Homeep Trend, the Shirley Trend (including the Klondike Prospect) and the Henderson Prospect area for exploration activities, commencing with an Induced Polarity (IP) geophysical survey.

In September 2016, the Company selected GeoSpec Instruments (Pty) Ltd (from three bidders) for a 3-phase IP survey on Concordia: 1(st) Phase -the Homeep Trend; 2(nd) Phase - the Homeep/Shirley Trend and 3(rd) Phase - Shirley Trend and Henderson/Klondike prospects). The Company mandated Minxcon to manage the data base integration of this IP programme. The 1st Phase IP survey commenced 10 October 2016, and the 2(nd) Phase on 28 November 2016, which field work for the latter has now been completed.

The IP surveys on the first Homeep Trend area were announced 1 September 2016 and 30 November 2016: 3D (three dimension) modelling of the IP data identified bodies (zones) with high chargeability - in excess of 11 mV/V - in three contiguous sections across the Homeep Trend.

The modelling of Homeep East (announced 7 September 2016), a small part of the Homeep Trend of prospects, indicated the potential over a very small portion of strike of the overall Trend estimated at 942,435 tonnes grading 0.89% Cu at 0.2% Cu cut-off, thereby confirming the expected high grade of the Homeep prospect.

The Shirley Trend, the second of the current two phase geophysics programme on Concordia was selected for its long 7km-strike length, the occurrence of sporadic historic high copper values and a few clusters of historic drilling positions but for which the drilling data are missing.

The Department of Mineral Resources granted a renewal, for three years to 17 August 2019, of the Prospecting Right (PR) on Concordia to SHIP (Pty Ltd, the holder of the PR and the Company's partner in the project. Galileo to date has committed, to SHIP, 90% of the funds required for a 51% earn-in to Concordia.

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

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

Technical Glossary

"chargeability" a ratio of a secondary voltage V(s) induced by an observed (applied ) voltage, V(a) , applied by way of an electrode array and commonly expressed as millivolts (mv) per volt (V); this quantity is independent of topographic effects and of electrode geometry and is thus a good measure of induced polarisation.

"Induced polarity (IP) geophysics survey": - a geophysical imaging technique used to identify the electrical chargeability and resistivity of subsurface materials, such as sulphides in rocks

"mv/V":- millivolts per volt

This information is provided by RNS

The company news service from the London Stock Exchange

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January 17, 2017 04:39 ET (09:39 GMT)