Galileo Resources PLC Star Zinc Drilling Results (4619G)

TIDMGLR

RNS Number : 4619G

Galileo Resources PLC

02 March 2018

For immediate release

2 March 2018

Galileo Resources Plc

("Galileo" or "the Company")

Star Zinc Drilling Results

Galileo is pleased to announce positive results from three of its first four drill holes on its current drilling programme at its Zambian Star Zinc project ("Star Zinc"), in which the Company has an 85% interest.

Highlights

-- More than 1,100 metres (m) of diamond core drilling (24 holes) completed to date on Star Zinc to depths of up to 80m

-- Drilling results for three of the first four drill holes showed significant intersections of extremely high-grade zinc over good down-hole lengths from surface (see table 1).

-- Hole 002 showed a weighted average assay of 38.15% Zn over 16m (downhole), Hole 004 showed 25.12% Zn over 6m and Hole 6 showed 20.12% Zn over 20m (all 0.4% Zn cut off)

-- Significant germanium (Ge) values, up to 63 ppm (g/t) Ge associated with high grade Zn mineralisation, and silver (Ag) recorded in intersections of: Germanium has been trading at over $2000/kg ($2/g) (28 February

2018 source   http://www.kitco.com/strategic-metals/) 

-- Now drilling in eastern ore body and strike continuation evident with mineralisation, subject to independent assay: 11m downhole @ 13% Zn and 9m @ 11% Zn in two holes(a)

-- Strike length of high-grade mineralisation increased by further 30m in the eastern ore body to estimated aggregate 220m length (W-E) and width between 50 m (West) and 90m (East)

-- Mineralisation remains open to the east and several other peripheral and outlying geophysical and geochemical anomalies remati be explored in untested

-- Internal rock mass calculations indicate that the resource tonnage could exceed that historically reported

(a) average of regular spaced 3 point readings over the mineralised intersection . Whole length core samples are submitted for independent assay by Intertek Genalysis Laboratory Services

Colin Bird, Chief Executive Officer, said: "We are very pleased with these drilling results. This drilling program has yielded very high value zinc assay intersections with significant germanium and silver The presence of germanium and silver constitutes potentially valuable by-products and possible revenue. Once we have fully modelled the programme data, we will embark on another programme to explore other anomailes in the area using ground geophysics as our guide. This ore body shows the potential for significant quantities of high grade willemite zine mineralisation; a postulated feeder source for this mineralisation could be sulphides and we will be seeking external expert advice to assist to locate this possible source."

Table 1 Drilling results for boreholes drilled in the ore body (b)

 
      Hole            From           To       Intersection       Zn       Ge (germanium)      Ag 
      ID SZD 
                    (downhole)    (downhole     downhole       (zinc)        weighted       (silver) 
                        m             m             m         (weighted        ave.         weighted 
                                                                 ave.                         ave. 
                                                                  %             ppm           ppm 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
 002                   0.0          46.0          47.0         15.61            17            11 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
            Inc.       0.0          36.0          16.0         38.15           38 *           13 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
            Inc.      38.7          41.0          2.3          22.32            30            32 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
 
 004                    8           18.0          10.0         13.47           14.8           10 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
            Inc.       8.0          14.0          6.0          25.12           18.9           13 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
 
 006                  12.00         21.0          9.0          14.10           8.2            na 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
            Inc.      14.00         20.0          6.0          20.12           11.7           na 
----------------  ------------  -----------  -------------  -----------  ---------------  ---------- 
 

* the individual assays comprising the weighted average ranged from 17 to 63 ppm Ge

na = not assayed

(b) Analysis by Accredited Intertek Genalysis Laboratory Services: Zn and Ge by Peroxide fusion Afinish with ICP-OES/MS; Ag by 4-Acid digestion with MS. Analyses subject QA/QC quality assurance/checks

Table 2 - Result for Hole 5, which was drilled on the fringes of the ore body (b)

 
  Hole        From           To        Intersection       Zn       Ge (germanium)      Ag 
  ID SZD 
            (downhole)    (downhole)      length        (zinc)        weighted       (silver) 
                                         (downhole) 
                                                       (weighted        ave.         weighted 
                                                          ave.                         ave. 
                                             m             %             ppm           ppm 
                m             m 
--------  ------------  ------------  -------------  -----------  ---------------  ---------- 
 005           0.0          19.0           19.0          3.22           5.4            na 
--------  ------------  ------------  -------------  -----------  ---------------  ---------- 
 

na = not assayed

(b) 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 

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.

You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact:

 
 Galileo Resources PLC                  Tel [phone] 
  Colin Bird, Chairman                   4477 
  Andrew Sarosi, Executive               Tel [phone] 
  Director 
 
 Beaumont Cornish Limited               Tel [phone] 
  - Nomad                                3396 
  Roland Cornish/James Biddle 
 
 Beaufort Securities Limited - Broker   Tel [phone] 
  Jon Bellis/Elliot Hance                8416 
 

The Star Zinc Project

The Star Zinc 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 Star Zinc 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. 7 of 2008, which grants a Large Scale Prospecting Licence for a maximum of 7 years, governs the mineral tenement. Recent changes to the Act now provides for an initial 4 years with a furhter 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 Star Zinc Willemite project was mapped in the 1960s by several geologists of the Northern Rhodesia (now Zambia) Geological Survey.

At Star Zinc, two main fracture trends are present, one E - W, and another N - S. Both sets 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 nonsulphides includes a whole number of minerals, but the main economic phases present are Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn- Pb carbonates (smithsonite, cerussite), hydrated Zn- Pbcarbonates (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.

An independent competent person's report commissioned by BMR concluded. In summary, the Star Zinc project 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

Hematite reddish-black mineral consisting of ferric oxide. It is an important ore of iron.

   ICP-OES/MS       inductively coupled plasma  - optical emission spectrometery/mass spectrometery 

Karstic pertaining to landscape underlain by limestone (calcium carbonate), which has been eroded by dissolution, producing ridges, fissures and so on

   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

Supergene pertaining to processes or enrichment that occurs relatively near surface

   Willemite           zinc silicate ore mineral 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 02, 2018 02:00 ET (07:00 GMT)