Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Galileo Resources Plc LSE:GLR London Ordinary Share GB00B115T142 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.025 -2.7% 0.90 0.85 0.95 0.925 0.90 0.925 682,296 15:45:19
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 0.0 0.0 90.0 10

Galileo Resources PLC Option and JV over Shinganda Copper-Gold Project

07/12/2021 6:59am

UK Regulatory (RNS & others)


Galileo Resources (LSE:GLR)
Historical Stock Chart


From Jul 2021 to Jul 2022

Click Here for more Galileo Resources Charts.

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 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCDQLFBFLLBFBE

(END) Dow Jones Newswires

December 07, 2021 01:59 ET (06:59 GMT)

1 Year Galileo Resources Chart

1 Year Galileo Resources Chart

1 Month Galileo Resources Chart

1 Month Galileo Resources Chart
ADVFN Advertorial
Your Recent History
LSE
GLR
Galileo Re..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20220701 20:12:34