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| 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 | 2.22% | 1.15 | 1.10 | 1.20 | 1.175 | 1.125 | 1.125 | 3,014,759 | 14:18:18 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Offices-holdng Companies,nec | 289k | -1.47M | -0.0013 | -8.85 | 13.38M |
From Apr 2019 to Apr 2024
TIDMGLR
RNS Number : 8199J
Galileo Resources PLC
21 August 2019
For immediate release
21 August 2019
Galileo Resources Plc
("Galileo" or "the Company")
Star Zinc Issues JORC 2012 Technical Report and Inferred Resource Estimate
Further to Galileo's previous announcement 26 June 2019 on its completion of an initial inferred resource estimate for the Star Zinc Project (the "SZ Project") located near Lusaka, Zambia, it is pleased to announce the issue of the final Technical Report and Inferred Mineral Resource Estimation ("MRE ") prepared by Addison Mining Services ("AMS") in accordance with JORC 2012. This MRE report supports the previously reported initial findings of approximately 500,000 tonnes at 16% Zinc for 77,000 tonnes of contained metal above a cut-off grade of 2% Zinc. This includes approximately 340,000 tonnes at 21% Zinc for 72,000 tonnes of metal above a cut-off grade of 8%. The Company has a 95% beneficial interest in the Project and the Zambian government a 5% interest.
To view the MRE report with the illustrative diagrams and JORC code 2012 Table 1 please use the following link: https://www.galileoresources.com/
Highlights
-- Galileo completes the MRE in accordance with JORC 2012 for its Star Zinc project (Licence tenure 19653-HQ-LEL).
-- The MRE, using a preliminary open-pit optimisation method confirms a high grade hypogene Inferred zinc (Zn) resource with reasonable prospects of economic extraction of approximately 500,000 (net attributable 475,000) tonnes at 16% Zn for 77,000 (net attributable 73,150) tonnes of contained metal above a cut-off grade of 2% Zn. This includes approximately 340,000 tonnes at 21% Zn for 72,000 tonnes of metal above a cut-off grade of 8% Zn. (
-- The MRE containing a gross estimate of 77,000 tonnes of zinc metal, is suitable for potential direct shipping material for ROM to the zinc process/refinery (Sable) facility at Kabwe, located approximately 120km north of the Project.
-- The MRE model defines a clear boundary between a high-grade (>8% Zn) domain and a low-grade (<8% Zn) zone.
-- All of the high-grade resource, +8% Zn blocks, fall within the preliminary pit shell generated for the purpose of outlining resources with reasonable prospects of economic extraction.
-- Mineralised hypogene material outside of the preliminary pit shell remains an Exploration Target(a) estimated as being between approximately 85,000 and 180,000 tonnes with an estimated average grade of 3 to 5 % Zn.
-- Similarly, a portion of the mineralised near surface secondary supergene material remains an Exploration Target(a) estimated as being between approximately 13,000 and 77,000 tonnes with an estimated average grade of 3 to 5 % Zn.
-- The MRE will enable the Company to apply for a mining permit, and among other things undertake related economic and engineering studies for a shallow open-pit mining operation as a prerequisite to the application , finalise an off-take agreement for direct shipping ore and transfer the SZ licence to its subsidiary Enviro Processing Zambia Ltd from BMR Group plc's Zambian subsidiary Enviro Processing Ltd..
Colin Bird, Chief Executive Officer, said: "This Technical Report and JORC-compliant resource estimate confirms the company's publicly announced* presence of a high grade zinc component in the deposit suitable for direct shipping to Jubilee Metal Group plc's zinc process/ Sable refinery plant at Kabwe . The MRE clearly identifies an easy access near-surface mineable zone with a low stripping ratio of one to one. There will be no requirement for processing equipment other than possibly a mobile primary crusher. A low grade portion of the mineralised material remains an exploration target and may be amenable to preconcentrate/upgrade to about 10% Zn either as DSO or blending, pending further test work and method development.
The MRE will allow for a 6-year life-of-mine small scale operation to produce rock mass of only 5,500t/month containing 12,000 t zinc metal per year to Kabwe. While in-house attributable revenues are projected at about USD15 million annually at current price, the annual all in cost is projected not to exceed to USD2 million.
We intend to apply for a mining permit and to target mining to start as near as coincident with the start up of the Kabwe tailings project."
*Galileo RNS 14 November 2018
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
JORC (2012) Inferred Mineral Resource Estimate
Independent consulting group Addison Mining Services Ltd ("AMS) completed the mineral resource estimate. The Inferred estimate utilized data for all drill holes completed by Galileo with the final drillhole being completed on the 9th of December 2018. The final drillhole database used for estimation included 52 drill holes for 2220 m of drilling of which 1412 m were assayed over 1433 samples. All drill core was logged for geology, core recovery and rock quality designation.
The Company commissioned AMS to undertake the mineral resource estimate in May 2019.
Block Model
AMS has estimated an Inferred Resource of approximately 500,000 tonnes at 16% Zinc for 77,000 tonnes of contained metal above a cut-off grade of 2% Zinc. This includes approximately 340,000 tonnes at 21% Zinc for 72,000 tonnes of metal above a cut-off grade of 8%.
The estimated grade tonnage curves and tabulations for the in-pit material are shown in Table 1 and Figure 1 and Table 2 below. Material below a 2% Zn cut-off grade is not considered to have a reasonable prospect of economic extraction and is not considered part of the Resource.
The Inferred Resource block model ranges from surface to approximately 40 m below surface over a length of approximately 300 m from east to west and 20 to 100 m from north to south. Thickness is typically between 5 and 25 m.
Table 1: Summary of Resources by Status
Hot Features
Premium
Category Gross Net Attributable Operator
Tonnes Grade Contained Tonnes Grade Contained
(millions) (g/t) Metal (millions) (g/t) Metal
------------ ------- ---------- ------------ ------- ---------- ---------
Mineral resources
per asset
------------ ------- ---------- ------------ ------- ---------- ---------
Measured
------------ ------- ---------- ------------ ------- ---------- ---------
Indicated
------------ ------- ---------- ------------ ------- ---------- ---------
Inferred 500,000 16 77,000 475,000 16 73,150 Galileo
------------ ------- ---------- ------------ ------- ---------- ---------
Sub-total
------------ ------- ---------- ------------ ------- ---------- ---------
Total 500,000 16 77,000 475,000 16 73,150
------------ ------- ---------- ------------ ------- ---------- ---------
1. Mineral resources are reported using a 2% Zn cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.
2. Source: Mr J.N. Hogg, MSc. MAIG Principal Geologist for AMS, an independent Competent Person within the meaning of the JORC (2012) code and qualified person under the AIM guidance note for mining and oil & gas companies.
Figure 1: Star Zinc, estimated grade tonnage curves for material inside conceptual pit shell.
Table 2: Gross grade tonnage tables for material inside conceptual pit shell. Material below a cut-off grade of 2% is not considered to have a reasonable prospect of economic extraction and is not considered part of the Resource. See notes below for further explanation.
Star Zinc Gross Inferred Resource Grade Tonnage Table
Cut-off VOLUME TONNES DENSITY Av Zn Grade Contained Zn
grade % Metal
-------- -------- -------- ------------ -------------
15 73,000 250,000 3.5 24 61,000
-------- -------- -------- ------------ -------------
12 91,000 310,000 3.4 22 69,000
-------- -------- -------- ------------ -------------
10 98,000 330,000 3.4 22 72,000
-------- -------- -------- ------------ -------------
8 99,000 340,000 3.4 21 72,000
-------- -------- -------- ------------ -------------
7 100,000 340,000 3.4 21 72,000
-------- -------- -------- ------------ -------------
6 100,000 340,000 3.4 21 72,000
-------- -------- -------- ------------ -------------
5 100,000 340,000 3.4 21 72,000
-------- -------- -------- ------------ -------------
4 110,000 370,000 3.3 20 73,000
-------- -------- -------- ------------ -------------
3 120,000 400,000 3.3 19 75,000
-------- -------- -------- ------------ -------------
2 160,000 500,000 3.2 16 77,000
-------- -------- -------- ------------ -------------
1 170,000 540,000 3.1 14 78,000
-------- -------- -------- ------------ -------------
0 170,000 550,000 3.1 14 78,000
-------- -------- -------- ------------ -------------
1. All material is classified as Inferred Category. Numbers are rounded to reflect that fact that an estimate has been made, and as such totals may vary.
2. Zn grades are in situ grades, no estimation of reserves have been made, resources which are not reserves do not have demonstrated economic viability.
Parts of the hypogene Zn mineralised block model currently outside the preliminary pit shell remain as an exploration target, with potential for conversion to a resource with the application of ore sorting and upgrade methods pending detailed test work and consideration of cost versus yield.
In addition, small quantities of supergene Zn mineralised pisolitic cover and karst cavity infill material remain as an exploration target, pending further investigation into suitable recovery methods.
These quantities of currently 'sub-economic' mineralisation offer potential for further development, and a small incremental addition to resources.
Silver credits for Star Zinc have not been estimated nor reported as part of this study. Potential exists to add Ag resources and potential Ag credits to the Star Zinc resource block model.
(a) Potential grade of the Exploration Target presented in Table 3 and Table 4. Error! Reference source not found. is conceptual in nature: there is insufficient processing and ore sorting data to report as a Mineral Resource at this time. It is uncertain if further technical studies and exploration will result in the estimation of a Mineral Resource.
Table 3: Summary of Hypogene Exploration Target estimated at above 2% Zn
CASE VOLUME TONNES DENSITY Zn% Zn Metal Tonnes
Conservative 30,000 85,000 2.9 3 to 5 2,900 to 3,900
------- -------- -------- ------- ----------------
Pragmatic 63,000 180,000 2.9 3 to 5 6,100 to 8,300
------- -------- -------- ------- ----------------
Table 4: Summary of Secondary Supergene Exploration Target estimated at above 2% Zn
CASE VOLUME TONNES DENSITY Zn% Zn Metal Tonnes
Conservative 4,600 13,000 2.9 3 to 5 400 to 600
------- ------- -------- ------- ----------------
Pragmatic 27,000 77,000 2.9 3 to 5 2,100 to 3,400
------- ------- -------- ------- ----------------
Summary of resource estimate and reporting criteria
In accordance AIM Guidance Note 16 and the JORC (2012) reporting guidelines, a summary of the material information used to estimate the Mineral Resource is set out below (for further detail please refer to the Appendix to this announcement).
Geology and geological interpretation
The Star Zinc deposit is hosted within metasedimentary rocks of the late Proterozoic Zambezi Supracrustal sequence (the Cheta and Lusaka Formations), consisting of upper greenschist facies limestones and dolostones marbles with quartz-muscovite schists and feldspathic quartzites. The succession in the Star Zinc pit consists of recrystallized limestone overlain by metamorphosed slatey limestone and then by coarse marbles overlain by hematite rich dolomite.
A broad dome is the main structural feature, with two main fracture trends present, one broadly N-S (typically dipping approximately 70deg to the east) and one broadly E-W (typically dipping approximately 70deg to the south), both irregularly mineralised.
Alteration and Mineralisation
Visual examination of carbonate host rocks in drill core suggests there is likely to have been a number of carbonate alteration events. However, hypogene zinc (with hematite and calcite) mineralisation appears to be linked with pervasive ferroan carbonate and dolomitic alteration events which largely overprint the carbonate country rocks. This generally becomes less intensive as the grade and thickness of the zinc mineralisation decreases. Argillites are also highly dolomitized in places. A late stage calcite flooding event observed as un-mineralised calcite veins and fractures (typically NW-SE trending with a 155deg orientation, dipping 65deg to the southwest) cross-cut all units.
Mineralisation at Star Zinc occurs in a variety of settings. A mineralized regolith (red soils, terra rossa) often overlies and forms infill on top of a highly irregular karstically weathered rock head morphology. The regolith is mainly comprised of a highly ferruginous pisolitic laterite soil which varies in depth from 0 to 12 m, with an average depth of approximately 5 m. Zinc values measured from soils in the vicinity of the pit can reach up to 1.56% Zn. The zinc mineralisation in this zone is predominantly comprised of hemimorphite, smithsonite and sauconite.
Erosion due to rain and ground water has also created fissures and underground cavities / voids at depth (usually in the top 20 m from surface). They range from 0.1 m to 5.0 m in drilled width and are often filled with clayey soil, lithic fragments, pisolitic laterite. The infill can often be highly mineralised with grades up to 45% Zn.
Hypogene willemite mineralisation is observed in many styles, broadly irregular, in parts tabular, including massive and semi-massive replacement zones, anastomosing, dilatational at the intersection of possible structures, in calcite-hematite-willemite veins and fractures and more brecciated zones.
Weathering
A regolith model was generated to separate supergene mineralisation types from hypogene mineralization. A base of weathering surface was also modelled, although no significant mineralization was intercepted in drilling within the weathered zone below the regolith.
Bulk density
Measurements were only completed on phase 1 diamond core which represents holes SZDD001 to SZDD026. Such measurements were carried out on 19 of the 26 holes spatially spread across the deposit, both to the west and east of the pit. Samples were collected for both mineralised and un-mineralised samples across a range of zinc grades determined by pXRF measurements and across all observed lithologies. A total of 261 samples were selected, typically ranging from 3 to 10 cm in length.
A strong positive correlation exists between bulk density and Zn laboratory assay grade. The linear regression line of Bulk Density vs Zn grade was used to calculate a bulk density value for each cell within the block model as follows:
-- Estimated Bulk Density = 2.75 + 0.03xZn%
Drilling techniques and hole spacing
Galileo has completed two phases of orientated diamond drilling at the Star Zinc deposit. During the period between December 2017 to and March 2018, a total of 26 holes were completed for 1198.80 metres. A second phase of diamond drilling was completed from August to October 2018 in which a further 26 holes were completed for 1022 metres.
A total of 52 diamond drill holes totalling 2,220.80 metres were used as the input database for geological modelling and resource estimation.
Drill core diameter was PQ and HQ.
Non-vertical holes were orientated on HQ core only typically at end of each 3 metre run using a Reflect ACT II RD rapid decent core orientation tool.
Drill sample data spacing across the current resource area ranges from approximately 20-25m centres within the most densely tested area towards the west, stepping out to approximately 30m centres to the east.
The distribution of drillholes, supported by surface and underground mapping, is sufficient to establish the degree of geological and grade continuity appropriate for a JORC (2012) Inferred classification of resources.
Sampling and sub-sampling techniques
Sampling was typically completed on a 1 metre basis, though sampling widths did vary based on the above considerations from approximately 0.5 to 1.5 metres. Approximately 3 to 5 metres either side of the zone of interest were sampled and submitted for assay as well as internal waste up to lengths of 5 metres. Once the sampling intervals had been determined, the section of core was sawn yielding a quarter length piece of core for analytical purposes and the remaining three-quarter piece retained for reference purposes.
All core samples were submitted to Intertek Genalysis laboratories, with sample preparation based in Kitwe, Zambia and analysis in their laboratory in Maddington, Perth.
All samples are analysed for zinc, germanium, silver and vanadium. Zinc and germanium are determined by sodium peroxide fusion (zirconia crucibles) with ICP-OES/ICP-MS respectively. Silver and vanadium are determined via a four acid digest with ICP-MS.
Core Recoveries
For holes under the phase 1 programme (SZDD001 to SZDD026) the overall average recovery was 89%, whilst under the phase 2 programme (SZDD027 to SZDD052) the overall average recovery was 90%. Minimal core loss was exhibited, except generally within the top 20 metres of each hole, where average core recovery fell to 83%.
Reasonable Prospects for Economic Extraction and Cut-off grades
Galileo proposes to sell Run of Mine (ROM) material to the BRM PLC/Jubilee Metals Group Plc owned Sable zinc plant at the Kabwe Mine in Zambia. Kabwe is approximately 100 km to the North by the T2 paved road.
It is proposed by Galileo that Kabwe will pay a percentage rate of the market Zinc price per tonne of contained metal for material above a minimum 8% Zn. Although the minimum cut-off grade for a saleable product is 8% Zn, potential exists to blend mineralised material below this cut-off with higher grade material in order to maintain acceptable grades.
In order to identify material which has a reasonable prospect of economic extraction a preliminary pit optimisation to generate a basic ultimate pit shell was completed using the following key parameters;
-- Zinc price - 2700 $/t (LME 3 year trailing average to April 2019) -- Minimum block grade to be considered - 8% Zn -- Ore/Waste mining cost - 6 $/t -- Rehabilitation - 1 $/t -- Transport - 11 $/t -- Mining Dilution - 5% (Waste/Ore) -- Mining Recovery - 95% -- Pit Slopes - 45deg
The grade tonnage figures for all resource blocks within the resultant pit shell were then reported with mining dilution factors applied.
Mineralised blocks below the minimum 'Kabwe DSO' grade of 8% Zn which are mined to access optimised +8% Zn blocks being included as having potential value as blending material.
A minimum lower in pit cut-off grade of 2% Zn is identified as the threshold which maintains an average grade in excess of 15% Zn. It is anticipated that blending of material below 2% Zn has negligible impact on recoverable metal and would have a negative impact on potential revenue.
In order to establish the likely economic viability of the above mining approach AMS have estimated the profitability of the mining operation linked to a zinc leach-precipitation circuit. The report "Star Zinc Deposit - Conceptual Project Report", January 2015 by Scorpion Mineral Processing South Africa refers. The following key parameters are used:
-- Milling - 11 $/t ore -- Leaching - 125 $/t ore -- Precipitation - 640 $/t zinc produced -- 4y cost price inflation from 2015 - 10 % -- Process recovery - 91 % -- Zn precipitate - 60%
The treatment of 15% Zn grade material is shown to be profitable at a $2,700/t zinc price and therefore AMS considers the +15% Zn resource using a 2% cut-off within the pit shell to have a reasonable prospect of being economic.
Estimation methodology
AMS verified primary analytical data via cross reference against original lab certificates and the re-input of all assays for the project for use in geological modelling and estimation. The database for use as input for mineral resource modelling and estimation has also been validated and verified by AMS and the Competent Person. Micromine 3D geological modelling and estimation software was used for import, validation and QA/QC verification assessment, 3D solid modelling, geostatistics and block model grade interpolation estimation. Data checks include checks for overlapping and missing intervals, dh trace errors, missing survey data, lithology and collars.
All wireframe modelling was completed using implicit modelling. A surface wireframe of the base of the laterite and saprolite regolith horizon was generated and this model converted to a solid using the digital terrain model. Cavity areas were modelled as isolated volumes equal to the vertical thickness of the cavities with an approximate 5 m diameter. Two mineralized wireframes were generated to represent the low (>0.5% Zn) and high grade (>7% Zn) hypogene zinc domains.
Additional control strings and dynamic anisotropy were used to guide the shape and extents of the models and honour surface geological observations and legacy cross-sections.
Hypogene models were restricted to the Regolith and DTM and cavity areas removed. The high grade domain model was restricted so that it did not extend outside the low grade domain model.
Geological models were extrapolated up to 50m in places between drillholes, the model is reasonably well constrained by drilling at periphery, the base of the model is well constrained by drilling.
All assay values were assigned to their corresponding mineral domain and composited to 2 m with a minimum accepted length of 1 m, residual lengths were added to the previous interval, length multiplied by density weighted average values were calculated for Zn grade.
Top cutting was not applied as no outlying high grade values were identified.
Directional variography was completed on the low and high grade domains using the composite data, the median indicator semi-variograms were found to produce the clearest structure and model semi-variograms fitted to these experimental models. The tertiary axis did not produce a clear experimental semi-variogram in both cases and was given a nominal range of 5m. The same axis orientations were used for both domains
A Block model with the cell size 10 m x 10 m x 4 m was generated over the deposit area, based on the approximate 30 m drill spacing and stratigraphic nature of mineralization. The mineral domain wireframes were written to the block model and sub blocking applied to preserve volumes, the block model was restricted to the DTM.
The block model was interpolated on a domain by domain basis using Ordinary Kriging. A variable search geometry was used to follow the dip of the deposit where it steepens near to the historic open pit, elsewhere the geometry of the axis used in variography were applied.
Additional Kriging Parameters are as follows.
-- Interpolation was conducted at the parent block scale -- Discretization 5x5x2 -- Negative weights were not set to zero -- Maximum of 2 composite points per drillhole -- Single sector search ellipsoid -- Search Radius 50 x 50 x 10 m for axis 1, 2 and 3 respectively. -- Maximum of 8 composite samples per search.
Following kriging the bulk density was estimated for each cell in the block model based on the estimated Zn grade and application of the linear regression formula described above. Error! Reference source not found.
Classification criteria
The Star Zinc deposit defined by drilling has been classified as an Inferred Mineral Resource in accordance with the JORC Code (2012) guidelines based on a combination of drill spacing, geological confidence, grade continuity, previous mining and the quality control standards achieved.
Mining and metallurgical methods and parameters
Based on the orientations, thickness and depths to which the ore body has been modelled, as well as the estimated grade, open pit mining is the intended mining methodology. Current anticipated processing route is the sale of ROM to the Sable Zinc Kabwe zinc plant.
Competent Person's statement
The Star Zinc resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist for AMS, an independent Competent Person within the meaning of the JORC (2012) code and qualified person under the AIM guidance note for mining and oil & gas companies. The resource estimate was aided by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under the guidance of the competent person. Mr Hogg has reviewed and verified the technical information that forms the basis of, and has been used in the preparation of, the updated mineral resource estimate and this announcement, including all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears. Mr Hogg has also reviewed and approved the technical information in his capacity as a qualified person under the AIM Rules for Companies.
Additionally, Mr Hogg confirms that the entity is not aware of any new information or data that materially affects the information contained within the Company's previous announcements referred to herein.
Forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement
For further information on the Company, please visit www.galileoresources.com or contact:
Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628 3396
Roland Cornish/James Biddle
--------------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
--------------------------
Shard Capital Partners LLP - Joint Tel +44 (0) 20 7186 9952
Broker
Damon Heath
--------------------------
You can also follow Galileo on Twitter: @GalileoResource
Glossary of technical terms:
"Ag" silver;
"DSO" direct shipping ore;
"facies" observable attribute or attributes of a rock or
stratigraphic unit,
"g" grammes;
"g/t" grammes per tonne;
"hypogene" occurrence deep below the earth's surface,
"Inferred Resource" that part of a Mineral Resource for which quantity
and grade (or quality) are estimated on the basis
of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify
geological and grade (or quality) continuity. It
is based on exploration, sampling and testing information
gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and
drill holes;
"JORC" the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, as
published by the Joint Ore Reserves Committee of
The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals
Council of Australia;
"JORC (2012)" the 2012 edition of the JORC code;
"m" metre;
"Mineral Resource" a concentration or occurrence of material of economic
interest in or on the earth's crust in such form
and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The
location, quantity, grade, continuity, and other
geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence
and knowledge, or interpreted from a well-constrained
and portrayed geological model;
"Mt" million tonnes;
"oz" troy ounce;
"Pb" lead;
"proterozoic" geological eon spanning the time from the appearance
of oxygen in Earth's atmosphere
"pXRF" portable x-ray fluorescence
"QA/QC" quality assurance/quality control;
"quartz-muscovite a foliated metamorphic rock (schist) composed essentially
schist" of quartz and mica,
"supergene" occurrence relatively near the surface as opposed
to deep hypogene processes;
"Supracrustal"
on existing basement rocks of the earth's crust;
"Zn" zinc.
JORC 2012 Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * A total of 52 diamond drill holes completed 2220.8 m
random chips, or specific specialised industry of drilling. Exploration was managed by GeoQuest Ltd
standard measurement tools appropriate to the of Lusaka, Zambia on behalf of Galileo Resources PLC.
minerals under investigation, such as down hole gamma Sampling was selective, undertaken typically on 1 m
sondes, or handheld XRF instruments, etc). These quarter core basis obtained from PQ and HQ drilling,
examples should not be taken as limiting the broad honouring lithological and mineralisation boundaries.
meaning of sampling. Minimum and maximum sample lengths varied from 0.30 -
1.50 m for all holes drilled. Typical sample weights
of 1.5 to 3 kg were obtained per sample.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * Measures were in place to prevent sampling errors and
ensuring correct metre delineation by the drilling
company.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* Hand held portable XRF measurements were used as an
aid in the selection of intervals for assaying and to
* In cases where 'industry standard' work has been done assist in programme planning. These results will not
this would be relatively simple (e.g. 'reverse be used for resource estimation.
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fMRE assay'). In other cases more * All samples were analysed by Intertek Genalysis in
explanation may be requMREd, such as where there is Perth, Australia. Sample preparation was completed by
coarse gold that has inherent sampling problems. Intertek Genalysis dedicated sample preparation
Unusual commodities or mineralisation types (e.g. facility in Kitwe, Zambia. All samples were dried,
submarine nodules) may warrant disclosure of detailed crushed to 2 mm, with pulverization up to 1.2 kg.
information. Method code SP12 & SP67. A subset of pulverised
material is dispatched via air freight to Perth,
Australia to the analytical laboratory. For analysis,
all samples were analysed for Zn, Ge, V and Ag. Zinc
is determined by sodium peroxide fusion (Zirconia
crucibles) with ICP-OES determination. Germanium is
similarly analysed, though using ICP-MS. Silver and
Vanadium are determined via a four acid digest with
ICP-MS. Method codes are FP1/MS, FP1/OES & 4AO/OE.
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * All holes are core holes, collared to typically 9-15
hammer, rotary air blast, auger, Bangka, sonic, etc) m using PQ (85 mm diameter), with HQ (63.5 mm) to the
and details (e.g. core diameter, triple or standard end of hole.
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc). * Holes are typically inclined ranging from -50 to -90
degrees with a variety of azimuths due to site access
conditions. As such, geological and mineralisation
intersections were not necessarily perpendicular.
* Inclined holes were orientated (HQ size only) using a
REFLEX ACT II RD Rapid Decent Core Orientation Tool
at the end of each run (3 m).
Drill
sample * Method of recording and assessing core and chip * Core recovery was assessed through the routine
recovery sample recoveries and results assessed. collection of basic geotechnical parameters (recovery
etc.) to assess core length drilled v core length
recovered on a run basis. Total core recovery over
* Measures taken to maximise sample recovery and ensure the 52 holes is approximately 89-90%, with individual
representative nature of the samples. holes reporting from 69-100%. Core loss was most
prevalent within the top 20 m of holes where poor
core recovery was associated with unconsolidated
* Whether a relationship exists between sample recovery laterites and karstic terrain.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material. * Cavity zones are logged accordingly, mineralised
material within cavity zones is sampled independently
of surrounding material.
* The available information suggests that the there is
no systematic bias due to sample loss.
Logging
* Whether core and chip samples have been geologically * Core was logged for multiple attributes at the
and geotechnically logged to a level of detail to exploration camp and reviewed against surrounding
support appropriate Mineral Resource estimation, diamond drill holes for conformity purposes.
mining studies and metallurgical studies. Lithological, structural, alteration, mineralisation
styles and geotechnical parameters were collected for
every hole. Downhole data is plotted on section &
* Whether logging is qualitative or quantitative in plan and viewed in a 3D environment to assess the
nature. Core (or costean, channel, etc) photography. validity and continuity of logged geological
attributes.
* The total length and percentage of the relevant
intersections logged. * Core was photographed on a tray by tray basis, both
wet and dry for whole core.
* Geological logging is qualitative in nature and in
sufficient detail to support exploration activities
and appropriate Mineral Resource estimation.
* All recovered material was logged.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Core was cut using a core saw, with quarter core
and sample half or all core taken. submitted for laboratory analysis. The remaining 3/4
preparation core is retained in the trays for library purposes.
Approximately 3 m either side of the zone of interest
* If non-core, whether riffled, tube sampled, rotary were also submitted for analysis.
split, etc and whether sampled wet or dry.
* N/A
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* Coarse blanks were inserted into the sample stream at
a frequency of 2.5% to assess any cross contamination
* Quality control procedures adopted for all at the laboratory. No issues of a significant nature
sub-sampling stages to maximise representivity of are present.
samples.
* Sample preparation techniques were completed by a
* Measures taken to ensure that the sampling is commercial laboratory, though laboratory preparation
representative of the in situ material collected, processes have not been audited or reviewed and that
including for instance results for field full implementation of laboratory standard operating
duplicate/second-half sampling. procedures has not been verified.
* Whether sample sizes are appropriate to the grain * No core field duplicates / second-half sampling has
size of the material being sampled. been completed to date. No pulp duplicates have been
completed to date.
* Sample size are considered suitable for the type of
material and grade variability.
Quality
of assay * The nature, quality and appropriateness of the * All samples were analysed by Intertek Genalysis in
data and assaying and laboratory procedures used and whether Perth, Australia
laboratory the technique is considered partial or total.
tests
* For analysis, all samples were analysed for Zn, Ge, V
* For geophysical tools, spectrometers, handheld XRF and Ag. Zinc is determined by sodium peroxide fusion
instruments, etc, the parameters used in determining (Zirconia crucibles) with ICP-OES determination.
the analysis including instrument make and model, Germanium is similarly analysed, though using ICP-MS.
reading times, calibrations factors applied and their Silver and Zinc are determined via a four acid digest
derivation, etc. with ICP-MS. The techniques are considered total.
Discussion with the laboratory prior to contract
award as well as external expert 3rd party input were
* Nature of quality control procedures adopted (e.g. used to ensure the correct analytical technique for
standards, blanks, duplicates, external laboratory zinc was selected which could accommodate grades up
checks) and whether acceptable levels of accuracy to 50% Zn with consideration to the style and nature
(i.e. lack of bias) and precision have been of mineralisation.
established.
* Hand held portable XRF measurements were used as an
aid in the selection of intervals for assaying and to
assist in programme planning. These results will not
be used for resource estimation.
* Quality control procedures include certified
reference material with grades relevant to the grade
of mineralisation, certified barren material and
coarse blanks. No pulp duplicates or umpMRE
determinations have been completed to date. Quality
control material is inserted at a frequency of 5%.
* Acceptable levels of accuracy and precision are
observed with reference to internal error bars of 3
standard deviations and/or 5% error gates from the
certified value.
* No external checks have been completed at this stage,
though it is highly recommended that either
laboratory and/or external duplicate repeat and
umpMRE determinations are completed as well as
titrations on a suite of high grade zinc samples.
Verification
of sampling * The verification of significant intersections by * Addison Mining Services have independently verified
and assaying either independent or alternative company personnel. the significant intersections reported for the holes
detailed in this report.
* The use of twinned holes.
* No twin holes have been drilled.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and * Sample intervals, collar parameters and geological
electronic) protocols. logs are recorded onto logging sheets where
appropriate and entered into computers. Such logs are
verified in Micromine software before being loaded
* Discuss any adjustment to assay data. into a relational Access database, with received
laboratory assay files.
* Database and geological staff validate database
entries with reference to the original data.
* Data verification includes comparing analytical
results with downhole geology, reviewing assay
results from surrounding holes, checks for internal
consistency, checks on collar positions and downhole
survey details as well as checks on geological
entries. No significant discrepancies are noted.
Physical data is stored securely, whilst digital data
is stored in a relational Access database, suitably
backed up.
* No adjustments have been made to the assay data.
Location
of data * Accuracy and quality of surveys used to locate drill * 100% of core holes have been surveyed using a hand
points holes (collar and down-hole surveys), trenches, mine held GPS unit with approximate accuracy of +/-5m. A
workings and other locations used in Mineral Resource survey of drill hole collars using a differential GPS
estimation. has not yet been undertaken. A historically mined pit
,
although previously surveyed; for which the survey
* Specification of the grid system used. parameters are unknown and is yet to be re-surveyed
using a differential GPS system. Downhole surveys
were completed for all holes at 20 m intervals,
* Quality and adequacy of topographic control. though as the majority of holes are short (
* All surveying was undertaken in UTM Zone 35 South ARC
1950 map datum.
* Topographic control is by a hand held GPS unit
through the surveying of drilled drill holes. No
topographic survey has been completed with a
differential GPS system.
Data spacing
and * Data spacing for reporting of Exploration Results. * Surface drill hole spacing varies from 30m to 100 m
distribution for completed holes. Downhole surveys were completed
for all holes at 20 m intervals, though as the
* Whether the data spacing and distribution is majority of holes are short (
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and * The data spacing has established geological
classifications applied. continuity sufficient for an Inferred mineral
resource estimate.
* Whether sample compositing has been applied.
* No physical sample compositing was completed.
Analytical data compositing was performed as part of
the estimation process for the purpose of model
generation and grade interpolation.
Orientation
of data * Whether the orientation of sampling achieves unbiased * The underlying geology is broadly shallowly dipping
in relation sampling of possible structures and the extent to to the west and east, the mineralised package
to which this is known, considering the deposit type. demonstrating a similar trend. Drilling predominately
geological has been targeting across strike, with drill holes
structure inclined from -90 to -50 degrees at a variety of
* If the relationship between the drilling orientation azimuths due to site access constraints. Due to the
and the orientation of key mineralised structures is constraints of the mineralisation and site access
considered to have introduced a sampling bias, this issues, not all holes intersected mineralisation /
should be assessed and reported if material. structures perpendicular to the drill hole, typically
resulting in longer than 'true-width' intersections.
Approximate true width of mineralised intervals are
presented in results tables.
Sample
security * The measures taken to ensure sample security. * All sampling was managed by GeoQuest Ltd. Samples for
assaying were collected, checked and sealed and
placed in heavy duty polyweave sacks which were
sealed. The bagged samples were then transported by a
GeoQuest Ltd vehicle with employee directly from
Lusaka to Intertek Genalysis in Kitwe. No third
parties were permitted unsupervised access to the
samples before delivery to the laboratory.
Confirmation was received from the laboratory on
receipt as well as any details of potential tampering
- of which none was observed or reported. The Chain
of Custody is considered unbroken.
Audits
or reviews * The results of any audits or reviews of sampling * No external audits have been completed.
techniques and data.
* Data reviews and validations have been completed
internally. Quality control data is reviewed and
where issues present, the laboratory asked to
comment. Internal reviews of sampling techniques have
been completed, including the observation of drilling
and sampling techniques. No significant issues have
been identified.
============= =============================================================== =================================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral
tenement * Type, reference name/number, location and ownership * The Star Zinc deposit lies within valid exploration
and land including agreements or material issues with third licence 19653-HQ-LEL. The licence was renewed for a
tenure status parties such as joint ventures, partnerships, further 3 years in August 2018. Galileo Resources Plc,
overriding royalties, native title interests, has a beneficial interest in the licence of 95%
historical sites, wilderness or national park and though the licence remains in the name of Enviro
environmental settings. Processing Ltd. The licence does not sit within in
any National Park, Game Management Area or Forest
Reserve. The deposit sits within a peri-urban area
* The security of the tenure held at the time of comprised of residential and small scale farming with
reporting along with any known impediments to external development pressures emanating from the
obtaining a licence to operate in the area. growth and expansion of the city of Lusaka.
* Permissions to operate as required in the area have
been obtained. Dialogue continues with regard to
surface rights owners.
Exploration
done by * Acknowledgment and appraisal of exploration by other * Initial exploration activities were completed in the
other parties parties. 1960's at the Star Zinc deposit by Chartered
Exploration which concluded with the drilling of
upwards of 59 vertical diamond holes on a 50m x 50 m
pattern for 2,578.5 m. Other activities included
geological mapping, soil geochemical surveys, pitting
and ground geophysics (magnetics, gravity and
electromagnetics). The drilling data has proven to be
a useful guide to aid in exploration activities, but
significant constraints on the data preclude its use
in estimation.
* Avmin Development Zambia Ltd completed geological
mapping, soil sampling, rock chip sampling, ground
gravity and targeting exercises over Star Zinc in
2003, but due to a historical tenure issue at the
time, pulled out without completing any drilling
activities.
Geology
* Deposit type, geological setting and style of * The Star Zinc deposit can be referred to as a High
mineralisation. Grade Structurally Controlled Willemite Deposit, the
bulk of the deposit represented as hypogene willemite
mineralisation, with relatively minor supergene
mineralisation.
* The local geology of Star Zinc is complex and forms a
varied sequence of argillite, limestone, massive
willemite ore, massive limestone and dolomites (Cheta
and Lusaka Formations). The stratigraphic succession
in the Star Zinc pit consists of limestone overlain
by metamorphosed slaty limestone, by coarse marbles
and overlain by hematite rich dolomite. A broad dome
(west-east) is the main feature structurally of Star
Zinc.
* Mineralisation is present as replacement high grade
lenses or bands of willemite (franklinite and
gahnite) with lower grade lenses of hematite and
willemite. Steeply dipping willemite veins /
fractures have been mapped throughout the pit, either
east-west dipping south, or sub-vertical north-south.
Mineralisation is irregular, in parts tabular,
anastomosing, replacement, dilatational at the
intersection of possible structures and in
calcite-hematite-willemite veins and associated with
more brecciated zones.
* Karst fill deposits and saprolitic / pisolitic soil
are locally highly mineralized with grades up to and
over 20 %, principally to the south of the pit,
untested and not evaluated by historical drilling.
Drill hole
Information * A summary of all information material to the * Provided in Section 10 of the accompanying AMS Star
understanding of the exploration results including a Zinc JORC 2012 report.
tabulation of the following information for all
Material drill holes:
o easting and northing
of the drill hole collar
o elevation or RL (Reduced
Level - elevation above
sea level in metres)
of the drill hole collar
o dip and azimuth of
the hole
o down hole length and
interception depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * Drilling data intersections reported in this report
methods techniques, maximum and/or minimum grade truncations are nominally reported with a cut-off grade of 0.4%
(e.g. cutting of high grades) and cut-off grades are and 10% zinc with no high grade cut-off. A maximum of
usually Material and should be stated. 3 m of internal waste is allowed.
* Where aggregate intercepts incorporate short lengths * Reported results do not include equivalent values.
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship
between * These relationships are particularly important in the * Due to the constraints of the mineralisation and site
mineralisation reporting of Exploration Results. access issues, not all holes intersected
widths and mineralisation / structures perpendicular to the
intercept drill hole, resulting in longer than 'true-width'
lengths * If the geometry of the mineralisation with respect to intersections. Holes were drilled at a variety of
the drill hole angle is known, its nature should be azimuths, with inclinations ranging from -50 to -90
reported. degrees.
* If it is not known and only the down hole lengths are * Due to the relatively flat lying nature of the
reported, there should be a clear statement to this deposit, true thicknesses vary approximately 0-20% of
effect (e.g. 'down hole length, true width not the drilled interval thickness.
known').
Diagrams
* Appropriate maps and sections (with scales) and * Appropriate scaled diagrams are included within the
tabulations of intercepts should be included for any AMS Star Zinc JORC (2012) Resource Statement and
significant discovery being reported. These should Technical Report.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * All available exploration data for the Star Zinc
Results is not practicable, representative reporting deposit area has been collected and reported.
of both low and high grades and/or widths should be Representative data from all drillings have been
practiced to avoid misleading reporting of reported.
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Open pit mapping. Geological observations. Ground
exploration should be reported including (but not limited to): gravity survey re-processing and interpretation.
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further
work * The nature and scale of planned further work (e.g. * Prior to the completion of any updates to mineral
tests for lateral extensions or depth extensions or resource estimates and conceptual mining studies
large-scale step-out drilling). which may be reported in compliance with JORC 2012
and CRIRSCO aligned reporting code, the following
recommendations are made:
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided * DGPS final collar positions for Phase I and Phase II
this information is not commercially sensitive. diamond collars
* Topographic survey (spot heights) for the general
area - needn't be more than 10-20 spot pick-ups at
this stage across the current extents of
mineralisation to verify/correct topography,
compliment the DGPS DH collar data and pit survey
data to re-build the topographical DTM.
* Verification of the pit shell - via a couple of N-S
and W-E detailed DGPS profiles across the pit to
assess the accuracy of the current shape as well as
the pit perimeter
* Subject to the results of the pit surveying, further
surveying may be requMREd
* Surveying of the western and eastern pit wall/floor
interfaces where mineralisation is observed.
* Complete detailed geological and fault interpretation
to improve geological models and to identify
potential areas for further step out drilling.
* Selective re-analysis of mineralised samples across a
variety of grade ranges by Titration method to check
for analytical bias.
* Consider a review of Phase 1 and 2 logging to ensure
consistency and to better identify the high grade
willemite zone.
* Collect additional bulk density data from Phase 2
drilling across a range of grades and lithologies to
improve spatial spread of bulk density data.
* Review of QA/QC and Standard Operating Procedures.
* Competent Persons site visits.
* Additional drilling around the existing pit area,
open fringes of the deposit and in areas were data
density is low, it is acknowledged lack of drilling
in these areas has largely been due to access issues.
* Commencement of ore sorting and upgrading
methodologies, technologies and test work for current
likely sub-economic grades of material.
* Open pit Conceptual Scoping Study and Preliminary
Economic Analysis.
* Commence with a formal and comprehensive
Environmental Impact Assessment and Resettlement &
Compensation Action Plan will be requMREd with
extensive stakeholder engagement to facilitate mining
operations, including interaction with the Zambian
Roads Development Agency and ZESCO, the Zambian state
owned power company with regard to the likely
relocation of the road and electrical distribution
infrastructure.
=============== =============================================================== ==================================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database
integrity * Measures taken to ensure that data has not been * Initial data collection was completed in MS Excel,
corrupted by, for example, transcription or keyi visual inspections for errors were completed before
ng import into Micromine for drillhole validation to
errors, between its initial collection and its u check for issues such as overlapping intervals,
se missing intervals and intervals beyond hole depth.
for Mineral Resource estimation purposes. The validated data was then passed to MS Access to
form the master database.
* Data validation procedures used.
* All lab assay data was imported into the access
database and paMREd with sample data by sample ID
query.
* The final database was again validated in Micromine
for overlapping intervals, intervals beyond hole
depth, non consecutive intervals, missing intervals
etc. A visual inspection of drillhole locations was
completed.
Site visits
* Comment on any site visits undertaken by the * No site visit by the competent person has taken place
Competent Person and the outcome of those visits. due to budgetary constraints.
* If no site visits have been undertaken indicate why * The competent person has relied on information
this is the case. provided by GeoQuest, the independent exploration
contractor. All of this information has been reviewed
and accepted by the competent person.
* The anticipated maximum mineral resource category
before commencing the study was inferred due to non
differential GPS collar survey and poor resolution
DTM. A site visit is anticipated following completion
of this work and to allow classification of resources
greater than Inferred category.
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Reasonable understanding of geology and morphology of
geological interpretation of the mineral deposit. mineralization. Further work requMREd to better model
outcrop and sub crop of mineralisation in historic
pit area. Faulting identified but poorly understood
* Nature of the data used and of any assumptions made. at this time. Some faults may constrain the bounds of
the mineralisation and offset it vertically in
places.
* The effect, if any, of alternative interpretations on
Mineral Resource estimation.
* Greatest uncertainty around historic open pit area
where quantitative information is lacking, faulting
* The use of geology in guiding and controlling Mineral and mineralisation dip may effect interpretation and
Resource estimation. volume.
* The factors affecting continuity both of grade and * Geology was used to separate the hypogene
geology. mineralisation from the supergene mineralisation.
Only hypogene mineralisation is reported as part of
the resource at this time.
Dimensions
* The extent and variability of the Mineral Resource * Resource block model ranges from surface to
expressed as length (along strike or otherwise), plan approximately 40 m below surface over a length of
width, and depth below surface to the upper and lower approximately 300 m from east to west and 20 to 100 m
limits of the Mineral Resource. from north to south. Thickness is typically between 5
and 25 m.
Estimation
and modelling * The nature and appropriateness of the estimation * A detailed explanation of the estimation and
techniques technique(s) applied and key assumptions, including modelling techniques is given in Section 14 of the
treatment of extreme grade values, domaining, technical report relating to this resource estimate.
interpolation parameters and maximum distance of It is not practical to describe all aspects of the
extrapolation from data points. If a computer estimation in JORC Table 1.
assisted estimation method was chosen include a
description of computer software and parameters used.
* Estimation was completed using block modelling and
ordinary kriging, these methods are considered
* The availability of check estimates, previous appropriate. No top cutting was applied but a high
estimates and/or mine production records and whether grade domain was used with hard boundary to constrain
the Mineral Resource estimate takes appropriate the high grade values and prevent smoothing into low
account of such data. grade area.
* The assumptions made regarding recovery of * Micromine 2018 software was used.
by-products.
* A Block model with the cell size 10 m x 10 m x 4 m
* Estimation of deleterious elements or other non-grade was generated over the deposit area and restricted to
variables of economic significance (e.g. sulphur for wMREframe models. Cell size based on the approximate
acid mine drainage characterisation). 30 m drill spacing and stratigraphic nature of
mineralization. Sub blocking was applied to better
fit wMREframe models.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed. * A variable search geometry was used to follow the dip
of the deposit where it steepens near to the historic
open pit, elsewhere the geometry of the axis used in
* Any assumptions behind modelling of selective mining variography were applied. Additional Kriging
units. Parameters are as follows.
* Any assumptions about correlation between variables. * Interpolation was conducted at the parent block scale
* Description of how the geological interpretation was * Discretization 5x5x2
used to control the resource estimates.
* Negative weights were not set to zero
* Discussion of basis for using or not using grade
cutting or capping.
* Maximum of 2 composite points per drillhole
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and * Single sector search ellipsoid
use of reconciliation data if available.
* Search Radius 50 x 50 x 10 m for axis 1, 2 and 3
respectively.
* Maximum of 8 composite samples per search.
* A univariate estimate was completed
* No mine production data exists to use for validation
* Geology was used to separate the hypogene
mineralisation from the supergene mineralization.
Only hypogene mineralisation is reported as part of
the resource at this time.
* The model was validated by visual inspection of input
and output data as well as statistical validation
using boundary analysis and declustered mean
comparison.
Moisture
* Whether the tonnages are estimated on a dry basis or * Bulk density is based on dry values
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * See section 14.9 of the technical report for a
parameters applied. detailed explanation.
* Galileo proposes to sell Run of Mine (ROM) material
to the BRM PLC owned Kabwe Mine in Zambia. Kabwe is
approximately 100 km to the North by the T2 paved
road.
* At a cut-off grade of 2% the average Zinc grade is in
excess of 15%. it is anticipated that blending of
material below 2% Zn would have a negative impact on
potential revenue.
* A preliminary pit optimization was completed, blocks
falling in the pit shell were considered for
classification as resources.
* 2% Zn was selected as the cut-off grade for reporting
of material within the conceptual pit which had a
reasonable prospect of economic extract.
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Open pit mining is assumes as the most likely method
minimum mining dimensions and internal (or, if of extraction.
applicable, external) mining dilution. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic extraction * In order to identify material which has a reasonable
to consider potential mining methods, but the prospect of economic extraction under the above
assumptions made regarding mining methods and selling conditions a preliminary pit optimisation was
parameters when estimating Mineral Resources may not completed using the above selling prices and the
always be rigorous. Where this is the case, this following key parameters;
should be reported with an explanation of the basis
of the mining assumptions made.
* Zinc price - 2700 $/t (LME 3 year trailing average to
April 2019)
* Ore/Waste mining cost - 6 $/t
* Rehabilitation - 1 $/t
* Transport - 11 $/t
* Mining Dilution - 5% (Waste/Ore)
* Mining Recovery - 95%
* Pit Slopes - 45deg
Metallurgical
factors * The basis for assumptions or predictions regarding * A direct sale of ROM material to the Sable zinc plant
or assumptions metallurgical amenability. It is always necessary as at Kabwe is proposed at this time.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the * In order to establish the likely economic viability
assumptions regarding metallurgical treatment of the above mining approach AMS have estimated the
processes and parameters made when reporting Mineral profitability of the mining operation linked to a
Resources may not always be rigorous. Where this is zinc leach-precipitation circuit. The report "Star
the case, this should be reported with an explanation Zinc Deposit - Conceptual Project Report", January
of the basis of the metallurgical assumptions made. 2015 by Scorpion Mineral Processing South Africa
refers. The following key parameters are used:
* Milling - 11 $/t ore
* Leaching - 125 $/t ore
* Precipitation - 640 $/t zinc produced
* 4y cost price inflation from 2015 - 10 %
* Process recovery - 91 %
* Zn precipitate - 60%
Environmental
factors * Assumptions made regarding possible waste and process * At this stage it is assumed that no mineral
or assumptions residue disposal options. It is always necessary as processing will take place at Star Zinc and therefore
part of the process of determining reasonable no tailings storage requMREd.
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage * Stock piling locations will be requMREd but are yet
the determination of potential environmental impacts, to be identified.
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental * Due to the growth of Lusaka, the Star Zinc deposit
impacts should be reported. Where these aspects have and to a certain extent, the entMRE licence area, now
not been considered this should be reported with an sits within an active developing residential and
explanation of the environmental assumptions made. small scale farming area with both surface rights
holders and tribal land allocated plots either
developed or being developed.
* With the expansion of Lusaka, the situation is fluid
with new plots being demarcated and existing plots
being sub-divided, with a corresponding significant
increase in land prices in recent years. A
comprehensive Environmental Impact Assessment and
Resettlement & Compensation Action Plan will be
requMREd with extensive stakeholder engagement to
facilitate mining operations, including interaction
with the Zambian Roads Development Agency and ZESCO,
the Zambian state owned power company with regard to
the likely relocation of the road and electrical
distribution infrastructure prior to mining
operations commencing or being approved.
Bulk density
* Whether assumed or determined. If assumed, the basis * The dry bulk density was calculated using the water
for the assumptions. If determined, the method used, displacement Method 3 described by Lipton (2001). The
whether wet or dry, the frequency of the measurements method described by McKenzie (1983) for more porous
, rocks was also completed for additional testwork /
the nature, size and representativeness of the confirmation purposes.
samples.
* All samples were oven dried for 2 hours at 110 degC.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and * Bulk density determinations were completed on a
differences between rock and alteration zones within variety of material types.
the deposit.
* A strong relationship between bulk density and grade
* Discuss assumptions for bulk density estimates used was identified and the bulk density in the block
in the evaluation process of the different materials. model estimated as a function of the estimated zinc
grade.
Classification
* The basis for the classification of the Mineral * A detailed risk assessment of the resource
Resources into varying confidence categories. classification is presented in section 14.8 of the
technical report which considers data quality and
reliability, geological interpretation, estimation of
* Whether appropriate account has been taken of all grade and tonnage and continuity.
relevant factors (i.e. relative confidence in
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, * The overall perceived risk is currently high due to
quality, quantity and distribution of the data). lack of CP site visit, non differential GPS collar
surveys, poor resolution DTM in historic pit area and
poor Zn assay accuracy at higher grades (>15%).
* Whether the result appropriately reflects the However, all of these issues area rectifiable with
Competent Person's view of the deposit. further work and will significantly reduce resource
estimation risk once completed.
* All resources were restricted to a maximum category
of Inferred.
* The competent person is satisfied that the results
reflect their view of the deposit and considers the
resource classification appropriate.
Audits or
reviews * The results of any audits or reviews of Mineral * No external reviews or Audits have been completed.
Resource estimates.
* AMS have completed internal peer reviews of the
methodologies, interpretation, models and results of
this estimate.
Discussion
of relative * Where appropriate a statement of the relative * A statistical measure of uncertainty is not
accuracy/ accuracy and confidence level in the Mineral Resource appropriate at this time.
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical * The highest risk factor ascertaining to the accuracy
procedures to quantify the relative accuracy of the of the estimate is the interpretation of the
resource within stated confidence limits, or, if such mineralized volume and therefore the tonnage of the
an approach is not deemed appropriate, a qualitative estimate.
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The accuracy of the drill hole collars and digital
terrain model over the historic pit area, as well as
* The statement should specify whether it relates to lack of data in the historic pit area are key factors
global or local estimates, and, if local, state the in this uncertainty.
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures * A qualitative estimate of uncertainty is of the order
used. +/-15 global contained resource tonnes and metal.
This is considered by the competent person to be well
within the acceptable limits of an inferred resource.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available. * Poor accuracy of higher grade assays is also a risk
factor, although it should be noted that in relative
terms the uncertainty on assay values, based on CRM
analysis is of the order +/-1% Zn in 30% Zn
reference materials, or a 3-4% estimation error.
Volume estimation error is therefore much more
significant.
* A local estimate has been completed, only tonnages
which have a reasonable prospect of economic
extraction have been reported as Resources as
stipulated by the JORC 2012 code. All Resources are
considered relevant to technical and economic
evaluation. However, the lack of non differential GPS
collar surveys causes uncertainty on the location of
input data samples and therefore the accuracy of the
local estimate.
=============== ============================================================ =================================================================
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END
MSCUAOORKNAWUAR
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