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REG - Galileo Resources - Data Compilation on the Luansobe Copper Project

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RNS Number : 3747Y  Galileo Resources PLC  13 January 2022

For immediate release

 

13 January 2022

Galileo Resources Plc

("Galileo" or "the Company")

 

Commencement of Data Compilation on the

Luansobe Copper Project, Zambia

 

Galileo Resources plc ("Galileo "or the "Company") is pleased to advise the
establishment of a project team that has commenced work on the compilation of
historical drilling records in relation to the newly acquired JV over the
Luansobe Copper Project, Zambia (the "Project") comprising Small Scale
Exploration Licence No. 28340-HQ-SEL (the "Licence").

 

 

Highlights

 

·    An independent review of historical drilling data for the Luansobe
Copper Project is underway during the Initial JV Period (Refer to RNS 30
December 2021) aimed at compiling all available data into a database to be
used to model the extent and tenor of the strata-bound sedimentary copper
deposit

·    Preliminary analysis suggests that the deposit has a strike length of
up to 3km and extends to a depth of at least 1,250m, with some exceptional
drill intercepts, including 18.6m @ 3.24% Cu in the NW of the deposit - see
further details in Table 1 below*

·    Independent consultants Addison Mining Services of the UK and
GeoQuest of Zambia have been engaged to compile and review historical drill
data. Once this review is complete a drill programme will be designed to
upgrade the 1974 global resource of 20Mt @ 2.51% Cu to JORC (2012) standard

·    The Company has prepared a shortlist of local drilling contractors in
preparation for drilling of confirmatory holes, as well as resource infill and
extension

·    The Company will be pursuing two concurrent development options,
including;

o  The potential for a shallower copper oxide mine

o  The prospect for a large-scale sulphide resource at depth

·    Much of the historical drill-core sampling appears constrained to
copper analysis only and the Company intends to re-analyse available
historical samples for cobalt

 

* NB: These results have been compiled from a preliminary assessment of the
drilling data and are subject to review and QA/QC assessment

 

Colin Bird Chairman & CEO said: "The initial review of the project
suggests that potential exists for a large stand-alone mine since all data
suggests that the body is open to depth with considerable strike. We will move
aggressively forward with determining the tonnes and grade available for an
oxide open pit since this gives us early access to cash flow.

 

Reports do not mention cobalt but the area is known for cobalt and we will be
testing previous core for the presence of cobalt, which is becoming an
important metal in the battery space.

 

The appointment of a dedicated team demonstrates our commitment to the project
and our partners and we will keep the market updated as the project
progresses."

 

 

 

Summary

 

The Company believes that the Luansobe project has significant potential with
considerable scope to upgrade the historic resource estimates, and aims to
develop a JORC (2012) compliant resource on the property that will allow the
company to complete a Project Feasibility Study within the JV period (Refer
RNS 30 December 2021).

 

In order to achieve this, Galileo has engaged independent consultants capable
of reviewing the historical exploration data and with ability to design an
extensive drilling programme focussed on confirming and upgrading the current
1974 non-JORC compliant resource of over 20Mt @ 2.51% Cu to JORC (2012)
compliant status. A particular focus will be placed on developing the
early-mining potential of the shallower oxide copper, with advancement to the
development of a larger-scale copper sulphide mine at
depth.

 

GeoQuest, an independent consultancy company based in Lusaka, Zambia, which
offers geological (geotechnical), environmental, GIS and hydrogeological
services has been engaged by Galileo to complete an initial compilation and
review of existing historical drill data & records that are available for
the Project. As part of the review, GeoQuest will compile an inventory of all
available historical drill-core and its condition, and re-log critical holes,
where required.

 

GeoQuest will work closely with Addison Mining Services ("Addison") of the UK
which will assist with the modelling of the drill-data to identify any data
gaps, and to provide recommendations on possible twinning of historic holes
for confirmatory purposes, infill and extension drilling for an updated JORC
(2012) compliant mineral resource estimate on the property. In the interim,
Addison will generate an Exploration Target reported to JORC (2012). Work is
already underway by Galileo to source a reputable drilling contractor able to
perform the required drilling work.

 

A first-pass review of drilling data already completed by GeoQuest has
provisionally delineated consistent copper mineralisation in the NW sector of
the deposit including the drill-assay results reported in Table 1 below, which
are subject to confirmation. These drillholes are near vertical holes which
have intersected stratabound mineralised lenses dipping 20 to 30 degrees
towards the NE.

 

 

 Drill Hole  Depth From (m)  Width (m)  Cu (%)
 L0064       84.12           18.60      3.24
 L0084       204.00          13.10      4.28
 L00118      101.00          15.67      2.84

 

Table 1. Preliminary hisotrical drill-hole intercepts at the Luansobe project
(subject to confirmation)

 

Preliminary work on the project has indicated that historical sampling of
drill-core has been primarily limited to copper analysis and, with the
increased traction surrounding the potential for accessory cobalt
mineralisation in the Zambian and DRC Copper Belt, the company intends to
re-assay historical samples and drill-core for cobalt where the core and
prepared samples are available.

 

 

Background

 

The Luansobe area is situated some 15km to the northwest of Mufulira Mine in
the Zambian Copperbelt which produced well over 9Mt of copper metal during its
operation. It forms part of the northwestern limb of the northwest - southeast
trending Mufulira syncline and is essentially a strike continuation of
Mufulira, with copper mineralisation hosted in the same stratigraphic
horizons. At the Luansobe prospect mineralisation occurs over two contiguous
zones, dipping at 20-30 degrees to the northeast, over a strike length of
about 3km and to a vertical depth of at least 1,250m.

 

The top 30m from surface is reported to be leached, with oxide mineralisation
occurring below this depth to about 70m below surface. Beyond this depth,
copper generally occurs as sulphides. The deposit is reported to be open and
relatively untested at depth. About 30% of the total contained copper occurs
in acid soluble form (as copper oxide) - this is expected to be higher in the
shallower parts of the deposit.

 

 

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 3396

 Roland Cornish/James Biddle
 Novum Securities Limited - Joint Broker    +44 (0) 20 7399 9400

 Colin Rowbury /Jon Belliss
 Shard Capital Partners LLP - Joint Broker  Tel +44 (0) 20 7186 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

 "Indicated Mineral Resource"  That part of a Mineral Resource for which quantity, grade (or quality),
                               densities, shape and physical characteristics are estimated with sufficient
                               confidence to allow the application of Modifying Factors in sufficient detail
                               to support mine planning and evaluation of the economic viability of the
                               deposit. Geological evidence is derived from adequately detailed and reliable
                               exploration, sampling and testing gathered through appropriate techniques from
                               locations such as outcrops, trenches, pits, workings and drill holes, and is
                               sufficient to assume geological and grade (or quality) continuity between
                               points of observation where data and samples are gathered. (JORC 2012)

 "JORC Code"                   Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee
                               code on mineral resources and ore reserves

 

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