REG - Galileo Resources - Exploration and Projects Update

Galileo ResourcesAnnouncement

11/10/2023 07:00

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RNS Number : 6894P  Galileo Resources PLC  11 October 2023

RNS Number :

Galileo Resources PLC

11 October 2023

Galileo Resources Plc

("Galileo" or "the Company")

 

Exploration and Projects Update

 

Galileo Resources plc ("Galileo "or the "Company") is pleased to provide
shareholders with an update on the Kalahari Copper Belt Project in Botswana,
Shinganda copper-gold project and the Star Zinc Project, Zambia.

Kalahari Copper Belt - Sandfire JV & Retained Licences

·     Galileo has completed a soil sampling programme for low detection
TerraLeach mobile metal-ion geochemistry over critical contact zones across
three Galileo retained licences, PLs 253, 39 and 40, which was first announced
on 15 May 2023.

·     In total, 3,373 samples (excluding QAQC inserts) were collected in
two phases after some delay in obtaining farm access permissions, and the
samples have been dispatched to the Intertek analytical laboratory in Perth,
Australia via a laboratory sample preparation facility in South Africa.

·     Sampling coverage includes ground adjacent to the licence hosting
Cobre Limited's recent drill discoveries at Ngami and Kitlanya where that
company has been undertaking extensive similar soil programmes as part of its
drill target identification.

In relation to the regional Airborne Gravity Gradient (AGG) being jointly
funded by Sandfire Resources and Cobre Limited, Galileo has now been informed
by Sandfire that, due to technical issues, they hope the survey will be
completed and data available before the end of the year.

·     The AGG survey includes part of Galileo licence PL253/2018 for
which the Company will receive the data at no cost.

Shinganda

·     Drilling proposed in an announcement of 20 September 2023 has
commenced on schedule.

 

·     The bulk of drilling for the current programme is expected to be
concluded prior to the commencement of the rainy season later in Q4 2023.

Star Zinc

·     Galileo has received unsubstantiated reports that mining is taking
place at Star Zinc and is making enquiries from Siege Mining, the purchaser of
the Project, for clarification of the situation.

 

·     Zopco, the official marketing agent for the Project reports that it
has recently received no zinc concentrate and therefore no income from Siege
Mining.

Colin Bird chairman and CEO commented "On our Kalahari project, we look
forward to receipt of the ionic leach sample results particularly with regard
to Licence PL253/2018 and its location relative to reported discoveries on the
two Cobre Limited licences located immediately east and west of our ground
holding. Our interpretation of the results will drive subsequent follow up
work most likely to include drilling. The Shinganda Project in our view shows
significant copper and gold potential with gold values greater than typically
experienced in Zambia. Our work to date has focused on the refinement of
previous geological work by Vale and others which has led to new concepts
which we will follow up post the current drill programme. Amounts due from the
disposal of Star Zinc have been previously fully provided against in our
accounts but despite this we are investigating unconfirmed reports of active
mining and continue to pursue payment of the outstanding amounts due".

Kalahari Copper Belt (Retained Licences)

PL253/2018

The Licence is located in the north-western portion of the Kalahari Copper
Belt with part of the Licence sandwiched between Cobre/KML licences. Cobre/KML
have recently issued a series of press releases that demonstrate the emergence
of a potential new discovery in this under-explored portion of the Belt. In
this area the D'Kar/Ngwako Pan contact is interpreted to be tightly folded and
thrust repeated. Detailed TerraLeach soil geochemistry has been carried out by
Galileo over this area.

PL039/2018

The north-eastern section of the Licence is dominated by a prominent NNW-SSE
trending conductor, the geometry of which suggests this area is situated at
the southwest end of a conductive dome. If the interpretation is correct, the
potential exists for the discovery of the highly prospective D'Kar
Formation/Ngwako Pan Formation contact. The setting of a conductive dome with
major faulting within the Licence suggests that a A4/T3 style dome drill
target with possible mineralisation at the stratigraphic boundary between the
Ngwako Pan/D'Kar and remobilized upwards via low-angle thrusts is the most
likely exploration model for this area. Soil sampling has been carried out
over this target.

PL040/2018

The interpreted strike length of the prospective D'Kar formation contact
extends over 30km within the Licence. Historic wide-spaced drilling reportedly
intersected D'Kar /Ngwako contact but did not intercept mineralisation.
Historic soil sampling identified the D'Kar Formation/Ngwako Pan Formation
contact further to the southwest of the licence. The Company has selected
priority zones for soil sampling along the interpreted 30km strike of the
contact with a view to identifying potential higher-grade zones along strike
of and in between the current widely spaced drill holes.

Shinganda

 

Reference announcement 20 September 2023. A study commissioned by the Company
of historic airborne and ground geophysical survey data, combined with
Galileo's own geophysical surveys, soil sampling and prospecting has unlocked
the structural framework of the property and highlighted potential targets for
immediate drill testing.

Among the conclusions of the geophysical study were:

-     High resolution aeromagnetics reveal a prospective structural
setting with three large clusters of intense iron alteration towards the west.

-     Historic drilling within and close to iron alteration clusters has
returned ample evidence of wide-spread and, in parts, intense iron-alteration
in the form of hematite, magnetite and lesser pyrite. These boreholes were
never assayed.

-     At the Shinganda copper-gold prospect a higher order splay fault
coming off the Main Fault Zone can be clearly identified in the aeromagnetic
data and probably acts as the primary control to the copper-gold
mineralisation.

-     Soil anomalies >285 ppm Cu occur both along the Shinganda Splay
Fault and over iron alteration Cluster A which are prospective mineralisation
targets for copper-gold in the light of an IOCG setting and a new structural
understanding, and warrant follow-up drilling.

-     Several strong, historic IP chargeability anomalies over the iron
alteration clusters have been insufficiently drill tested to date.

Up to 2,000m of diamond drilling is planned to test multiple shallow
copper-gold targets along, and parallel to, the Shinganda Splay Fault and to
test the IOCG deposit potential related to the iron alteration clusters and IP
targets highlighted by the geophysical study.

Previous drilling at Shinganda has achieved some highly encouraging drill
results from a limited programme that included drill intercepts peaking at
50.3m @ 1.54% Cu from 21m downhole depth in hole SHDD002 and
prospecting/exploration pitting that returned gold grades up to 33.90g/t Au
from composite grab samples at one of the planned drill sites.

Star Zinc

As reported in the accounts for the year ended 31 March 2022 the Company made
a full provision for the balance consideration of US$700k and royalties due
from Siege Mining Limited in relation to the Star Zinc project as the amounts
due had not been paid and similarly the Company notes that royalties expected
from Siege Mining as announced on 11 February 2022 were not received. The
Company has recently become aware of unsubstantiated reports of mining at the
Star Zinc project and has been informed by Zopco S.A. which is the marketing
agent for the Star Zinc project that they have not received any material from
the Star Zinc project.  The Company is in the process of following up with
Siege Mining Limited to ascertain if they or others have been mining at the
Star Zinc project.

 

By way of background in March 2021 the Company announced the ceding of
ownership and operation of the Star Zinc project close to Lusaka, as it was
proving difficult due to its close proximity to municipality housing and
industry, even though the Company had attempted a small mining approach with a
local group. Further the possibility of blasting and use of large trucks
appeared to be a limitation on the project, since housing and population
density has increased further since project initiation.

 

For clarification, the Company continues to provide 100% against all amounts
due from the purchaser of the Project and doesn't foresee this situation
changing.

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").

 

 

 

 

 

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