REG - Galileo Resources - Update on Lithium Discovery - Kamativi Project

Galileo ResourcesAnnouncement

21/08/2023 16:45

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RNS Number : 9756J  Galileo Resources PLC  21 August 2023

Galileo Resources Plc

("Galileo" or "the Company")

Update on Lithium Discovery - Kamativi Project

 

Following the recent announcement concerning the lithium discovery on
Galileo's Kamativi licence in Zimbabwe, the Company considers it prudent to
detail the history, work completed to date and rationale for drilling together
with a licence-wide technical review for the benefit of shareholders. This
announcement incorporates the drilling results announced on 10 August 2023.

 

Colin Bird Chairman and CEO said "Following our exciting discovery we thought
it prudent and informative to advise the market and shareholders of the
underlying history and our strategy towards the Kamativi lithium and tin
project. This initially reported lithium discovery has given us much
encouragement and provided the impetus to increase the allocation of drilling
metres to allow for definition drilling of the mineralisation. This
demonstrates that our team has the ability to discover and thereafter
implement protocols and regimes consistent with best practice.  We look
forward to presenting further results in accordance with the aforementioned
protocols as the Project evolves and we will keep shareholders abreast of any
material change should it arise".

 

Background and Basis for Exploration Strategy

 

·     The Kamativi district is well-known for tin and latterly the
ongoing development of a substantial lithium mining and processing operation
at the former Kamativi tin mine.

 

·     Late-stage pegmatites mined on the neighbouring Kamativi mine are
found in the Kamativi Formation hosted in a granitic terrane, mostly steeply
dipping.

 

·     This same highly prospective pegmatite-bearing formation extends
along strike to the southwest and northeast into Galileo's exploration licence
from the Kamativi mine licence.

 

·     Exploration is guided by a wealth of external research underpinned
by current work completed by CSA Global consultants ('CSA') on behalf of the
Company looking specifically at the results of pXRF analyses for lithium
indicator minerals (lithium analysis requires follow-up laboratory testing) on
stream sediment, rock chip and soil samples collected by Galileo and the
corresponding independent external certified analyses undertaken by ALS
Laboratories. CSA concluded that "the laboratory data is of high quality and
has adequate detection limits for all elements and the suite of elements
analysed is fit for purpose".

 

·     Research* notes that lithium and tin mineralisation is typically
found in the highly fractionated LCT pegmatites that are enriched in Li, Cs,
Ta, Sn, and Rb. Such fractionated lithium - tin-rich pegmatites are found on
the Galileo Licence and extend through to the neighbouring Kamativi mine
licence where they were selectively mined for tin generating a large tailings
resource rich in lithium with a reported average grade of 0.58% Li2O. *(Ref:
R.A Shaw et al, 2022: The magmatic - hydrothermal transition in lithium
pegmatites: petrographic and geochemical characteristics of pegmatites from
the Kamativi area, Zimbabwe).

 

·     The lithium minerals identified at the Kamativi mine include
spodumene, petalite and amblygonite. Late-stage pegmatites in the Kamativi
Formation hosting this mineralisation pass through the western and eastern
parts of the Galileo licence and the discovery of extensive lithium soil
anomalies based on accredited independent assays may indicate the presence of
some or all of these lithium minerals in pegmatites delineated within the
Galileo licence.

 

·     CSA Global during their independent assessment of all available
data collected by Galileo over the Licence note that low K/Rb ratios coincide
with areas of highest lithium anomalism which are associated with the most
fractionated rocks - "rendering these areas most prospective". This is aligned
with independent research that also identifies the significance of low K/Rb
ratios as an indicator of lithium potential.

 

·     Galileo exploration has identified the western part of the Licence
as being characterised by low K/Rb ratios (acknowledged by CSA) and anomalous
in Li and Sn whilst the eastern part of the Licence is richer in rare earth
elements ('REE') and Ta - Sn anomalies, although some Li potential also
exists.

 

·     Within the western anomalous area CSA note that individual soil
samples above/in vicinity of mapped pegmatites show very high concentrations
of several of the key pathfinder elements, and some of those coincide with
rock-chip samples characterised by low K/Rb and/or high Sn.

 

·     The eastern part of the Licence hosts soils that are somewhat less
enriched in late-stage pegmatite pathfinder elements but there are areas
strongly enhanced in REEs, including heavy REEs as determined by laboratory
analyses.

 

Current Drill Programme

 

·     To date 6 holes have been drilled for over 700m of diamond
drilling. Core recoveries are good, and drilling is producing high quality
core that can be logged, split and sampled.

 

·     All core is initially tested by pXRF specifically for measurement
of K/Rb ratios to guide further exploration drilling. A quarter core sample is
collected and sent to an accredited Zimbabwean laboratory for lithium
analysis.  A further half core sample will be sent to a separate accredited
ALS Global assay laboratory in South Africa for multi-element analysis
including lithium assay.

 

·     To date in the first six holes have intersected approximately 111
metres downhole width of pegmatites with an appropriately low K/Rb ratio with
the potential to host lithium mineralisation.

 

·     The assay summary for the lithium intercept in hole BSDD001
(drilled at -50 degrees towards north) is as follows:

 

 

 Summary of Main Lithium Drill Intercept in Hole KSDD001
 Hole No  Depth from (m)  Depth to (m)  Interval (m)*  Li(2)O %
 KSDD001  30.0            39.0          9.0            0.56
 Incl.    35.0            39.0          4.0            0.99
 Incl.    36.0            37.0          1.0            2.04

* True width estimated to be about two thirds of downhole width

 

·     Preparation of samples is under way for detailed analysis of the
pegmatite minerals that are generating the lithium-rich anomalies to determine
the specific lithium minerals present. This will initially involve thin
section and other mineralogical work being undertaken in Zimbabwe and
elsewhere by recognised expertise.

 

·     Follow-up work is also planned in the northeast of the licence area
to test in more detail the REE content of pegmatites where early indications
from soil and stream sediment sampling suggest potential for economic grades
of highly sought after specialist rare earth elements.

 

·     Drilling has intersected significantly more pegmatite that was
originally anticipated, and this has brought some areas of the Licence thought
to be less prospective back into the spotlight as possible additional hosts
for lithium (and tin - REE) mineralisation.

 

·     Tin mineralisation up to 0.4% Sn, often found in association with
lithium, is present in rock chip samples on the Galileo Licence and was the
original reason for the development of the nearby Kamativi mine. Whilst
initial pXRF analysis of Galileo's drill core indicates anomalous tin values
associated with some of the pegmatite intervals, full assessment of the tin
potential awaits receipt of laboratory analyses.

 

·     Additional drilling has been approved for Kamativi based on the
recent success with the aim of completing definition drilling of
mineralisation broadly defined to date. The total additional meterage will be
guided by the results achieved with each new drillhole.

 

Data QAQC

 

·     Anomalies derived from pXRF soil and stream sediment sampling are
found to be coincident with pXRF rock chip anomalies that in turn are
coincident with ALS Global analyses (certified laboratory). CSA notes that
laboratory data is of high quality and has adequate detection limits for all
elements and the suite of elements analysed is fit for purpose.

 

·     Galileo has taken samples of recent drill core and had these
analysed for lithium at Performance Laboratories Zimbabwe (PVT) Limited
('Performance'), with insertion of certified reference material to check on
the accuracy of the results. Based on limited work to date the laboratory
results are considered satisfactory. Performance is an accredited laboratory
(accreditation No: TEST - 5 0070) tested according to SADCAS accreditation and
in accordance with the recognised international standard ISO/IEC 17025:2017
with the accreditation valid from 3 June 2022 and extending to 2 June 2027.
Performance is accredited specifically to analyse for lithium gold, cobalt,
base metals and PGMs. Core samples will also be check assayed for lithium and
associated elements at the ALS Global laboratory in Johannesburg.

 

 

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    Tel +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

 

 "amblygonite"   A fluorophosphate mineral, composed of lithium, sodium, aluminium, phosphate,

               fluoride and hydroxide.

               A tabular intrusive rock cross-cutting the host strata at a high angle.
 "dyke"
 "felspar"       A group of silicate minerals (potassium feldspar, KAlSi(3)O(8); albite,
                 NaAlSi(3)O(8); anorthite, CaAl(2)Si(2)O(8)), which are the main components of
                 acid, intermediate and basic igneous rocks.
 "fractionated"  Divided into fractions or components.
 "garnet"        A silicate mineral, commonly brown or red in colour, found in igneous and
                 metamorphic rocks.
 "granite"       A medium to coarse grained granular acid intrusive rock.
 "LCT"           Lithium-caesium-tantalum.
 "mica"          A platy, flexible mineral which is a common constituent of igneous and
                 metamorphic rocks.
 "pegmatite"     Very coarse-grained igneous rock which commonly occurs as dykes in granite
                 intrusions.
 "petalite"      A lithium aluminium phyllosilicate mineral and an ore of lithium.
 "pXRF"          A hand-held instrument for mineral analysis by X-Ray fluorescence.
 "quartz"        A mineral composed of silicon dioxide, SiO2.
 "spodumene"     A lithium aluminium silicate mineral and an important ore of lithium.
 "tourmaline"    Silicate mineral containing sodium, aluminium and boron.

Abbreviations

 

Cs           Caesium

K             Potassium

Li             Lithium

Rb           Rubidium

Sn           Tin

Ta            Tantalum

 

 

 

 

 

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