TIDMGLR
RNS Number : 3499C
Galileo Resources PLC
22 February 2022
For immediate release
22 February 2022
Galileo Resources Plc
("Galileo" or "the Company")
Update and Completion of Second Payment for 75% Interest in
Luansobe Copper Project, Zambia
Galileo Resources plc ("Galileo "or the "Company") is pleased to
report on progress in modelling of historic drill data at Luansobe
and the completion of the second payment to the vendors to secure
an initial 75% interest in the Luansobe Copper Project, Zambia (the
"Project" ) comprising Small Scale Exploration Licence No.
28340-HQ-SEL (the "Licence").
Highlights
-- Considerable progress has been made by consultants Addison
Mining Services in compilation of drill data for 154 holes (drilled
1921 to 2007) and initial modelling of the deposit
-- Two concurrent development options are being considered;
o The potential for a small open pit mine of circa 3-5 million
tonnes to exploit the up-dip portion of the copper deposit in the
northwest of the licence area
o The prospect for a larger mine to develop the resources
down-dip and along strike to the southeast where drill data is more
sparse
-- It is planned to commence preparation for shallow mining in
the northwest before year end while undertaking a drilling campaign
to confirm historic drill results and to further define a
potentially larger resource towards the southeast
-- The Company is making arrangements for the coming week to
view drill core believed to be held at the nearby Mopani copper
mine to further increase confidence in the historic drill
reports
-- The second payment in cash and shares has been made under the
terms of the JV Agreement with the Luansobe Vendor to secure an
initial 75% interest in the Project
Colin Bird Chairman & CEO said: "We are pleased with the
outcome of the interrogation of historic drill data which indicates
good potential for a small open pit in the range of 3-5 million
tonnes of copper ore based on current economics. If the modelling
continues to be satisfactory, we will prepare for commencement of a
small open pit mining operation using third party contractors. We
are particularly encouraged by the larger potential - we are
planning for further drilling in the southeast of the property to
test previous suggestions of larger tonnages and grades in excess
of 1.5% Cu."
Joint Venture Summary and Update
As previously announced on 30 December 2021 the Company entered
into a Joint Venture Agreement (the "JV Agreement") with Statunga
Investments Limited (the "Vendor") covering the Luansobe Copper
Project, Zambia comprising a Small Scale Exploration Licence.
The JV Agreement provides the Company the right to earn an
initial 75% interest in a special purpose joint venture company
(the "JV Company") by making an initial payment of US$200,000 and a
second payment of US$200,000 in the initial period from the date of
the JV Agreement by 20 February 2022 (the "Initial JV Period") and
issuing 5,000,000 Galileo shares to the Vendor. The second payment
has been completed and the shares will now be issued at a price of
1.125pence per share. The Company will now be issued 75% of the
shares in a to be established Zambian joint venture company (the
"JV Company") to own the Licence (subject to Ministerial Consent)
and the Vendor will be issued 25% of the shares in the JV
Company.
Application to trading on AIM: Application will be made to the
London Stock Exchange for a total of 5,000,000 new Galileo Shares
to be admitted to trading on AIM which rank pari passu to the
existing ordinary shares in the Company. It is expected that
Admission will become effective and that dealings in the new
Galileo Shares will commence at 8.00 a.m. on 28 February 2022.
On Admission, the abovementioned figure of 1,096,946,844
Ordinary Shares (the "Enlarged Share Capital") may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, Galileo under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
Project 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
Roland Cornish/James Biddle 3396
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Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
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Shard Capital Partners LLP - Tel +44 (0) 20 7186
J oint Broker 9952
Damon Heath
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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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END
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