TIDMGLR
RNS Number : 9381D
Galileo Resources PLC
27 June 2023
27 June 2023
Galileo Resources Plc
("Galileo" or "the Company")
Joint Venture Option exercised and further progress/plans at
Shinganda Copper-Gold Project, Zambia
Galileo Resources plc ("Galileo "or the "Company") is pleased to
inform shareholders that it has exercised the option to enter a
Joint Venture and be issued a 51% interest over the Shinganda
Project Copper-Gold Project, Zambia ("Project") following the
expenditure of more than US$500,000 in direct exploration costs.
Work has also been stepped up to fast-track several further
copper-gold targets to drill-ready stage within the Project
area.
Highlights
-- Expenditure in excess of of US$500,000 by Galileo on the
Project has earned the Company a 51% interest in the Project from
its partner Garbo Resource Solutions Ltd ("Garbo").
-- Galileo has exercised its right to form a joint venture which
will enable Galileo to increase its equity interest in the Project
to a percentage ranging from 65 to 85 per cent depending on the
size of any future discovery.
-- Under the Joint Venture, as a condition of the 51% interest,
Galileo has undertaken to fully fund and manage further drilling,
metallurgical and scoping studies leading to the completion of a
feasibility study.
-- Recently completed exploration work has advanced the Project
in locating four copper occurrences along a 3.5km length of the
Gerhard Structural Trend over and above those discovered last year
(see RNS of 18 January 2023). A selection of samples from these has
been submitted for copper/gold analysis.
-- Previous drilling 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 SHDD002 and
prospecting/exploration pitting has returned grab sample gold
grades peaking at 33.90g/t Au, 20.16g/t Au and 8.54g/t Au.
-- The objective of the 2023 programme is to quickly generate
several more refined targets for drill testing during the current
dry season, combining recent prospecting results with structural
interpretation from processing of magnetic data and new soil
sampling data.
Colin Bird Chairman and CEO said: "The 51% earn-in and formation
of a joint venture demonstrates our commitment to the Shinganda
copper-gold project. The more work that we do the more confident we
become, and we are grateful for the previous work carried out by
Vale which, while not advanced enough to define a mineral deposit,
was pivotal in establishing our initial work programmes which have
taken us to the current position. We remain open minded on the
style of mineralisation, including the concept of a larger IOCG
system or a series of localised hydrothermal centres, while not
excluding a hybrid model. Our deepest drillhole to date was to
about 150m vertical depth, traditionally IOCG deposits are
discovered deeper. Thus, our exploration will continue to target
near surface discovery with the mid-term intent, if our drilling
and studies warrant, of a deeper drilling programme to identify a
potential IOCG system. "
Summary of Shinganda Option and Joint Venture Terms (as
announced 7 December 2021)
The Shinganda Option and Joint Venture Agreement with Garbo
includes the following summary terms:
Ø Galileo may earn an initial 51% interest in the Project by
spending US$500,000 on exploration, including drilling and
evaluation studies, over a two-year period, subject to any
necessary Zambian regulatory approval.
Ø Galileo may withdraw without penalty at any stage during the
Option period.
Ø At any time during the Option period Galileo may elect to move
forward to a Joint Venture to more fully evaluate and, if
warranted, develop the Project.
Ø Should the parties decide to advance the Project to
feasibility study, then Galileo will pay the cost of such a
study.
Ø Galileo's share of profits from a mining operation will vary,
depending on the projected size of the deposit, ranging from 85% if
the project has the potential of greater than 50,000 but up to
200,000 tonnes of contained copper equivalent, to 65% if the
project has the potential for more than 1,000,000 tonnes of
contained copper equivalent.
Ø On decision to mine, each party will be responsible for
funding of the development pro-rata to its equity holding in the
Joint Venture.
Ø Should Garbo fail to finance its share in the development of
the Project, 100% ownership of the Project will revert to Galileo
and Garbo will be granted a 2% net smelter royalty on commercial
production.
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
---------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
---------------------
Shard Capital Partners LLP - Tel +44 (0) 20 7186
Joint Broker 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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END
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