Galileo Resources PLC (LON:GAL) has a wide spread of assets across several jurisdictions, but the latest acquisition, a 51% stake in the Star zinc project in Zambia, looks like it will now move to the fore as a flagship.
Star zinc project
Galileo holds Star in joint venture with BMR Group (LON:BMR), and is now setting the pace with drilling and other exploration work that will both confirm existing resource data and go towards building an expanded JORC resource. The plan is then to incorporate these resource numbers into an economic study and move the project into the next stage of development. Consultant CSA Global has been appointed to oversee the resource calculation work
Chief executive confident of significant progress
The drilling programme, says chief executive Colin Bird, “is designed to confirm a regulatory JORC code resource and to test the potential of other nearby areas considered to be prospective. On completion of this drilling programme, we intend to commence a preliminary economic assessment.”
Other work is ongoing too, according to Bird.
“We have completed the grid soil sampling programme and will be reporting on this shortly,” he says.
Strong commodity price background
The context in which this work is taking place is pretty favourable – zinc is one of the better performing commodities of the past year or too, and the price looks set to remain pretty robust, even if further significant upswings are now unlikely.
“The mid to long-term price forecast prospects for zinc are strong and this exceptionally high grade property shows all the potential to be a future contributor to global zinc production,” says Bird.
Diverse portfolio of other assets
Galileo also has several precious metals projects in the US, and the Concordia copper project in South Africa. These add a certain strength in depth in terms of commodity diversification and jurisdictional risk.
Rare earths option
There’s also the Glenover rare earths projects, which may yet come into its own as rare earths continue to be in demand for use in electronic consumer goods and magnets.