Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Galileo Resources shares higher as it lifts stake in Star Zinc project to 85%

Galileo has now spent more than US$250,000 on exploration, including geochemical soil sampling, permitting, and evaluation
Galileo Resources shares higher as it lifts stake in Star Zinc project to 85%
Colin Bird said developments were positive for the project

Shares in Galileo Resources PLC (LON:GLR) added over 5% in London as it updated on positive developments for the open pit Star Zinc project in Zambia, in which it has now increased its holding to 85% from 51%.

It comes after Galileo had spent more than US$250,000 on exploration, including geochemical soil sampling, permitting, and evaluation and ongoing drilling.

READ: Grades at Galileo’s Star zinc project indicate upside could be greater than previously thought

Under the terms, it will earn a further 34% beneficial interest to take its total interest to 85% in Star Zinc, which is to be realised by way of an 85% equity stake in Enviro Zambia Ltyd - the joint venture company to be incorporated between BMR and Galileo.

Galileo also noted on Friday that BMR Group had made the final deferred consideration to Bushbuck Resources Ltd in relation to BMR's acquisition of the Star Zinc project.

"The completion of BMR's acquisition of Star Zinc, together with the company's exploration progress represent are positive developments for the project," said Colin Bird, chief executive at Galileo.

"We are continuing with drilling and expect to complete this phase during March.

"We expect our first assay results shortly and will release further assays progressively to the market as soon as they become available."

Galileo also said that since BMR has chosen not to exercise its right to buy back a 10% interest in Star Zinc from Galileo, the US$100,000 held in escrow will now be released to BMR.

Recent updates on progress at the Star Zinc site included initial findings from hand-held readings of up to 52% zinc in core.

The hand-held assay device, known as an XRF machine, is a relatively new development in exploration, and results from it are not considered of a degree of accuracy and reliability to be used in any of the official resource categorisation methods used in the industry.

Nevertheless, as a guide, it is a useful tool.

READ: Galileo Resources unearths high grade mineralisation at Star Zinc project

So when Galileo says it’s encountered high grade intersections averaging between 15% and 28% zinc close to surface, it’s worth taking note.

When major Anglo American (LON:AAL) worked this ground, Bird has said, they estimated that it contained between 250,000 and 300,000 tonnes of ore.

Back then, silicate deposits of this nature were less desirable while major sulphide deposits were still on offer. But most are gone now, and processing technology has well and truly caught up.

Galileo shares are up 5.56% at the time of writing at 1.425p.

View full GLR profile View Profile

Galileo Resources PLC Timeline

Related Articles

maps of Australia with company projects marked
April 17 2018
Samples from the Mt Read Cobalt Project graded up to 7,800 ppm cobalt.
Mark Wilson and Mark Creasy with core sample from Nova-Bollinger
April 16 2018
Mark Creasy, who was behind Sirius Resources when it struck the jackpot at Nova-Bollinger has a 30% stake in the Rockford project and a 28% stake in Legend.
Drilling rig at Mt Venn project
May 09 2018
The project is 30 kilometres west of the Gruyere gold deposit in the Eastern Goldfields district of Western Australia.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use