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