11:45 Fri 23 Feb 2018
Galileo Resources - Star Zinc Project Update
For immediate release
23 February 2018
("Galileo" or "the Company")
Star Zinc Project Update
Highlights
· BMR Group plc ("BMR") notifies Galileo that it has made the final deferred consideration to
· Galileo increases its aggregate beneficial interest in Star Zinc to 85% from 51% in Star Zinc having expended in excess of
· BMR elects not to buy back a 10% interest in Star Zinc from the Company for
· Further to the Company's announcement of
· ZMC formally transfers the Licence from BRL to BMR's subsidiary
· With regard to recent revocation (subject to appeal) of BMR's separate
· EPL submits an application for renewal of the Licence (for a further 3 years) and includes an additional block within the renewal area
· EPL relinquishes 50% of the Licence area in accordance with the renewal regulations.
· Subject to ZMC approval, the Star Zinc licence to be transferred to a joint venture company to be owned 85% by Galileo and 15% by BMR.
Star Zinc Update
Galileo is pleased to announce that BMR Group plc ("BMR") has notified the Company that it has paid the final consideration amount (see previous announcement of
The Company has incurred expenditure in excess of
The Company has shipped its first batch of drill core samples (first 4 drill holes) from its current drilling programme for assay, results for which are expected during March.
The Company announces further, with regard to recent press and BMR announcements relating to the revocation of BMR's separate
Note
Pursuant to the Term Sheet, the Company entered into a joint venture, the terms of which were disclosed in the announcement on
Given that BMR has elected not to exercise its right to buy back a 10% interest in Star Zinc from the Company,
Other highlights of the joint venture include:
- from completion of the 18 month work programme until completion of a feasibility study, the interest of BMR in Enviro Zambia shall be free carried; and
- BMR and Enviro Zambia shall enter into an off take agreement for processing of ore from Star Zinc at Kabwe, such terms to be determined as soon as reasonably practicable following completion of the PEA to reflect capacity production of zinc from Star Zinc, and relevant grade and resource life of the Star Zinc project set out in PEA, which BMR intends to process in conjunction with its Kabwe Leach Plant Residues.
About Star Zinc
The Star Zinc project is a historical small scale open pit mine from where, reportedly, low tonnage, but high grade willemite (a zinc silicate mineral) was extracted intermittently in the 1950s to 1990s.
The Star Zinc project is located approximately 18km NNW of
There is adequate power, water, rail & telecommunications, with the
The Mines and Minerals Development Act No. 7 of 2008, which grants a Large Scale Prospecting Licence for a maximum of 7 years, governs the mineral tenement. Recent changes to the Act now provides for an initial 4 years with a furhter two 3-year extensions totalling 10 years, with a mandatory 50% reduction of licence area at the completion of the 1st grant and 2nd grant periods respectively. The first renewal period initially expired
The Star Zinc Willemite project was mapped in the 1960s by several geologists of the Northern Rhodesia (now
At Star Zinc, two main fracture trends are present, one E - W, and another N - S. Both sets of fractures are nearly vertical and are irregularly mineralised. Willemite generally replaces the host rock marbles in the form of massive ore bodies, but it occurs also in veins
In addition, karstic (pertaining to landscape underlain by limestone which has been eroded by dissolution, producing ridges, fissures, sinkholes and other characteristic landforms) mineralisation and red soils (terra rossa) are locally heavily mineralised with detrital willemite and supergene zinc minerals. Zinc values measured in soils at Star Zinc reach up to 15,600 ppm and are accompanied by the pathfinder elements Ag (silver), Pb (lead) , Ba (barium), Sb (antimony) and Cd (cadmium). The karst infill has a zinc (Zn) content up to 45wt.% Zn, up to 35wt.% Fe and up to 5g/t Ag.
The mineralogical assemblage of Zn nonsulphides includes a whole number of minerals, but the main economic phases present are Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn- Pb carbonates (smithsonite, cerussite), hydrated Zn- Pbcarbonates (hydrozincite, hydrocerussite) and Zn- Mn- Fe- oxides (zincite, franklinite, gahnite).
Limited independent metallurgical testwork by others has clearly shown that the willemite present at Star Zinc is amenable to acid leaching with positive results for two samples tested. Zinc leaching efficiencies obtained ranged from 89% and 92%. The testwork indicated polymerisation of dissolved silica in the leachate.
An independent competent person's report commissioned by BMR concluded. In summary, the Star Zinc project has good potential to become a viable project.
· Note the information about Star Zinc is sourced primarily from Competent Person's Report for the
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Technical Sign-Off
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For further information, please contact:
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Tel +44 (0) 20 7581 4477
Tel +44 (0) 1752 221937 |
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Beaumont Cornish Limited - Nomad |
Tel +44 (0) 20 7628 3396 |
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Tel +44 (0) 20 7382 8416 |
Forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.
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