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Galileo Resources PLC (LON:GLR)

Galileo Resources PLC (LON:GLR)


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Galileo Resources PLC RNS Release

Star Zinc Project Update


RNS Number : 9593D
Galileo Resources PLC
15 October 2018
 

 

 

For immediate release

15 October 2018

Galileo Resources Plc

("Galileo" or "the Company")

Star Zinc Project - Phase-2 Drilling Programme Update  

Galileo, further to its announcement of 14 August 2018, is pleased to announce completion of its phase-2, 1000metre (m) diamond-drilling programme and reports on the preliminary (a) independent assay results ("Preliminary Results") from for an initial 8 diamond drill holes (Initial DDHs) on its highly prospective 80.75%-owned Star Zinc Project ("Star Zinc") in Zambia.  

 

Highlights

 

·     Completed the phase-2 drilling programme comprising 24 diamond drill holes (DDHs) totalling approximately 1000m to depths, from surface, of between 25m and 105m downhole

 

·     Preliminary Results from four of the Initial DDHs  - predominantly from the eastern body of the deposit- intersected high-grade mineralisation of between 14% Zn and 26% Zn and good widths. The other five of the initial DDHs intersected grades and widths similar to those reported in phase 1  

 

·     SZDD030 1 intersected 15.46% Zn over 23m downhole (from 14m to 37m) including 26.21 %Zn over 12m downhole  (from 21m to 33m) 

 

·     SZDD032 intersected 14.32%Zn over 12m downhole (from 10m to 22m) including 22.69% Zn over 7 m downhole (from 12m to 19m)

 

·     SZDD034 intersected 9.38% Zn over 5m downhole  (from 11.5 m to 17 m) including 23.1% Zn over 2m downhole

                                   

·    SZDD036 intersected 6.37% Zn over 13m downhole  (from 13m to 26m) including 23.59% Zn over 3m downhole (from 18m to 21m)

 

·     Elevated germanium (Ge) assays of up to 45 ppm recorded; generally being associated generally with high-grade zinc values

 

·     Furthermore, portable hand-held XRF spectrometry ("pXRF") results (b) on a further 9 of 11 DDHs 2,3 (mainly from the western body of the deposit), showed significantly more persistent higher pXRF Zn grades ranging from 12% Zn to 40.4.5% Zn and widths of up to 19m downhole (see table 2 below)

·     The transfer to Galileo of the 15% interest (indirectly 14.25% in the Star Zinc project) in Enviro Zambia Ltd. (EZL), currently not held by Galileo, is progressing pursuant to the agreement announced on 13 September 2018.  On transfer Galileo will hold 95% and the Government 5%  of Star Zinc

 

·     The Company intends to develop, as soon as practicable, a work programme with the objective of meeting the requirements for the application of a small scale mining licence for Star Zinc

 

1 western side of open pit

2 still to be independently assayed

2 DDHs with no significant  mineralisation

(a) subject inter alia to Quality Assurance -Quality Control assessment

 (b) average of regular spaced point readings (3 times) over the mineralised intersection. Whole length core samples will be submitted for independent and complete assay and will be announced in due course

 

The two phases of drilling, are believed to have defined the general limits on mineralisation on the currently targeted resource area, though there are still potential additional drilling targets, which may be warranted to test later, subject to resource/optimisation/financial modelling.  These targets include several geophysical gravity highs, outcropping hematite bodies and beyond the fringes of defined mineralisation, south east of which, for example holes SZDD034 reported 5.5m @ 9.4% Zn from 11.5m and SZDD036, 13m @ 6.7% from 13m.

 

Licence

 

Star Zinc's large-scale exploration licence 19653-HQ-LEL was renewed on 24 August 2018 for a further three years.

 

Colin Bird, Chief Executive Officer, said:  "This has been an extremely satisfactory drilling program, which has effectively delineated the mineralisation limits of the current targeted resource area.  Good results have been obtained in both the eastern and western "ore" bodies, with the latter suggesting significantly higher grades than in the east. We believe we have extended the zone of mineralisation from that reported previously and expect, on incorporating these latest boreholes in the current model, to show an increase in contained metal. The previously announced programme objectives (April and May 2018) have been achieved. We did not pursue, to any extent, identifying a possible feeder source because the programme, as it developed, was directed, amongst other things to focus on defining the parameters necessary for an open pit design. Our understanding of Star Zinc's geology and controls has increased.  We intend now to proceed to scoping study stage to include resource modelling of the data and an initial pit design. The Company believes it has adequately delineated a resource to design an open pit and generate a maiden JORC compliant resource estimate.  The Company has engaged an independent consultant to undertake this exercise. When the Company entered into the Term Sheet agreement to acquire Star Zinc  (31 August 2017), it undertook that on proven success it would provide ore feed for the Kabwe zinc project.  An offtake agreement to this effect is under discussion and negotiation."

 

 

Table 1                  Initial independent assay drilling results  (C)

 

Hole_ID   SZDD

From (m)

To (m)

Width (m)

Zn_ %

Ge_  ppm

Ag _ppm

029

3

4

1

0.51

0.5

11

 

7

8

1

0.43

2

13

 

12

13

1

0.41

1

6

 

 

 

 

 

 

 

030

0

10

10

4.27

6.45

6.8

030

14

37

23

15.47

14.39

4.39

 

21

33

12

26.21

23.16

5.25

 

 

 

 

 

 

 

031

0

2

2

0.45

2

4.5

031

5

30

25

2.98

1.92

8.96

031

18

19

1

10.78

8

33

 

 

 

 

 

 

 

032

0

5

5

0.46

2.8

3.8

032

10

22

12

14.32

14.96

16.66

032

12

19

7

22.69

24.28

22.14

 

 

 

 

 

 

 

033

0

12

12

1.4

2.625

6.08

 

 

 

 

 

 

 

034

11.5

17

5.5

9.38

9.55

8.18

034

13

15

2

23.1

23

7.5

 

 

 

 

 

 

 

035

16

21

5

2.4

0.5

2.75

 

 

 

 

 

 

 

036

0

1

1

1.45

3

3

036

7.4

8.65

1.25

0.97

2

12

036

13

26

13

6.7

11.05

18.69

036

18

21

3

23.59

45.4

12.66

 

 

 

 

 

 

 

027

No significant intersection

028

No significant intersection 

 

(C) Analysis by Accredited Intertek Genalysis Laboratory Services: Zn and Ge by peroxide fusion finish with ICP-OES/MS; Ag by 4-Acid digestion with MS. Analyses subject QA/QC quality assurance/checks

 

Table 2                 pXRF drilling results (d) for holes that intersected mineralisation (subject to independent assay)

 

Hole ID

  SZDD         

EOH (e)

(m)

From
(m)

To
(m)

Drill Width (m)

pXRF_Zn%

 

 

 

 

 

 

038

56.7

35

52

16

11.8

038

56.7

35

45

10

18

 

 

 

 

 

 

039

62.7

36

52

16

15.44

039

62.7

44

51

7

29.18

 

 

 

 

 

 

040

44.9

23

41

18

21.88

040

44.9

25

38

13

29

 

 

 

 

 

 

041

55

14

21

7

5.4

041

55

34

49

15

18.26

041

55

36

47

11

24.3

 

 

 

 

 

 

042

38.9

0

7

7

1.35

042

38.9

24

31

7

15.5

 

 

 

 

 

 

043

35.7

15

28

13

16.50.

043

35.7

19

24

5

40.3

 

 

 

 

 

 

044

38.6

30

32

2

14.72

044

38.6

30.86

32

1.14

26.81

 

 

 

 

 

 

045

44.6

17

20

3

18.8

 

 

 

 

 

 

048

51.7

30

49

19

26.63

048

51.7

31

47

16

31.51

 

(d) average of regular spaced point readings (3 times) over the mineralised intersection . Whole length ¼ core samples will be submitted for independent and complete assay and will be announced in due course

(eEOH -  end of hole

 

Note pXRF Zn Determinations:

2-3 Single Point Determinations on 1m of Whole Core Averaged

No lower cut-off grade applied

No high grade cut off applied

Minimum Intersection drilled width of 3m

Internal dilution not considered

No Criteria Applied

Represent a Relevant 'Total Mineralised Interval'

 

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Technical Sign-Off

 

Andrew Sarosi, Director of Galileo, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a "qualified person" as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew's supervision and he has approved the release of this announcement.

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

 

You can also follow Galileo on Twitter: @GalileoResource

 

For further information, please contact: Galileo Resources PLC

 

Colin Bird, Chairman

Andrew Sarosi, Executive Director

+44 (0) 20 7581 4477

+44 (0) 1752 221937

Beaumont Cornish Limited - Nomad

Roland Cornish/James Biddle

+44 (0) 20 7628 3396

Novum Securities Limited - Joint Broker

Colin Rowbury /Jon Belliss

+44 (0) 20 7399 9400

 

Star Zinc

The Star Zinc project "(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 Project is located approximately 18km NNW of Lusaka (see Figure 3.1 below), and is accessible via the tarred "Great North Road" and a good all weather graded road, with the journey time from central Lusaka of approximately 30 minutes (traffic allowing).

 

There is adequate power, water, rail & telecommunications, with the International Airport at Lusaka, less than 45 minutes away.

 

The Mines and Minerals Development Act, No 11 of, 2015, which grants a Large Scale Exploration Licence (LSEL), governs the mineral tenement.  The Act provides for an initial 4 years with a further 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 13 August 2016 but was extended to 13 August 2018.  The LSEL was renewed on 24 August 2018 for a further 3 years.   

 In the 1960s, geologists of the Northern Rhodesia (now Zambia) Geological Survey mapped the Project.

 

At Star Zinc, two main fracture trends are present, one E - W, and another N - S.  Both set 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 non sulphides  includes a whole number of minerals:  the main economic phases present are Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn- Pb carbonates (smithsonite, cerussite), hydrated Zn- Pb carbonates (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.  

 

In summary, Star Zinc  has good potential to become a viable project.

 

Note:  the information about Star Zinc is sourced primarily from Competent Person's Report for the Star Zinc Project, Zambia; Wardell Armstrong, January 2016

 

Glossary

Detrital                loose fragments or grains that have been worn away from rock

Calcite                  mineral of calcium carbonate

Dolomite             mineral composed of calcium magnesium carbonate

Dolomitic            pertaining to dolomite  

Floats                    pieces of rock that have been removed and transported from their original outcrop

Hematite             reddish-black mineral consisting of ferric oxide. It is an important ore of iron.

ICP-OES/MS       inductively coupled plasma  - optical emission spectrometry/mass spectrometry

Karst                    landscape underlain by limestone (calcium carbonate), which has been eroded by dissolution, producing ridges, fissures and so on

Karstic                  pertaining to karst

 

Leaching              chemical process of solubilising metals in rock into solution

ppm                       parts per million

XRF Spectrometer           analytical instrument for determining chemical composition using x-ray fluorescence spectrometry

 

Supergene                        pertaining to processes or enrichment that occurs relatively near surface 

Willemite                           zinc silicate ore mineral


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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