Galileo Resources PLC (AIM:GLR) said it has taken up its option on a 51% stake in the Shinganda copper-gold project in Zambia after spending US$500,000 in direct exploration costs.
Under the terms of the joint venture, Galileo will fully fund and manage further drilling, metallurgical and scoping studies leading to the completion of a feasibility study.
Work has already been stepped up to fast-track several further copper-gold targets to the drill-ready stage within the project area, Galileo said.
Galileo can further increase its holding in the joint venture to between 65%-85% depending on the size of any future discovery.
Previous drilling from a limited programme at Shinganda included drill intercepts peaking at 50.3 metres (m) at 1.54% copper from 21m with notable gold grades also recovered from grab samples.
In a statement, Colin Bird, Galileo chairman and chief executive, said: "The 51% earn-in and formation of a joint venture demonstrates our commitment to the Shinganda copper-gold project.
"The more work that we do the more confident we become, and we are grateful for the previous work carried out by Vale which, while not advanced enough to define a mineral deposit, was pivotal in establishing our initial work programmes which have taken us to the current position.
“Our exploration will continue to target near surface discovery with the mid-term intent, if our drilling and studies warrant, of a deeper drilling programme to identify a potential IOCG system."