Galileo Resources PLC (AIM:GLR) said that after assessing the options for the Luansobe copper project in Zambia, it might be more feasible to split it into separate mining and processing operations given its scale.
This follows the identification of new shallow mining prospects and deeper mineralisation.
Several potential investors, partners and contractors have expressed an interest in the project offering several routes for commercial development, Galileo added.
Options include contractor mining followed by in-house processing, contractor mining with external toll treatment of ore and mining and toll treatment delivered by a single provider.
To help determine the best option, an external consultant is reviewing the geological database, block model, operating mining costs, sensitivity analysis and the grades and tonnage of the various pit selections.
Galileo added that it had instructed the external consultant to complete the mine design to complement the strategic scheduling already undertaken to give interested parties detailed mine design, pushback design, life of mine scheduling and for internal use, trade-off studies.
Production remains dependent on permitting and the availability of funding, Galileo added.
Colin Bird Galileo’s chairman and CEO said: “The work we have carried out confirms that the project has the potential to be a large-scale mining project close to existing processing facilities, large and small notwithstanding the Mufulira mine.
“We have interrogated more than 300 boreholes collared within the licence and we are now confident of the orebody architecture but more importantly, through engineering modelling have identified blocks of ore which can fit into the open pit and shallow UG that are transformative for our original expectations for the pit.
“This work was carried out in conjunction with a third-party engineering consultant, Sound Engineering Solutions.
“We are now convinced that we have a two, possibly three-stage, project with a substantial copper ore resource suitable initially for O/P mining and potentially followed by a large-scale UG operation.
“Naturally a project of this size and definition has attracted considerable interest from third parties and as such we have entertained numerous enquiries concerning potential involvement in varying ways.
“The board of Galileo is acutely aware that embarking on a particular development route would probably be exclusive to other routes thus removing the optionality of best value outcome for the Galileo shareholders.
“We remain open to the various options tabled and recognise the need to select the optimum option to satisfy shareholder expectations.”