Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Galileo to drill Star zinc project in Zambia

Galileo is moving rapidly to add value at the Star zinc project in Zambia
Galileo to drill Star zinc project in Zambia
The Star zinc project shows every sign of being economic, even at this early stage

Following a review of a conceptual study carried out at the Star zinc project in Zambia in 2015, Galileo Resources PLC (LON:GLR) has decided to undertake a fast-track drilling programme.

The study showed that at current metals prices, the project could deliver an IRR of 77%. It shows an NPV of US$18 mln at a 10% discount and offers payback in a year on capital expenditure of US$9.1mln.

READ: Galileo Resources joint venture picks up Star Zinc

But Galileo intends to upgrade the current non-compliant resource with the new drill programme at a cost of around US$350,000, to be funded from existing cash resources.

Some twinning will be undertaken to bring existing data up to JORC standards, while new drill testing will take place to the east and west to extend the known mineralisation and in new ground to the south.  

READ: Galileo Resources shares leap over 20% on positive broker comment to Star Zinc project option exercise move

"I am pleased that we are advancing a fast track exploration programme for the Star zinc project,” said Colin Bird said in a statement.

“Our initial review suggests that the project could potentially be developed as a viable stand-alone project without adding further to the resource. However, we believe that the resource could potentially be much bigger and therefore a large proportion of our exploration will focus on increasing the size of project resource and contained zinc metal.”

View full GLR profile View Profile

Galileo Resources PLC Timeline

Related Articles

August 10 2018
An open‐cut strategy remains the current focus with a scoping study underway at Theta Hill.
January 18 2018
NextSource Materials Inc (TSE:NEXT) (OTCQB:NSRCF) may just be the best graphite company few investors know of.
Energy Fuels nudges higher as it outlines opportunities to lift uranium output
March 20 2018
The group is always hunting new sources of alternate feed materials and fee processing arrangements, it said

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use