Drilling on the Star zinc project in Zambia, held in joint venture by Galileo Resources PLC (LON:GLR) and BMR Resources (LON:BMR), is due to start this week.
The drilling will provisionally encompass up to 1,750 metres and will go towards both resource confirmation and resource enlargement.
READ: Galileo lines up consultants to assist with exploration of Zambian zinc
Consultant GeoQuest Limited will undertake the drilling work, while CSA Global will work on the resource estimate.
"This imminent drilling programme is designed to confirm a regulatory JORC code resource and to test the potential of other nearby areas considered to be prospective,” said chief executive Colin Bird.
READ: Galileo to drill Star zinc project in Zambia
“On completion of this drilling programme, we intend to commence a preliminary economic assessment. We have completed the grid soil sampling programme and will be reporting on this shortly. The mid to long-term price forecast prospects for zinc are strong and this exceptionally high grade property shows all the potential to be a future contributor to global zinc production."
In a note to clients, analysts at SPAngel commented: “Previous reports and non-JORC compliant mineral resource estimates have indicated that the Star deposit is a small but high grade deposit with zinc grades of around 20% zinc at a cut-off grade, higher than the resource grade of many deposits, of 14% zinc.”
They added: “With its long history in mining, we consider Zambia to be a relatively attractive area for mining and exploration and look forward to the results of the drilling and the subsequent resource estimate and preliminary economics and to any indications of expansion potential for the Star deposit.”
In afternoon trading, Galileo Resources shares were 7.8%, or 0.1p higher at 1.38p.
-- Adds broker comment, share price --