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General mining & base metals

Galileo Resources updates investors on progress at Star Zinc

Galileo plans to increase its stake in the Star Zinc project to 95%

Galileo Resources PLC (LON:GLR) on Thursday updated investors on the latest progress at its Star Zinc project in Zambia in its first-half results.

The miner completed the first phase of drilling for its 80.75%-owned Star Zinc during the first half ended September 30.

READ: Galileo Resources updates on modelling from drilling results at Star Zinc project

The first non-JORC conceptual grade tonnage (CGT) estimate in May indicated a mineralised deposit of 485 000 tonnes grading 15.4% zinc with an estimated 74,800 tonnes zinc metal.

In August the group began phase two drilling that led to a second CGT estimate, which suggested a maiden resource estimate (MRE) on Star Zinc will likely result in a larger tonnage and contained metal at lower grade than previously announced.

The new CGT estimates models an exploration target at above 3% zinc cut off of between 600,000 and 900,000 tonnes with an estimated average grade of 10% to 12% zinc and an estimated 90,000 to 110,000 tonnes of zinc metal.

The company has said it would be increasing its stake in the Star Zinc project to 95%. In September it announced that it had executed a heads-of-agreement with BMR Group to acquire the Kabwe Residual Rights in Zambia, which included the Kabwe mining license, for an aggregate of around £275,000 through a mixture of cash and Galileo shares.

Galileo made a loss per share of 0.1p in the first half, in line with last year, while operating expenses fell 26.36% to £ 255,677.

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