What Galileo does
Galileo Resources PLC (LON:GLR) is an AIM-listed miner with a strategy that revolves around acquiring resource projects where early risk has been mitigated while major potential remains to add value to the sites.
What it owns
The company’s main focus is the Star Zinc project in Zambia, in which it holds a 95% interest with the remaining 5% held by the Zambian government.
Aside from Star Zinc, the company also has interests in the Kashitu project, also located in Zambia, as well as a 15% interest in the Concordia copper project and a 38% stake in the Glenover rare earth project, both located in South Africa.
Elsewhere, the company also owns 100% of the Ferber gold project in Nevada, USA.
How it's doing
Galileo has pencilled the second quarter for the start of a small scale mining operation at its Star Zinc project in Zambia.
The junior raised £500,000 to begin work both there and the Kashitu operation, where Galileo wants to start exploration.
Talks are underway for an offtake agreement between Star Zinc and Jubilee Metals Group's Kabwe zinc refinery in Zambia for up to 60 000 tonnes ore per annum at an ore grade of not less than 14% zinc.
What the boss says: Colin Bird, chief executive
"Negotiations are advancing satisfactorily towards an industry normal arrangement and allows us to do the necessary administration and planning to bring the projects into production. The projects offer the potential to provide consistent quantity and quality of ore to the refinery."
"The suitability of the potentially much larger Kashitu deposit and its vanadium content offers the opportunity of a long term sustainable ore supply."
- • An initial inferred resource estimate for the Star Zinc project, which indicated reasonable prospects of around 500,000 tonnes at 16% Zinc for 77,000 tonnes of metal
- • Galileo is discussing with Jubilee Metals to supply ore for up to 60,000 tonnes per annum from the Star Zinc project to Jubilee’s Kabwe zinc refinery.
- • 34%-owned Glenover rare earths project is “well placed to benefit” as prices of the minerals are boosted by the standoff between China and the US.
A small-scale mining permit at the Star Zinc project in Zambia, and begin mining in the second quarter next year.
The estimates would allow for a six-year life-of-mine small scale operation to produce 12,000 tonnes of zinc metal per year, with the yearly all-in costs expected to be no more than US$2mln.