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.
Elsehwere, the company also owns 100% of the Ferber gold project in Nevada, USA.
• In late June the company published 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 upped its stake in Star Zinc to 95% in June after buying out the remaining 15% of its subsidiary Enviro Zambia Ltd it didn’t already own. The acquisition also gave the company control of the Kashitu Zinc project, which lies some six kilometres from the Kabwe zinc refinery controlled by Jubilee Metals
• The company said its 34%-owned Glenover rare earths project was “well placed to benefit” as prices of the minerals are boosted by the standoff between China and the US
CEO Interview – Colin Bird
Following the initial resource estimate for Star Zinc, Galileo’s chief executive Colin Bird said the company intended to apply for a mining permit “without delay” and that the data had confirmed previous announcements of a “high grade zinc component” in the deposit which would be suitable for shipping to a zinc refinery plant near the Zambian capital Kabwe.
Bird added that the estimate would allow for a six-year life-of-mine small scale operation to produce 12,000 tonnes of zinc metal per year, with in-house attributable revenues projected at around US$15mln annually at current prices, with the yearly all-in costs expected to be no more than US$2mln.
With the shares trading at around 0.5p as of 1 July 2019, Galileo carries a market cap of £2.04mln.