The MRE supports the previously reported initial findings of approximately 500,000 tonnes at 16% Zinc for 77,000 tonnes of contained metal above a cut-off grade of 2% Zinc.
This includes approximately 340,000 tonnes at 21% Zinc for 72,000 tonnes of metal above a cut-off grade of 8%.
Galileo anticipates a “small-scale” shallow open-pit mining operation capable of producing 12,000 tonnes of zinc a year for six years.
According to Galileo’s own research, Star could generate revenues of around US$15mln each year, with annual costs limited to US$2mln.
With the MRE in hand, Galileo said it now intends to apply for a mining permit and carry out further economic and engineering studies.
“This Technical Report and JORC-compliant resource estimate confirms the company's publicly announced presence of a high grade zinc component in the deposit suitable for direct shipping to Jubilee Metals Group's zinc process/ Sable refinery plant at Kabwe ,” said chief executive Colin Bird.
“The MRE clearly identifies an easy access near-surface mineable zone with a low stripping ratio of one to one. There will be no requirement for processing equipment other than possibly a mobile primary crusher.
“A low grade portion of the mineralised material remains an exploration target and may be amenable to preconcentrate/upgrade to about 10% Zn either as DSO or blending, pending further test work and method development.”
Shares were up 7% to 0.67p in late-afternoon trading on Wednesday.