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Galileo Resources set to apply for mining permit at Star zinc project

Bosses will apply for the permit now they have received a JORC resource estimate, which confirmed potential to mine 77,000 tonnes of zinc

Galileo Resources PLC - Galileo Resources set to apply for mining permit at Star zinc project
Star is expected to produce 12,000 tonnes of zinc each year for six years

Galileo Resources PLC (LON:GLR) is to apply for a mining permit at its Star zinc deposit in Zambia after publishing a JORC-compliant mineral resource estimate for the project.

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%.

READ: Galileo publishes initial inferred resource estimate for Star Zinc project

Galileo anticipates a “small-scale” shallow open-pit mining operation capable of producing 12,000 tonnes of zinc a year for six years.

The zinc will then be transported to Jubilee Metals Group PLC’s (LON:JLP) nearby Kabwe refinery.

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.

Quick facts: Galileo Resources PLC

Price: 0.265 GBX

Market: AIM
Market Cap: £1.48 m

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