Galileo Resources PLC (AIM:GLR) said it made a second payment to secure an initial 75% interest in the Luansobe copper project in Zambia.
The US$200,000 (£147,000) payment and the issue of 5mln shares to Statunga Investments is part of a joint venture agreement covering the project.
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Galileo also said progress has been made on initial modelling of the deposit using historic drill data.
It is looking at two concurrent development options: A small open pit mine to exploit the up-dip portion of the copper deposit in the northwest of the licence area and a larger mine to develop the resources down-dip and along strike to the southeast.
“We are pleased with the outcome of the interrogation of historic drill data which indicates good potential for a small open pit in the range of 3-5 million tonnes of copper ore based on current economics,” said chairman and chief executive Colin Bird.
“If the modelling continues to be satisfactory, we will prepare for commencement of a small open pit mining operation using third party contractors. We are particularly encouraged by the larger potential - we are planning for further drilling in the southeast of the property to test previous suggestions of larger tonnages and grades in excess of 1.5% Cu [copper]."
Galileo said it plans to start preparation for shallow mining in the northwest before the year end while undertaking a drilling campaign to confirm historic drill results and to further define a potentially larger resource towards the southeast.
It is also looking to view drill core believed to be held at the nearby Mopani copper mine to further increase confidence in the historic drill reports.