Interim Results

RNS Number : 3706L
Galileo Resources PLC
30 December 2022

The announcement below replaces the RNS released by the Company at 10.00am today with RNS number 3395L. The only change is that the ‘Non-current assets held for sale’ in the Consolidated Statements of Finance Position was incorrectly included in ‘Non-current assets’ and is now disclosed separately.  All other text remains the same.

Galileo Resources PLC
(“Galileo” or “the Company” or “the Group”)

 Unaudited interim results for the six months ended 30 September 2022

 Galileo (AIM: GLR), the exploration and development mining company, announces its unaudited interim results for the six-month period ended 30 September 2022. A copy of the interim results is available on the Company’s website,

Operational Highlights


Luansobe Copper Project

The Company holds a 75% interest in the Luansobe project and is undertaking an advanced exploration programme with a view to completing a Project Feasibility Study within 18 months of 20 February 2022.

The Luansobe area is situated some 15km to the northwest of Mufulira Mine in the Zambian Copperbelt which produced well over 9Mt of copper metal during its operation. It forms part of the north-western limb of the northwest – southeast trending Mufulira syncline and is essentially a strike continuation of Mufulira, with copper mineralisation hosted in the same stratigraphic horizons. At the Luansobe prospect mineralisation occurs in at least two horizons, dipping at 20-30 degrees to the northeast, over a strike length of about 3km and to a vertical depth of at least 1,250m.

Period Under Review

Re-logging of historic drill core dating from the 1950s and 1960s was completed, with core from five vertical holes being split for assaying of possible copper-bearing zones not previously recognised or considered of interest by earlier operators. This work identified mineralised lenses of moderate copper grade, with some higher-grade intervals in an upper zone at Luansobe – selected assay results received included:

·    16m @ 1.20% Cu from 58m in hole L0071

·    14m @ 0.99% Cu from 70m in hole L0069

The newly discovered mineralisation was considered by the Company to have the potential to add incremental value to a possible open pit mining operation.

A contract was signed in August 2022 for a programme of core drilling designed to infill gaps in historic drilling and twin selected holes, with a particular focus on shallow levels of the Luansobe deposit. The new data will be utilised to complete a mineral resource estimate reported in accordance with JORC (2012) which will be used as the basis for potential open pit mine planning.

Post Period Under Review

On 03 November 2022 the Company confirmed completion of the drill programme, comprising 28 vertical diamond drill holes totalling 3,563.5m, thus marking an important step towards the definition of a new Mineral Resource Estimate for the Project. Assay results for the first 15 of 28 holes drilled were received. These identified wide zones of moderate grade, near-surface copper mineralisation, potentially offsetting open pit pre-stripping costs, which could be expected to impact positively on project economics.

Selected assay intervals for the first fifteen holes, included:

·    23.73m @ 2.63% Cu from 85.27m in hole LUDD013

·    2.56m @ 2.78% Cu from 45.44m in hole LUDD005

·    16.39m @ 0.95% Cu from 54.0m in hole LUDD009

·    7.0m @ 0.66% Cu from 21.0m in hole LUDD006

External independent consultant, Addison Mining Services of the UK, will complete a JORC (2012) Mineral Resource Estimate as soon as the balance of geological data and supporting assays have been received. The Mineral Resource Estimate will provide the information required to progress towards a potential open pit mine plan.

Shinganda Project

Galileo has an Option and Joint Venture project covering the Shinganda Copper-Gold project, Zambia where the Company has the right to earn an initial 51% interest.

The project area covers part of a major 10km structural trend with two previously developed small-scale open pit copper-gold mines. Very limited historic drilling on the property is reported to have intersected 1.07% Cu over a true width of 28.3m at shallow depth within supergene copper oxides. Drilling on the structure within the Shinganda property further to the west by Vale S.A. recorded a 2m interval @ 3.93% Cu, 1.72g/t Au.

Period Under Review

The Company engaged a contractor to undertake a detailed ground magnetic survey at Shinganda, covering 383-line kilometres in total. Results were received and are being used to help guide further exploration.

On 20 July 2022 Galileo reported that it had completed a reconnaissance mapping and sampling exercise over the most prospective western sector of the exploration licence. Much of the area is covered by a layer of overburden and duricrust, nevertheless nine target areas with mineralisation or alteration of interest were identified during mapping. Almost all were artisanal pit working exposures with visible copper oxide mineralisation. Altogether 27 rock grab samples were collected for copper and gold assay from the exposed rocks. Assay results returned strongly anomalous values for copper and gold from many of these, including:

·    1.42% Cu, 3.14g/t Au from the Shinganda outcrop

·    1.79% Cu, 10.19g/t Au from Target No.1

·    3.77% Cu, 1.24g/t Au from Target No.7

The outcome of the prospecting, showing the presence of copper and gold mineralisation over an area of at least 12km x 6km on the Shinganda licence, points to the potential for several shallow copper-gold deposits on the property or for a potentially larger target.

The Company engaged a contractor to undertake an initial drilling programme to test the Shinganda pit workings in the vicinity of the historic intersection of 1.07% Cu over a true width of 28.3m at shallow depth within supergene copper oxides – previous drill holes at Shinganda were not assayed for gold.

Results were reported for the first six angled holes totalling 963.9m drilled at the Shinganda outcrop target, with copper assays being received for the first four of these. Gold assay results were awaited. Shallow intervals of semi-massive hematite mineralisation with strongly disseminated copper were noted particularly in holes SHDD002 and SHDD005.

Assay results included:

·    50.3m @ 1.53% Cu from 21m downhole depth in SHDD002, with a sub-interval of 7m @ 4.36% Cu, including 2.0m @ 11.31% Cu

·    43.7m @ 1.01% Cu from 7.3m downhole depth in SHDD004, including 10.0m @ 1.61% Cu

Further drilling is planned.


Period under review

A new small-scale exploration licence was issued on 23 February 2022 covering the core of the Kashitu project area. The licence will run for four years from the issue date.

The Company has continued to plan for a drilling programme at the Kashitu zinc project. Site visits were previously undertaken to establish the suitability of several potential drill sites, with the initial focus on testing of a high-grade willemite zinc silicate vein zone which has been partially mined previously in a small open pit.


Galileo announced an agreement entered into on 04 March 2022 which assigned to Galileo an option granted under an agreement dated 21 January 2022 between BC Ventures and Cordoba Investments Limited to acquire a 51% interest in BC Ventures. BC Ventures is the owner of a highly prospective lithium project in western Zimbabwe (the Kamativi Lithium Project) and two gold licences (the Bulawayo Gold Project) close to Bulawayo through its wholly owned Zimbabwe subsidiary Sinamatella Investments (Private) Limited. Under the terms of the agreement the Company committed to spend US$1.5 million on exploration expenditure by 21 January 2024.

On 10 August 2022, the Company further announced an agreement to acquire a further 29% shareholding in the Sinamatella projects and an extension on the commitment to spend US$ 1.5 million on exploration expenditure by 6 months to 21 July 2024. Post the financial period under review the Company announced that all conditions had been met in relation to the agreement to acquire a 29% shareholding in BC Ventures Limited (the “Share Acquisition”) accordingly, the Company issued 50,000,000 Galileo ordinary shares at a price of 1.2 pence per share being the consideration shares due in relation to the Share Acquisition. As a result, Galileo now has an interest of 29% in BC Ventures alongside an option to acquire a further 51% interest through the Company spending $1.5million on exploration and evaluation of the Projects by 21 July 2024.

Zimbabwe is recognised as one of the most potentially prospective countries in Africa for pegmatite-hosted lithium. Among other explorers, Prospect Resources Ltd (ASX: PSC) estimates that its Arcadia open pit lithium deposit, hosted within a stacked series of pegmatite dykes, contains JORC- compliant proven and probable ore reserves of 37.4Mt, grading at 1.22% Li2O. China’s Zhejiang Huayou Cobalt recently announced that it had agreed a deal to purchase 100% of the Arcadia hard-rock lithium project for US$422m. Zimbabwe has also long been a significant gold producer, primarily from Greenstone Belt quartz ‘reef’ deposits that are host to many small to mid-size quartz reef gold mines and deposits.

Period Under Review

Kamativi Lithium Project

The Kamativi Lithium Project comprises EPO 1782, covering 520km2, and lies on the Kamativi Belt directly adjacent to, and along strike from the historic Kamativi tin- tantalum mine which operated from 1936 to 1994. The Kamativi Mine produced 37,000 tonnes of tin and 3,000 tonnes of tantalum ore from pegmatites, and in 2018 Chimata Gold Corp (Zimbabwe Lithium Company) announced a new JORC (2012) compliant Indicated Mineral Resource of 26Mt @ 0.58% Li2O within the Kamativi mine tailings, confirming that the mine contained significant quantities of lithium.

The Sinamatella licence area encloses extensions and splays of the Kamativi Tin Mine host unit, including mapped pegmatites, and it has been reported that there are old tin-fluorite workings within the Sinamatella property. The licence area also contains a large extent of the pre-Cambrian Malaputese Formation which is considered to be strongly prospective for VMS hosted copper, surrounding the old Gwaii River Copper Mine and including numerous other copper prospects and occurrences.

Little exploration has been carried out on the licence area in the past 25+ years, however there is very good historical data available to advance exploration for lithium prospects.  

Environmental studies were completed on the permit area and the necessary permissions were granted by the Zimbabwe authorities to facilitate commencement of exploration on the property. Reconnaissance mapping/sampling site visits were undertaken, and detailed exploration work commenced on the property, comprising geological mapping, rock grab sampling and soil sampling aimed at identifying potentially lithium-bearing pegmatite host rocks.

Bulawayo Gold-Nickel-Copper Project

The Bulawayo Project comprises EPO 1783 and EPO 1784, covering a large 1,300km2 licence area near Bulawayo with extensive Greenstone Belt rock formations in Zimbabwe. No systematic exploration has been carried out in the area for more than 25 years due to the previously unfavourable investment climate in Zimbabwe. Prospective areas with thin sand/alluvial/Karoo basalt cover have never been explored and preliminary grab sampling on the property reported assays ranging from 3.9-16g/t Au, confirming the prospectivity of the ground.

The aim is to explore for resources to support the development of a large scale mine. The licences adjoin and enclose a number of small-scale gold mines on pre-existing mining permits which provides the opportunity to integrate the production from these operations which have a total historic production reported as more than 1Moz Au.

The Company contracted Xcalibur Airborne Geophysics (Pty) Ltd, to carry out a fixed-wing airborne magnetic and radiometric survey over the Bulawayo licence area, with the programme being completed in June 2022. The survey comprised 12,184 line km of flying at 100m line spacing covering extensive Greenstone Belt rock formations. The aim of the survey was to map critical structures and belts linking the many known small-scale gold mines and deposits to help identify targets for the potential development of a medium to large scale mine.

The survey successfully mapped magnetic greenstone lithologies that have remained unexplored, hidden beneath relatively shallow alluvial and Karoo sandstone cover. The new geophysical data was then integrated with existing gold deposit and soil geochemical datasets. Modelling of the integrated dataset identified multiple gold targets associated with these prospective lithologies and geological structures known to provide the setting for both historic gold producers and operating mines within the Bulawayo licences.

In addition to gold targets, three nickel targets were also identified together with several further sites of interest. These included a 1.5km long soil geochemical anomaly up to 1,700ppm Ni with a coincident magnetic signature in the Fingo area, as well as several other buried or previously unidentified gabbro and ultra-mafic intrusives that represent potential hosts for nickel-copper mineralisation

Post Period Under Review


On 08 December 2022 the Company provided an update on a reconnaissance mapping and sampling programme which identified four target zones with potential for pegmatite-hosted lithium, tin and tantalum. Work included collection of 1,661 samples, comprising rock chips, stream sediments and soil samples which were dispatched to an assay laboratory for a range of elements, including lithium, tin and tantalum. Possible spodumene and petalite lithium mineralisation was visually identified in rock chip samples from one site, however this will require laboratory confirmation.


In November 2022 Galileo reported in relation to the Bulawayo Project that the following work was under way or planned on the initial targets selected for follow-up, as a precursor to proposed drilling in early 2023.

Bembeshi Gold:

At the Bembeshi gold target, evidence was found of both historic and current gold mining along a 7km-long outcropping greenstone trend. Exploration encountered visible sulphides and associated alteration in multiple shear-hosted quartz veins and stockworks over zones up to 30m wide. High-grade gold is currently being mined by artisans and small-scale miners at reported average grades of 5 to 7g/t Au. A wide-spaced soil survey had commenced over a 6km-long greenstone gold target hosting former producing mines to confirm the continuity of gold mineralisation.

Bembeshi Nickel:

The new Bembeshi nickel target was outlined, located east of the Fingo prospect, representing an entirely new potential nickel target. The target was based on available evidence for a large buried mafic – ultramafic body with potential to host nickel. Soil and rock sampling by the Company returned encouraging Ni results from preliminary handheld XRF analysis.

At the Fingo nickel target, infill and extension soil lines were planned on the prospect.

Queens West:

Ground geophysical surveys (resistivity and magnetic) were undertaken to test possible gold-bearing structures identified under surface cover extending away from current and historic gold mining activity in the Queens mine area, supported by historic anomalous gold in soil ranging from 0.5 to 1.0g/t Au. Discovery of multiple quartz veins/stockworks at surface containing sulphide mineralisation, and active artisanal mining were considered to provide clear evidence of the presence of gold along these structural extensions. Supplementary IP-Resistivity ground geophysics was planned to generate drill-ready gold targets

Galileo also reported that it had commissioned an external geological contractor to build a small-scale mining database for legally held small mining claims within the larger Bulawayo Licence to assist with exploration in the medium-term.


Kalahari Copperbelt

Period under review

Following completion of the first phase drilling programme on PL40, PL39 and PL253 an overview report of the programme was prepared incorporating recommendations for follow-up drilling on the Galileo retained licences.

Significant encouragement in relation to the Kalahari Copperbelt is derived from the recent commencement of mining operations by Sandfire Resources Limited on its’ Motheo Copper Mine and especially drilling reports by ASX listed Cobre Limited from its’ newly discovered Ngami copper-silver project along 10km of strike which lies just about 20km from Galileo’s PL253.


Ferber gold-copper project

Period Under Review

An earlier Galileo project review identified several drill targets at Ferber to test both skarn-type gold-copper occurrences and Carlin-type gold occurrences on the 100% held property. Due to strong demand for drill machines in Nevada, it proved difficult to find a contractor to undertake diamond core drilling at Ferber in 2022. However, the Company has proceeded with an application for environmental permit for the planned programme and has engaged Rangefront Mining Services, based in Elko Nevada, to assist in seeking quotes from drilling contractors for Reverse Circulation (RC) drilling with the aim of completing the planned programme during Q3 2023.


Glenover Phosphate Project (” Glenover”)

Period Under Review

The Company received confirmation that all conditions for Afrimat Limited (“Afrimat”) to acquire the Vermiculite Mining Right from Glenover had been met and that Glenover had elected for the Vermiculite Mining Right Consideration to be paid in cash, of which of ZAR11.6 million (approx. £0.6 million) was received by the Company.

Post Period Under Review

The Company announced that Afrimat had given notice to Glenover of its intention to conditionally acquire 100% of the shares in Glenover from the current shareholders of Glenover for consideration of ZAR300 million (approximately £14.3 million) with the to receive ZAR107 million (approximately £5.1 million).

The Sale Shares Consideration will be settled through a combination of cash and Afrimat shares;

·    50% of the Sale Shares Consideration shall, at the election of Afrimat, be split between Afrimat shares based on the Afrimat 30-day VWAP at which the Afrimat shares traded on the JSE Limited on the relevant Effective Date and cash (Afrimat has to make this election on the relevant Effective Date); and

·    50% of the Sale Shares Consideration shall, at the election of the Sellers (which includes the Company), be split between Afrimat shares 30-day VWAP at which the Afrimat shares traded on the JSE Limited on the relevant Effective Date and cash (the Sellers have to make this election on the relevant Effective Date).

The remaining suspensive conditions of the Glenover Acquisition include approval from the South African Department of Mineral Resources and Energy (“DMRE”) in terms of Section 11 of the South African Mineral and Petroleum Resource Development Act No. 28 of 2000 and South African Competition Commission approval for the Acquisition. The Company anticipates that the above suspensive conditions will be met by 31 July 2023.

In the event that either or both the suspensive conditions are not fulfilled by 31 July 2023, interest will be payable at the prime lending rate of the South African Reserve Bank (basic rate of interest that commercial banks charge their customers) less 2% on the remaining purchase consideration of ZAR300 million (£14.3 million) from 1 August 2023 until the suspensive conditions are fulfilled or waived, as applicable, prior to the longstop date of 30 April 2024.

The Company has a very prospective portfolio of projects all of which will be pursued during 2023. The progress of certain projects beyond the first half of 2023 will depend on receipt of the funds from the Glenover sale proceeds as referred to above. Should the receipt of funds be delayed, then certain low priority projects may be deferred until receipt of the funds or alternative funding is secured.

Financial Highlights

The Group reported earnings of £1,209,344 (2021: loss of £552,493) after taxation. This included a fair value adjustment on non-current asset held for sale of £2,392,670 in relation to the Group’s interest in Glenover as more fully described in the announcement of 9 December 2021. Earnings reported is 0.11 pence (2021: loss of 0.06 pence) per share. Earnings per share is based on a weighted average number of ordinary shares of 1,115,819,649 (2021: 919,808,258).

For further information, please contact:

Colin Bird, Chairman and CEO   Tel +44 (0) 20 7581 4477
Edward Slowey, Executive Director

Tel +353 (1) 601 4466



Beaumont Cornish Limited

Nominated Advisor

Roland Cornish/James Biddle


Novum Securities Limited – Broker

Colin Rowbury/ Jon Belliss





Tel +44 (0)20 7628 3396



Tel +44 (0)20 7382 8416

The full Galileo Resources PLC Unaudited interim results for the six months ended 30 September 2022 are available here.