Joint Venture Option exercised at Shinganda

RNS Number : 9381D
Galileo Resources PLC
27 June 2023

Galileo Resources Plc
(“Galileo” or “the Company”) 

 Joint Venture Option exercised and further progress/plans at Shinganda Copper-Gold Project, Zambia

Galileo Resources plc (“Galileo “or the “Company”) is pleased to inform shareholders that it has exercised the option to enter a Joint Venture and be issued a 51% interest over the Shinganda Project Copper-Gold Project, Zambia (“Project”) following the expenditure of more than US$500,000 in direct exploration costs. Work has also been stepped up to fast-track several further copper-gold targets to drill-ready stage within the Project area.

Highlights

·    Expenditure in excess of of US$500,000 by Galileo on the Project has earned the Company a 51% interest in the Project from its partner Garbo Resource Solutions Ltd (“Garbo”).

·    Galileo has exercised its right to form a joint venture which will enable Galileo to increase its equity interest in the Project to a percentage ranging from 65 to 85 per cent depending on the size of any future discovery.  

·    Under the Joint Venture, as a condition of the 51% interest, Galileo has undertaken to fully fund and manage further drilling, metallurgical and scoping studies leading to the completion of a feasibility study.

·    Recently completed exploration work has advanced the Project in locating four copper occurrences along a 3.5km length of the Gerhard Structural Trend over and above those discovered last year (see RNS of 18 January 2023). A selection of samples from these has been submitted for copper/gold analysis.

·    Previous drilling has achieved some highly encouraging drill results from a limited programme that included drill intercepts peaking at 50.3m @ 1.54% Cu from 21m downhole depth in SHDD002 and prospecting/exploration pitting has returned grab sample gold grades peaking at 33.90g/t Au, 20.16g/t Au and 8.54g/t Au.

·    The objective of the 2023 programme is to quickly generate several more refined targets for drill testing during the current dry season, combining recent prospecting results with structural interpretation from processing of magnetic data and new soil sampling data.

Colin Bird Chairman and CEO said: “The 51% earn-in and formation of a joint venture demonstrates our commitment to the Shinganda copper-gold project. The more work that we do the more confident we become, and we are grateful for the previous work carried out by Vale which, while not advanced enough to define a mineral deposit, was pivotal in establishing our initial work programmes which have taken us to the current position. We remain open minded on the style of mineralisation, including the concept of a larger IOCG system or a series of localised hydrothermal centres, while not excluding a hybrid model. Our deepest drillhole to date was to about 150m vertical depth, traditionally IOCG deposits are discovered deeper. Thus, our exploration will continue to target near surface discovery with the mid-term intent, if our drilling and studies warrant, of a deeper drilling programme to identify a potential IOCG system.”

Summary of Shinganda Option and Joint Venture Terms (as announced 7 December 2021)

The Shinganda Option and Joint Venture Agreement with Garbo includes the following summary terms:

Ø Galileo may earn an initial 51% interest in the Project by spending US$500,000 on exploration, including drilling and evaluation studies, over a two-year period, subject to any necessary Zambian regulatory approval.

Ø Galileo may withdraw without penalty at any stage during the Option period.

Ø At any time during the Option period Galileo may elect to move forward to a Joint Venture to more fully evaluate and, if warranted, develop the Project.

Ø Should the parties decide to advance the Project to feasibility study, then Galileo will pay the cost of such a study.

Ø Galileo’s share of profits from a mining operation will vary, depending on the projected size of the deposit, ranging from 85% if the project has the potential of greater than 50,000 but up to 200,000 tonnes of contained copper equivalent, to 65% if the project has the potential for more than 1,000,000 tonnes of contained copper equivalent.

Ø On decision to mine, each party will be responsible for funding of the development pro-rata to its equity holding in the Joint Venture.

Ø Should Garbo fail to finance its share in the development of the Project, 100% ownership of the Project will revert to Galileo and Garbo will be granted a 2% net smelter royalty on commercial production.

Technical Sign-Off

Technical information in this announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo, Technical Director of Galileo. Mr Slowey is a geologist with more than 40 years’ relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed and approved this announcement.

 

You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact: Galileo Resources PLC

Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Beaumont Cornish Limited – Nomad

Roland Cornish/James Biddle

Tel +44 (0) 20 7628 3396
Novum Securities Limited – Joint Broker

Colin Rowbury /Jon Belliss

+44 (0) 20 7399 9400
Shard Capital Partners LLP – Joint Broker

Damon Heath

Tel +44 (0) 20 7186 9952

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”).

 

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