Galileo has entered into a Joint Venture agreement with Statunga Investments Limited (“Statunga” or “the Vendors”), a private Zambian company which holds the Luansobe Project (“Project”) comprising small-scale exploration licence No. 28340–HQ-SEL in the Zambian Copperbelt.
The Luansobe Project
- 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.
- A copper deposit has been established on the property through extensive historic drilling – preliminary analysis suggests that the deposit has a strike length of up to 3km and extends to a depth of at least 1,250m, with some exceptional drill intercepts, including 18.6m @ 3.24% Cu in the NW of the deposit.
- The Project is essentially a strike continuation of Mufulira – a 1974 report suggests the potential for a non-JORC compliant global resource of over 20Mt @ 2.51% Cu.
- The top 30m from surface is reported to be leached, with oxide mineralisation occurring below this depth to about 70m below surface. Beyond this depth, copper generally occurs as sulphides. The deposit is reported to be open and relatively untested at depth. About 30% of the total contained copper occurs in acid soluble form (as copper oxide) – this is expected to be higher in the shallower parts of the deposit.
The Company believes that the Project has very strong development potential and plans to review past exploration data to develop a drilling programme to test the tenor and extent of the copper mineralisation indicated by previous drilling and nearby mining. The aim will be to bring the project up to JORC 2012 Mineral Resource status, with a particular focus on the early-mining potential of the shallower oxide copper, as well as the development of a larger-scale copper sulphide mine. To this end, the Company aims to undertake a Project Feasibility Study by August 2023.
- The JV Agreement provides Galileo the right to earn an initial 75% interest in a special purpose joint venture company to be established under Zambia law to, with Ministerial consent, acquire the exploration licence and the technical data related to the Luansobe Project by making two payments of US$200,000 each (subject to project due diligence) by 20 February 2022 and issuing 5,000,000 Galileo shares to the Vendors.
- Galileo aims to complete a feasibility study on the Project within an 18-month period, with a possible further 6-month extension in the event of a JORC-compliant Mineral Resource being established.
- If a decision to mine is made by Galileo, then the parties will be entitled to fund pro rata to their beneficial interest in the JV Company. Any funding shortfall by the Vendors will be recovered from subsequent mine production.