Joint Venture Agreement
On 5 September 2023 Galileo announced that it had entered into a joint venture agreement with Cooperlemon Consultancy Limited, with the option to earn a 65% interest in the Western Foreland Project by committing to an exploration expenditure of no less than US$750,000 within the first 18 months of the agreement.
Geology, location and prospectivity
Ivanhoe Mine’s Kamoa-Kakula copper mine is projected to become the third largest copper-complex globally under new expansions, ranking among the world’s top 10 copper deposits on size and grade. The style of mineralisation and associated geology and structure responsible for the Kamoa-Kakula complex is potentially projected to extend into the North-West Zambia, heightening exploration interest in the area. The licence is underlain by the favourable Western Foreland succession which is associated with Kamoa-style mineralisation.
Background
The company plans to undertake Phase 1 exploration within the period by way of a reconnaissance campaign of mapping, soil geochemistry, geophysics and drilling, building towards discovery and definition of a new Mineral Resource.
If the Phase 1 exploration results are successful and prove the continuity of mineralisation at grades suggesting the potential for the future development of a Mineral Resource of not less than 500,000 tonnes of contained copper, consistent with economic recovery at the depth of discovery with a minimum internal rate of return of not less than 25% and a payback period not exceeding 42 months (including the recovery of capital expenditure), then there will be a second two year exploration period.
The Phase 2 exploration expenditure of US$1.5 million will be funded by Galileo who will be the operator of the Licence for the duration of the Agreement.
Refer to the news announcement of 5 September 2023 for fuller details of the terms of the Joint Venture Agreement.
