REG - Galileo Resources - Drilling update - Kalahari copper belt

Galileo ResourcesAnnouncement

08/11/2021 07:05

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RNS Number : 5763R  Galileo Resources PLC  08 November 2021

 

For immediate release

 

8 November 2021

Galileo Resources Plc

("Galileo" or "the Company")

 

Update on Drilling Programme over Kalahari Copper Belt Licences

 

Galileo Resources plc ("Galileo "or the "Company") is pleased to provide an
update on drilling progress on the Kalahari Copper Belt ("KCB") Project in
western Botswana.

 

Highlights

·     A total of over 5,000 metres (m) of mixed core and reverse
circulation drilling has been completed to date on five of the Kalahari Copper
Belt exploration licences in Botswana, including both the Company's retained
licences and the Sandfire Agreement Licences (see RNS dated 16 September
2021), with the agreement of Sandfire Resources

·     Drilling on the Sandfire Agreement Licences intersected visible
copper mineralisation at 242.7m in core hole BDDD004 on PL366/2018 in the form
of vein-hosted chalcopyrite. This interval will be sent for laboratory assay,
along with other zones of interest highlighted by detailed logging of reverse
circulation chips

·     Galileo drilled in two of its retained licences, PL40/2018 and
PL253/2018, with most holes intersecting the target D'kar/Ngwako Pan Fm. While
no copper mineralisation was found, one hole intersected a 6.32m interval of
2-5% fine-grained disseminated pyrite at the target horizon level which might
represent a hydrothermal mineral system lateral to a copper occurrence

·     Drilling is ongoing on PL253/2018 and drilling has just commenced
on PL39/2018 with the aim of testing an extensive airborne EM target on this
property, focussed on the margins of a regional scale dome feature

·     The Company looks forward to receiving assay results from the
PL366/2018 copper intersection as well as the results of the continuing
drilling programme

 

Colin Bird Chairman & CEO said: "We are very pleased that drilling on the
Sandfire Agreement licences hit mineralisation of a type that can be
associated with copper deposits on the KCB. This intersection site is located
within a licence block where Sandfire has a US$4m exploration commitment over
the following two years. Initial results bode well for our prospects of
earning a deferred consideration and we look forward to results of further
drilling by Sandfire on these licences. Drilling on the other sites is
encouraging in that the target horizon has been successfully found in most
holes and drilling is continuing. We have now commenced drill testing on a
further promising EM target on PL39/2018.

 

Results to date are very encouraging, with the limited drilling programme
having already encountered copper mineralisation. We await with interest the
assay results from the drill samples and the outcome of our ongoing drilling."

 

 

Please see the following web link for the location of the Galileo target areas
on the regional geology map of the KCB:

http://www.rns-pdf.londonstockexchange.com/rns/5763R_1-2021-11-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5763R_1-2021-11-7.pdf)

Galileo KCB target areas on geology

Figure 1 - link

 

 

Aims of Drilling Programme

As announced on 5 May 2021, the Company commenced a drilling programme over
its' Kalahari Copper Belt ('KCB') licences, which is ongoing and has consisted
of a combined Diamond Drilling ("DD") and Reverse Circulation ("RC") drilling
programme utilising several rigs. There were two elements to the programme -
the first was to drill test targets on PLs 40/2018, 39/2018 and 253/2018 over
which the Company continues to hold a 100% interest, with expenditure incurred
being used to meet licence programme and expenditure commitments. The second
element of the programme was devised in conjunction with Sandfire Resources
Ltd ("Sandfire") covering those licences held by Galileo which formed part of
the Licence Sale Agreement with Sandfire, as previously announced. As several
of these licences were shortly set to fall due for renewal with limited
previous work completed, a drill programme was prepared by arrangement with
both companies to assist with airborne EM geological interpretation, as well
as testing zones of potential mineral interest and meeting licence expenditure
commitments. The programme was managed by Galileo as the then licence holders,
under an arrangement with Sandfire which agreed to reimburse all drilling
costs up to a maximum of US$500,000 to Galileo once the licences were
transferred to Sandfire. The licences drilled as part of this arrangement were
PLs 250/2018, 251/2018 and 366/2018. All drill core, RC samples and
information from this element of the programme have been handed over to
Sandfire. Under the terms of the agreement with Sandfire, Galileo is entitled
to a 'Success Payment' based on a first ore reserve defined on any of the
licences subject to the agreement.

 

 

 Table 1 - Galileo Retained Licences - Drilling Summary to Date (Drilling from
 surface)
 Licence No.  Drilling type  Hole No.  Dip (degrees)  Azimuth (degrees)  Final depth (m)
 PL40/2018    DD             HHDD001   -65            303                188.05
 PL40/2018    DD             HHDD002   -80            303                316.58
 PL40/2018    DD             HHDD003   -65            303                94.15
 PL40/2018    DD             HHDD004   -65            303                517.6
 PL40/2018    DD             HHDD005   -65            303                706.5
 PL40/2018    DD             HHDD006   -75            303                268.65
 Sub-total                                                               2,091.53

 PL253/2018   RC             QTRC001   -60            160                200.0
 PL253/2018   RC             QTRC002   -60            340                155.0
 PL253/2018   RC             QTRC003   -60            340                300.0
 PL253/2018   RC             QTRC004   -60            160                200.0
 PL253/2018   RC             QTRC005   -60            160                220.0
 PL253/2018   RC             QTRC006   -60            340                211.0
 Sub-total                                                               1,286.0

 

 

 Table 2 - Sandfire Sale Agreement Licences - Drilling Summary (Drilling from
 surface)
 Licence No.  Drilling type  Hole No.  Dip (degrees)  Azimuth (degrees)  Final depth (m)
 PL250/2018   RC             HHDD001   -60            333                55.0
 PL250/2018   RC             HHDD002   -60            333                133.0
 PL250/2018   RC             HHDD003   -60            333                180.0
 PL251/2018   RC             QBRC001   -60            343                121.0
 PL251/2018   RC             QBRC002   -60            343                169.0
 Sub-total                                                               658.0

 PL366/2018   DD             BDDD001   -80            160                142.52
 PL366/2018   DD             BDDD002   -65            340                91.33
 PL366/2018   DD             BDDD003   -60            330                358.94
 PL366/2018   DD             BDDD004   -60            330                517.32
 Sub-total                                                               1,110.11

 

 

Summary of Drilling Results to Date

Holes on all licences were primarily targeted at testing the interpreted D'kar
Fm/Ngwako Pan Fm contact, where copper mineralisation is typically found at
previously discovered copper deposits in the KCB. Most of the holes were
successful in intersecting the target contact zone. This provides useful
information for further geological modelling and planning for future targeted
drilling. Copper mineralisation was observed in hole BDDD004 on PL366/2018. In
this hole vein-hosted chalcopyrite was intersected in D'Kar Fm rocks at
242.70m downhole depth. Further mineralisation observed appears to be
primarily iron hematite, however the zone will be assayed to ascertain the
extent of copper-bearing interval.

 

Drilling on all the Sandfire agreement licences is now completed, while
drilling is continuing on Galileo's retained licence PL253/2018, with drill
testing just commencing on PL39/2018.

 

PL40/2018:

Six diamond core holes were drilled on PL40/2018 along 20km of the overall
30km strike length of the projected D'kar Fm/Ngwako Pan Fm contact zone. The
drill programme was successful in intersecting the interpreted the D'kar
Fm/Ngwako Pan Fm contact along much of the area drill tested. Although no
copper mineralisation was encountered, hole HHDD002 intersected 2-5%
fine-grained disseminated pyrite from 296.83-303.15m downhole depth, just
above the D'Kar/ Ngwako Pan Fm contact. The intersection of iron sulphides at
this contact may represent a hydrothermal system which is distal, rather than
proximal to a copper mineralised setting, with possible increasing
prospectivity on the licence towards the east. Once the programme is fully
evaluated, the data obtained will be used to update the 3D model with a view
to refining targets for follow-up on the licence.

 

PL39/2018:

Diamond drilling on this licence has just commenced with the aim of testing
one or more airborne EM targets on the property, focussed on the margins of a
regional scale dome feature.

 

PL253/2018:

Five RC holes were completed on PL253/2018, with a further hole in progress.
All the holes were designed to test the D'kar/Ngwako Pan contact where it was
interpreted to sub-outcrop at the erosional surface below the Kalahari
overburden. In this area the D'kar/Ngwako Pan contact is interpreted to be
tightly folded and thrust repeated. The areas chosen were also along strike of
anomalous soil geochemical results in the adjacent tenure held by Kalahari
Metals Limited. The drill programme located the interpreted the D'kar
Fm/Ngwako Pan Fm contact in several of the holes indicating potential
structural mineral traps, although the contact has not been copper-mineralised
to date.

 

PL250/2018:

Three RC holes were drilled on PL250/2018. The drill holes on this licence
were planned in conjunction with Sandfire to test a D'kar/Ngwako Pan contact
area where it was interpreted to occur at the erosional surface below the
Kalahari overburden. GLRC001 was abandoned due to hole collapse but GLRC002
and GLRC003 were successfully drilled. GLRC002 located the D'kar/Ngwako Pan
contact at 113m and GLRC003 located the D'kar/Ngwako Pan contact at 162m.

 

Hematite iron mineralisation was noted during logging of chip samples in hole
GLRC002 from 109-110m and in hole GLRC003 from 129-133m and 149-151m. RC
samples collected from these zones were passed to Sandfire for assay to test
for any associated copper.

 

PL251/2018:

Two RC holes were drilled on PL251/2018, also with the aim of testing the
prospective D'kar/Ngwako Pan contact area where it was interpreted to occur at
the erosional surface below the Kalahari overburden. QBRC001 intersected the
D'kar/Ngwako Pan contact at 70m and QBRC002 intersected the D'kar/Ngwako Pan
contact 158m. Neither hole intersected copper mineralisation at the
D'kar/Ngwako Pan contact, but the geological information obtained will be
modelled and utilised in future drill planning.

 

PL366/2018:

Four diamond core holes were drilled on PL366/2018, all of which were focussed
on the previously discovered Quirinius Prospect. Drill holes BDDD001 and
BDDD002 were planned to test a Spectrum EM conductor anomaly running along the
axis of the Quirinius Fold. However, both holes drilled into Ngwako Pan Fm
rocks below the target horizon. As no mineralisation has been found in the
Ngwako Pan Fm these drill holes were terminated.

 

Drill holes BDDD003 and BDDD004 on PL366/2018 were planned with SFR to drill
EM anomalies that were selected from Sandfire's recent regional SkyTEM survey.
BDDD003 intersected D'kar Fm rocks under the Kalahari overburden at 3.90m and
was then drilled to a depth of 358.94m, when excessive water and collapse
caused the drill hole to be abandoned prior to intersecting the D'kar
Fm/Ngwako Pan Fm contact. The hole was left open with a view to possibly
re-entering it at a future date.

 

BDDD004 was successful in intersecting copper mineralisation in the form of
vein-hosted chalcopyrite in D'Kar Fm rocks at 242.7m. The cross-cutting
mineral style and its position higher than usual in the stratigraphic column
is interpreted to be the result of re-mobilisation of copper sulphides along
structures. Assaying of samples from this zone will be undertaken by Sandfire.

 

Background to the KCB Exploration Programme

The interpreted geological setting beneath the Kalahari sand deposits for the
area covered by the Galileo Kalahari licences is based on regional
aeromagnetic and EM data. This area has strong similarities to the synclinal
geological setting that hosts the world-class Khoemacau Copper-Silver Project,
situated only 25 kilometres due west. The Zone 5 and Zone 5N deposits host a
combined sulphide resource of 502Mt @ 1.4% Cu and 17g/t Ag, including 185Mt @
2.0% Cu and 27g/t Ag - refer to Cupric's website www.khoemacau.com
(http://www.khoemacau.com) for details. The Galileo licences also lie close to
Sandfire Resources' (ASX:SFR) Motheo Copper Mine (permitted in July 2021),
which comprises the T3 Copper-Silver Project (60Mt @ 0.98% Cu & 13.6g/t
Ag), where a Definitive Feasibility Study (DFS) was completed in December
2020, and the A4 Dome Prospect (9.8Mt @ 1.36% Cu & 21g/t Ag).

 

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           Tel +44 (0) 20 7628 3396

 Roland Cornish/James Biddle
 Novum Securities Limited - Joint Broker    +44 (0) 20 7399 9400

 Colin Rowbury /Jon Belliss
 Shard Capital Partners LLP - Joint Broker  Tel +44 (0) 20 7186 9952

 Damon Heath

 

 

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").

 

 

Technical Glossary

 

 "bornite"                       A copper-iron sulphide mineral, Cu(5)FeS(4), often found in copper ores

 "chalcocite"                    A copper sulphide mineral, Cu(2)S, found in zones of secondary enrichment of

                               copper ores

 "chalcopyrite"                  A copper-iron sulphide mineral, CuFeS(2), often found in copper ores

 "EM (electromagnetic) survey"   Geophysical exploration method employing the related electric and magnetic
                                 fields which can be set up in a conductive body by an artificial electric
                                 field at surface

 "Fm"                            Geological formation

 "hematite"                      A mineral composed of ferric iron oxide

 "pyrite"                        Iron sulphide mineral, FeS(2)

 "syn-sedimentary"               Occurring during the time of sediment formation

 "thrust"                        A shallow-dipping compressional fault in which rocks are displaced over
                                 relatively large horizontal distances

 

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