REG - Galileo Resources - Second Payment for Interest in Luansobe Project

Galileo ResourcesAnnouncement

22/02/2022 07:00

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RNS Number : 3499C  Galileo Resources PLC  22 February 2022

For immediate release

 

22 February 2022

Galileo Resources Plc

("Galileo" or "the Company")

 

Update and Completion of Second Payment for 75% Interest in

Luansobe Copper Project, Zambia

 

Galileo Resources plc ("Galileo "or the "Company") is pleased to report on
progress in modelling of historic drill data at Luansobe and the completion of
the second payment to the vendors to secure an initial 75% interest in the
Luansobe Copper Project, Zambia (the "Project") comprising Small Scale
Exploration Licence No. 28340-HQ-SEL (the "Licence").

 

 

Highlights

 

·    Considerable progress has been made by consultants Addison Mining
Services in compilation of drill data for 154 holes (drilled 1921 to 2007) and
initial modelling of the deposit

·    Two concurrent development options are being considered;

o  The potential for a small open pit mine of circa 3-5 million tonnes to
exploit the up-dip portion of the copper deposit in the northwest of the
licence area

o  The prospect for a larger mine to develop the resources down-dip and along
strike to the southeast where drill data is more sparse

·    It is planned to commence preparation for shallow mining in the
northwest before year end while undertaking a drilling campaign to confirm
historic drill results and to further define a potentially larger resource
towards the southeast

·    The Company is making arrangements for the coming week to view drill
core believed to be held at the nearby Mopani copper mine to further increase
confidence in the historic drill reports

·    The second payment in cash and shares has been made under the terms
of the JV Agreement with the Luansobe Vendor to secure an initial 75% interest
in the Project

 

 

Colin Bird Chairman & CEO said: "We are pleased with the outcome of the
interrogation of historic drill data which indicates good potential for a
small open pit in the range of 3-5 million tonnes of copper ore based on
current economics. If the modelling  continues to be satisfactory, we will
prepare for commencement of a small open pit mining operation using third
party contractors. We are particularly encouraged by the larger potential - we
are planning for further drilling in the southeast of the property to test
previous suggestions of larger tonnages and grades in excess of 1.5% Cu."

 

 

Joint Venture Summary and Update

As previously announced on 30 December 2021 the Company entered into a Joint
Venture Agreement (the "JV Agreement") with Statunga Investments Limited (the
"Vendor")  covering the Luansobe Copper Project, Zambia comprising a Small
Scale Exploration Licence.

 

The JV Agreement provides the Company the right to earn an initial 75%
interest in a special purpose joint venture company (the "JV Company") by
making an initial payment of US$200,000 and a second payment of US$200,000 in
the initial period from the date of the JV Agreement by 20 February 2022 (the
"Initial JV Period") and issuing 5,000,000 Galileo shares to the Vendor. The
second payment has been completed and the shares will now be issued at a price
of 1.125pence per share. The Company will now be issued 75% of the shares in a
to be established Zambian joint venture company (the "JV Company") to own the
Licence (subject to Ministerial Consent) and the Vendor will be issued 25% of
the shares in the JV Company.

 

Application to trading on AIM: Application will be made to the London Stock
Exchange for a total of 5,000,000 new Galileo Shares to be admitted to trading
on AIM which rank pari passu to the existing ordinary shares in the Company.
It is expected that Admission will become effective and that dealings in the
new Galileo Shares will commence at 8.00 a.m. on 28 February 2022.

 

On Admission, the abovementioned figure of  1,096,946,844 Ordinary Shares
(the "Enlarged Share Capital") may be used by shareholders in the Company as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in,
Galileo under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.

 

 

Project Background

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 northwestern 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 over two contiguous
zones, 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.

 

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.

 

 

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").

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