TIDMGLR
RNS Number : 8427D
Galileo Resources PLC
05 February 2018
5 February 2018
Galileo Resources Plc
("Galileo" or "the Company")
Glenover Phosphate -Update
Galileo (AIM: GLR) is pleased to announce that its 36%-owned
subsidiary, Glenover Phosphate (Pty) Ltd ("Glenover"), has accepted
a Heads of Agreement (the "Heads") from a major
phosphate/fertiliser producer ("MPP") for the acquisition and
supply to MPP of raw phosphate rock ("Phosphate Rock") in the form
of flotation concentrate from Glenover's phosphate-rare earth
project ("the Project") in the Limpopo Province of the Republic of
South Africa.
Additionally, the Company announces that the Department of
Mineral Resources ("DMR") has accepted Glenover's application for a
mining right (submitted 15 November 2017) to mine and produce
phosphate and in this regard Glenover has commenced the requisite
environmental impact assessment ("EIA") programme on the Project
for the grant of a mining right.
Highlights
-- Glenover accepts Heads from MPP for the acquisiton and long
term (minimum 15 years) supply of Phosphate Rock to MPP
-- The Heads is the outcome of MPP's extensive initial testwork
in collaboration with Glenover as to suitability of the Phosphate
Rock for its phosphate process and a review of alternative local
and international sources of Phosphate Rock
-- Rare-earths (and niobium) in the tailings of any future
processing of Phosphate Rock by MPP, would be available to Glenover
for recovery and further beneficiation
-- Mining Right Application for the Glenover Project submitted
to the Department of Mineral Resources on 15 November 2017 and now
accepted
-- DMR acceptance increases Galileo's beneficial interest in the Project to 36%
-- On successful grant of the Mining Right, Galileo will
increase its beneficial interest to 38% in the Project
The Heads are subject to the parties entering into a definitive
supply agreement and otherwise terminate on 30 April 2018.
Furthermore, the Heads contains the following material terms:
- MPP requires further pilot scale work to determine the
suitability of the Phosphate Rock in its process as one of the main
conditions precedent, but further capital expenditure by the MPP
for the second phase pilot scale test work will be subject to the
Parties agreeing on the main commercial terms in the Heads;
- The Flotation Plant will be built at the mine site and funded
and owned by Glenover which will require additional funding;
and
- The MPP will purchase Glenover Phosphate Rock (33% P(2) O(5)
content) at international market prices
Colin Bird CEO commented: "Galileo and JV partner Ferminore have
been in discussions with various interested groups concerning the
development of the Project. One group has already carried out
extensive bench scale testwork and on this basis has entered into a
preliminary offtake agreement, with pilot scale scale testing
remaining the main hurdle to a binding agreement. Importantly too,
is the fact that the rare earths (and niobium) in the ore, an asset
of value, would still be available for future beneficiation. The
board is pleased that the potential exists by way of this Heads to
realise a significant return on the Company's initial investment in
the Project".
The Heads is the outcome of phase 1 of a 2-phase Pilot Plant
Study investigation by MPP ("Investigation") (see previous
announcement 12 June 2017) as to suitability of the Phosphate Rock
for its process and also MPP's review of various other local and
international sources of raw phosphate rock.
The Heads is subject, among others, to the second phase of
Investigation, comprising technical and pilot plant work, including
the production of 30 tonnes of Phosphate Rock for piloting by MPP,
being successful and to the incorporation of the terms of Agreement
into a definitive supply agreement.
The termination date of the Agreement is the earlier of 30 April
2018 and the signature date of the definitive supply agreement.
The Glenover Project
The Project is located approximately 90 km northwest of the town
of Thabazimbi in the Waterberg region of Limpopo Province in the
Republic of South Africa. The Project comprises an inactive
phosphate mine comprising a SAMREC compliant 10.37 million tonnes
(Mt) grading 18.73% phosphate (P(2) O(5) ) including an inferred
2.685 Mt surface stockpiles of phosphate ore grading 22.21 %P(2)
O(5) and a measured and indicated 7.4 Mt grading 17.51 %P(2) O(5)
in an apatite (phosphate mineral)- breccia core remaining in the
previously mined open pit. The open pit is approximately 100 metres
deep with a surface width of approximately 200 metres.
Glenover Phosphate Resource (SAMREC compliant) (1)
Resource Resource Tonnage P(2) O(5)
Class Mt (%)
--------------------------- ------------------------------- -------- ----------
Apatite-Haematite Breccia Measured
---------------------------
Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Total Measured & Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Inferred 0.274 15.83
----------------------------------------------------------- -------- ----------
Surface Stockpiles Inferred 2.685 22.21
--------------------------- ------------------------------- -------- ----------
Total Measured indicated & inferred 10.37 18.73
--------------------------- ------------------------------- -------- ----------
(1) Data contained in the Preliminary Economic Assessment (PEA)
referred to in RNS announcement of 07 March 2013 "Results of
Glenover PEA"
Further details as set out in past announcements are available
from the Company's website, www.galileoresources.com, which details
the Company's project portfolio as well as a copy of this
announcement:
You can also follow Galileo on Twitter: @GalileoResource
Technical Sign-Off
Andrew Sarosi, Director of Galileo, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
ENDS
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Galileo Resources PLC Tel +44 (0) 20 7581 4477
Colin Bird, Chairman
Andrew Sarosi, Executive Tel +44 (0) 1752 221937
Director
Beaumont Cornish Limited Tel +44 (0) 20 7628 3396
- Nomad
Roland Cornish/James Biddle
Beaufort Securities Limited - Broker Tel +44 (0) 20 7382 8416
Jon Belliss
Technical Glossary:
Inferred Mineral Resource: that part of a Mineral Resource for
which volume or tonnage, grade and mineral content can be estimated
with only a low level of confidence. It is inferred from geological
evidence and sampling and assumed but not verified geologically or
through analysis of grade continuity. It is based on information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that may be
limited in scope or of uncertain quality and
reliability.
Indicated Mineral Resource: that part of a Mineral Resource, for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level of
confidence. It is based on information from exploration, sampling
and testing of material gathered from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological or grade
continuity but are spaced closely enough for continuity to be
assumed.
Measured Mineral Resource: that part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable information from
exploration, sampling and testing of material from locations such
as outcrops, trenches, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological and grade
continuity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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