TIDMGLR
RNS Number : 1111Q
Galileo Resources PLC
04 June 2018
For immediate release
04 June 2018
Galileo Resources Plc
("Galileo" or "the Company")
Star Zinc Conceptual Grade-Tonnage Estimate
Galileo is pleased to announce results of an independent
conceptual grade and tonnage estimate (see cautionary note below in
this regard) based on modelling the results from the Company's
recently completed 26-diamond drill hole programme (announced 14
May 2018) on the Zambian Star Zinc project ("Star Zinc") and in
which, the Company, in joint venture with BMR Group plc ("BMR"),
has an 85% interest.
Cautionary note: A formal Mineral Resource Estimate has not been
prepared at this time and there is no Standard being reported to in
this regard in this announcement. The potential quantity and grade
expressed in this release is conceptual in nature and, at this
stage, there is insufficient exploration data to estimate a Mineral
Resource Estimate in accordance with any Standard and it is
uncertain whether further exploration will result in the estimation
of Mineral Resources.
Highlights
-- The conceptual grade tonnage (CGT) estimate models a
potential exploration target of 485 000 tonnes ("t") deposit at
15.4% Zn grade (see table 1)
-- At a nominal 3% zinc ("Zn") cut-off the CGT model from the
current drilling represents an 80% increase in tonnes with a 14%
decrease in grade when compared to previous CGT modelling exercise
("conservative case ") in 2015 based on historical exploration
data*
-- This conceptual analysis suggests a core of high grade
massive willemite material in both the east and west limbs of the
deposit
-- This modelling indicates a domal mineralised structure, with the east and west limbs dipping
shallowly away from the centre of the structure, focused below
an old historic pit
-- The wireframe-modelled limbs did not meet under the old pit;
suggesting the need for further exploration in this area to
determine continuity or interaction, if any, of the two limbs
-- Results from the CGT highlight further exploration potential
to extend mineralisation to the east-north-east and south east,
which remain open ended
-- The area below the open pit and geophysics/geochemistry over
the surrounding area and other areas ouside the mineralised domain
remain to be explored
* (BMR - RNS announcement 16 August 2016 and also see table 2
and related note (a) ).
Table 1 Conceptual grade tonnage model
Domain Tonnes (t) Grade (Zn %)
------------ --------------
MG5 9,000 5.1
---------- ------------ --------------
MG4 9,000 8.3
---------- ------------ --------------
MG3 188,000 8.4
---------- ------------ --------------
MG2 83,000 7.4
---------- ------------ --------------
MG1 30,000 13.2
---------- ------------ --------------
HG2 104,000 31.2
---------- ------------ --------------
HG1 61,000 24.8
---------- ------------ --------------
TOTAL 485,000 15.4
---------- ------------ --------------
Volume and tonnes are rounded to 3 significant figures; metal is
rounded to 2 significant figures. Note: the above CGT calculation
has not been prepared in accordance with any Reporting Standard and
therefore should be treated with caution at this stage and should
not be relied upon.
Table 2: Comparison between 2015 and 2018 conceptual model results (at a nominal 3% Zn cut-off)
Tonnes Grade
t %Zn
-------- ------
2015 Conservative Case (a) 269,081 18.0
------------------------------------------ -------- ------
2015 Pragmatic Case (a) 386,278 17.6
------------------------------------------ -------- ------
2018 CGT 485,000 15.4
------------------------------------------ -------- ------
% difference from Conservative case 2015 80% -14%
------------------------------------------ -------- ------
% difference from Pragmatic case 2015 26% -13%
------------------------------------------ -------- ------
Note (a) The conceptual Grade tonnage work completed in 2015
produced two models, representing "conservative" and "pragmatic"
cases.
Colin Bird, Chief Executive Officer, said:
"This result is very pleasing in as much as it substantiates our
intitial prognosis for acquiring a majority interest in the
project. The study has demonstrated two quite distinct
mineralisation types (b) which potentially could lead to
significant increases in tonnage of material with zinc-grade in
excess of cut-off. The areas to the east and south-east of the
minerlaised domain remain open with good geophysic and geochemical
signatures identified prior to entering into the JV on this
project. Other near-by areas with good underlying geologic physical
parameters remain available for exploration. The Company intends to
test the prognosis for a deeper feeder source for the
mineralisation but prior to this it will research this further,
which to a large degree wil be led by the current programme
evaluation and further drill results."
Note (b) Zn mineralisation on Star Zinc comprises broadly:
-- in the West, high-grade semi-massive Willemite
mineralisation, vein hosted mineralisation and replacement style
mineralisation hosted within dolomitic limestone. Rarer occurrences
are breccia hosted and vein hosted within argillite
-- in the East, haematite- stained argillaceous/shaly limestones
hosting mineralisation - typically as replacement style
mineralisation with a lower frequency of vein hosted style
(compared to the West)
-- in both the East and West, supergene Zn is present in karsts,
fault zones and highly weathered fracture zones as well as
associated with ferruginous pisolitic laterite and soil
material.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
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.
You can also follow Galileo on Twitter: @GalileoResource
Forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"will" or the negative of those, variations or comparable
expressions, including references to assumptions. These forward
looking statements are not based on historical facts but rather on
the Directors' current expectations and assumptions regarding the
Company's future growth, results of operations, performance, future
capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements
reflect the Directors' current beliefs and assumptions and are
based on information currently available to the Directors. A number
of factors could cause actual results to differ materially from the
results discussed in the forward looking statements including risks
associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory
changes, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and
underinsured losses and other factors, many of which are beyond the
control of the Company. Although any forward looking statements
contained in this announcement
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad & Joint Broker Tel +44 (0) 20 7628 3396
Roland Cornish/James Biddle
-------------------------
Novum Securities Limited - Joint Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
-------------------------
The Star Zinc Project
The Star Zinc project is a historical small-scale open pit mine
from where, reportedly, low tonnage, but high grade willemite (a
zinc silicate mineral) was extracted intermittently in the 1950s to
1990s.
The Star Zinc project is located approximately 18km NNW of
Lusaka (see Figure 3.1 below), and is accessible via the tarred
"Great North Road" and a good all weather graded road, with the
journey time from central Lusaka of approximately 30 minutes
(traffic allowing).
There is adequate power, water, rail & telecommunications,
with the International Airport at Lusaka, less than 45 minutes
away.
The Mines and Minerals Development Act No. 11 of 2015 , which
grants a Large Scale Prospecting Licence provides for an initial 4
years with a further two 3-year extensions totalling 10 years, with
a mandatory 50% reduction of licence area at the completion of the
1st grant and 2nd grant periods respectively. The first renewal
period initially expired 13 August 2016 but was extended to 13
August 2018. The Company has submitted an application for the next
renewal period.
The Star Zinc Willemite project was mapped in the 1960s by
several geologists of the Northern Rhodesia (now Zambia) Geological
Survey.
At Star Zinc, two main fracture trends are present, one E - W,
and another N - S. Both sets of fractures are nearly vertical and
are irregularly mineralised. Willemite generally replaces the host
rock marbles in the form of massive ore bodies, but it occurs also
in veins
In addition, karstic (pertaining to landscape underlain by
limestone which has been eroded by dissolution, producing ridges,
fissures, sinkholes and other characteristic landforms)
mineralisation and red soils (terra rossa) are locally heavily
mineralised with detrital willemite and supergene zinc minerals.
Zinc values measured in soils at Star Zinc reach up to 15,600 ppm
and are accompanied by the pathfinder elements Ag (silver), Pb
(lead), Ba (barium), Sb (antimony) and Cd (cadmium). The karst
infill has a zinc content up to 45wt.% Zn, up to 35wt.% Fe and up
to 5g/t Ag.
The mineralogical assemblage non-sulphide zinc minerals includes
a whole number of minerals, but the main economic phases present
are Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn-
Pb carbonates (smithsonite, cerussite), hydrated Zn- Pb carbonates
(hydrozincite, hydrocerussite) and Zn- Mn- Fe- oxides (zincite,
franklinite, gahnite).
Limited independent metallurgical testwork by others has clearly
shown that the willemite present at Star Zinc is amenable to acid
leaching with positive results for two samples tested. Zinc
leaching efficiencies obtained ranged from 89% and 92%. The
testwork indicated polymerisation of dissolved silica in the
leachate.
An independent competent person's report commissioned by BMR
concluded. In summary, the Star Zinc project has good potential to
become a viable project.
Note: the information about Star Zinc is sourced primarily from
Competent Person's Report for the Star Zinc Project, Zambia;
Wardell Armstrong, January 2016
Glossary
Argillaceous pertaining to argillite
Argillite rocks or sediment consisting of or containing clay
Detrital loose fragments or grains that have been worn away from rock
Calcite mineral of calcium carbonate
Dolomite mineral composed of calcium magnesium carbonate
Dolomitic pertaining to dolomite
Floats pieces of rock that have been removed and transported
from their original outcrop
Hematite reddish-black mineral consisting of ferric (iron) oxide.
ICP-OES/MS inductively coupled plasma - optical emission spectrometry /mass spectrometry
Karst landscape underlain by limestone (calcium carbonate),
which has been eroded by dissolution, producing ridges, fissures
and so on
Karstic pertaining to karst
Laterite a soil and rock type rich in iron and aluminium
Leaching chemical process of solubilising metals in rock into solution
Pisolite a rock comprising pea-sized concentric formations within a fine matrix
Pisolitic pertaining to pisolite
ppm parts per million
XRF Spectrometer analytical instrument for determining chemical
composition using x-ray fluorescence
Supergene pertaining to processes or enrichment that occurs
relatively near surface
Willemite zinc silicate ore mineral
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLFTMBTMBAMBRP
(END) Dow Jones Newswires
June 04, 2018 02:00 ET (06:00 GMT)
Grafico Azioni Galileo Resources (LSE:GLR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Galileo Resources (LSE:GLR)
Storico
Da Lug 2023 a Lug 2024