Galileo Resources PLC Star Zinc Project Update (6554X)
01 Maggio 2019 - 8:00AM
UK Regulatory
TIDMGLR
RNS Number : 6554X
Galileo Resources PLC
01 May 2019
For immediate release
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
1 May 2019
Galileo Resources Plc
("Galileo" or "the Company")
Star Zinc - Negotiations to Commence for Off-take Agreement
Galileo is pleased to announce negotiations are to commence with
Jubilee Metals Group plc ("JMG" or "Jubilee"), for an off-take
agreement to supply ore from Star Zinc ("SZ"), pursuant to a
Binding Term Sheet ("Term Sheet") (announced 31 August 2017).
Commencement of negotiations is facilitated by JMG's recently
announced acquisition (21 March 2019) of Glencore's Sable zinc
refinery (the "Acquisition") for its Kabwe Tailings project in
Zambia and the Company's recent placing to raise GBP500,000, before
expenses. to advance its 80.75% owned Star Zinc project.
Highlights
-- Jubilee's acquisition of the Sable refinery (the "Refinery")
enables negotiations to commence with JMG for an off-take agreement
to supply ore mined from Star Zinc and other potential ore sources
nearby, to which the Company has the exclusive option to
acquire
-- Star Zinc has an independently modelled exploration target
estimated at between 600,000 and 900,000 tonnes (t) with an
estimated average grade of 10 to 12% Zn (announced 14 November
2018), with a high grade (>20% Zn) component estimated at
between 60,000 to 90,000 t rock mass
-- Potential earnings from Star Zinc could be significant in the
near future as there would be no requirement for either mining or
processing capital
-- Mining risk and costs would be low since the deposit is
shallow, mainly near surface to maximum 60 m deep and parts of the
deposit could be mined using mechanical diggers without the need
for blasting
-- Coincident with the off-take agreement negotiations, the
Company will expedite use of the proceeds from the Placing to
produce a JORC 2012 maiden resource estimate and an open pit design
and plan to mine ore from Star Zinc
-- Future exploration for the Company will include the Kashitu
zinc willemite (zinc silicate ore mineral) prospect, some 6 km
distant from the Refinery, subject to completion of the acquisition
of the Kabwe Residual Rights announced on 13 September 2018.
-- Kashitu is believed, by the Directors, to have similar
mineralisation to Star Zinc and future ore from Kashitu would
supplement that from Star Zinc
-- Historically, vanadium has been identified on Kashitu. Star
Zinc, however contains silver and germanium, which would be
included in off-take agreement negotiations depending on their
recoverability
-- Kashitu licence area is more extensive than Star Zinc and is
therefore believed to have the potential for a much larger tonnage
based on interpretation of historical exploration on Kashitu
Colin Bird Galileo CEO said "Jubilee's acquisition of the Sable
refinery and development plans necessitates fast tracking
negotiations for an off-take agreement to supply Star Zinc ore. We
will undertake all necessary work, related to expedite producing a
JORC compliant maiden resource estimate and a mining plan for ore
from Star Zinc. The Kashitu prospect has the potential to be a
bigger resource than Star Zinc and we intend to commence a study
for exploration on this prospect as soon as practicable."
JMG's plans regarding its acquisition of the Sable Zinc refinery
in Kabwe Zambia expects to deliver the first metal from its Kabwe
Tailings within a year from the acquisition. In order to meet this
schedule Galileo will expedite the completion of a maiden mineral
resource estimate to 2012 JORC Code standard, which will include
commissioning the refinement of its existing ETR model, in order to
delineate a) potential high-grade and low-grade zinc components in
the body, and b) develop an open pit design for selective mining,
as appropriate, as run-of-mine feed to Kabwe.
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
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 Tel +44 (0) 20 7628 3396
Roland Cornish/James Biddle
--------------------------
Novum Securities Limited - Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
--------------------------
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END
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