Galileo Resources (GLR.L) JV over Luansobe Copper Project, Zambia

Galileo Resources plc (“Galileo “or the “Company”) is pleased to provide details regarding a Joint Venture Agreement (the “JV Agreement”) entered into on 29 December 2021 with Statunga Investments Limited (the “Vendor”) covering the Luansobe Copper Project, Zambia comprising Small Scale Exploration Licence No. 28340-HQ-SEL (the “Licence”) (the “Project”)

Highlights

US$400K in Initial JV Period and 5M Galileo shares to earn 75% JV Interest

The JV Agreement provides Galileo the right to earn an initial 75% interest in a special purpose joint venture company (the “JV Company”) to be established under Zambia law to, with Ministerial Consent, acquire the Licence, and the technical information and other information and assets related to the Luansobe Project 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. Based on the closing price share price of 0.98 pence on 29 December 2021 the last practicable date prior to this issue of this announcement, the aggregate consideration will be approximately £350,000.

Further project assessment during Initial JV Period

During the Initial JV Period Galileo will conduct further due diligence in relation to the Luansobe Project and may at its sole discretion at any time prior to the end of the Initial JV Period give notice to the Vendor that it has decided not to proceed with the Joint Venture.

Technical management of JV

Galileo has undertaken to commence raw data investigation of the technical information available in relation to the Project and devise an exploration programme for the Luansobe Project, which in their opinion maximise the value of the Luansobe Project with a view to completing a Project Feasibility Study within 18 months of 20 February 2022.

Project near giant Mufulira copper mine

T he Luansobe prospect is situated some 15km to the northwest of the Mufulira Mine site, with mineralisation occurring as stratabound layers and lenses dipping at 30 degrees to the northwest along the same stratigraphic horizon as the giant Mufulira copper mine, which produced well over 9Mt of copper metal during its operation.

Very prospective historic studies

The Company has access to historic non JORC compliant reports provided by the Vendor based on previous exploration on the Project.

Copper mineralisation is reported to occur over about 3km of strike and to at least 1,250m depth. A 1974 report suggests the potential for a non-JORC compliant global resource of over 20Mt @ 2.51% Cu, with a significant proportion of oxide mineralisation occurring in the upper 70m, below the leached cap. Based on these reports the deposit appears open and relatively untested at depth

Project Plan

Galileo plans to review past exploration data to develop a significant drilling programme focussed on testing the tenor and extent of the copper mineralisation indicated by previous drilling and nearby mining. The programme will incorporate twinning of selected holes from the most recent 2007 drilling programme to bring the project up to JORC 2012 status, with a particular focus on the early-mining potential of the shallower oxide copper and the development of a larger-scale copper sulphide mine.

To this end, the Company aims to undertake a Project Feasibility Study by August 2023

Colin Bird Chairman & CEO said: “We are very pleased with the addition of the Luansobe brownfield Project within the Zambian Copperbelt, with the Project situated directly along strike and in close proximity to the very large Mufulira mine which has produced well over 9Mt of copper metal during its operations. The Project area has been tested by numerous drill holes in various campaigns from 1921 to 2007, with semi-continuous mineralisation reported along about 3km of strike and to at least 1,250m depth. Historical reports suggest the potential for very significant copper resources of up to 20Mt @ 2.51% Cu. Galileo proposes to undertake a substantial drilling programme to update the reported resource to JORC-compliant status with the twin objective of delineating a near-surface copper oxide deposit with early development potential and an underlying sulphide deposit for larger-scale development. ”

Summary

Galileo has entered into a Joint Venture agreement with Statunga Investments Limited (the “Vendor”), a private Zambian company which holds the Luansobe Project comprising small-scale exploration licence No. 28340-HQ-SEL, covering an area of 918 Hectares granted on 16 February 2021 and with its initial 4 year term expiring on 15 February 2025. The principal shareholders of the Vendor are Zambian businessmen.

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.

ExplorationGeology/Mineralisation

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. In 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.

Historic Exploration

Based on historical reports, drilling in the Luansobe prospect area first commenced in 1921 and continued intermittently to 1976. A total of 104 surface exploration boreholes were drilled on the prospect during this period. The subsequent report by V.D Fleischer in 1974 has been the main reference material. The area was estimated to contain over 20 million tonnes averaging 2.51% total copper assuming unbroken continuity between intersections and applying no rigid thickness criteria.

Later, more detailed drilling to test mineralisation to a depth of 150 metres below surface was carried out through 2006 and 2007. A total of 8,300m of diamond drilling was reported as completed in 69 drillholes. Several non-JORC compliant resource estimates were carried out at different stages up to 2008 over segments of the deposit – these will be reviewed by Galileo.

Project Potential

The Company believes that the Project has very significant potential and will be undertaking a raw data investigation of the technical information available in relation to the Project to devise an exploration programme for the Luansobe Project which will involve a significant drilling programme with the objectives of verifying previously reported drill results, in the form of hole twinning, as well as infill/extension drilling to upgrade the resource status and extend the resource. Galileo’s aim would be to develop a JORC (2012) compliant resource on which to base a Project Feasibility Study. It is believed that there is considerable scope to increase the historic resource estimates – especially down-dip. The Project Feasibility Study is to be concluded within 18 months of the Initial JV Period though the study may be extended by a further 6 months if during the initial 18 months a JORC-compliant Resource is reported for the Project.

Project Licence

Statunga Investments Limited (the “Vendor”), a private Zambian company owns the Luansobe Project comprising small-scale exploration licence No. 28340-HQ-SEL, covering an area of 918 Hectares granted on 16 February 2021 and with its initial 4-year term expiring on 15 February 2025.

Summary of JV Agreement Terms

Read More

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.

For further information, please contact: Galileo Resources PLC

Colin Bird, Chairman

Tel +44 (0) 20 7581 4477


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