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Friday 11 August, 2017

Galileo Resources

Concordia Project Update

RNS Number : 8174N
Galileo Resources PLC
11 August 2017
 

   For immediate release

 

11 August 2017

Galileo Resources Plc

("Galileo" or "the Company")

Concordia Copper Project - Drill Results Update    

 

Galileo (AIM:GLR) is pleased to announce the preliminary results of the initial 14-hole drilling programme on its Concordia project ("the "Project"), completion of which was announced on 15 May 2017.

 

Highlights

 

·  The Company announces preliminary results of the completed 14-hole 2,170 metre initial drilling programme

 

·   The targeting contribution of induced polarity (IP) geophysics to this deposit did not prove precise enough for the purpose of testing the technology as a means for directing future exploration 

 

·    Copper sulphide mineralisations were intersected more consistently in dill holes targeted by traditional exploration methodology  

 

·  Drilling of basic rock bodies identified by outcrop, limited ground magnetic survey and previous aeromagnetic survey data intersected encouraging potentially mineable near-surface copper mineralisation with good grade

 

·     Best holes, GSPD 008   011 and 014 in basic diorite outcrop, intersected respectively, 6 metres (m)  from 23m to 29m downhole  assaying 0.90% Cu; 10m, from 28m to 38m,  assaying 0.85% Cu; and 8m, from 3 m to 11m  assaying 1.06%Cu

 

·    Assessment of the results continues in order better to understand the geology and the structural controls governing mineralisation

 

·    Decision to turn the project to account for the benefit of the JV parties and to increase the Company's interest in the Project by way of issue of Galileo ordinary shares to JV partner is pending the outcome of this continuing assessment and results from intended completion of the programme with the remaining committed funds

 

·     JV partner, SHIP claims the Company should dilute to 15% interest in terms of the Cooperation and Joint Venture Agreement ("Agreement"). This claim is not supported by the Agreement given that no decision has been made by the Company to turn the project to account .   

 

 

Colin Bird CEO said:  "The purpose of this drilling programme was primarily to test IP as a tool in detecting sulphide bodies on Concordia. Unfortunately, it became apparent during the programme that that IP was less effective than traditional methods employed in the area. The Company, along with SHIP, therefore decided to direct the balance of the drilling using traditional exploration including visible geology, basic rock outcrops and magnetic geophysics. The results tabulated below are promising and well worth pursuing. At a previous strategic discussion with SHIP, it was decided to continue to drill a number of holes to test for continuity and extension of mineralisation and this we intend to do.   After final expenditure of the balance of committed funds and full assessment of results thereafter we will advise SHIP of our future level of interest."   

 

Table     Summary of Results of Initial Drilling Programme

 

 

Mineralised downhole  intersections (0.2% Cu cut-off)

 

Assay

End of Hole

Anomaly/ Target

Trend

Prospect

GSPD Hole

Run

From

 m

To

 m

length

 m

%Cu

 

m

 

 

 

001

 

 

 

 

<0.1

279

IP anomaly  (IPA)

Homeep

Homeep East

 

 

 

 

 

 

 

 

 

 

002

 

 

 

 

Not assayed

210

IPA - missed

Homeep

Homeep East

 

 

 

 

 

 

 

 

 

 

003

 

68

73

5

0.26

102

IPA

Homeep

Homeep East

 

 

 

 

 

 

 

 

 

 

004

 

98

104

6

0.36

145

IPA

Shirley

Hoogkraal East

 

 

116

130

10

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

005

 

216

223

7

0.59

314

IPA

Shirley

Hoogkraal East

 

 

231

241

10

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

006

 

193

197

4

0.42

286

IPA

Shirley

Hoogkraal East

 

 

255

257

2

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

007

 

140

148

8

0.40

192

IPA

Shirley

Hoogkraal East

 

 

 

 

 

 

 

 

 

 

008

 

23

29

6

0.90

48

Basic outcrop

Shirley

Klondike

 

 

 

 

 

 

 

 

 

 

009

 

 

 

 

 <0.1

102

Basic outcrop

Shirley

Klondike

 

 

 

 

 

 

 

 

 

 

010

 

 

 

 

<0.1

96

Basic outcrop

Shirley

Klondike

 

 

 

 

 

 

 

 

 

 

011

 

28

38

10

0.85

90

IPA/Basic outcrop

Shirley

Hoogkraal

 

incl

28

31

3

0.88

 

 

 

 

 

incl

34

38

4

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

012

 

6

17

11

0.44

90

IPA/Basic outcrop

Shirley

Hoogkraal

 

 

27

32

5

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not assayed

42

Basic outcrop

Shirley

Hoogkraal

 

 

 

 

 

 

 

 

 

 

3

11

8

1.06

120

Basic outcrop

Shirley

Hoogkraal

 

Incl.

6

11

5

2.03

 

 

 

 

 

Project Background

 

Following a strategic joint review of Minxcon Consulting (Pty) Ltd's  ('Minxcon') independent assessment of exploration potential on 34 possible prospects on the Concordia Project, and their ranking in terms of prospectivity, the Company prioritised four main areas:  the Homeep Trend, the Shirley Trend (including the Klondike Prospect) and the Henderson Prospect area for exploration activities, commencing with an Induced Polarity (IP) geophysical survey.

The modelling of Homeep East (announced 7 September 2016), a small part of the Homeep Trend of prospects, indicated the potential over a very small portion of strike of the overall Trend estimated at 942,435 tonnes grading 0.89% Cu at 0.2% Cu cut-off, thereby confirming the expected high grade of the Homeep prospect.

 

The Shirley Trend, the on Concordia was selected for its long 7km-strike length, the occurrence of sporadic historic high copper values and a few clusters of historic drilling positions but for which the drilling data are missing.

 

In September 2016, the Company commissioned GeoSpec Instruments (Pty) Ltd to execute a 3-phase induced polarisation (IP) geophysics survey on Concordia:  1st Phase -the Homeep Trend ; 2nd Phase - the Homeep/Shirley Trend and 3rd Phase - Shirley Trend and Henderson/Klondike prospects) and mandated Minxcon to manage the data base integration of the survey. The geophysics filed work survey was completed in November 2016.  3D (three-dimension) modelling of the IP data identified bodies (zones) with high chargeability - up to 12 mV/V - in contiguous sections across both Homeep and Shirley Trends.

 

Galileo commenced drilling, in March 2017. The programme comprised initially of up to six RC holes down to 300 m depths. The objective of the drilling programme focused principally to test the reliability and usefulness of geophysics anomalism in identifying copper mineralisation targets.

 

Galileo to date has committed 100% of the funds required for a 51% earn-in to Concordia in terms of the Cooperation and Joint Venture Agreement with Shirley Hayes IPK. 

 

The Department of Mineral Resources granted a renewal, for three years to 17 August 2019, of the Prospecting Right (PR) on Concordia to SHIP Pty Ltd, the holder of the PR and the Company's partner in the project.

 

Further details are available from the Company's website which details the Company's project portfolio as well as a copy of this announcement: www.galileoresources.com

 

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.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 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  

Roland Cornish/James Biddle

Tel +44 (0) 20 7628 3396

Beaufort Securities Limited - Broker

Jon Belliss

Tel +44 (0) 20 7382 8416

 

Technical Glossary

 

"Induced polarity (IP) geophysics survey": - a geophysical imaging technique used to identify the electrical chargeability and resistivity of subsurface materials, such as sulphides in rocks

 

"Copper sulphide mineralisation":  occurrence of cooper sulphide minerals

 

"Cu":- Copper


This information is provided by RNS
The company news service from the London Stock Exchange
 
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