logo-loader
viewGalileo Resources PLC

Galileo Resources targets mining permit for Star Zinc after initial inferred resource

Snapshot

  • Owns 95% of Star Zinc project in Zambia
  • Drilling planned for the second quarter next year
  • Inferred resource at Star Zinc of 77,000 tonnes of metal
  • Investigating potential for Glenover rare earths project
Zinc element

Quick facts: Galileo Resources PLC

Price: 0.47 GBX

AIM:GLR
Market: AIM
Market Cap: £2.62 m
Follow

 

What Galileo does

Galileo Resources PLC (LON:GLR) is an AIM-listed miner with a strategy that revolves around acquiring resource projects where early risk has been mitigated while major potential remains to add value to the sites.

 

 

What it owns

The company’s main focus is the Star Zinc project in Zambia, in which it holds a 95% interest with the remaining 5% held by the Zambian government.

Aside from Star Zinc, the company also has interests in the Kashitu project, also located in Zambia, as well as a 15% interest in the Concordia copper project and a 38% stake in the Glenover rare earth project, both located in South Africa.

Elsewhere, the company also owns 100% of the Ferber gold project in Nevada, USA.

 

 

Inflexion points

•   An initial inferred resource estimate for the Star Zinc project, which indicated reasonable prospects of around 500,000 tonnes at 16% Zinc for 77,000 tonnes of metal

•   Galileo is discussing with Jubilee Metal Group PLC (LON:JLP) to supply ore for up to 60,000 tonnes per annum from the Star Zinc project to Jubilee’s Kabwe zinc refinery.

•   Galileo upped its stake in Star Zinc to 95% in June after buying out the remaining 15% of its subsidiary Enviro Zambia Ltd it didn’t already own. The acquisition also gave the company control of the Kashitu Zinc project, which lies some six kilometres from the Kabwe zinc refinery controlled by Jubilee Metals

•   The company said its 34%-owned Glenover rare earths project was “well placed to benefit” as prices of the minerals are boosted by the standoff between China and the US

 

 

What the boss says: Colin Bird, chief executive

"Negotiations are advancing satisfactorily towards an industry normal arrangement and allows us to do the necessary administration and planning to bring the projects into production. The projects offer the potential to provide consistent quantity and quality of ore to the refinery." 

"The suitability of the potentially much larger Kashitu deposit and its vanadium content offers the opportunity of a long term sustainable ore supply."

 

 

Blue Sky

After raising £500,000 through a share placing in October, the company is planning to prepare the application for a small-scale mining permit at the Star Zinc project in Zambia, and begin mining in the second quarter next year.

The estimates would allow for a six-year life-of-mine small scale operation to produce 12,000 tonnes of zinc metal per year, with in-house attributable revenues projected at around US$15mln annually at current prices, with the yearly all-in costs expected to be no more than US$2mln.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Galileo Resources PLC named herein, including the promotion by the Company of Galileo Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Galileo Resources hits 'exceptionally' high grades at Star Zinc project

Colin Bird, chief executive at Galileo Resources PLC (LON:GLR), tells Proactive's Andrew Scott they've struck 'exceptionally' high zinc grades of between 41.51% and 46.58% across three holes drilled as part of a wider swathe of drilling on the Star zinc project in Zambia. So far, 26...

on 10/4/18

3 min read