REG - Galileo Resources - Shinganda Project Update

Galileo ResourcesAnnouncement

24/06/2024 07:00

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RNS Number : 4617T  Galileo Resources PLC  24 June 2024

24 June 2024

 

Galileo Resources Plc

("Galileo" or "the Company")

 

Shinganda Update

Planning for Phase 3 drill programme targeting a preliminary Mineral
Resource

 

Galileo Resources plc ("Galileo "or the "Company") is pleased to inform
shareholders of a decision to commence a Phase III drill programme to validate
the Board's current view that near-surface copper - gold mineralisation occurs
along the Shinganda Fault Splay over a strike length of potentially more than
4km offering scope for the development of a preliminary Mineral Resource at
the Shinganda Project Copper-Gold Project, Zambia ("Project").

 

Phase I (results announced on 18 January 2023) and the recently completed
Phase II drill programmes have confirmed the presence of copper - gold
mineralisation associated with major regional and more localised structures.
Mineralisation is found in vein and alteration assemblages. Higher copper and
gold grades were found at shallow depths, where primary (hypogene)
mineralisation was subjected to supergene enrichment.

 

Highlights

 

·    Evidence from two phases of drilling indicate mineralisation at
grades of between 1.0 and 1.5% CuEq at shallow depths over notable package
widths.

·    Phase III drilling will target a projected supergene high-grade,
broadly drill-defined zone extending for approximately 4km with an anticipated
package width of mineralisation of approximately 30m extending to a vertical
depth of approximately 70m.

·    Supergene enrichment is broadly associated with a coincident magnetic
anomaly. However, historic drilling of the same supergene feature where a weak
magnetic signature is present also intersected notable copper values (Figure
2).

·    A further 4km or more of Shinganda Fault Splay will also be tested
where there is weak to no underlying magnetic signature potentially extending
the strike length of the Project to more than 8km in total.

·    Phase I drilling primarily targeted the prospective near surface
hematite-rich zone that will form the focus of the Phase III programme.

·    Phase II drilling that comprised a total of 2,379.1m and 13 drill
holes was focused on testing deeper targets including breccias and magnetic
and IP anomalies on the Shinganda Fault Splay and the Shinganda Main Fault
(Figure 1).

·    Phase II drilling intersected impressive wide zones (300m) of
hydrothermal alteration and brecciation with lower grade sulphide copper -
gold mineralisation.

·    The final 2 holes, SHDD021 and SHDD022, targeted strong magnetic/IP
geophysical anomalies along the Main Shinganda Fault and discovered up to 200m
of intensive Fe alteration in a diamictite conglomerate/breccia zone - a
structural and stratigraphic setting that could be analogous to the high grade
Kamoa copper deposit in DRC and the Fishtie deposit in SE Zambia Copperbelt
(55Mt @ 1.04% Cu).

 

Colin Bird Chairman and CEO said: "The last two years of exploration at
Shinganda, including fieldwork, geophysics and drilling has identified
multiple targets and several geological concepts have emerged all of which
will be followed up in the future. Our thoughts range from IOCG potential to
isolated gold potential to traditional Copper Belt and all of our activities
have indicated support for the aforementioned.

 

However, from the work completed, a compelling target has emerged which are
the splays identified by geophysics and confirmed by drilling taking us to a
meaningful drill-ready target.

 

Irrespective of all other potential on the licence area this 4 to 8km long
zone has the immediate potential for shareholder value enhancement and thus we
are prioritising the target above all others. We expect to commence drilling
by the end of the Third Quarter, 2024."

 

 

Drilling Data

 

Table 1: Phase I Programme Results (selected assay intervals)

 Hole No  Dip    Azimuth  From   To      Interval  Cu    Au     CuEq*
          (m)             (m)            (m)       (%)   (g/t)  (%)
 SHDD001  -50    360      6.00   17.00   11.00     0.63  0.03   0.65
 SHDD002  -50    360      21.00  71.70   50.30     1.54  0.30   1.77
 incl.           47.00           54.00   7.00      4.36  1.51   5.51
 incl.           47.00           50.00   3.00      7.96  3.13   10.33
 SHDD003  -50    360      58.00  60.00   2.00      0.52  0.22   0.69
          73.00           77.00          4.00      0.54  0.12   0.63
          92.00           94.00          2.00      1.02  0.38   1.31
 SHDD004  -55    65       7.30   51.00   43.70     1.01  0.18   1.15
          10.00           20.00          10.00     1.61  0.07   1.66
 SHDD005  -50    360      87.00  90.00   3.00      0.79  0.06   0.84
                 102.00          113.00  11.00     1.03  0.55   1.45
 incl.           102.00          105.40  3.40      2.89  1.61   4.11
                 126.00          131.00  5.00      0.52  0.77   1.10
 SHDD006  -50    180      11.00  27.00   16.00     0.72  0.04   0.75
 SHDD007  -50    65       3.00   21.00   18.00     0.53  0.12   0.62

 

Table 2: Phase II Drill Programme Results (selected assay intervals)

 Hole No  Dip   Azimuth  From    To      Interval  Cu    Au     CuEq*
          (m)            (m)             (m)       (%)   (g/t)  (%)
 SHDD015  -60   325      7.00    18.00   11.00     0.69  0.01   0.70

 Incl.
          9.65           15.00           5.35      1.06  0.01   1.07
 SHDD016  -60   325      347.00  355.70  8.70      0.46  0.15   0.57
 incl.          349.00           350.00  1.00      1.08  0.31   1.32
 and            353.60           355.70  2.10      0.54  0.22   0.71
 SHDD017  -60   360      101.00  102.00  1.00      0.52  0.41   0.83
                156.00           158.00  2.00      0.97  0.31   1.21
                239.00           252.00  13.00     0.30  0.19   0.44
 incl.          239.00           244.00  5.00      0.51  0.32   0.75
                301.00           304.00  3.00      0.42  0.08   0.48
                314.00           315.00  1.00      0.62  0.30   0.85
 SHDD018  -60   360      22.00   23.60   1.60      0.45  0.04   0.48

*CuEq Formula: CuEq = Cu% + 0.75851264 x Au (g/t)

 

Figure 1 - Drillhole location plan over magnetic image

 

Figure 2 - Drillhole location plan of Shinganda outcrop zone with Cu/Au
intercepts

 

SHDD016 - Chalcopyrite Copper Mineralisation at 354m depth

 

SHDD016 - Chalcopyrite-Pyrrhotite Mineralisation about 350m depth

 

SHDD021 - Semi-massive hematite-magnetite iron mineralisation

 

 

Shinganda Copper-Gold Project

 

The Shinganda Project in which the Company has a 51% interest is located in
central western Zambia. The Project has many of the diagnostic features
expected of an IOCG (Iron Oxide Copper Gold) type deposit including both
regional and more localised structures potentially controlling mineralisation,
evidence of hydrothermal mineralisation and alteration and, an abundance of
hematite - magnetite alteration.

 

The local structure is dominated by the Gerhard Trend, a W - NW oriented
feature dominating the local landscape. To date mineralisation has been found
associated with a feature called the Shinganda Fault Splay, a structure that
has developed off the main Gerhard Trend. As is the case with most IOCG's,
whilst Shinganda displays many of the required diagnostic features for a
deposit of this type, it also displays unique features and is probably best
described as an IOCG hybrid. Impressive brecciation at depth over substantial
package widths of up to 300m discovered during Phase II drilling raises
expectations for the discovery of a large low-grade bulk copper-gold deposit.
This may still be the case based on some intriguing copper intercepts at depth
but the more obvious target warranting immediate follow-up is based around the
near-surface hematite-rich supergene horizon typically extending over a
surface width of approximately 30m and extending to a depth of approximately
70m. With an approximate 4km strike length this represents a potential open
pit target.

 

Much of the initial strike length is based around the Shinganda Splay
structure and a coincident ground magnetic anomaly. However, an additional 4
to 5km of Splay structure without any coincident ground magnetic anomalism
also remains a prospective target particularly as some historic drilling
intersected notable copper values associated with the Splay but where the
magnetic anomaly was absent.

 

Potentially more than 8km of open pittable copper - gold mineralisation is to
be tested with the Phase III drill programme. Some additional ground magnetic
surveys will be undertaken to firm up contacts which will aid drill collar
location. Owing to the significant width of potential mineralisation, fences
of short holes will be drilled across each travers with holes probably
extending to an average downhole depth of between 50 and 80m.

 

A number of other targets remain to be tested on the Licence. Historic work
undertaken that has led to the recent discoveries includes geophysics (both
in-house and historic), historic geochemical surveys with infill and coverage
of previously untested areas completed by Galileo, detailed mapping and
trenching/pitting of some prospects.

 

A Phase I drilling programme consisting of nine angled diamond drill holes for
a total of 1,227.2m was completed in Q3 & Q4 2022. The Phase II programme
comprised thirteen drill holes for a total of 2,379.1m.

 

The final two holes of the Phase II drilling programme, SHDD021 and SHDD022,
discovered up to 200m of pervasive, intense iron alteration in a diamictite
conglomerate/breccia zone associated with the Main Shinganda Fault. The zone
is interpreted as a complex, structurally controlled deep-tapping magnetic
body, perhaps linked to hydrothermal alteration from an intrusive source at
depth, supporting a possible IOCG model.

 

Extensive runs of core (10's of metres) in both holes comprise diamictite.
Such diamictite packages are now widely recognised in copperbelt stratigraphy
across both Zambia and DRC and of course are most significant as the orebody
host rock at Kamoa, although the Shinganda occurrence may be more comparable
to the Fishtie deposit in the SE Zambian Copperbelt (55Mt @ 1.04% Cu). The
Shinganda diamictite constitutes a permeable and favourable host rock for
potential copper-gold mineralisation as demonstrated by pervasive iron
alteration. Follow-up planned here includes geophysical profiling and further
drilling targeted at the vicinity of the main controlling structures.

 

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.

 

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
 Beaumont Cornish Limited - Nomad           Tel +44 (0) 20 7628 3396

 Roland Cornish/James Biddle
 Novum Securities Limited - Joint Broker    +44 (0) 20 7399 9400

 Colin Rowbury /Jon Belliss
 Shard Capital Partners LLP - Joint Broker  Tel +44 (0) 20 7186 9952

 Damon Heath

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting as nominated adviser to
the Company in relation to the matters referred herein. Beaumont Cornish
Limited is acting exclusively for the Company and for no one else in relation
to the matters described in this announcement and is not advising any other
person and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of Beaumont Cornish
Limited, or for providing advice in relation to the contents of this
announcement or any matter referred to in it.

 

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END

 

 

Technical Glossary

 

 "aeromagnetics"     A survey of the earth's magnetic field carried out from a helicopter or
                     aeroplane

 "breccia"           Rock fragmented into angular components

 "chalcopyrite"      A copper-iron sulphide mineral, CuFeS2, often found in copper ores

 "conglomerate"      Sedimentary rock formed by the cementing together of water-rounded pebbles

 "CuEq"              Copper equivalent grade, calculated using assumed metal prices for copper and
                     gold

 "diamictite"        A lithified sedimentary rock that consists of non-sorted to poorly sorted
                     terrigenous sediment containing particles that range in size from clay to
                     boulders, suspended in a matrix of mudstone or sandstone

 "hematite"          A mineral composed of ferric iron oxide

 "hydrothermal"      Descriptive of hot magmatic emanations rich in water

 "hypogene"          Mineral deposits formed by ascending solutions

 "IOCG"              Iron Oxide Copper Gold - important deposits of copper, gold and uranium ores
                     hosted within iron oxide dominant gangue assemblages which share a common
                     genetic origin

 "IP chargeability"  A method of ground geophysical surveying which employs the passing of an
                     electrical current into the ground to test for indications of conductive
                     metallic sulphides

 "magnetite"         A magnetic iron oxide, Fe3O4

 "pyrrhotite"        An iron sulphide mineral, Fe1-XS, often magnetic

 "splay fault"       Plane of failure in faulted body of rock extending from main structure

 "supergene"         Descriptive of a mineral deposit, weathering or alteration formed by
                     descending solutions

 

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