21st Aug 2019 15:45
(Alliance News) - Galileo Resources PLC on Wednesday said that it will apply for a mining permit after a final mineral resource estimation affirmed reports of a high zinc grade at the Star Zinc project in Lusaka, Zambia.
Galileo, which owns 95% stake in the project, with the other 5% owned by the Zambian government, reported a mineral resource estimate of 500,000 tonnes at 16% zinc for 77,000 tonnes of contained metal above a cut-off grade of 2% zinc.
The estimate also includes approximately 340,000 tonnes at 21% zinc for 72,000 tonnes of metal above a cut-off grade of 8%.
The estimate also suggests 77,000 tonnes of zinc is suitable for potential direct shipping to a zinc processing facility in Kabwe, which is 120 kilometres north of the project, Galileo said.
Galileo commissioned Addison Mining Services Ltd to undertake the technical report and it is in compliance with the 2012 Joint Ore Reserves Committee regulatory code for reporting exploration results.
Chief Executive Colin Bird said: "This technical report and JORC-compliant resource estimate confirms presence of a high grade zinc component in the deposit suitable for direct shipping to Jubilee Metal Group PLC's zinc refinery plant at Kabwe."
"The resource estimate will allow for a six-year life-of-mine small scale operation to produce rock mass of only 5,500 tonnes per month containing 12,000 tonnes of zinc metal per year to Kabwe. While in-house attributable revenues are projected at about USD15.0 million annually at current price, the annual all in cost is projected not to exceed to USD2.0 million.
"We intend to apply for a mining permit and to target mining to start as near as coincident with the start up of the Kabwe tailings project," Bird said.
Shares in Galileo Resources were up 0.2% at 0.63 pence each in London on Wednesday afternoon.
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