27th Apr 2016 08:58
LONDON (Alliance News) - Galileo Resources PLC Wednesday said the exploration database that was recently acquired covering the Concordia project in South Africa has identified one area that has been previously drilled in the past, revealing high-grade copper mineralisation close to the surface.
Galileo acquired the exploration database covering the project and has since analysed it, which has identified one of several areas within the area that has been previously drilled by its former owners back in the early 1970s.
The area, named Rietburg, lies around 10.0 kilometres from the previously reported Wheal Julia area. Galileo said back in late March that the modelling completed over the Koeelkop prospect estimated it held 4.2 million tonnes at 0.59% copper, whilst the Wheal Julia prospect held an estimated 37.7 million tonnes of ore at 0.55% copper.
Galileo said the wide area of copper mineralisation at the newly identified Rietburg area is over 50.0 metres thick and could be up to 100.0 metres thick, with average grades ranging from 0.49% copper to 1.83% copper. The company said there are numerous high-grade intersections that hold "significantly thick" intersections with a 0.35% copper cut-off grade.
Most of the holes that have been previously drilled in the Rietburg area and delivered grades of over 1.0% copper are within 100.0 metres of the surface.
The "most impressive" intersections include 11.0 metres at 5.0% copper within 25.0 metres of the surface, 18.3 metres at 2.68% copper from 64.0 metres below the surface, and 64.3 metres at 1.11% copper from 70.0 metres below surface.
Galileo will now move onto conducting 3D seismic and begin work on the resource estimate modelling, which will both start in early May. The company said there are other areas emerging at Concordia that have similar characteristics to Rietburg.
Importantly, the copper mineralisation that is being identified is "strongly associated" with diorite rock type, which the company previously considered as a low-grade type of rock and therefore uninteresting prospect at the time.
"Open-pittable copper ore close to surface is not the norm in the copper mining industry. What is beginning to emerge is the propensity of the Project Area for a mixture of high and low grade bodies, which could be phased to feed a central processing plant providing potential flexibility and optionality," said Chairman and Chief Executive Colin Bird.
Galileo can earn up to a 51.0% stake in the Concordia project through its 51.0% stake in Shirley Hayes IPK (Pty) Ltd by spending ZAR10.0 million, or GBP500,000, on exploration and development on the project over a 14-month period.
Shirley Hayes IPK (Pty) Ltd owns the prospecting rights over the project and also was the supplier of the exploration database analysed by Galileo, which is still ongoing.
Galileo shares were trading down 6.4% to 1.03 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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