Galileo Resources PLC Share News (GLR)

(Sharecast News) - Galileo Resources announced completion of the Luansobe Copper Project drilling programme on Wednesday, describing it as an "important step" towards a new mineral resource estimate.

The AIM-traded firm said results for the first 15 holes had been received, with 28 vertical diamond drill holes totalling 3,563.5 metres having been completed.

It said drilling had successfully identified wide zones of moderate grade, near-surface copper mineralisation, potentially offsetting open pit pre-stripping costs, which could be expected to impact positively on the project's economics.

Assays for the first 15 holes included peak values of 23.73 metres at 2.63% copper from 85.27 metres in hole LUDD013, 2.56 metres at 2.78% copper from 45.44 metres in hole LUDD005, 16.39 metres at 0.95% copper from 54 metres in hole LUDD009, and seven metres at 0.66% copper from 21 metres in hole LUDD006.

Handheld x-ray fluorescence analyses, routinely collected during logging on the remaining holes, also indicated the presence of copper mineralisation over pronounced widths that could reflect positively on the expanding open pit model.

External independent consultant Addison Mining Services would complete a JORC-compliant mineral resource estimate as soon as the balance of geological data and supporting assays were provided by Galileo.

The board said the mineral resource estimate would provide the information required to progress towards a potential open-pit mine plan.

"We are very pleased with the results of our drilling programme in that we have received confirmation that the deposit appears to extend closer to surface than previously thought and we have encountered wide zones of good mineralisation," said chairman and chief executive officer Colin Bird.

"Our independent consultant Addison will collate these results and, once the additional drilling results are received, from that will establish an open bit block model and examine development options.

"Our intention is then to put this model out to the open pit contracting industry to commence operations as soon as we can in the first quarter of 2023, following the receipt of the mineral resource estimate and the production of the block model and theoretical open pit plan."

At 1323 GMT, shares in Galileo Resources were up 7.14% at 1.5p.

Reporting by Josh White for Sharecast.com.