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LONDON (Alliance News) - Galileo Resources PLC on Monday said it has completed the second stage of its diamond drilling programme at the Star Zinc project in Zambia.
The miner, which owns 81% of Star Zinc, said the phase two programme was comprised of 24 drill holes totalling 1,000 metres to depths of between 25 metres and 105 metres.
Preliminary results from four of the initial diamond drill holes intersected high-grade mineralisation of between 14% and 26% zinc.
At hole SZDD030, 15% zinc over 23 metres was intersected, including 26.215 zinc over 12 metres, Galileo said.
Higher portable hand-held XRF spectrometry results with grades ranging from 12% zinc to 40% zinc and widths of up to 19 metres.
"We believe we have extended the zone of mineralisation from that reported previously and expect, on incorporating these latest boreholes in the current model, to show an increase in contained metal," said Galileo Chief Executive Colin Bird.
Bird also said that the company had decided not to pursue identification of a feeder source for Star Zinc as the programme was focused on "defining the parameters" for an open-pit design
A result of the drill programme has been that Galileo believes it has identified the resource sufficiently to design an open pit, and to generate a Joint Ore Reserves Committee-compliant maiden resource estimate.
In addition, Bird commented on the progress of the offtake agreement relating to its Star Zinc acquisition.
"When the company entered into the term sheet agreement to acquire Star Zinc, it undertook that on proven success it would provide ore feed for the Kabwe zinc project. An offtake agreement to this effect is under discussion and negotiation," he said.
Shares in Galileo were flat at 1.07 pence on Monday.
