Last checked at 6 Dec 2011 07:00
6 December 2011Galileo Resources Plc("Galileo" or the "Company")
Glenover Rare Earth Project Drilling Update
The Board of Galileo Resources Plc ("Galileo"), the AIM-quotedemerging African Rare Earth exploration company, is pleased to announcefurther positive drilling results from its latest three boreholes GVH002, 003and 004 on its Glenover Rare Earths Joint Venture project in Thaba Zimbi,South Africa. Borehole GVH002 shows simllar characteristics to GVH001 (resultspreviously announced 10 November 2011) while boreholes GVH003 and GVH004intersected significantly higher rare earth oxide mineralisation than seen todate and over relatively long core lengths.
Highlights:
- Four boreholes with results completed to date in area peripheral to the old open pit, previously worked for its high grade phosphate ore but disregarded the REOs present
- Rare earth oxide ("REO") mineralisation >1% REO intersected in the three boreholes reported herein
- Borehole GVH003 intersected 52.6 metres from surface assaying 4.27% REO including 18.3 metres (from 30 to 41 meters) assaying 8.24% REO
- Borehole GVH004 showed significant REO mineralisation over some 82 metres from surface (total 100 meters drilled) assaying 2.47% REO, including 45 metres from surface assaying 3.23% REO and 8 metres (from 20 to 28 meters) assaying 8.03% REO
- Drilling continues with a further four boreholes (GVH005 to GVH008) drilled around the old pit and samples submitted for assay
A summary of the results for the latest boreholes are given in the tables below.
Colin Bird, Executive Chairman of Galileo Resources, said: "These results are very pleasing and significant. Our mission now moves with confidence towards producing a SAMREC code compliant resource estimate for the areas peripheral to the open pit and at depth."
The drilling programne is aimed at correlating the rare earthmineralisation with the various rock type facies. Core logging data continuesto indicate the REO mineralisation is hosted predominantly within the apatitebreccia facies. However in borehole GVH004, elevated intermitted REOmineralisations of between 2% to 6% REO over several metres were seen topersist in the carbonatite facies for some 30 metres below the usual REOmineralised apatite breccia.The results to date permit the project to advance towards adefinitive resource statement and concurrently a prefeasibility study phase.Likewise, the results give the project the confidence to extend itsexploration programme to other potential prospective areas, which the Companybelieves exist on its concession.
Drilling continues with four further boreholes GVH005 to GVH008 drilled, logged and sampled. The samples have been submitted for assay.
The internationally accredited laboratory Genalysis Laboratory Services (Pty) Ltd, a part of Intertek Group plc carried out the the assays of the borehole core samples.
Summary of results for Boreholes GHV002, 003 and 004 over selectedcore lengthsBorehole GVH002GRADE CUT FROM (m) TO (m) WIDTH (m) TREO* %** P2O5 %** Nb2O5 %**Total core 0 133 133 0.77 4.94 0.12 > 1% RE0 82.98 86.57 3.59 2.76 10.66 0.34 Including 84.7 86.57 1.87 4.20 12.48 0.47 > 1% REO 88.62 92.11 3.49 1.62 9.01 0.32
* Includes Yttrium ** length weighted averages
Borehole GVH003GRADE CUT FROM (m) TO (m) WIDTH (m) TREO* %** P2O5 %** Nb2O5%**Total core 0 133.4 133.4 2.15 9.74 0.43 > 1% REO 0 52.64 52.64 4.27 21.70 0.85 Including 30.07 48.36 18.29 8.24 15.21 0.75
* Includes Yttrium ** length weighted averages
Borehole GVH004GRADE CUT FROM (m) TO (m) WIDTH (m) TREO * %** P2O5 %** Nb2O5 %**Elevated REO in core 0 82.16 82.16 2.47 7.39 0.30> 1% REO 0 45.08 45.08 3.23 11.70 0.41 Including 5.64 7.77 2.13 4.49 26.37 0.39 Including 20.14 27.92 7.78 8.03 14.97 0.74> 1% REO 51.04 52.29 1.25 6.52 2.61 0.18> 1% REO 58.98 63.9 4.92 1.86 0.32 0.01> 1% REO 66.27 73.53 7.26 2.58 1.98 0.15> 1% REO 79.66 82.16 2.5 2.17 2.70 0.18
Includes Yttrium ** length weighted averages
For further information, please contact:
Colin Bird Tel +44 (0)20 7581 4477Chairman & CEORichard Wollenberg Tel +44 (0) 1784 437 444Non-Executive DirectorBeaumont Cornish Limited, Tel +44 (0)20 7628 3396Nominated Advisor and BrokerRoland Cornish/James BiddleShore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090Joint BrokerJerry Keen/Toby GibbsBishopsgate Communications Tel +44 (0)20 7562 3350Nick Rome/Shabnam Bashir
A copy of the announcement is available on the Company's website www.galileoresources.com
Technical Sign-Off
Andrew Sarosi, Technical Director of Galileo, who holds a B.Sc.Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a memberof The Institute of Materials, Minerals and Mining, is a 'qualified person' asdefined under the AIM Rules for Companies and a competent person under thereporting standards. The technical parts of this announcement have beenprepared under Andrew Sarosi's supervision and he has approved the release
ofthis announcement.Note:
Galileo Resources Plc is a natural resource exploration company. The Company has an experienced management team with proven technical and commercial background. The flagship property is the Glenover Phosphate concession, which produced phosphate for many years. Phosphate however, is now subordinated to Rare Earth Elements (REEs). The project area is known to contain REEs and that the grades, if of sufficient size and continuity may well lead to a medium-sized operation for the production of REOs.
Galileo Resources currently has an 11.5% interest in the Glenover Project and has the option, via additional stage payments as set out in the Company's Admission Document, to earn up to a maximum interest of 73.73%.
One of the key benefits of the project for a medium-sized operation is that,if REEs, which have been shown to be present in the stockpiles from theprevious phosphate operations, can be proven to compliant resource category,the cost of mining it and the associated risks should substantially bereduced.
The concession is of considerable size and hosts mineralisation types suitable for potential REE presence. The aim is to investigate the mineralisation types for REE presence and content with the view to proving up a mineable resource of REOs.
The Company also has a number of Iron Ore and Manganese exploration projects in the Cape, all of which are in proximity either to current operations or discoveries, which are not currently being processed.
Galileo has rights to joint venture in an aggregate producing quarry close to Mthata in the Eastern Cape. The Directors beieve that the quarry is well positioned to supply construction aggregate for the significant potential infrastructure programme being undertaken by local government.
Technical Glossary
Apatite: a phosphate mineral of calcium containing chlorine or fluorine, or both.
Breccia: a rock composed of broken fragments of minerals or rock cemented together
Collapse breccia: A collapse breccia forms where there has been a collapse of rock
Facies: a body of rock with specified characteristics
Phosphate (P2O5): an oxide of phosphorus
Rare earth elements: a set of fifteen chemical elements in the periodic table specifically
(REE) the lanthanides (plus yttrium ad hoc) and by convention categorised aslight REE (the first seven elements plus yttrium and heavy REEs the last eightlanthanides)
REO (rare earth oxide): the oxide form of the rare earth element
TREO: total rare earth oxides
The major rare earth elements (~98% of TREO) in the borehole core sampled are:
Ce: Cerium Uses include cathode ray tube glass to prevent age discoloration, in auto catalytic converters, rich red colour pigments, low energy light bulbs, film studio carbon-arc lighting and minor use in self cleaning ovens
Eu: Europium Uses include bright red coloration in television tubes; industrial street lighting to give a more natural light, thin film superconductor alloys and in lasers
Gd: Gadolinium Uses include neutron capture capability and in compounds as a contrasting agent in radiography and magnetic resonance imaging in medical diagnostics
La: Lanthanum Uses include carbon-arc lighting, additive to glass for lensesand new treatment for bone disease (osteodysrophy). Potential use for hydrogen(H) storage for H-fuelled vehicles: being able to absorb hydrogen as much as400 times its volume
Nd: Neodymium Uses include alloyed with iron and boron to make one the most powerul permanent magnets known (see also Samarium below) and found in modern vehicles using motorised devices; in welders protective glasses and power lasers
Pr: Praseodymium Uses include as an additive to give glass a pure yellow colour and brilliant pastel greens and yellows for glazes
Sm: Samarium Uses include alloyed with cobalt to produce permanent magnets ten thousand times more powerful than iron and has the highest resistance to demagnetization; in masers (microwave lasers) capable of cutting steel and bouncing off the surface of the moon
Y: Yttrium Uses include lasers, as host for europium in TV red phosphor, alloyed with boron and cobalt high temperature superconductors and microwave filters