Last checked at 16 Jan 2012 09:00
9.00am on 16 January 2012
Galileo Resources Plc
("Galileo" or the "Company")
Glenover Rare Earth Project Drilling Update
The Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging African Rare Earth exploration company, is pleased to announce further positive drilling results from the latest two boreholes GVH005 and GVH006 drilled on its Glenover Rare Earths Joint Venture project, north of Thabazimbi, in the Limpopo Province of South Africa. The results confirm the good REO mineralisation reported previously (10 November 2011 and 6 December 2011 ) for the project's first four boreholes.
Highlights:
·; High >2% REO (rare rearth oxide) mineralisation intersected in boreholes GHV005 and GHV006.
·; Borehole GHV005 intersected 91 metres (from 60 m to 151 m along core) assaying a weighted average 2.44% TREO (total REO) including 16 metres (from 113 m to 129 m along core) assaying 3.75% TREO.
·; Borehole GVH006 intersected 20 metres (from 42.5 m to 62.4 m along core) assaying a weighted average of 3.30% TREO, including 8.7 metres assaying 5.51% TREO.
·; The 91-metre interval in borehole GHV005 and 20-metre interval in GHV006 also assayed weighted averages respectively of 0.95% Nb2O5 (Niobium Oxide) and 0.66% Nb2O5, which are encouraging and comparable in assay to other Niobium projects worldwide.
·; Both boreholes showed REO mineralisation in non-brecciated zones: in GHV005, 50 metres along core from surface assayed a weighted average 0.96% TREO and in GHV006 two intervals; one 41 metres from surface and second 63 metres (from 162m along core), assayed respectivley 0.91% TREO and 0.83% TREO.
·; A further 15 boreholes (GVH007 to GVH021) have been drilled - around the old open pit - which completes the driliing programme. Six of the 15 boreholes have been logged and samples sent for analysis.
Summaries of the results for the latest boreholes are given in the two tables below.
Colin Bird, Executive Chairman of Galileo Resources, said: " These results continue to be pleasing and suggest a significant bulk mining target with high grade shoots for the feasibility study, which is in line with the company's exploration and develoment strategy for the project "
Boreholes GHV005 (hole depth 163 metres) and GHV006 (hole depth 124 metres) were drilled diametrically opposite each other, some 200 metres apart, along the edge of the 110-metre diameter open pit
The drilling programme's objectives, including correlation of the rare earth mineralisation with the various rock type facies, remains on track. Core logging data continue to indicate that the REO mineralisation is hosted predominantly in the brecciated facies over long intersections and, to a lesser extent, REO mineralisation also persists seemingly ubiquitously in the non brecciated facies essentially the carbonatites and some pyroxenite, which potentially may augment the resource and hence potential for a bulk mining project.
The Niobium oxide assays in the two boreholes, are encouraging and comparable to other major niobium projects worlwide and may have economic potential for the project.
The results to date continue to permit the project to advance towards a definitive resource statement and concurrently a prefeasibility study phase and give the project the confidence to extend its exploration programme to other potential prospective areas, which the Company believes exist on its concession.
The 21-hole drill programme has now been completed. Six of the last fifteen boreholes have been logged and samples submitted for assay, while the other borheoles are being logged and sampled.
The internationally accredited laboratory Genalysis Laboratory Services (Pty) Ltd, a part of Intertek Group plc, carried out the the assays of the samples.
Summary of results for Boreholes GHV005 and GHV006 over selected core lengths
Borehole GVH005 results
GRADE CUT | FROM (m) | TO (m) | Total* Width (m) | Sampled** Width (m) | TREO % *** (1) | P2O5 % (1) | Nb2O5 % (1) |
total core | 0.46 | 163.13 | 162.67 | 153.02 | 1.77 | 14.33 | 0.62 |
> 1% REO | 24.72 | 26.51 | 1.79 | 1.79 | 1.87 | 11.16 | 0.48 |
> 1% REO | 28.95 | 43.76 | 14.81 | 8.61 | 1.08 | 6.30 | 0.26 |
> 1% REO | 55.25 | 152.03 | 96.78 | 94.77 | 2.38 | 18.62 | 0.90 |
Main Breccia Zone | 60.1 | 150.79 | 90.69 | 88.68 | 2.44 | 18.87 | 0.93 |
Including | 60.1 | 65.8 | 5.7 | 5.7 | 2.69 | 14.26 | 0.81 |
Including | 100.07 | 103.5 | 3.43 | 3.35 | 3.26 | 22.41 | 1.05 |
Including | 112.88 | 128.57 | 15.69 | 15.69 | 3.75 | 21.17 | 1.24 |
Including | 142.96 | 147.68 | 4.72 | 4.72 | 3.19 | 20.59 | 1.38 |
*Includes core Loss
**excludes core loss
*** excludes Scandium
(1) length weighted averages - calculated using the total sampled width for the interval length
Borehole GVH006 results
GRADE CUT | FROM (m) | TO (m) | Total* Width (m) | Sampled** Width (m) | TREO % *** (1) | P2O5 % (1) | Nb2O5 % (1) |
total core | 0.12 | 141.86 | 141.74 | 124.69 | 1.21 | 4.41 | 0.26 |
> 1% REO | 22.92 | 26.36 | 3.44 | 3.44 | 1.71 | 2.58 | 0.19 |
> 1% REO | 27.42 | 29.19 | 1.77 | 1.77 | 3.30 | 0.99 | 0.12 |
> 1% REO | 34.68 | 37.15 | 2.47 | 2.47 | 1.32 | 1.97 | 0.18 |
> 1% REO | 40.44 | 62.44 | 22 | 21.78 | 3.12 | 11.79 | 0.64 |
> 1% REO | 60.1 | 65.8 | 5.7 | 5.44 | 6.33 | 16.61 | 0.84 |
> 1% REO | 125.77 | 141.86 | 16.09 | 15.81 | 1.45 | 4.90 | 0.29 |
Main Breccia Zone | 42.5 | 62.44 | 19.94 | 19.94 | 3.30 | 12.42 | 0.66 |
Including | 53.73 | 62.44 | 8.71 | 8.71 | 5.51 | 16.96 | 0.99 |
*Includes core Loss
**excludes core loss
*** excludes Scandium
(1) length weighted averages - calculated using the total sampled width for the interval length
For further information, please contact:
Colin Bird Tel +44 (0)20 7581 4477
Chairman & CEO
Richard Wollenberg Tel +44 (0) 1784 437 444
Non-Executive Director
Beaumont Cornish Limited, Tel +44 (0)20 7628 3396
Nominated Advisor and Broker
Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090
Joint Broker
Jerry Keen/Toby Gibbs
Bishopsgate Communications Tel +44 (0)20 7562 3350
Nick 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 member of The Institute of Materials, Minerals and Mining, is a 'qualified person' as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew Sarosi's supervision and he has approved the release of this 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 the previous phosphate operations, can be proven to compliant resource category, the cost of mining it and the associated risks should substantially be reduced.
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 believe that the quarry is well positioned to supply construction aggregate for the significant potential infrastructure programme being undertaken by local government.
Technical Glossary
Breccia: a rock composed of broken fragments of minerals or rock cemented together
Facies: a body of rock with specified characteristics
Niobium (Nb2O5): an oxide of Niobium, a metal whose uses include alloying and coatings with other metals to improve welding properties (stainless steel), impart resistance to chemical attack (zirconium, molten lithium and sodium), corrosion resistance in harsh chloride-containing solutions (coated copper anodes) and corrosion resistance at red hot temperatures (rocket nozzles)
Phosphate (P2O5): an oxide of phosphorus
Rare earths (REE): a set of fifteen chemical elements in the periodic table specifically
the lanthanides (plus yttrium ad hoc and scandium) and by convention categorised as light REE (the first seven elements plus yttrium) and heavy REE (the other eight lanthanides)
REO (rare earth oxide): the oxide form of the rare earth element
TREO: total rare earth oxides
The major rare earth elements 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 lenses and new treatment for bone disease (osteodysrophy). Potential use for hydrogen (H) storage for H-fuelled vehicles: being able to absorb hydrogen as much as 400 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