Last checked at 2 Mar 2012 07:00
02 March 2012 Galileo Resources Plc ("Galileo" or the "Company") Glenover Rare Earth Project Drilling UpdateThe Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging AfricanRare Earth exploration company, is pleased to provide an update on drillingresults from the latest nine boreholes GVH007 to GVH009 and GVH011 to GVH016drilled around the carbonatite/ pyroxenite plug on its Glenover Rare EarthsJoint Venture project, north of Thabazimbi, in the Limpopo Province of SouthAfrica. The results show grades and mineralogy consistent with those of thefirst six boreholes reported previously (10 November 2011, 06 December 2011 and16 January 2012) and provide additional data towards the production shortly
ofa resource statement. Highlights:
Longest borehole intersection widths at nominal 1% TREO (total rare earth oxide) cut off ranged from 5 metres (GHV009) to 111 meters (GVH015) with average (arithmetic) intersection width of 49m assaying an average (length weighted) 1.98 %TREO (range1.21% TREO TO 2.36%TREO)
The main REO bearing apatite (breccia) facies intersections in seven boreholesranged in width from 8 metres to 150 metres (average 55 metres) and assayed alength weighted average of 1.66% TREO (range 0.88%TREO to 2.33% )
High grade shoot intersections (>2% TREO) assayed from 2.27% TREO to 5.08% TREO over widths ranging from 1.3 metres to 7.3 metres
Preliminary core logging from a step-out exploratory drilling programme has
identified apparent REO mineralisations in the extended concession area within a 1.5 kilometre radius from the edge of the open pit.
Table - Summary of TREO results for the latest nine boreholes drilled longest run highest total core apatite breccia >1% TREO shoot grade Hole TREO TREO TREO TREO TREO TREO ID * * ** * ** * GHV m % m % % m % % m % 007 183 1.15 8 1.42 1.73 29 2.35 7.3 3.49 24 2.32 2.41 21 2.33 008 120 1.43 105 1.5 1.75 58 1.72 1.7 4.37 009 168 0.75 44 0.88 0.95 5 1.2 1.3 2.27 011 153 1.13 126 1.22 1.70 72 1.88 2.01 2.2 3.58 012 143 1.64 115 1.84 2.04 61 2.17 2.56 1.6 4.74 013 168 0.8 0 11 1.21 2.2 3.05 014 107 0.53 0 015 173 1.64 150 1.68 2.03 111 1.98 2.36 3.4 5.08 016 154 1.17 17 1.54 47 2.21 6.0 3.95 47 2.21
* TREO figures are weighted averages calculated by the summation of the product of the individual sampled intercept grade and the sampled intercept width divided by the summation of the total length of core sampled including core loss
** weighted averages as above except that the divisor is the summation of the intercept widths sampled i.e core losses are excluded
More detailed borehole results are summarised in the table below.
Colin Bird, Executive Chairman of Galileo Resources, said: "We are pleased wththe consistent grades, widths of intersection, mineralogy and the REOdistributions shown in these latest resource borehole results, which comparewell with those results previously reported. Rare earth mineralisation apparentin preliminary core logging of step-out exploratory boreholes is an ecouragingsign for significant expansion of the resource." Comment
The results to date advance the project towards a resource statement around theunderground carbonatite/ pyroxenite plug and the step-out exploratory drillingtentatively confirms the Company's belief that there is potential foradditional REO reource on its concession. The weighted average TREO assay in the apatite breccia of borehole GVH009(0.88%), which was drilled away from the pit into the surrounding hostpyroxenite, is lower than average and is explained by the fact that althoughthe breccia logged does contain elevated phosphate grades, the weathering/alteration of the pyroxenite in this part of the breccia is believed to be notas intense as elsewhere. Therefore the REO enrichment has been lower, resultingin a lower grade intersection. Boreholes GHV013 and GHV014 intersectedessentially carbonatised pyroxenite and dolomitic carbonatite, which werenevertheess REO mineralised with whole core assaying 0.8% TREO and 0.53% TREOrespectively in the two facies. The remaining six boreholes of the 21-resourcedrilling prgammme have been logged and samples submitted for assay.
The internationally accredited laboratory Genalysis Laboratory Services (Pty) Ltd, a part of the Intertek Group plc, carried out the the assays of the samples.
Summary of Results Of Nine Boreholes Over Selected Core Lengths
To TOTAL LENGTH TREO* P2O5 Nb2O5 HOLE ID GRADE CUT FROM m m m % % % GHV007 Total core 1.66 183.39 181.73 1.15 8.17 0.22 > 1% TREO 72.46 75.6 3.14 1.72 11.51 0.41 > 1% TREO 81.93 111.09 29.16 2.15 14.62 0.38 Including 92.51 95.34 2.83 3.55 22.70 0.48 Including 98.85 104.31 5.46 3.43 19.03 0.34 > 1% TREO 136.34 158.73 22.39 2.28 14.74 0.37 Including 145.49 152.76 7.27 3.49 17.22 0.44 Apatite Breccia 13.29 21.23 7.94 1.42 9.41 0.23 Apatite Breccia 86.7 111.09 24.39 2.32 15.50 0.40 Apatite Breccia 16.34 157.45 21.11 2.33 15.20 0.37 GHV008 Total core 0 120.52 120.52 1.43 13.20 0.41 > 1% TREO 1.54 10.95 9.41 1.11 14.16 0.21 > 1% TREO 13.06 26.34 13.28 1.19 10.97 0.32 > 1% TREO 45.05 58.17 13.12 1.72 13.44 0.33 Including 47.25 48.93 1.68 4.37 13.21 0.46 > 1% TREO 62.32 120.52 58.2 1.85 15.29 0.59 Including 109.55 120.52 10.97 3.11 15.21 0.91 Apatite Breccia 15.68 120.52 104.84 1.50 13.50 0.44 GHV009 Total core 0.47 168.24 167.77 0.75 5.25 0.10 > 1% TREO 6.37 7.48 1.11 2.17 8.56 0.19 > 1% TREO 10.18 11.46 1.28 2.27 19.12 0.31 > 1% TREO 17.6 18.75 1.15 1.51 8.82 0.18 > 1% TREO 21.02 22.31 1.29 1.15 6.45 0.17 > 1% TREO 31.46 36.17 4.71 1.20 10.55 0.22 > 1% TREO 38.5 40.79 2.29 1.11 11.70 0.28 Apatite Breccia 0 43.84 43.84 0.88 8.80 0.14 GHV011 Total core 0 153.12 153.12 1.13 12.41 0.45 > 1% TREO 55.41 127.36 71.95 1.88 16.06 0.61 including 105.47 112.89 7.42 2.94 18.67 0.54 including 124 126.16 2.16 3.58 23.07 1.05 > 1% TREO 131.58 133.69 2.11 2.70 16.52 0.64 Apatite Breccia 0 126.16 126.16 1.22 10.44 0.37 FROM To TOTAL LENGTH TREO* P2O5 Nb2O5 HOLE ID GRADE CUT m m m % % %
GHV012 Total core 0 143.32 143.32 1.64 10.21 0.24 > 1% TREO 13.35 17.08 3.73 1.50 6.52 0.49 > 1% TREO 19.92 81 61.08 2.17 12.90 0.20 including 32 53.84 21.84 3.86 19.01 0.25 > 1% TREO 83.34 85.47 2.13 1.32 6.05 0.16 > 1% TREO 88.46 90.65 2.19 1.35 13.85 0.21 > 1% TREO 94.42 118.49 24.07 2.37 13.60 0.36 including 109.48 115.49 6.01 4.64 18.41 0.53 including 116.9 118.49 1.59 4.74 19.51 0.66 Apatite Breccia 0 115.49 115.49 1.84 11.82 0.24 GHV013 Total core 0 167.84 167.84 0.80 3.38 0.10 > 1% TREO 55.07 65.83 10.76 1.21 2.78 0.05 > 1% TREO 69.3 71.54 2.24 1.14 1.32 0.10 > 1% TREO 95.77 100.88 5.11 1.83 0.88 0.08 > 1% TREO 107.46 113.78 6.32 1.51 1.14 0.08 > 1% TREO 121.42 123.57 2.15 3.05 1.56 0.07 GHV014 Total core 0 107.72 107.72 0.53 4.41 0.10 GHV015 Total core 0 172.58 172.58 1.64 13.54 0.41 > 1% TREO 16.64 36.59 19.95 1.25 13.44 0.36 > 1% TREO 39.36 150.13 110.77 1.98 16.93 0.52 Including 109.92 136.31 26.39 3.54 18.94 1.05 Including 138.86 141.43 2.57 3.24 4.73 0.36 Including 146.78 150.13 3.35 5.08 12.46 0.85 > 1% TREO 154.16 159.54 5.38 3.19 2.76 0.23 Apatite Breccia 0 150.13 150.13 1.68 15.11 0.44 GHV016 Total core 0 154.84 154.84 1.17 7.37 0.31 > 1% TREO 33.7 49.08 15.38 1.62 15.01 0.64 Including 46.62 49.08 2.46 3.03 17.73 1.30 > 1% TREO 70.49 117.2 46.71 2.21 12.63 0.51 Including 78.68 84.67 5.99 3.95 15.04 0.96 Including 98.81 104.33 5.52 3.95 19.01 0.85 Apatite Breccia 32.43 49.08 16.65 1.54 14.49 0.59 Apatite Breccia 70.49 117.2 46.71 2.21 12.63 0.51 * includescore loss
TREO is total rare earth oxides including Yttrium
For further information, please contact:
Colin Bird Chairman & CEO Tel +44 (0)20 7581 4477Andrew Sarosi Non-Executive Director Tel +44 (0) 1752 221937Beaumont Cornish Limited, Tel +44 (0)20 7628 3396Nominated Advisor and BrokerRoland Cornish/James Biddle Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090Joint BrokerJerry Keen/Toby Gibbs Bishopsgate Communications Tel +44 (0)20 7562 3350
A copy of the announcement is available on the Company's website www.galileoresources.com
Technical Sign-OffAndrew Sarosi, Technical Director of Galileo, who holds a B.Sc. Metallurgy andM.Sc. Engineering, University of Witwatersrand and is a member of The Instituteof Materials, Minerals and Mining, is a 'qualified person' as defined under theAIM Rules for Companies and a competent person under the reporting standards.The technical parts of this announcement have been prepared under AndrewSarosi's supervision and he has approved the release of this announcement.
Note:
Galileo Resources Plc is a natural resource exploration company. The Companyhas an experienced management team with proven technical and commercialbackground. The flagship property is the Glenover Phosphate concession, whichproduced phosphate for many years. Phosphate however, is now subordinated toRare Earth Elements (REEs). The project area is known to contain REEs and thatthe grades, if of sufficient size and continuity may well lead to amedium-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, ifREEs, which have been shown to be present in the stockpiles from the previousphosphate operations, can be proven to compliant resource category, the costof mining it and the associated risks should substantially be reduced.The concession is of considerable size and hosts mineralisation types suitablefor potential REE presence. The aim is to investigate the mineralisation typesfor REE presence and content with the view to proving up a mineable resource ofREOs.
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
Carbonatite an igneous rock consiting of greater
than
50% carbonate minerals mainly calcium carbonate (limestone) and lesser magnesium carbonate (dolomite)
Facies: a body of rock with specifiedcharacteristics
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 Pyroxenite: a dark coloured igneous rock composed almost
entirely of the mineral pyroxene an aluminium silicate essentially of iron magnesium and calcium
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 elements
TREO: total rare earth oxides
The major rare earth elements (>0.1% distribution in the boreholes) 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 imagingin 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