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Star Zinc Project Update

14 Nov 2018 12:00

RNS Number : 3547H
Galileo Resources PLC
14 November 2018
 

 

 

For immediate release

14 November 2018

Galileo Resources Plc

("Galileo" or "the Company")

Star Zinc Project - Exploration Target

Intermediate update on modelling of Phases 1 and 2 drilling results

Progression towards Application for Mining Licence

Galileo is pleased to announce an Exploration Target (conceptual in nature and not a Resource - see note (a) below for explanation) derived from an intermediate stage conceptual grade-tonnage block model estimate ('the Model") on the Company's 80.75%-owned Star Zinc Project ("Star Zinc") in Zambia. The Model, independently compiled by UK-based Addison Mining Services Ltd ("AMS") - uses all drillhole and assay data from the 26-hole phase 1 drill program previously reported on 14/05/2018 and portable XRF ("PXRF") data from its phase 2 26-diamond drillhole (DDH) programme completed and announced on 15 October 2018. (Shareholders are also referred to the Disclaimers herein) 

 

Highlights

 

· The Phase 2 drilling increases significantly Star Zincs' non-JORC conceptual grade and tonnage estimate (CGT) as published on 4 June 2018. Wireframe models of the deposit suggest the mineralisation potentially is open ended to east/south east

 

· The Exploration Target(a) at above 3% Zn cut off is estimated as being between 600,000 and 900,000 tonnes with an estimated average grade of 10 to 12 % Zn.

 

· Analysis of the model suggests that any completion of a Maiden Resource Estimate (MRE) on Star Zinc will likely result in a larger tonnage and contained metal at lower grade than the previously announced non JORC 2012 CGT of 485,000 tonnes at 15.4% Zn and 75,000 tonnes of contained zinc metal.

 

· The new Model applied bulk density measurements to specific Zn grade and not to a global value as previous CGT modelling had done, which has resulted in a more realistic grade-tonnage relationship.

 

· Additional specific domains created by the Model identifies areas for potential to mine selectively high grade Willemite

 

· Chemical assay (c) results of the recently received three DDHs: SZDD038, 039 and 040 from phase 2 drilling are presented in table 1, together with the approximate true widths of DDH intersections:

 

Table 1 Summary of Assay Results from Drillholes SZDD038-040

HOLE_ID

Azimuth

Dip

degree

Depth From

m

Depth To

m

Width

m

Approx. True Width

m

Zn%

SZDD038

0

-55

35

52

17

16.4

11.93

Including

 

 

35.7

44.7

9

8.7

21.12

 

 

 

 

 

 

 

 

SZDD039

45

-55

35

52

17

15.5

14.28

Including

 

 

44

50.25

6.25

5.7

33.85

 

 

 

 

 

 

 

 

SZDD040

70

-55

23

43

20

16.7

20.11

Including

 

 

25

38

13

10.9

29.02

 

· Figure 1 http://www.galileoresources.com/starzinc_geology.htm shows the location of drillholes from phase 1 and 2 drilling

· pXRF results (d) on the remaining 12 DDHs - still to be chemically assayed - (see table 3), include previously reported (15 October 2018) results for SZDD041 to 048. The new pXRF data for SZDD049 to 051 show significant mineralization and widths of 5.3 % Zn over 17m downhole and 16.69% Zn over 25 m downhole respectively for infill holes 050 and 052 on the fringes of the mineralised domain. Past comparisons suggest that pXRF assaying is biased towards reporting slightly lower values than that by chemical assays

 

· The positive results of the Exploration Target allow the Company to advance with AMS and others, as soon as practicable, a work program to include a pit design/mine plan and Mineral Resource Estimate MRE) with the objective of meeting the requirements for an application for a mining licence for Star Zinc and to supply run-of-mine material for the Kabwe project under the Term Sheet agreement to acquire Star Zinc

 

Colin Bird, Chief Executive Officer, said: "The result of this programme and the Model is extremely pleasing with a significant increase in conceptual tonnage and metal, which confirmed our belief in the project's potential. We believe Star Zinc now has the drilling density and necessary confidence to convert the CGT to a maiden JORC Mineral Resource Estimate, planned for Q1/Q2 2019 once all the chemical assays have been received. Past comparison of pXRF results with chemical assays suggest that pXRF is biased towards lower values than chemical assays. We will modify the Model and report accordingly as the chemical assays are received. 

 

We have instructed our consultants to expedite required work with a view to applying for a mining license when this is completed. To this end we intend to commission further refinement of the Model to delineate the body into high grade and low grade Willemite components and to develop an open pit design/mine plan with a view to selective mining of a high grade component for direct ore feed and a lower grade Willemite component for possible physical upgrading also as ore feed. This is a major advantage for the project, pursuant to the Term Sheet agreement to acquire Star Zinc, in that a dedicated process plant would not be necessary. Negotiations continue with Kabwe for an offtake agreement for Star zinc ore."

 

 

Model and Disclaimer

 

This Exploration Target Model represents an intermediate step in deposit evaluation and assessment, working towards an intended Mineral Resource Estimate and JORC 2012 technical report pending receipt of and verification of final laboratory assay results and detailed geological interpretation.

 

The Model is based on chemical assays (c) on 26 DDHs from phase 1 drilling and non-chemical portable Xrf spectrometry ("pXRF') on the 26 DDHs from phase 2 and only preliminary geological interpretations at this stage.

 

(a) Potential grade of the Exploration Target presented in Table 2 is conceptual in nature: there is insufficient exploration data to estimate a Mineral Resource at this time due to a lack of final laboratory assay results and detailed on-going geological interpretations. It is uncertain if further exploration will result in the estimation of a Mineral Resource. However the directors believe and have assurance that, subject to receipt of assay results and appropriate quality control checks being met to the satisfaction of a Competent Person as defined by the JORC 2012 Code, this programme has achieved the drilling density and increased confidence potentially to complete a maiden Mineral Resource Estimate - planned for Q1/Q2 2019.

 

Past comparisons of pXRF with chemical assay methods suggest the former intrinsically has lower bias and higher grades can be expect from chemical assaying.  

 

(c) Chemical Analysis (Assay) by Accredited Intertek Genalysis Laboratory Services: Zn and Ge by peroxide fusion finish with ICP-OES/MS; Ag by 4-Acid digestion with MS.

 

Table 2 Summary of Exploration Target estimated at above 3% Zn

 

Case

VOLUME

TONNES

DENSITY

Zn%

(above cut-off grade)

Zn Metal Tonnes

Conservative

200,000

600,000

2.8

10 to 12%

60,000 to 72,000

Pragmatic

300,000

900,000

2.8

10 to 12%

90,000 to 110,000

 

 

 

Table 3 pXRF drilling results (d) for holes that intersected mineralisation (subject to chemical assay - all m are downhole from surface)

 

HOLE ID

Azimuth

Dip

FROM

TO

Width

Approx. True Width

Zn%

SZDD041

24

-55

9

21

12

11.39

3.28

SZDD041

 

 

34

49

15

14.22

18.26

Including

 

 

36

47

11

10.43

24.3

SZDD042

325

-65

0

7

7

6.79

1.35

SZDD042

 

 

24

31

7

6.8

15.52

Including

 

 

24

28

4

3.89

24.92

SZDD043

93

-55

0

8

8

6.07

0.47

SZDD043

 

 

15

24

9

6.82

23.71

Including

 

 

19

24

5

3.79

40.34

SZDD044

293

-55

0

3

3

2.54

0.96

SZDD045

340

-55

1

6

5

4.77

0.46

SZDD045

 

 

17

33

16

15.28

3.99

Including

 

 

17

20

3

2.86

18.8

SZDD047

180

-60

5

9

4

2.57

10.99

SZDD048

0

-55

0

8

8

7.73

0.55

SZDD048

 

 

27

49

22

21.35

23.05

Including

 

 

31

47

16

15.53

31.51

SZDD049

120

-55

0

9

9

6.03

0.8

SZDD049

 

 

27

33

6

3.98

0.65

SZDD050

270

-60

0

25

25

20.35

11.77

Including

 

 

10

24

14

11.4

19.47

SZDD051

270

-60

0

20

20

16.23

1.07

SZDD052

270

-60

0

27

27

22.16

5

Including

 

 

19

23

4

3.3

10.17

 

(d) average of regular spaced point readings (3 times) over the mineralised intersection . Whole length ¼ core samples will be submitted for chemical analysis and complete assay will be announced in due course

 

Note pXRF Zn Determinations:

· 2-3 Single Point Determinations on 1m of Whole Core Averaged

· No lower cut-off grade applied

· No high grade cut off applied

· Minimum Intersection drilled width of 3m

· Represent a Relevant 'Total Mineralised Interval'

 

 

Project Progression

Table 4 summarises the different In-company grade tonnage estimates derived previously and comparison the AMS Exploration Target which illustrates clearly the progression and potential to enlarge the deposit with further exploration and drilling

 

Table 4 Summary of Different Conceptual Grade Tonnage Estimates and Exploration Targets. None of the previous Mineral Resources below are reported in accordance with the JORC 2012 Code.

Scenario **

Volume

(m3)

SG

Tonnes

Zn %

Tonnes Zn metal

(Bushbuck Resources) Conservative 2015

 

90,000

 

3.0

 

269,000

 

18

 

48,000

(Bushbuck Resources) Pragmatic 2015

 

129,000

 

3.0

 

386,000

 

18

 

68,000

June 2018

152,000

3.2

485,000

15

75,000

Conservative November 2018 AMS Exploration Target

 

200,000

2.8

600,000

10 to 12

60,000 to 72,000

Pragmatic

November 2018 AMS Exploration Target

 

300,000

2.8

900,000

10 to 12

90,000 to 110,000

** 3% cut-off

 

Future Work

 

The two phases of drilling have better defined the limits on current mineralisation on the area currently targeted for resource generation, though there are still potential additional drilling targets, which may be warranted to test later, subject to resource/optimisation/financial modelling. These targets include several geophysical gravity highs, outcropping hematite bodies and beyond the fringes of defined mineralisation, south east of which, for example holes SZDD034 reported 4.9 m approximate true width @ 9.4% Zn from 11.5m and SZDD036, 11.4 m approximate true width @ 6.7% from 13m.

 

AMS have made the following recommendations for further work as part of the estimation of the Exploration Target.

 

· DGPS of drill hole collars.

 

· Improve surface topographical control particularly in the pit area.

 

· Complete detailed geological and fault interpretation to improve geological models and to identify potential areas for further step out drilling.

 

· Complete trench/face channel sampling/logging within the pit to better control models of mineralized domains.

 

· Review of Phase 1 and 2 logging to ensure consistency and to better identify the high-grade willemite zone.

 

· Collect additional bulk density data from Phase 2 drilling across a range of grades and lithologies to improve spatial spread of bulk density data.

 

Corporate update

 

Galileo's subsidiary Enviro Zambia Ltd ("EZL") has applied to register with the Zambian Revenues Authority (ZRA) the 14.25% interest it acquired in Star Zinc licence from BMR Group Plc's subsidiary Enviro Mining Ltd on 21 June 2018 for consideration of ZMW100. EZL awaits a Tax Payer Identification Number (TPIN) from ZRA for the registration, completion of which will give EZL 95% and the Government 5% of Star Zinc project, pursuant to the agreement announced on 13 September 2018.

 

Licence Tenure

 

Star Zinc's large-scale exploration licence 19653-HQ-LEL is valid to 23 August 2021. The transfer of 19653-HQ-LEL from BMR's subsidiary Enviro Processing Ltd to EZL's subsidiary Enviro Processing Zambia Ltd EZL) will be initiated.

 

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Technical Sign-Off

 

Andrew Sarosi, 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's supervision and he has approved the release of this announcement.

 

You can also follow Galileo on Twitter: @GalileoResource

 

For further information, please contact: Galileo Resources PLC

 

Colin Bird, Chairman

Andrew Sarosi, Executive Director

+44 (0) 20 7581 4477

+44 (0) 1752 221937

Beaumont Cornish Limited - Nomad

Roland Cornish/James Biddle

+44 (0) 20 7628 3396

Novum Securities Limited - Joint Broker

Colin Rowbury /Jon Belliss

+44 (0) 20 7399 9400

 

Star Zinc

 

The Star Zinc project "(Project") is a historical small-scale open pit mine from where, reportedly, low tonnage, but high-gradewillemite (a zinc silicate mineral) was extracted intermittently in the 1950s to 1990s.

The Project is located approximately 18km NNW of Lusaka (see Figure 3.1 below) and is accessible via the tarred "Great North Road" and a good all weather graded road, with the journey time from central Lusaka of approximately 30 minutes (traffic allowing).

 

There is adequate power, water, rail & telecommunications, with the International Airport at Lusaka, less than 45 minutes away.

 

The Mines and Minerals Development Act, No 11 of, 2015, which grants a Large Scale Exploration Licence (LSEL), governs the mineral tenement. The Act provides for an initial 4 years with a further two 3-year extensions totalling 10 years, with a mandatory 50% reduction of licence area at the completion of the 1st grant and 2nd grant periods respectively. The first renewal period initially expired 13 August 2016 but was extended to 13 August 2018. The LSEL was renewed on 24 August 2018 for a further 3 years. In the 1960s, geologists of the Northern Rhodesia (now Zambia) Geological Survey mapped the Project.

 

At Star Zinc, two main fracture trends are present, one E - W, and another N - S. Both set of fractures are nearly vertical and are irregularly mineralised. Willemite generally replaces the host rock marbles in the form of massive ore bodies, but it occurs also in veins

In addition, karstic (pertaining to landscape underlain by limestone which has been eroded by dissolution, producing ridges, fissures, sinkholes and other characteristic landforms) mineralisation and red soils (terra rossa) are locally heavily mineralised with detrital willemite and supergene zinc minerals. Zinc values measured in soils at Star Zinc reach up to 15,600 ppm and are accompanied by the pathfinder elements Ag (silver), Pb (lead), Ba (barium), Sb (antimony) and Cd (cadmium). The karst infill has a zinc (Zn) content up to 45wt.% Zn, up to 35wt.% Fe and up to 5g/t Ag.

 

The mineralogical assemblage of Zn non sulphides includes a whole number of minerals: the main economic phases present are Zn-silicates (willemite, hemimorphite, Zn-bearing clays), Zn- Pb carbonates (smithsonite, cerussite), hydrated Zn- Pb carbonates (hydrozincite, hydrocerussite) and Zn- Mn- Fe- oxides (zincite, franklinite, gahnite).

 

Limited independent metallurgical testwork by others has clearly shown that the willemite present at Star Zinc is amenable to acid leaching with positive results for two samples tested. Zinc leaching efficiencies obtained ranged from 89% and 92%. The testwork indicated polymerisation of dissolved silica in the leachate.

 

In summary, Star Zinc has good potential to become a viable project.

 

 Note: the information about Star Zinc is sourced primarily from Competent Person's Report for the Star Zinc Project, Zambia; Wardell Armstrong, January 2016

 

Glossary

 

Detrital loose fragments or grains that have been worn away from rock

DGPS digital global positioning survey  

Calcite mineral of calcium carbonate

Dolomite mineral composed of calcium magnesium carbonate

Dolomitic pertaining to dolomite  

Exploration Target An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource

Floats pieces of rock that have been removed and transported from their original outcrop

Germanium (Ge) semi metal element commonly used in the semiconductor industry, wide-angle camera lenses and fibre optics. 

Hematite reddish-black mineral consisting of ferric oxide. It is an important ore of iron.

ICP-OES/MS inductively coupled plasma - optical emission spectrometry/mass spectrometry

JORC The Joint Ore Reserves Committee

JORC 2012 The JORC code 2012 edition. The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Ore Reserves

Karst landscape underlain by limestone (calcium carbonate), which has been eroded by dissolution, producing ridges, fissures and so on

Karstic pertaining to karst

 

Kriging a method of spatial interpolation that originated in the field of mining geology - named after South African mining engineer Danie Krige

Leaching chemical process of solubilising metals in rock into solution

ppm parts per million

XRF Spectrometer analytical instrument for determining approximate chemical composition using x-ray fluorescence spectrometry

 

Supergene pertaining to processes or enrichment that occurs relatively near surface 

Willemite zinc silicate ore mineral

 

 

Annex 1 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 

 

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

· The Exploration Results reported in this announcement come from 3 diamond-cored (DD) (SZDD038, 039 & 040) holes totaling 164.3 m out of a total deposit drilled 52 DD holes totaling 2220.8 m of drilling. Exploration was managed by GeoQuest Ltd of Lusaka, Zambia on behalf of Galileo Resources PLC. DD sampling was selective, undertaken typically on 1 m quarter core obtained from PQ and HQ drilling, honoring lithological and mineralisation boundaries. Minimum and maximum sample lengths varied from 0.47 - 1.30 m for the Exploration Result holes and 0.30 - 1.50 m for all holes drilled. Typical sample weights of 1.5 to 3kg were obtained per sample.

 

· Measures were in place to prevent sampling errors and ensuring correct metre delineation by the drilling company.

· Hand held portable XRF measurements were used as an aid in the selection of intervals for assaying and to assist in programme planning. These results will not be used for resource estimation.

All samples were analysed by Intertek Genalysis in Perth, Australia

Sample preparation was completed by Intertek Genalysis dedicated sample preparation facility in Kitwe, Zambia. All samples were dried, crushed to ~2 mm, with pulverization upto 1.2 kg. Method code SP12 & SP67. A subset of pulversied material is dispatched via air freight to Perth, Australia to the analytical laboratory.

For analysis, all samples were analysed for Zn, Ge, V and Ag. Zinc is determined by sodium peroxide fusion (Zirconia crucibles) with ICP-OES determination. Germanium is similarly analysed, though using ICP-MS. Silver and Vanadium are determined via a four acid digest with ICP-MS. Method codes are FP1/MS, FP1/OES & 4AO/OE

Drilling techniques

· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

· All holes are DD, collared to typically 9-15 m using PQ (122.6mm diameter), with HQ (96 mm) to the end of hole.

· Holes are typically inclined ranging from -50 to -90 degrees with a variety of azimuths due to site access conditions. As such, geological and mineralisation intersections were not necessarily perpendicular.

· Inclined holes were orientated (HQ size only) using a REFLEX ACT II RD Rapid Decent Core Orientation Tool at the end of each run (3 m)

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

 

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· DD core recovery was assessed through the routine collection of basic geotechnical parameters (recovery etc) to assess core length drilled v core length recovered on a run basis. For the 3 holes in this announcement, total core recovery for each hole ranges from 92-96%, with recovery in mineralised zones ranging from 96-100%.

· Cavity zones are logged accordingly, mineralised material within cavity zones is sampled independently of surrounding material. Zones of cavity infill are documented in the announcement in relation to mineralised intervals.

· The available information suggests that the there is no systematic bias due to sample loss.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

 

 

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 

 

· The total length and percentage of the relevant intersections logged.

· DD core was logged for multiple attributes at the exploration camp and reviewed against surrounding DD holes for conformity purposes. Lithological, structural, alteration, mineralisation styles and geotechnical parameters were collected for every hole. Downhole data is plotted on section & plan and viewed in a 3D environment to assess the validity and continuity of logged geological attributes.

· DD core was photographed on a tray by tray basis, both wet and dry for whole core.

· Geological logging is qualitative in nature and in sufficient detail to support exploration activities and appropriate Mineral Resource estimation.

· All recovered material was logged.

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

 

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 

 

 

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· Core was cut using a core saw, with quarter core submitted for laboratory analysis. The remaining ¾ core is retained in the trays for library purposes. Approximately 3 m either side of the zone of interest were also submitted for analysis.

· N/A

· Coarse blanks were inserted into the sample stream at a frequency of 2.5% to assess any cross contamination at the laboratory. No issues are reported pertaining to the holes detailed in this announcement with Exploration Results.

· Sample preparation techniques were completed by a commercial laboratory, though laboratory preparation processes have not been audited or reviewed and that full implementation of laboratory standard operating procedures has not been verified.

· No core field duplicates / second-half sampling has been completed to date. No pulp duplicates have been completed to date.

· Field duplicate analysis suggest sample size is appropriate.

 

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 

 

 

 

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

· All samples were analysed by Intertek Genalysis in Perth, Australia

· For analysis, all samples were analysed for Zn, Ge, V and Ag. Zinc is determined by sodium peroxide fusion (Zirconia crucibles) with ICP-OES determination. Germanium is similarly analysed, though using ICP-MS. Silver and Zinc are determined via a four acid digest with ICP-MS. The techniques are considered total. Discussion with the laboratory prior to contract award as well as external expert 3rd party input were used to ensure the correct analytical technique for zinc was selected which could accommodate grades upto 50% Zn with consideration to the style and nature of mineralisation.

· Hand held portable XRF measurements were used as an aid in the selection of intervals for assaying and to assist in programme planning. These results will not be used for resource estimation.

 

 

· Quality control procedures include certified reference material with grades relevant to the grade of mineralisation, certified barren material and coarse blanks. No pulp duplicates or umpire determinations have been completed to date. Quality control material is inserted at a frequency of 5%.

· Regarding the holes in this announcement with Exploration Results, acceptable levels of accuracy and precision are observed with reference to internal error bars of 3 standard deviations and/or 5% error gates from the certified value.

No external checks have been completed at this stage.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

 

 

 

 

 

 

· Discuss any adjustment to assay data.

· Addison Mining Services have independently verified the significant intersections reported for the 3 holes with Exploration Results.

· No twin holes have been drilled.

· Sample intervals, collar parameters and geological logs are recorded onto logging sheets where appropriate and entered into computers. Such logs are verified in Micromine software before being loaded into a relational Access database, with received laboratory assay files.

· Database and geological staff validate database entries with reference to the original data.

· Data verification includes comparing analytical results with downhole geology, reviewing assay results from surrounding holes, checks for internal consistency, checks on collar positions and downhole survey details as well as checks on geological entries. No significant discrepancies are noted. Physical data is stored securely, whilst digital data is stored in a relational Access database, suitably backed up.

· No adjustments have been made to the assay data pertaining to the 3 holes reported in this announcement.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 

 

 

 

 

· Specification of the grid system used.

 

· Quality and adequacy of topographic control.

· 100% of DD holes have been surveyed using a hand held GPS unit. A survey of drill hole collars using a differential GPS has not yet been undertaken. A historically mined pit, although previously surveyed; for which the survey parameters are unknown and is yet to be re-surveyed using a differential GPS system. Downhole surveys were completed for all holes at 20 m intervals, though as the majority of holes are short (

 

· All surveying was undertaken in UTM Zone 35 South ARC 1950 map datum.

· Topographic control is by a hand held GPS unit through the surveying of drilled drill holes. No topographic survey has been completed with a differential GPS system.

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

 

 

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

· Surface drill hole spacing varies from 30m to 100 m for completed DD. Downhole surveys were completed for all holes at 20 m intervals, though as the majority of holes are short (

· The data spacing has established geological continuity sufficient for a mineral resource estimate, subject to a Competent Persons review of all data and collection methodologies.

 

· No sample compositing was completed.

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 

 

 

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The underlying geology is broadly shallowly dipping to the west and east, the mineralised package demonstrating a similar trend. Drilling predominately has been targeting across strike, with drill holes inclined from -90 to -50 degrees at a variety of azimuths due to site access constraints; the 3 holes in this announcement at -55 degrees. Due to the variability of the mineralisation and site access issues, not all holes intersected mineralisation / structures perpendicular to the drill hole, typically resulting in longer than 'true-width' intersections.

· At this stage, this has not yet been fully assessed, but will be critically evaluated during a forthcoming Mineral Resource estimate.

Sample security

· The measures taken to ensure sample security.

· All sampling was managed by GeoQuest Ltd. Samples for assaying were collected and checked and placed in heavy duty polyweave sacks which were sealed. The bagged samples were then transported by a GeoQuest Ltd vehicle with employee directly from Lusaka to Intertek Genalysis in Kitwe. No third parties were permitted unsupervised access to the samples before delivery to the laboratory. Confirmation was received from the laboratory on receipt. The Chain of Custody is considered unbroken.

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

· No external audits have been completed.

· Data reviews and validations have been completed internally. Quality control data is reviewed and where issues present, the laboratory asked to comment. Internal reviews of sampling techniques have been completed, including the observation of drilling and sampling techniques. No significant issues have been identified.

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

· The Star Zinc deposit lies within valid exploration licence 19653-HQ-LEL. The licence was renewed for a further 3 years in August 2018.The licence is 80.75% owned by Galileo Resources Plc, though the licence remains in the name of Enviro Processing Ltd.

· Permissions to operate as required in the area have been obtained. Dialogue continues with regard to surface rights owners.

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

· Initial exploration activities were completed in the 1960's at the Star Zinc deposit by Chartered Exploration (Anglo American) which concluded with the drilling of upwards of 59 vertical diamond holes on a 50m x 50m pattern. The data has proven to be a useful guide to aid in exploration activities, but significant constraints on the data preclude its use in estimation.

· Avmin Development Zambia Ltd (Teal) completed geological mapping, soil sampling, rock chip sampling, ground gravity and targeting exercises over Star Zinc in 2003, but due to a historical tenure issue at the time, pulled out without completing any drilling activities.

Geology

· Deposit type, geological setting and style of mineralisation.

· The Star Zinc deposit can be referred to as a High Grade Structurally Controlled Willemite Deposit, the bulk of the deposit represented as hypogene willemite mineralisation, with relatively minor supergene mineralisation.

· The local geology of Star Zinc is complex and forms a varied sequence of argillite, limestone, massive willemite ore, massive limestone and dolomites (Cheta and Lusaka Formations). The stratigraphic succession in the Star Zinc pit consists of limestone overlain by metamorphosed slaty limestone, by coarse marbles and overlain by hematite rich dolomite. A broad dome (west-east) is the main feature structurally of Star Zinc.

· Mineralization is present as replacement high grade lenses or bands of willemite (franklinite and gahnite) with lower grade lenses of hematite and willemite. Steeply dipping willemite veins / fractures have been mapped throughout the pit, either east-west dipping south, or sub-vertical north-south. Mineralisation is irregular, in parts tabular, anastomosing, replacement, dilatational at the intersection of possible structures and in calicite-hematite-willemite veins and associated with more brecciated zones.

· Karst fill deposits and saprolitic / pisolithic soil are locally highly mineralized with grades up to 20 %, principally to the south of the pit, untested and not evaluated by historical drilling.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· Provided in the announcement.

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· Drilling data intersections reported in this announcement is nominally reported with a cut-off grade of 0.4% and 10% zinc with no high grade cut-off. A maximum of 3 m of internal waste is allowed.

· Reported results do not include equivalent values.

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

· Due to the variability of the mineralisation and site access issues, not all holes intersected mineralisation / structures perpendicular to the drill hole, resulting in longer than 'true-width' intersections. Holes were drilled at a variety of azimuths, with inclinations ranging from -50 to -90 degrees. Approximate true width is provided in the announcement.

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

· Provided in the announcement.

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· All drill holes are reported here from the analytical batch received. Previous results have been previously reported.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· N/A

Further work

· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

· Recommendations for future work are presented in the announcement

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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