Joint Venture with Statunga (Galileo signs JV deal for Luansobe copper project in Zambia)
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Galileo Resources plc (“Galileo “or the “Company”) is pleased to provide details regarding a Joint Venture Agreement (the “JV Agreement”) entered into on 29 December 2021 with Statunga Investments Limited (the “Vendor”) covering the Luansobe Copper Project, Zambia comprising Small Scale Exploration Licence No. 28340-HQ-SEL (the “Licence”) (the “Project”)
US$400K in Initial JV Period and 5M Galileo shares to earn 75% JV Interest
Further project assessment during Initial JV Period
During the Initial JV Period Galileo will conduct further due diligence in relation to the Luansobe Project and may at its sole discretion at any time prior to the end of the Initial JV Period give notice to the Vendor that it has decided not to proceed with the Joint Venture.
Technical management of JV
Galileo has undertaken to commence raw data investigation of the technical information available in relation to the Project and devise an exploration programme for the Luansobe Project, which in their opinion maximise the value of the Luansobe Project with a view to completing a Project Feasibility Study within 18 months of 20 February 2022.
Project near giant Mufulira copper mine
Very prospective historic studies
The Company has access to historic non JORC compliant reports provided by the Vendor based on previous exploration on the Project.
Copper mineralisation is reported to occur over about 3km of strike and to at least 1,250m depth. A 1974 report suggests the potential for a non-JORC compliant global resource of over 20Mt @ 2.51% Cu, with a significant proportion of oxide mineralisation occurring in the upper 70m, below the leached cap. Based on these reports the deposit appears open and relatively untested at depth
Project Plan
Galileo plans to review past exploration data to develop a significant drilling programme focussed on testing the tenor and extent of the copper mineralisation indicated by previous drilling and nearby mining. The programme will incorporate twinning of selected holes from the most recent 2007 drilling programme to bring the project up to JORC 2012 status, with a particular focus on the early-mining potential of the shallower oxide copper and the development of a larger-scale copper sulphide mine.
To this end, the Company aims to undertake a Project Feasibility Study by August 2023
Colin Bird Chairman & CEO said: “We are very pleased with the addition of the Luansobe brownfield Project within the Zambian Copperbelt, with the Project situated directly along strike and in close proximity to the very large Mufulira mine which has produced well over 9Mt of copper metal during its operations. The Project area has been tested by numerous drill holes in various campaigns from 1921 to 2007, with semi-continuous mineralisation reported along about 3km of strike and to at least 1,250m depth. Historical reports suggest the potential for very significant copper resources of up to 20Mt @ 2.51% Cu. Galileo proposes to undertake a substantial drilling programme to update the reported resource to JORC-compliant status with the twin objective of delineating a near-surface copper oxide deposit with early development potential and an underlying sulphide deposit for larger-scale development. ”
Summary
Galileo has entered into a Joint Venture agreement with Statunga Investments Limited (the “Vendor”), a private Zambian company which holds the Luansobe Project comprising small-scale exploration licence No. 28340-HQ-SEL, covering an area of 918 Hectares granted on 16 February 2021 and with its initial 4 year term expiring on 15 February 2025. The principal shareholders of the Vendor are Zambian businessmen.
