Galileo Resources shares (LON:GLR) rose during Wednesday trading after the company announced an exploration target at its Star Zinc Project in Zambia.

The resource and development company said that the target had been located at the Star Zinc project, which it owns a 80.75% stake in.

According to the update, the exploration target is estimated to be between 600,000 and 900,000 tonnes, and expected to have a grade of 10-12 % Zn.

Colin Bird, Chief Executive Officer of Galileo Resources, issued the following statement on the results:

“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.

He continued: “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.”

Alongside the Star Zinc project in Zambia, the company has three other assets. These include two in South Africa, and one in Nevada in the US.

Shares in Galileo Resources are currently up 4.40% as of 14.13PM (GMT).

 

Previous articleTfL set to lose £200m from Crossrail delays
Next articleRenold hikes prices and profits jump 71%
Nicole Jeary
Nicole covers emerging global economic and political events for The UK Investor Magazine. Her focus is particularly upon company news and political developments in Europe and the US.