Galileo Resources reports 'significant' gold values at Nevada mine

AIM-listed miner Galileo Resources reported that initial rock-chip sampling at its Nevada mine in the US returned “significant” gold values while drilling has started at its gold-silver project.

Rock-chip sampling from 23 samples found up to 10.8 grams per tonne at the Ferber gold project, which comprises a land package of over 300 unpatented mining claims and 19 leased patented claims covering about 25 square kilometres.

A 1,200 meter drill programme has also started at the company’s Silverton gold-silver project by Orogen, the company's farm-in partner.

Chairman and chief executive Colin Bird said: "Historical exploration including drilling encountered both gold and copper at Ferber. We have approached this project with a clean sheet and the results of this preliminary sampling are very encouraging. We intend to follow this up with more detailed geochemical sampling with a view to identifying drilling targets."

Galileo's consulting geologist on the project, Dr. Jacob Margolis, said: "The Ferber intrusion-centred gold system is broadly similar to productive gold deposits elsewhere in north-central Nevada, where Carlin-style gold mineralization and gold skarn mineralization are genetically related to late eocene intrusions similar in age to the Ferber stock.

“This large district requires a broad approach aimed at recognizing geochemical zoning, delineating district-scale structure and understanding the stratigraphy. Integrating these three components should serve as a vector to quality exploration targets".

At the Feber project 11 out of 23 rock-chip samples returned gold values exceeding 0.2 grams per tonne, while seven of the 11 samples exceeded 1 gram per tonne with a high of 10.8 grams per tonne.

The project mineralization, characteristic of productive gold skarn deposits, occurs marginal to a late eocene intrusion, with jasperoid mineralisation characteristic of carlin-type, which are sediment-hosted and finely disseminated, gold deposits occurring distal to the intrusion.

Shares in Galileo Resources were up 7.72% to 1.53p at 1008 BST.