Galileo Resources narrows losses as it cuts operating costs

The exploration and development mining company reported a loss for the year ended 31 March of £0.7m, an improvement on the £1.2m loss the year before, as operating expenses were cut by 35% to £0.4m.

The AIM-traded company, which did not generate any revenue, completed a first phase drilling programme at the Star Zinc project and now plans to commence a second phase of drilling, which is scheduled to consist of about 1,000 metres of diamond core drilling.

Other developments include the commencement of negotiations with Jubilee Metals Group for an off-take agreement to supply future ore from Star Zinc and the raising of £0.5m through a placing in order to fund the Star Zinc project.

Galileo now owns 95% of the project, having acquired the remaining 15% of the shares that it did not already hold in Enviro Zambia Ltd, with the remaining 5% still owned by the Zambian government.

Galileo Resources shares were up 3.48% at 0.60p at 1132 BST.