Galileo Resources to apply for mining permit for Zambia zinc project

The mineral resources estimate, prepared by Addison Mining Services, supported the assertion that the site contained 500,000 tonnes at 16% Zinc for 77,000 tonnes of contained metal above a cut-off grade of 2% Zinc, including approximately 340,000 tonnes at 21% Zinc for 72,000 tonnes of metal above a cut-off grade of 8%.

The AIM traded company said that the MRE, which defines a clear boundary between high-grade and low-grade zones, will allow for a six-year life-of-mine small scale operation to produce rock mass of only 5,500 tonnes per month containing 12,000 tonnes zinc metal per year to Jubilee Metals Group's zinc process/refinery facility at Kabwe.

While in-house attributable revenues were projected at about $15m annually at current prices and the annual all-in-cost was projected not to exceed to $2m.

The company was intending to apply for a mining permit and to begin mining as near as coincident with the start up of Jubilee's Kabwe project.

The AIM traded company has a 95% beneficial interest in the project, while the Zambian government a 5% interest.

Colin Bird, chief executive of Galileo, said: "The MRE clearly identifies an easy access near-surface mineable zone with a low stripping ratio of one to one. There will be no requirement for processing equipment other than possibly a mobile primary crusher. A low garade portion of the mineralised material remains an exploration target and may be amenable to preconcentrate/upgrade to about 10% Zn either as DSO or blending, pending further test work and method development."

Galileo Resources shares were up 7.02% at 0.67p at 1511 BST.