Galileo Resources subsidiary awarded Zambia copper licence

25th Oct 2024 14:07

(Sharecast News) - Galileo Resources announced on Friday that Statunga Investments, in which it holds a 75% stake, has been awarded an additional small-scale mining licence for the Luansobe copper project in Zambia.

The AIM-traded firm said the new licence granted rights over 384 hectares, covering potential underground copper resources, and was valid from 4 August 2024 for a 10-year period.

It complemented an earlier small-scale licence issued for shallow, open-pit mining in part of the former Luansobe exploration area.

The board said the two licences together spanned areas where Galileo previously reported JORC-compliant inferred mineral resources.

That included 5.8 million tonnes of ore at 1% copper, potentially suitable for open-pit mining, and an additional 6.3 million tonnes at 1.5% copper, identified for possible underground extraction.

Historic data also indicated an exploration target of three to seven million tonnes, with copper grades between 1% and 1.5%, extending to depths of 100 to 300 metres.

The target was conceptual, with further drilling required to confirm its viability.

"As indicated in our announcement of 29 May, we are pleased to be able to report that Statunga is now in receipt of the second mining licence for Luansobe covering the area of the underground resource," said chairman and chief executive officer Colin Bird.

"This marks an important step forward in our plan for the development of the open pit and accessible underground resources separate from a deeper drilling programme targeted at investigation of the extent of the deposit at depth.

"We continue to believe that there is the potential to define a much larger resource within our licence boundary and we look forward to announcing further progress on the Project in the coming period."

At 1316 BST, shares in Galileo Resources were down 2.13% at 1.1p.

Reporting by Josh White for Sharecast.com.