TIDMBMR
RNS Number : 6912S
BMR Group PLC
04 October 2017
BMR Group PLC
("BMR" or the "Company")
Star Zinc announcement by Galileo Resources Plc
BMR notes the RNS released today by Galileo Resources Plc
(AIM:GLR) in relation to the Star Zinc project, in which BMR
retains a 49% equity interest through its stake in Enviro Zambia as
announced on 5 September 2017. A copy of the Galileo release is set
out below.
For further information:
BMR Group PLC 020 7734 7282
Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
NOMAD and Joint Broker
Chris Fielding/ Alex Bond
Peterhouse Corporate Finance 020 7469 0930
Joint Broker
Lucy Williams/ Duncan Vasey/ Heena Karani
Galileo Resources Plc release of 4 October 2017
Galileo Resources Plc
("Galileo" or "the Company")
Star Zinc Project Update
Highlights
-- The Company has reviewed, at current metal prices, an
independent positive conceptual study (a) undertaken on the Star
Zinc Project ("Project") during 2015
-- The Company's review of the economic model demonstrates, a
conceptual projected IRR of 77% with NPV of $18m (10% discount
rate), a 1-year payback at current prevailing Zinc prices of
$3000/tonne (t) and $9.1m capex
-- Galileo intends to initiate a fast track drilling programme
in order to upgrade the current non- compliant resource and to test
the potential to increase the resource size: estimated cost +/-
$350k with funding expected out of existing cash resources
-- This programme envisages, initially twin-hole drilling in the
current non-compliant resource in order to upgrade it to JORC code
(2012) compliance, followed by new drilling to test the potential
to extend the high grade resource east and west and in new ground
to the south
-- The occurrence of high grade (>50% Zn) float, 200metres
south of the current open pit presents an exciting prospective new
target for mapping and exploration
Note (a) The conceptual study is based on open pit mining from
the near-surface deposit, a mineral resource of 250,000 t at 20%
Zinc for a mine life of 6 years
Colin Bird CEO said, " I am pleased that we are advancing a fast
track exploration programme for the Star Zinc project. Our initial
review suggests that the Project could potentially be developed as
a viable stand-alone project without adding further to the
resource. However, we believe that the resource could potentially
be much bigger and therefore a large proportion of our exploration
will focus on increasing the size of project resource and contained
zinc metal.
Our acquisition of this project includes, further down the line,
an off take agreement, compatibility and amenability of the Star
Zinc ore permitting, with JV partner BMR Group plc, who are
developing its Kabwe zinc tailings treatment project some 110 km
north of Star Zinc. The objective here would be to provide
sufficient feed for Kabwe, while pursuing our quest for a much
larger project resource.
It is noted that no exploration attempt has been made to
identify a possible sulphide feeder origin for the willemite
mineralisation, which literature and academia show is often the
case in other willemite deposits. The intention is also to test
this as a short term mission during exploration."
Star Zinc
The Company recently acquired a 51% interest in the Star Zinc
project, a historical, high-grade zinc ("Zn") open pit mine
operated intermittently in the 1950s to 1990s. The Zn mineral is
predominantly willemite (zinc silicate) hosted in mainly limestone
and dolostone (dolomitic rock)
An Independently verified non-JORC compliant hard rock resource
has been estimated at 275,166 tonnes @ 20.2% Zn with a cut-off
grade of 14% Zn ("pragmatic case") based on historical
approximately 59 diamond drill holes for total 2 578m. At cut off
grade of 12% Zn non-JORC resource tonnage increases (18%) to
325,941 tonnes @19.1% Zn (11% increase in Zn metal).
In addition, karstic fill deposits and red soil are locally
heavily mineralised with detrital willemite and supergene zinc
minerals, which may provide further potential increase to the known
resource.
Mineralisation is interpreted to form two shallowly dipping
lenses east and west of the open pit, mineralisation of which is
around 40m deep, based on the independent model used for the
resource calculation.
A number of sub vertical structures recognised in pit outcrop
suggests possibility of both vertical and horizontal control of Zn
mineralisation.
The Willemite at Star Zinc, fluoresces a bright green in short
wave UV light, a mineral characteristic that may find an
application in optical sorting. Willemite also, is denser (3.9
g/cm(3) ) than the dolomitic (2.9 g/cm(3) ) host rock, a feature
that may find an application in heavy medium separation process,
with the potential for reducing the acid consuming dolomite in the
ore.
Preliminary metallurgical testwork indicates that the ore is
amenable to acid leaching with more than 90% of the zinc leached
into solution.
The Company has committed to undertake an 18-month work
programme ("Programme") at a cost of $250,000 using reasonable
endeavours to complete a preliminary economic assessment of Star
Zinc ("PEA"), following which further new shares in Enviro Zambia,
the owner of the Project will be be issued to Galileo to increase
its aggregate equity interest in therein to 85%; accordingly it
expects the Programme to meet this obligation.
Glossary
Detrital loose fragments or grains that have been worn away from rock
Dolomite mineral composed of calcium magnesium carbonate
Dolomitic pertaining to dolomite
Floats pieces of rock that have been removed and transported
from their original outcrop
Karstic pertaining to landscape underlain by limestone (calcium
carbonate), which has been eroded by dissolution, producing ridges,
fissures and so on
Leaching chemical process of solubilising metals in rock into solution
Supergene pertaining to processes or enrichment that occurs
relatively near the surface
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Technical Sign-Off
Andrew Sarosi, Director of Galileo, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact:
Galileo Resources PLC Tel +44 (0) 20 7581 4477
Colin Bird, Chairman
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628 3396
Roland Cornish/James Biddle
Beaufort Securities Limited - Broker Tel +44 (0) 20 7382 8416
Jon Bellis/Elliot Hance
This information is provided by RNS
The company news service from the London Stock Exchange
END
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