Glenover Rare Earth Project Drilling Update
02 March 2012
Galileo Resources Plc
("Galileo" or the "Company")
Glenover Rare Earth Project Drilling Update
The Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging African
Rare Earth exploration company, is pleased to provide an update on drilling
results from the latest nine boreholes GVH007 to GVH009 and GVH011 to GVH016
drilled around the carbonatite/ pyroxenite plug on its Glenover Rare Earths
Joint Venture project, north of Thabazimbi, in the Limpopo Province of South
Africa. The results show grades and mineralogy consistent with those of the
first six boreholes reported previously (10 November 2011, 06 December 2011 and
16 January 2012) and provide additional data towards the production shortly of
a resource statement.
Highlights:
Longest borehole intersection widths at nominal 1% TREO (total rare earth
oxide) cut off ranged from 5 metres (GHV009) to 111 meters (GVH015) with
average (arithmetic) intersection width of 49m assaying an average (length
weighted) 1.98 %TREO (range1.21% TREO TO 2.36%TREO)
The main REO bearing apatite (breccia) facies intersections in seven boreholes
ranged in width from 8 metres to 150 metres (average 55 metres) and assayed a
length weighted average of 1.66% TREO (range 0.88%TREO to 2.33% )
High grade shoot intersections (>2% TREO) assayed from 2.27% TREO to 5.08% TREO
over widths ranging from 1.3 metres to 7.3 metres
Preliminary core logging from a step-out exploratory drilling programme has
identified apparent REO mineralisations in the extended concession area within
a 1.5 kilometre radius from the edge of the open pit.
Table - Summary of TREO results for the latest nine boreholes drilled
longest run highest
total core apatite breccia >1% TREO shoot grade
Hole TREO TREO TREO TREO TREO TREO
ID * * ** * ** *
GHV m % m % % m % % m %
007 183 1.15 8 1.42 1.73 29 2.35 7.3 3.49
24 2.32 2.41
21 2.33
008 120 1.43 105 1.5 1.75 58 1.72 1.7 4.37
009 168 0.75 44 0.88 0.95 5 1.2 1.3 2.27
011 153 1.13 126 1.22 1.70 72 1.88 2.01 2.2 3.58
012 143 1.64 115 1.84 2.04 61 2.17 2.56 1.6 4.74
013 168 0.8 0 11 1.21 2.2 3.05
014 107 0.53 0
015 173 1.64 150 1.68 2.03 111 1.98 2.36 3.4 5.08
016 154 1.17 17 1.54 47 2.21 6.0 3.95
47 2.21
* TREO figures are weighted averages calculated by the summation of the product
of the individual sampled intercept grade and the sampled intercept width
divided by the summation of the total length of core sampled including core
loss
** weighted averages as above except that the divisor is the summation of the
intercept widths sampled i.e core losses are excluded
More detailed borehole results are summarised in the table below.
Colin Bird, Executive Chairman of Galileo Resources, said: "We are pleased wth
the consistent grades, widths of intersection, mineralogy and the REO
distributions shown in these latest resource borehole results, which compare
well with those results previously reported. Rare earth mineralisation apparent
in preliminary core logging of step-out exploratory boreholes is an ecouraging
sign for significant expansion of the resource."
Comment
The results to date advance the project towards a resource statement around the
underground carbonatite/ pyroxenite plug and the step-out exploratory drilling
tentatively confirms the Company's belief that there is potential for
additional REO reource on its concession.
The weighted average TREO assay in the apatite breccia of borehole GVH009
(0.88%), which was drilled away from the pit into the surrounding host
pyroxenite, is lower than average and is explained by the fact that although
the breccia logged does contain elevated phosphate grades, the weathering/
alteration of the pyroxenite in this part of the breccia is believed to be not
as intense as elsewhere. Therefore the REO enrichment has been lower, resulting
in a lower grade intersection. Boreholes GHV013 and GHV014 intersected
essentially carbonatised pyroxenite and dolomitic carbonatite, which were
nevertheess REO mineralised with whole core assaying 0.8% TREO and 0.53% TREO
respectively in the two facies. The remaining six boreholes of the 21-resource
drilling prgammme have been logged and samples submitted for assay.
The internationally accredited laboratory Genalysis Laboratory Services (Pty)
Ltd, a part of the Intertek Group plc, carried out the the assays of the
samples.
Summary of Results Of Nine Boreholes Over Selected Core Lengths
To TOTAL LENGTH TREO* P2O5 Nb2O5
HOLE ID GRADE CUT FROM m m m % % %
GHV007 Total core 1.66 183.39 181.73 1.15 8.17 0.22
> 1% TREO 72.46 75.6 3.14 1.72 11.51 0.41
> 1% TREO 81.93 111.09 29.16 2.15 14.62 0.38
Including 92.51 95.34 2.83 3.55 22.70 0.48
Including 98.85 104.31 5.46 3.43 19.03 0.34
> 1% TREO 136.34 158.73 22.39 2.28 14.74 0.37
Including 145.49 152.76 7.27 3.49 17.22 0.44
Apatite Breccia 13.29 21.23 7.94 1.42 9.41 0.23
Apatite Breccia 86.7 111.09 24.39 2.32 15.50 0.40
Apatite Breccia 16.34 157.45 21.11 2.33 15.20 0.37
GHV008 Total core 0 120.52 120.52 1.43 13.20 0.41
> 1% TREO 1.54 10.95 9.41 1.11 14.16 0.21
> 1% TREO 13.06 26.34 13.28 1.19 10.97 0.32
> 1% TREO 45.05 58.17 13.12 1.72 13.44 0.33
Including 47.25 48.93 1.68 4.37 13.21 0.46
> 1% TREO 62.32 120.52 58.2 1.85 15.29 0.59
Including 109.55 120.52 10.97 3.11 15.21 0.91
Apatite Breccia 15.68 120.52 104.84 1.50 13.50 0.44
GHV009 Total core 0.47 168.24 167.77 0.75 5.25 0.10
> 1% TREO 6.37 7.48 1.11 2.17 8.56 0.19
> 1% TREO 10.18 11.46 1.28 2.27 19.12 0.31
> 1% TREO 17.6 18.75 1.15 1.51 8.82 0.18
> 1% TREO 21.02 22.31 1.29 1.15 6.45 0.17
> 1% TREO 31.46 36.17 4.71 1.20 10.55 0.22
> 1% TREO 38.5 40.79 2.29 1.11 11.70 0.28
Apatite Breccia 0 43.84 43.84 0.88 8.80 0.14
GHV011 Total core 0 153.12 153.12 1.13 12.41 0.45
> 1% TREO 55.41 127.36 71.95 1.88 16.06 0.61
including 105.47 112.89 7.42 2.94 18.67 0.54
including 124 126.16 2.16 3.58 23.07 1.05
> 1% TREO 131.58 133.69 2.11 2.70 16.52 0.64
Apatite Breccia 0 126.16 126.16 1.22 10.44 0.37
FROM To TOTAL LENGTH TREO* P2O5 Nb2O5
HOLE ID GRADE CUT
m m m % % %
GHV012 Total core 0 143.32 143.32 1.64 10.21 0.24
> 1% TREO 13.35 17.08 3.73 1.50 6.52 0.49
> 1% TREO 19.92 81 61.08 2.17 12.90 0.20
including 32 53.84 21.84 3.86 19.01 0.25
> 1% TREO 83.34 85.47 2.13 1.32 6.05 0.16
> 1% TREO 88.46 90.65 2.19 1.35 13.85 0.21
> 1% TREO 94.42 118.49 24.07 2.37 13.60 0.36
including 109.48 115.49 6.01 4.64 18.41 0.53
including 116.9 118.49 1.59 4.74 19.51 0.66
Apatite Breccia 0 115.49 115.49 1.84 11.82 0.24
GHV013 Total core 0 167.84 167.84 0.80 3.38 0.10
> 1% TREO 55.07 65.83 10.76 1.21 2.78 0.05
> 1% TREO 69.3 71.54 2.24 1.14 1.32 0.10
> 1% TREO 95.77 100.88 5.11 1.83 0.88 0.08
> 1% TREO 107.46 113.78 6.32 1.51 1.14 0.08
> 1% TREO 121.42 123.57 2.15 3.05 1.56 0.07
GHV014 Total core 0 107.72 107.72 0.53 4.41 0.10
GHV015 Total core 0 172.58 172.58 1.64 13.54 0.41
> 1% TREO 16.64 36.59 19.95 1.25 13.44 0.36
> 1% TREO 39.36 150.13 110.77 1.98 16.93 0.52
Including 109.92 136.31 26.39 3.54 18.94 1.05
Including 138.86 141.43 2.57 3.24 4.73 0.36
Including 146.78 150.13 3.35 5.08 12.46 0.85
> 1% TREO 154.16 159.54 5.38 3.19 2.76 0.23
Apatite Breccia 0 150.13 150.13 1.68 15.11 0.44
GHV016 Total core 0 154.84 154.84 1.17 7.37 0.31
> 1% TREO 33.7 49.08 15.38 1.62 15.01 0.64
Including 46.62 49.08 2.46 3.03 17.73 1.30
> 1% TREO 70.49 117.2 46.71 2.21 12.63 0.51
Including 78.68 84.67 5.99 3.95 15.04 0.96
Including 98.81 104.33 5.52 3.95 19.01 0.85
Apatite Breccia 32.43 49.08 16.65 1.54 14.49 0.59
Apatite Breccia 70.49 117.2 46.71 2.21 12.63 0.51
* includescore loss
TREO is total rare earth oxides including Yttrium
For further information, please contact:
Colin Bird
Chairman & CEO Tel +44 (0)20 7581 4477
Andrew Sarosi
Non-Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited, Tel +44 (0)20 7628 3396
Nominated Advisor and Broker
Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090
Joint Broker
Jerry Keen/Toby Gibbs
Bishopsgate Communications Tel +44 (0)20 7562 3350
A copy of the announcement is available on the Company's website www.galileoresources.com
Technical Sign-Off
Andrew Sarosi, Technical 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
Sarosi's supervision and he has approved the release of this announcement.
Note:
Galileo Resources Plc is a natural resource exploration company. The Company
has an experienced management team with proven technical and commercial
background. The flagship property is the Glenover Phosphate concession, which
produced phosphate for many years. Phosphate however, is now subordinated to
Rare Earth Elements (REEs). The project area is known to contain REEs and that
the grades, if of sufficient size and continuity may well lead to a
medium-sized operation for the production of REOs.
Galileo Resources currently has an 11.5% interest in the Glenover Project and
has the option, via additional stage payments as set out in the Company's
Admission Document, to earn up to a maximum interest of 73.73%.
One of the key benefits of the project for a medium-sized operation is that, if
REEs, which have been shown to be present in the stockpiles from the previous
phosphate operations, can be proven to compliant resource category, the cost
of mining it and the associated risks should substantially be reduced.
The concession is of considerable size and hosts mineralisation types suitable
for potential REE presence. The aim is to investigate the mineralisation types
for REE presence and content with the view to proving up a mineable resource of
REOs.
The Company also has a number of Iron Ore and Manganese exploration projects in
the Cape, all of which are in proximity either to current operations or
discoveries, which are not currently being processed.
Galileo has rights to joint venture in an aggregate producing quarry close to
Mthata in the Eastern Cape. The Directors believe that the quarry is well
positioned to supply construction aggregate for the significant potential
infrastructure programme being undertaken by local government.
Technical Glossary
Breccia: a rock composed of broken fragments of
minerals or rock cemented together
Carbonatite an igneous rock consiting of greater than
50% carbonate minerals mainly calcium carbonate (limestone) and lesser
magnesium carbonate (dolomite)
Facies: a body of rock with specified
characteristics
Niobium (Nb2O5): an oxide of Niobium, a metal whose uses include
alloying and coatings with other metals to improve welding properties
(stainless steel), impart resistance to chemical attack (zirconium, molten
lithium and sodium), corrosion resistance in harsh chloride-containing
solutions (coated copper anodes) and corrosion resistance at red hot
temperatures (rocket nozzles)
Phosphate (P2O5): an oxide of phosphorus
Pyroxenite: a dark coloured igneous rock composed almost
entirely of the mineral pyroxene an aluminium silicate essentially of iron
magnesium and calcium
Rare earths (REE): a set of fifteen chemical elements in
the periodic table specifically
the lanthanides (plus yttrium
ad hoc and scandium) and by convention categorised as light REE (the first
seven elements plus yttrium) and heavy REE (the other eight lanthanides)
REO (rare earth oxide): the oxide form of the rare earth elements
TREO: total rare earth oxides
The major rare earth elements (>0.1% distribution in the boreholes) are:
Ce: Cerium Uses include cathode ray tube glass to
prevent age discoloration, in auto catalytic converters, rich red colour
pigments, low energy light bulbs, film studio carbon-arc lighting and minor use
in self cleaning ovens
Eu: Europium Uses include bright red coloration in
television tubes; industrial street lighting to give a more natural light, thin
film superconductor alloys and in lasers
Gd: Gadolinium Uses include neutron capture capability and in
compounds as a contrasting agent in radiography and magnetic resonance imaging
in medical diagnostics
La: Lanthanum Uses include carbon-arc lighting, additive to
glass for lenses and new treatment for bone disease (osteodysrophy). Potential
use for hydrogen (H) storage for H-fuelled vehicles: being able to absorb
hydrogen as much as 400 times its volume
Nd: Neodymium Uses include alloyed with iron and boron to make one
the most powerul permanent magnets known (see also Samarium below) and found in
modern vehicles using motorised devices; in welders protective glasses and
power lasers
Pr: Praseodymium Uses include as an additive to give glass a pure
yellow colour and brilliant pastel greens and yellows for glazes
Sm: Samarium Uses include alloyed with cobalt to produce
permanent magnets ten thousand times more powerful than iron and has the
highest resistance to demagnetization; in masers (microwave lasers) capable of
cutting steel and bouncing off the surface of the moon
Y: Yttrium Uses include lasers, as host for europium
in TV red phosphor, alloyed with boron and cobalt high temperature
superconductors and microwave filters
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