Resource Statement

RNS Number : 4479B

Galileo Resources PLC

17 April 2012

 



For immediate release                                                                                                                                                         17 April 2012

Galileo Resources Plc

("Galileo" or the "Company")

Galileo Releases Major Independent Mineral Resource Estimate for the Glenover Rare Earth Project

The Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging African Rare Earth exploration company, is pleased to announce an indicated and inferred independent gross resource estimate of 28.93 million tonnes ("Mt") @ 1.24% total rare earth oxides +yttrium ("TREO+Y₂O₃") at its Glenover Rare Earths Joint Venture project, in the Limpopo Province of South Africa.

This resource estimate was independently prepared by GeoConsult International ("GeoConsult") and is reported in accordance with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("the SAMREC code).

Highlights:

·     Total gross resource estimate 28.93 million tonnes @ 1.24% TREO+Y₂O₃ (net attributable 12.80 Mt)

·     Total gross in situ resource estimate in indicated category 16.78 Mt@ 1.45% TREO+ Y₂O₃(net attributable 7.42 Mt)  of which the apatite-breccia facies hosts 7.41Mt@  2.20% TREO+Y₂O_3. (net attributable 3.28 Mt)

·     Gross Resource estimate inferred in surface stockpiles 2.68 Mt @ 1.94%TREO+Y₂O₃ (net attributable 1.19 Mt).

·     In situ inferred gross resource estimate including pyroxenite of 9.46 Mt @ 0.71% TREO+ Y₂O₃ (net attributable 4.20 Mt).

·     Significant values of niobium, phosphate and scandium are contained as potential by-products.

·     All of the above resources can be accessed from an extended open pit which can be widened and deepened (peripheral zone).

Colin Bird, Chief Executive Officer of Galileo Resources, commented: "This excellent resource estimate result has demonstrated a substantial SAMREC compliant indicated and inferred rare earth resource of 28.9 Mt. Some 2.7 Mt of the inferred resource are contained in surface stockpiles and therefore are without mining risk. The entire resource is around and below the old open pit and therefore will be relatively easy access and low cost to mine. The current inferred tonnage and grade of 0.66% TREO+Y₂O₃, in the pyroxenite rocks is very encouraging and is leading the Company to consider Glenover as a large-scale bulk mining project. These results provide the Company with immense confidence to advance the project to a preliminary economic assessment, for which bids are already being invited from leading engineering consultants."

Table    Classified Mineral Resources for the Glenover Rare Earth project

Rock Type	Resource	Tonnage	TREO + Y2O3	P2O5	Nb2O5	Sc2O3
	Class	Mt	(%)	(%)	(%)	ppm
Apatite-Haematite Breccia	Measured
	Indicated	7.407	2.20	17.57	0.47	179.5
	Total Measured & Indicated	7.407	2.20	17.57	0.47	179.5
	Inferred	0.274	2.16	15.83	0.46	167.9
Carbonatite	Measured
	Indicated	9.374	0.86	3.50	0.18	63.8
	Total Measured & Indicated	9.374	0.86	3.50	0.18	63.8
	Inferred	0.453	0.80	4.24	0.15	66.3
Pyroxenite	Measured
	Indicated
	Total Measured & Indicated
	Inferred	8.735	0.66	5.31	0.11	71.6
Surface   Stockpiles	Measured
	Indicated
	Total Measured & Indicated
	Inferred	2.685	1.94	22.21	-	-
Total
	Indicated	16.781	1.45	9.71	0.31	114.9
	Total Measured & Indicated	16.781	1.45	9.71	0.31	114.9
	Inferred	12.147	0.98	9.25	-	-
Total Resource		28.928	1.24	9.52	-	-

Table   Selected high assay results from the drilling programme

Significant high grade shoots within the apatite breccia/carbonatite
Borehole		TREO+Y2O3	Borehole		TREO+Y2O3
ID			ID
GVH	m	%	GVH	m	%
1	17.3	4.4	11	2.2	3.58
4	7.8	8.03	15	3.4	5.08
5	15.7	3.37	16	6	3.95
6	5.7	6.63	17	2.5	4.7
7	7.3	3.49	20	6.8	2.38
10	26.7	4.01	21	15.7	2.69

Genalysis Laboratory Services (Pty) Ltd, an Internationally accredited laboratory and part of the Intertek Group plc, carried out the assays of the samples.

Comment

The total resource contains 362 (rounded) million kilograms TREO+Y₂O₃ of which 243 million kilograms are in the indicated category. Within the apatite breccia zone there is no tonnage below 0.5% TREO+Y₂O₃, and only about 800 tonnes below 0.75%.  About a half a million tonnes of the carbonatite have grades below 0.5% TREO+Y₂O_3. There is a significant inferred 8.7 million tonnes within the pyroxenite in the peripheral zone that averages 0.66% TREO+Y₂O₃ grade. The tonnages and kilograms reported are gross for the Glenover Joint Venture project. Galileo has the option to acquire up to 44.24% in the project by providing funding of up to US$7million and futher options to acquire up to 73.73%. Further details of this are set out in the Company's Admission Document.

For further information, please contact:

Colin Bird                                                                                                         Tel [phone]

Chairman & CEO

Andrew Sarosi                                                                                               Tel [phone]

Technical Director

Beaumont Cornish Limited,                                                                     Tel [phone]

Nominated Advisor and Broker

Roland Cornish/James Biddle

Shore Capital Stockbrokers Limited                                                     Tel [phone]

Joint Broker

Jerry Keen/Toby Gibbs

Bishopsgate Communications                                                                Tel [phone]

Nick Rome/Shabnam Bashir     

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.

Resource Estimate based on Galileo's Net (attributable) Interest in the Glenover Joint Venture Project

Rock Type	Resource	Tonnage	Tonnage	TREO + Y2O3	P2O5	Nb2O5	Sc2O3
	Class	Mt (Gross)	Mt 44.24% (Net)	(%)	(%)	(%)	ppm
Apatite-Haematite Breccia	Measured
	Indicated	7.407	3.277	2.20	17.57	0.47	179.5
	Total Measured & Indicated	7.407	3.277	2.20	17.57	0.47	179.5
	Inferred	0.274	0.121	2.16	15.83	0.46	167.9
Carbonatite	Measured
	Indicated	9.374	4.147	0.86	3.50	0.18	63.8
	Total Measured & Indicated	9.374	4.147	0.86	3.50	0.18	63.8
	Inferred	0.453	0.200	0.80	4.24	0.15	66.3
Pyroxenite	Measured
	Indicated
	Total Measured & Indicated
	Inferred	8.735	3.864	0.66	5.31	0.11	71.6
Surface   Stockpiles	Measured
	Indicated
	Total Measured & Indicated
	Inferred	2.685	1.188	1.94	22.21	-	-
Total
	Indicated	16.781	7.424	1.45	9.71	0.31	114.9
	Total Measured & Indicated	16.781	7.424	1.45	9.71	0.31	114.9
	Inferred	12.147	5.374	0.98	9.25	-	-
Total Resource		28.928	12.798	1.25	9.52	-	-

Some figures are rounded where appropriate

Note: Net means attributable amounts are based on Galileo's option to acquire up to 44.24% in the Glenover Joint Venture project by providing funding of up to $7million.

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%. The operator is Glenover.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

Apatite:                              a phosphate mineral of calcium containing chlorine or fluorine, or both

Breccia:                                a rock composed of broken fragments of minerals or rock cemented together

Carbonatite                        an igneous rock consisting 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)

Peripheral zone:              is the rock mass area surrounding a former pit which the directors believe can be widened and deepened to access the REE and associated by-product minerals

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 

Sc₂O₃                                     an oxide of the elemert scandium (Sc), a metal akin to aluminium.  Addition of <1% Sc to aluminium increases its stength dramatically by raising its melting point by 800^oC                         

TREO:                                    total rare earth oxides

Y₂O₃                                                           an oxide of the element Yttrium. Though not strictly one of the rare earths group it is often classified as one because it is found in all rare earth  minerals and is chemcially  very like them.

The major rare earth elements (>0.1% distribution in the resource and 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 and in oxide form as high polishing agent for optical and special glasses

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 filter

 

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