TIDMGLR
RNS Number : 5956T
Galileo Resources PLC
09 January 2017
9 January 2017
Galileo Resources Plc
("Galileo " or "the Company")
Silverton Project Update
Galileo's JV Partner Orogen Gold plc Reports On Results From
Reverse Circulation (RC) Drilling At Silverton Gold-Silver Property
Nevada, USA
Galileo (AIM:GLR), the exploration and development mining
company with gold projects in Nevada USA and copper in South
Africa, and JV partner Orogen Gold plc ("Orogen") reports on the
results from Orogen's initial RC drilling programme on the
Company's Silverton property ("Property") in Nevada USA. Orogen has
the right to earn a majority interest in the Property under the
terms of an earn-in agreement with Galileo, the terms of which were
first announced in an RNS released on 27 June 2016.
Highlights
-- Initial drill programme completed
-- Inclined RC holes cut across extensive low-order gold
mineralisation on the Silverton Fault Zone
-- Mineralised intervals up to 71.63m grading 0.20g/t Au, with values to 1.33g/t Au
-- 600m strike length of fault system tested at intermediate
depths in mineralised tuff-quartzite package
Andrew Sarosi Director said: "The results from the initial test
drilling showed gold mineralisation persists at depth along the
Silverton Fault over a wide interval. The programme, which included
drilling to test structurally controlled high-grade feeder zones in
the property, did not identify any new lithology or conditions to
support this prognosis. The new results will be assessed along with
historic data in order to understand mineralisation patterns better
and, if appropriate, generate targets to be drill tested in
2017."
Drilling Programme
Orogen completed a total of 1,274m of RC drilling in five holes
on two initial targets within the Silverton claim area in October
2016 and has now received gold assay results for samples from the
programme. Holes were targeted primarily at testing the Silverton
Fault Zone at depth beneath previous shallower vertical drilling
that had intercepted moderate to low-grade gold and silver
mineralisation over significant widths in the fault hanging-wall.
The Silverton Fault appeared to be a potential feeder to widespread
shallow gold mineralisation.
Holes OS-2 to OS-5 were angled at 60 to 70 degrees towards the
west and northwest across the steeply east-dipping fault system
over a 600m-strike length from north to south. The holes generally
confirmed earlier results, with low-grade gold occurring in a
package of iron-stained and pyrite-bearing felsitic tuff and
quartzite within the hanging-wall sequence above the fault
structure. Three of the four holes aimed at the fault zone
intersected gold mineralisation, including a wide interval in OS-2,
however the intercepts were not enhanced compared to the shallower
historic holes. The intervals are detailed in the table below:
Silverton Project, Nevada
- Au assay results
-------------------------------------------
Depth Depth
Hole from to Interval Au
No (m) (m) (m) g/t
------- ------- ------- --------- -----
OS-2 24.38 96.01 71.63 0.20
------- ------- ------- --------- -----
incl. 24.38 39.62 15.24 0.34
------- ------- ------- --------- -----
incl. 38.10 39.62 1.52 1.33
------- ------- ------- --------- -----
and 54.86 62.48 7.62 0.38
------- ------- ------- --------- -----
OS-3 0.00 16.76 16.76 0.11
------- ------- ------- --------- -----
and 102.11 106.68 4.57 0.35
------- ------- ------- --------- -----
OS-5 118.87 123.44 4.57 0.28
------- ------- ------- --------- -----
Hole OS-1 was drilled vertically in the northeast segment of the
property to test the mineralised tuff unit proximal to a possible
caldera boundary fault structure. While the geology was much as
expected, no significant gold mineralisation was encountered.
Orogen will now assess the drilling results in tandem with the
historic gold data and other potential targets on the Property
prior to consideration of further work in 2017.
Sample assaying for the completed drilling programme was
undertaken at the ALS Minerals analytical laboratory in Reno,
Nevada. QAQC protocols included insertion of standard, blank and
duplicate samples for check assay.
The Silverton Property
The Property is located northeast of Tonopah in the central
Pancake Range. The Silverton claim block comprises 72 lode claims
staked by Newcrest in March 2002. The geologic environment is
similar to disseminated and bonanza epithermal gold mineralisation
at the Round Mountain mine Nevada. The Silverton property is
prospective for a range of deposit types, including bonanza style
epithermal gold mineralisation.
The property contains a >100ppb Au rock chip anomaly
measuring 2.5km x 3km. Au, Ag, As, and Hg mineralization are
broadly coincident. Within the anomaly, a section of the N-S
Silverton Fault measuring 1km x 0.5km returned chip samples values
assaying >0.5g/t Au. These are centred on a 100m wide silicified
contact between rhyolite to the east and carbonate rocks to the
west.
Small-scale mining operated in the area from 1930 to 1937 and in
1953. Total production for the district is <100,000 oz. silver,
<2,000 oz. gold and <1 ton of antimony. Over the last three
decades multiple companies including Olympic Mining, Westgold,
Newcrest and Pittston have explored the property for gold and
silver. Work completed comprised extensive geochemical sampling,
fluid inclusion studies, mapping, geophysics and drilling.
Earn-in Agreement
In June 2016 Orogen signed a definitive agreement with Galileo
pursuant to which Orogen has the right to earn-in to a 51% interest
in the Property by way of exploration expenditure of US$400,000
(the "First Expenditure") within 18 months and thereafter the
possibility to spend an additional US$1,500,000 (the "Second
Expenditure") within 30 months to earn-in a further 24% interest,
in total 75%, in the Property.
Galileo will have the right to participate pro rata after the
First Expenditure; should it exercise this right it would retain a
49% equity interest in Silverton (as opposed to being diluted down
to 25%).
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. He has reviewed the
technical parts of this announcement and approved the release of
this announcement.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Andrew Sarosi, Executive Tel +44 (0) 1752 221937
Director /020 7584 2155
Beaumont Cornish Limited Tel +44 (0) 20 7628 3396
- Nomad
Roland Cornish/James Biddle
Beaufort Securities Limited - Broker Tel +44 (0) 20 7382 8416
Jon Belliss
About Galileo
Galileo Resources plc is a UK public company quoted on the
London Stock Exchange AIM . The Company is focused on mineral
exploration and development and is currently focussing on the
Concordia copper project in the renowned O'kiep Copper District,
Northwest Province of South Africa. The Company has undertaken and
continues to review and independently model the extensive
historical data on the area, in which eleven prospective copper
areas have been identified to date and of which five demonstrate
considerable near-surface potential.
Further details are available from the Company's website:
www.galileoresources.com, including its Nevada gold-copper
properties in the USA, its Glenover rare earth and phosphate
project and the Concordia copper project respectively in the
Limpopo and Northern Cape Provinces of South Africa.
A copy of this announcement is also available on the
website.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
You can also follow Galileo on Twitter: @GalileoResource
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUNRWRBAAARAR
(END) Dow Jones Newswires
January 09, 2017 02:00 ET (07:00 GMT)