30 December 2024

Galileo Resources PLC

("Galileo" or "the Company" or "the Group")

Unaudited interim results for the six months ended 30 September 2024

Galileo (AIM: GLR), the exploration and development mining company, announces its unaudited interim results for the six-month period ended 30 September 2024. A copy of the interim results is available on the Company's website, www.galileoresources.com.

Financial Highlights

The Group reported profit of £2,172,112 (2023: loss of £521,764) after taxation. The profit reported during the period was generated by the sale of the Company's interest in Glenover as described in detail in Note 9. Profit/(Loss) per share reported is 0.19 pence (2023: loss of 0.05 pence) per share. Profit/(Loss) per share is based on a weighted average number of ordinary shares in issue of 1,163,188,453 (2023: 1,160,943,355).

Operational Highlights

ZAMBIA

Luansobe Copper Project

The Company holds a 75% interest in the Luansobe project. The Luansobe area is situated some 15km to the northwest of Mufulira Mine in the Zambian Copperbelt which produced well over 9 million tonnes ("Mt") of copper metal during its operation. It forms part of the north-western limb of the northwest - southeast trending Mufulira syncline and is essentially a strike continuation of Mufulira, with copper mineralisation hosted in the same stratigraphic horizons. At the Luansobe prospect mineralisation occurs in at least two horizons, dipping at 20-30 degrees to the northeast, over a strike length of about 3km and to a vertical depth of at least 1,250m.

Period Under Review

·    A small-scale mining licence ("SML") was awarded to the company's Joint Venture partner, Statunga Investments Limited ('Statunga'), for a period of ten years from 24 April 2024, allowing the Company to progress open pit mine feasibility and development at the Luansobe Inferred Mineral Resource

·    The licence No. 34543-HQ-SML covers an area of 354 hectares over the JORC (2012) compliant Inferred Mineral Resource reported on the 9 February 2023, which details approximately 5.8Mt  gross at 1% total Cu above a cut-off grade of 0.25% total Cu for 56,000 tonnes of contained Cu, potentially amenable to open pit mining, with further resources extending underground

·    Mine optimisation studies have continued, involving the engagement of independent consultants Sound Engineering Solutions who have completed considerable work regarding planning of a mining schedule and consideration of mine optimisation studies, reported post year-end

·    Variable outcomes are achievable via open pit sensitivity analysis and the consideration of a multi-faceted operation with the option for multi-party development and processing of the resource

·    Significant interest in the project is being realised from independent parties and the Company continues to work via its independent consultant to develop the most optimal mine plan that will deliver the strongest returns for shareholders

Post Period Under Review

·    In addition to the previous SML awarded to Statunga covering the open-pit mineral resource over part of the former Luansobe exploration licence, on the 25 October 2024, it was announced that a second SML had been awarded to Statunga, to include the potential underground mineral resource and exploration target

·    The new small-scale mining licence 34545-HQ-SML covers an area of 384 hectares and has been granted from 4th August 2024 for a period of ten years for mining of copper and other base and precious metals

·    The new mining licence covers an area in which Galileo previously reported a JORC 2012 compliant Inferred Mineral Resource of approximately 6.3Mt gross at 1.5% total Cu above a cut-off grade of 1% total Cu for 97,000 tonnes of contained Cu, potentially amenable to underground mining

·    Additional prospectivity within the new SML includes an exploration target identified by historic drilling that has the potential to expand the underground mineral resource. Approximately 3 to 7Mt of ore was identified between depths of 100 to 300m, which returned copper grades in the region of 1% to 1.5% total Cu, the exploration target is conceptual in nature and may not be realised

·    Much deeper potential also remains on the licence, sparse historical drilling indicates that a deeper target may be present with mineralisation potentially extending up to a depth of 1,250m

·    The Company intends to test both deeper exploration targets. For a full summary of the updated mineral resource please refer to RNS dated 09 February 2023.

Shinganda Copper-Gold Project

Galileo holds a 51% interest in the Shinganda copper-gold project which is prospective for Iron Oxide Copper Gold (IOCG) mineralisation and boasts a complex structural framework in which at least three styles of mineralisation have been identified. The project area covers part of a major 10km structural trend which hosts two previously developed small-scale open pit copper-gold mines. Two major structural trends dominate the licence area, the Shinganda Main Fault and the Shinganda Fault Splay. Copper-gold mineralisation is primarily associated with the latter which acts as a potential feeder conduit for the mineralisation. The focus for the project is defining a shallow, supergene enriched open-pittable mineral resource. 

Period Under Review

·    A Phase Three drilling programme that was designed to test at least 8km strike extension of the Shinganda Splay and Main Fault Zone for potentially open pittable supergene enriched copper mineralisation was completed during the reporting period

·    A total of 30 Reverse Circulation ("RC") drill holes were completed, for 2,213 metres of drilling in six fences of short angled holes, typically drilled to a downhole depth of 80 metres

·    Based on visual inspection, intercepts of the targeted supergene enrichment zone, representing the most likely setting for the highest copper and gold grades were seen at the base of several drillholes

·    Samples from the RC drilling have been prepared for dispatch and based on visual inspections of RC chips, a decision was made to immediately follow with a 4th phase of drilling aiming to repeat the good visual intercepts with diamond drilling and therefore ensure maximum recovery of core in this enriched zone and a more accurate assessment of grade and geological structure than that offered by RC drilling

Post Period Under Review 

The completion of three diamond drillholes for a total of 310m of drilling have so far been reported at the time of writing. The holes have specifically targeted the supergene enriched zone intersected in the RC drilling and have returned both iron-rich oxide and copper sulphide mineralisation, consistent with the IOCG-deposit model. Visual widths of mineralisation have been reported in all three holes drilled to date, including a mineralised width of up to 47.5m in drillhole SHDD024. Progress towards laboratory analysis is being expedited.

Kashitu Zinc Project

Period under review

Kashitu is situated 7km south-east from the historical Kabwe Pb-Zn mine and processing plant. The project is underlain by Neo-Proterozoic carbonate units of the Katanga Supergroup which form a west-northwest plunging synform and hosts prospective north-east trending structures that are thought to control the development of the Kabwe-style massive sulphide ore bodies. Disseminated and vein-type Pb-Zn-Ag mineralisation is found throughout the licence, with further supergene mineral enrichments identified at the shallow karstic interface. 

A small-scale exploration licence encompassing the core of the Kashitu project area was issued on 23 February 2022 and is valid for a period of four years from the issue date.

Period Under Review

·    The Company is progressing plans to co-operatively develop a small-scale mining operation capable of extracting shallow supergene enriched ore to a depth of 1-3m

·    To this effect, stakeholder engagement and communication with local residents and artisanal miners has continued throughout the reporting period

·    Additionally, the company has continued through further exploration to evaluate the development potential of a high-grade, lenticular willemite body present in the Kashitu area which was the subject of historical shallow mining

·    The Company recognises that wholesale removal of access to parts of the Kashitu licence for small-scale and artisanal miners could have a profound impact on livelihoods hence the proposal to enter an arrangement that benefits all parties. Navigating the expectations of the various parties is challenging and the Company's representatives will continue to build a business plan. Once priority locations have been identified, further shallow drilling on a close-spaced grid for grade control purposes will take place    

Western Foreland Copper Project

The Western Foreland project comprises licence 28001-HQ-LEL and is located in Northwestern Zambia at the Angolan-Zambian border and sits adjacent to the Central African Copper Belt, where significant potential exists for the discovery of sediment hosted copper deposits akin to the nearby Kamoa-Kakula complex. There has been limited historical exploration completed in the licence area, and the region is currently under international spotlight as considerable activity and competition from the world's top tier mining companies who continue to make new discoveries.

Period Under Review

·    Preliminary work by Galileo focused on interpretation of publicly available data accessible in the region and scrutiny of this data in comparison to Kamoa-Kakula style exploration models 

·    On the 8 August 2024 the Company announced that diamond core drilling had commenced on the licence, with an initial 700m of planned drilling designed to test lithological contacts thought prospective to host sedimentary hosted copper mineralisation. The drilling will target prospective REDOX fronts where suitable combinations of adjoining lithology have potentially created the correct environment for copper deposition

·    Significant work has been completed on the licence to prepare it for drill readiness, including reconnaissance surface geochemical work and the reparation of roads and bridges to provide safe access for drilling equipment

·    The Company's partner, Cooperlemon Consultancy, has facilitated all necessary permits and approvals and establishment of contracts with local chiefdoms

·    Drilling is progressing well with preliminary results expected soon

ZIMBABWE

Galileo has a 51% interest in the highly prospective Kamativi and Bulawayo projects, collectively known as the Sinamatella licences, which are under Joint Venture agreement with BC Ventures. The Kamativi Lithium (Sn-Ca-Ta-REE-Cu) project neighbours a belt of historic tin-pegmatite mines and is receiving renewed international interest owing to its lithium bearing pegmatite potential. Its sister project, Bulawayo is located in south-central Zimbabwe and is home to many historic gold mines. The licences have received little exploration within the past 25 years and to date Galileo has completed licence wide soil sampling and geophysical surveys which have identified several high-priority Au-Ni targets. The Company is currently awaiting the granting of extensions to the three exploration licences covering both projects.

Kamativi Lithium Project

The Kamativi Lithium Project comprises EPO 1782, covering 520km², and lies on the Kamativi Belt directly adjacent to, and along strike from the historic Kamativi tin-tantalum mine which operated from 1936 to 1994. The Kamativi Mine produced 37,000 tonnes of tin and 3,000 tonnes of tantalum ore from pegmatites, and in 2018 Chimata Gold Corp (Zimbabwe Lithium Company) announced a new JORC (2012) compliant Indicated Mineral Resource of 26Mt @ 0.58% Li2O within the Kamativi mine tailings, confirming that the mine contained significant quantities of lithium. The mine has recently been brought back into production for hardrock lithium by its current Chinese owners.

The Sinamatella licence area encloses extensions and splays of the Kamativi Tin Mine host unit, including mapped pegmatites, and it has been reported that there are old tin-fluorite workings within the Sinamatella property. The licence area also contains a large extent of the pre-Cambrian Malaputese Formation which is considered to be strongly prospective for VMS hosted copper, surrounding the old Gwaii River Copper Mine and including numerous other copper prospects and occurrences.

Period Under Review

·    Following on from the previously reported positive results of the Phase One drilling campaign at Kamativi, work has focussed on desk-based studies and data analysis to enable an informed second phase of drilling, with an emphasis on identifying prospective, later-stage, discordant pegmatites

·    The Phase One drilling was designed to test a substantial 3km long Li-Cs-Ta in soil anomaly at the Kasiloma prospect and the first hole drilled, KSDD001, intersected a shallow, 18m wide, zoned pegmatite, returning an average grade of 0.38% Li2O from 35m downhole depth, with a mineralised core of 4m at 1% Li2O

·    Drillhole KSDD010, drilled beneath KSDD001, intersected a 41m wide zone of stacked pegmatites from 140m depth, returning an overall average grade of 0.17% Li2O from 141m depth

·    Considerable strike length of the 3km long soil anomaly remains to be tested by continued surface works and a second phase of drilling, and several discordant pegmatites have been identified within the soil anomaly that require further testing

·    Several targets warranting follow-up work have been identified across the wider licence, with prospective discordant pegmatites displaying an elevated Li-Cs-Ta-Sn-REE signature identified at Paolo, Gawaii River Crossing and Eastern target. Large areas of the licence remain underexplored, and a further substantial REE target remains untested in the north of the licence. All of these areas require follow-up mapping and surface sampling

·    The Company is also testing the southern part of the licence for VMS-type copper mineralisation

Bulawayo Gold-Nickel-Copper Project

The Bulawayo Project comprises EPOs 1783 and 1784, covering a large 1,300km² licence area near Bulawayo with extensive Greenstone Belt rock formations. Prospective areas with thin sand/alluvial/Karoo basalt cover have never been explored and preliminary grab sampling on the property reported assays ranging from 3.9-16g/t Au, confirming the prospectivity of the ground.

Substantial prospective greenstone belt terrane exists in the licence area, and the aim is to explore for a resource to support the development of a large scale mine. The licences adjoin and enclose several small-scale gold mines on pre-existing mining permits which provides the opportunity to integrate the production from these operations which have a total historic production reported as more than 1Moz Au.

Period Under Review

·    Desk based studies and data analysis has continued with the intention of progressing the licence to drill readiness by the next drilling season

·    Work has concentrated on targets surrounding the Queen's Mine Area where previously reported surface soil geochemical and geophysical surveys defined multiple new targets adjacent to, and along-strike from structures associated with already identified mineralisation, several of which are under shallow alluvial and Karoo sandstone cover, made visible by the previous airborne magnetic survey flown by Galileo in June 2022

·    New targets represent extensions of known gold-bearing structures that typically host both commercial and small-scale gold mining operations in the Queen's Mine region, and pXRF analyses indicate coincident anomalies of associated elements. Zimbabwean gold mineralisation is typically associated with narrow high-grade structures that can be mined from underground. The Company is targeting areas where the confluence of structures and other factors potentially create a much larger bulk target for follow up

BOTSWANA

Kalahari Copperbelt

The project consists of a total of 19 exploration licences, 11 of which are retained 100% by Galileo, and 8 of which are under option with Sandfire Resources, who are required to fund exploration activities on those licences. The Kalahari Copperbelt is prospective for sediment hosted copper deposits and the region is currently receiving global attention with new mine development and a rapid advance of exploration work. Geological remodelling and the controls on mineralisation are constantly being reviewed, and new thinking on mineralisation styles is being propelled by heavy investment from the world's major mining companies. Prospective geological horizons are readily being explored in the region and Galileo are benefiting from an advantageous position with licences surrounded by active explorers. 

Kalahari Copper Belt (Retained Licences)

PL253/2018 Located in the north-western portion of the Kalahari Copper Belt with part of the Licence sandwiched between ASX-listed Cobre Limited exploration licences, where that company has recently reported the emergence of a potential new discovery in this under-explored portion of the Belt. In this area the highly prospective D'Kar/Ngwako Pan contact horizon is interpreted to be tightly folded and thrust repeated.

PL039/2018 The north-eastern section of the licence is dominated by a prominent NNW-SSE trending conductor, the geometry of which suggests this area is situated at the southwest end of a conductive dome, offering potential for the discovery of the target D'Kar Formation/Ngwako Pan Formation contact. The setting of a conductive dome with major faulting within the licence suggests that a A4/T3 style dome drill target with possible mineralisation at the stratigraphic boundary between the Ngwako Pan/ D'Kar and remobilized upwards via low-angle thrusts is the most likely exploration model for this area.

PL040/2018 The interpreted strike length of the prospective D'Kar formation contact extends over 30km within this licence. Previous wide-spaced drilling by Galileo intersected D'Kar/ Ngwako Pan contact but did not intercept mineralisation. The Company selected priority zones for soil sampling along the extensive length of the contact with a view to identifying potential higher-grade zones along strike of and in between the current widely spaced drill holes.

Period Under Review

·    An Airborne Gravity Gradient ("AGG") survey jointly commissioned by Cobre Limited and Sandfire Resources was undertaken in the previous reporting period to include part of Galileo's licence PL253/2018, with results of the survey released to Galileo, free of charge

·    The results of the survey have provided valuable information on basin architecture and have assisted the identification of the potential location of copper-silver bearing trap-sites analogous to Sandfire's neighbouring T3 and A4 deposits on the licence

Post Period Under Review

·    Following previous positive results of a low detection mobile metal-ion (Terraleach TM) soil sampling programme, the Company announced plans for a follow-up IP geophysical survey over targets on licences PL039/2018 and PL040/2018, to assist in defining drill ready targets

·    A geophysical survey provider has been contracted to undertake a series of IP/resistivity geophysical profiles across previously identified soil geochemical targets and ground preparatory works have been completed

·    The system has the capability to penetrate to 400m depth and can help in defining the geological and structural framework as well as directly detecting sulphide mineralisation

·    The Galileo geochemical targets occupy a similar geological setting ('the Galileo Fold') to that drilled historically by Khoemacau Copper Mining ('Khoemacau' - now owned by MMG) coincident with the Mowana Fold axis and Zones 5 and 9 mineralisation together with recently announced drill intercepts by Arc Minerals ("Arc") on the adjoining Virgo Project

·    At Mowana, which is located approximately 15km from the Galileo Fold, Khoemacau reported drill intercepts of 4.3m @ 1.65% Cu and 6.1m @ 2.56% Cu. Arc also recently drilled scout holes on the same structure on an adjacent licence and reported 1m intervals assaying up to 3.65% Cu

·    Independent external assessment commissioned by Galileo reported that "the geological and structural setting of the Galileo Fold is almost identical to that of the Mowana Fold and is believed to share the same level of prospectivity."

NEVADA

Ferber gold-copper project

Period Under Review

An earlier Galileo project review identified several drill targets at Ferber to test both skarn-type gold-copper occurrences and Carlin-type gold occurrences on the 100% held property. The Company has applied for and received an environmental permit for the planned programme and is actively reviewing options to advance the project.

SOUTH AFRICA

Glenover Phosphate Project

Period Under Review

The Company reported that the Glenover sale had been settled in full, with the second tranche payment received on the 2 May 2024, amounting to approximately ZAR48.8 million (approx. GBP2.1M), and the final payment of ZAR5.7 million (approx. GBP 0.25M) received in May 2024. The final cash payment marked the completion of the Project disposal by Galileo.

For further information, please contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

Statement of Responsibility for the six months ended 30 September 2024

The directors are responsible for preparing the consolidated interim financial statements for the six months ended 30 September 2024 and they acknowledge, to the best of their knowledge and belief, that:

·   the consolidated interim financial statements for the six months ended 30 September 2024 have been prepared in accordance with UK adopted IAS 34 - Interim Financial Reporting

·   based on the information and explanations given by management, the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated interim financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss

·   the going concern basis has been adopted in preparing the consolidated interim financial statements and the directors of Galileo have no reason to believe that the Group will not be a going concern in the foreseeable future, based on forecasts and available cash resources

·   these consolidated interim financial statements support the viability of the Company; and  

·   having reviewed the Group's financial position at the balance sheet date and for the period          ending on the anniversary of the date of approval of these financial statements they are satisfied that the Group has, or has access to, adequate resources to continue in operational existence for the foreseeable future

Colin Bird       

Chairman and Chief Executive Officer

30 December 2024