Galileo Resources PLC has announced the signing of a conditional collaboration agreement with Jubilee Metals Group, for a partnership in the Molefe copper project in Zambia.
It sees Galileo funding a US$700,000 exploration and resource programme, in order to earn up to 23.75% in the project holding company. Meanwhile, Jubilee will retain a 71.25% interest, with the remaining 5% held by a local Zambian firm.
“We believe that this collaboration agreement provides a unique skill set to explore the smaller mining opportunities well beyond concept but sub-definition,” said Colin Bird, chairman and CEO of Galileo.
“We feel that there are many opportunities within the conventional copper belt geology to discover small to medium-sized mining propositions to assist tomorrow’s high demand for copper. We look forward to working with Jubilee and providing our expertise to the total solution”.
The Molefe Mine is currently ramping up production to 4,500 tonnes per month of high-grade ore, and around 2.2 million tonnes of lower-grade ore is already stockpiled on site. A processing facility is being planned to handle this material.
An executive committee and board with members from both companies will oversee the project. Jubilee’s past investments will be treated as a capital loan with preferential earnings treatment. A drilling programme is underway to improve resource confidence and pit design.
