StockMarketWire.com - Galileo Resources has announced that, following the initial 14-hole drilling programme on its Concordia project, the targeting contribution of induced polarity (IP) geophysics to this deposit did not prove precise enough for the purpose of testing the technology as a means for directing future exploration.

The Company added that copper sulphide mineralisations were intersected more consistently in drill holes targeted by traditional exploration methodology.

The best holes, GSPD 008, 011 and 014 in basic diorite outcrop, intersected respectively, 6 metres (m) from 23m to 29m downhole assaying 0.90% Cu; 10m, from 28m to 38m, assaying 0.85% Cu; and 8m, from 3 m to 11m assaying 1.06%Cu.

Other highlights:

- Assessment of the results continues in order better to understand the geology and the structural controls governing mineralisation

- Decision to turn the project to account for the benefit of the JV parties and to increase the Company's interest in the Project by way of issue of Galileo ordinary shares to JV partner is pending the outcome of this continuing assessment and results from intended completion of the programme with the remaining committed funds

- JV partner, SHIP claims the Company should dilute to 15% interest in terms of the Cooperation and Joint Venture Agreement ("Agreement"). This claim is not supported by the Agreement given that no decision has been made by the Company to turn the project to account .

Colin Bird CEO said: "The purpose of this drilling programme was primarily to test IP as a tool in detecting sulphide bodies on Concordia. Unfortunately, it became apparent during the programme that that IP was less effective than traditional methods employed in the area. The Company, along with SHIP, therefore decided to direct the balance of the drilling using traditional exploration including visible geology, basic rock outcrops and magnetic geophysics. The results tabulated below are promising and well worth pursuing. At a previous strategic discussion with SHIP, it was decided to continue to drill a number of holes to test for continuity and extension of mineralisation and this we intend to do. After final expenditure of the balance of committed funds and full assessment of results thereafter we will advise SHIP of our future level of interest."




At 3:01pm: [LON:GLR] Galileo Resources share price was +0.25p at 3p



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