Phase 3 Drilling Results at Shinganda Project

The Company has completed logging and initial assaying of rock chips and core from its most recent reverse circulation ("RC") and diamond drilling programmes completed on the Shinganda Licence. Sufficient work has been completed to warrant the implementation of a Phase 4 programme focusing on the Main Fault target. Galileo has a 75% interest in the Project.

Highlights

Phase 3 Drilling

• Recent drilling potentially extends the shallow oxide copper-gold mineralisation reported previously at the Shinganda outcrop zone to an area of 350m x 150m within the large Shinganda Splay Fault zone that is intermittently mineralised over more than 20km.
• Assay results were inconclusive in some areas due to poor diamond drill core and RC chip recoveries owing to unfavourable ground conditions.
• Results included 22m @ 0.34% Cu from 18m depth in RC hole SHRC010, as well as several one metre sample intervals assaying up to 1.13% Cu and 0.16% Co in separate holes.
• A total of 30 holes and 2,213 metres of RC drilling was completed in the recent programme, with six fences of angled short holes drilled to an end of hole length of up to 80 metres, along with 3 diamond drill holes totalling 310m along the Shinganda Splay Fault and Main Fault zones.
• More than half of the known and projected Shinganda Splay structure remains untested by drilling.

Phase 4 Exploration

• A RC drilling profile across the Main Fault at Shinganda intersected intrusive rocks as well as strongly hydrothermal iron-mineralised breccias coincident with magnetic anomalies. These are associated high permeability and fluid flow that provide many of the conditions required for significant accumulations of copper-gold mineralisation.
• The Company will focus further drilling on the identification of structural mineral trap sites related to pressure shadows surrounding the magnetic highs in this extensive IOCG setting.

Colin Bird Chairman & CEO said: "The drill programmes have confirmed the presence of mineralised dilation zones confined to the hematite-rich lithological unit associated with the Shinganda Splay. A better understanding of the scale of mineralisation will in time require further drilling both along strike to pick up the individual mineralised lenses and to test the full extent of each dilation zone.

Before embarking on this programme, we will turn our attention to the Main Fault. Our earlier drilling intersected a substantial iron-rich breccia which is indicative of a permeable host rock through which large amounts of fluid have passed. Combine this with the multiple magnetic anomalies coincident with the larger area and we have a very prospective target where we can look for trap sites likely to produce a redox style trap as well as the pressure shadows associated with the magnetic highs. We will provide shareholders with updates as the programme develops with work planned to commence once the rainy season is over and access is again possible".

Shinganda location map:

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