Copper and battery metals development company Galileo Resources has advised that it is considering various options for the development of the massive Luansobe copper project, in Zambia, which remains dependent on various factors, such as permitting, funding and optimisation work.

The company on September 6 announced that external consultants have generated a mining schedule for internal planning; for use in negotiations with third parties offering a range of joint development scenarios; and to facilitate the process of obtaining mining contractors quotes.

To generate the mining schedule, the external consultant undertook to review the geological database, interrogated the geological block model, completed pit optimisation using benchmark operating mining costs for agreed mine design criteria, completed optimisation with sensitivity analysis and compared grades and tonnage between the various pit selections.

This work has so far highlighted that it may not be necessary for one operator or contractor to retain control across all mining areas and Galileo is considering splitting the project into separate mining and processing operations each capable of generating a sustainable and profitable business.

Luansobe has the potential to be such a multi-resource project owing to its openpit, shallow underground and deeper underground resources. This allows for a range of commercial routes to be followed, including contractor mining followed by in-house processing or contractor mining with external toll treatment of ore, for example.

Galileo is considering all its options with inputs from external consultants. It remains up to the board to select the best options for optimised operations and maximum shareholder returns.

The Luansobe mineralisation occurs over two contiguous zones over a strike length of about 3 km and to a vertical depth of at least 1 250 m. 

“Naturally, a project of this size and definition has attracted considerable interest from third parties and, as such, we have entertained numerous enquiries concerning potential involvement in varying ways.

“The board is acutely aware that embarking on a particular development route would probably be exclusive to other routes, thereby removing the optionality of best value outcome for the Galileo shareholders,” CEO and chairperson Colin Bird says.

He adds that the company remains open to the various options tabled and recognise the need to select the optimum option to satisfy shareholder expectations.