Galileo Resources has signed an option and joint venture (JV) agreement with Garbo Resource Solutions to purchase an initial 51% stake in the Shinganda copper-gold project in central Zambia.

Under the deal, Galileo is required to spend $0.5m on exploration and evaluation at the copper-gold project over a period of two years to acquire the stake.

Upon securing a 51% stake, the company will have an option to increase its interest ranging between 65% and 85% by entering into a joint venture to develop a mining operation.

With an area of 186.76 km2, the Shinganda project consists of a large-scale exploration licence.

The project area is said to cover part of a 10km structural trend with two earlier developed mall-scale open pit copper-gold mines.

Colin Bird chairman and CEO said: “This project fits the Galileo model in that the licence areas have good copper and gold intersections from previous campaigns.

“The agreement gives us the opportunity for new deposit discovery and/or small mine production potential.”

Over a true width of 28.3m at shallow depth within supergene copper oxides, very limited historic drilling on the property is reported to have intersected 1.07% copper.

For confirmation purposes, Galileo will follow up the Vale’s historic grab sampling in an exploration pit towards the south of the project area. It shown assay values of 10.45% copper and 11g/t of gold.

Galileo intends to review past exploration data followed by a drilling programme that will mainly test the tenor and extent of the shallow copper/gold mineralisation determined by earlier drilling and nearby mining.

In May last year, Galileo Resources completed the acquisition of Crocus-Serv, a Botswana-based company that owns copper exploration assets.