The West Perth -based Galileo Mining Ltd (ASX: GAL) is engaged in the exploration and development of cobalt, nickel and copper resources in Western Australia. Its key projects include Norseman Project and Fraser Range Project.
On March 11th, 2019 the company announced the first laboratory assay results from the maiden aircore drilling at the Lantern Prospect within the Fraser Range province.
As reported, the assays are derived from the first 14 drill holes on a 200-metre spacing with a 50-metre spacing around the zone of interest. The intersection of anomalous nickel and copper from the first ever line of drilling at the prospect is a good sign, given the scale of target. This is highly indicative of the Lantern Prospect to possibly contain economic mineralisation at shallow depths.
The company believes that the laboratory assay results are the best till date and include 21m at 0.05% nickel and 0.04% copper from 63 metre (drill hole LAAC014); 16 metre at 0.06% nickel and 0.02% copper from 63 metre (drill hole LAAC008); and lastly 6 metre at 0.04% nickel and 0.05% copper from 63 metre (drill hole LAAC013).
Although, the cover rock in the area is around 60-metre deep which eliminates any surface sign of mineralisation. Yet, 60-metre is comparably shallow for modern exploration and mining methods. The rock has been identified as a meta-gabbro, similar to the host rocks at the Fraser Range Nova and Silver Knight nickel-copper deposits.
For the next phase of exploration, a further 3,000 metre of first pass aircore drilling is planned.
The planned program of 5000-7000metres of aircore drilling at the Fraser Range Lantern and Nightmarch nickel-copper targets commenced on February 20th, 2019, to test key magnetic and gravity targets at the two prospects.
On January 21st, 2019, Galileo Mining also released outstanding results of an Induced Polarisation (IP) geophysical survey accomplished at the Empire Rose prospect in the Fraser Range.
The results represented a strongly chargeable response, coincident with the results of an electro-magnetic (EM) survey conducted in 2018. The initially drilling results at the same target in October 2018 had demonstrated highly anomalous nickel results including 36 metre @ 0.2% nickel from 18 metre. The continuation of the drilling is awaiting government approvals as reported.
The Group recently released it half-yearly financial report for the six months to December 31st, 2018, posting the net loss after providing for income tax at $ 637,371 as compared to the $ 43,333 recorded in the previous corresponding period. As of date, the Group has not yet achieved a stage in its development, where it is generating an operating profit due to extensive efforts expended into project exploration and evaluation. At the end of the period, the net cash at hand, including deposits stood at $ 9.124 million (June 30th, 2018: $ 11.28 million) and net assets of $ 16.33 million (June 30th, 2018: $ 16.67 million).
Galileo Mining has a market capitalisation of AUD 20.46 million, with ~ 120.37 million outstanding shares. At the close of the market on March 11th, the GAL stock last traded at a sell-off price of AUD 0.185, zooming in by 8.824%, indicating an intra-day gain of AUD 0.015. Besides, the GAL stock has also generated a positive YTD return of 21.43%.
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