Galileo prepares to drill as copper and nickel prices surge
In what is a perfectly timed exploration campaign for Galileo Mining Ltd (ASX:GAL) management has informed the market that drill targets have been finalised for its upcoming exploration program in the Fraser Range region of Western Australia.
By way of background, Galileo is focused on the exploration and development of nickel, copper and cobalt resources in Western Australia.
Galileo has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are highly prospective for nickel-copper sulphide deposits similar to the operating Nova mine.
The company also holds tenements near Norseman with over 26,000 tonnes of contained cobalt, and 122,000 tonnes of contained nickel, in JORC compliant resources.
High priority nickel targets surrounding the previously reported sulphide mineralisation will be tested with a combination of reverse circulation (RC) and diamond core drilling.
Drilling is contracted to commence in late-July with a 1,500 metre RC program to be followed by a 500-metre diamond drilling campaign in August.
August assay results could provide share price momentum
Assay results from RC drilling are expected to be received in August with diamond core results in early September.
This much-anticipated exploration campaign comes at a time when the company shares are trading at a near two-year high, but the potential share price upside that could stem from positive drilling results could be substantial as evidenced by the significant rerating that neighbouring mining group, Legend Mining (ASX:LEG) when it made the Mawson discovery.
Commenting on the upcoming drilling program, managing director Brad Underwood said, “We have built a pipeline of prospects over the past 18 months at our Fraser Range project and it is now time to start drill testing the most advanced targets.
‘’Three priority zones will be tested - the area around existing mineralisation, a structural target 200 metres north-west, and an electromagnetic (EM) conductor 1.5 kilometres along strike.
‘’All targets have been carefully assessed and contain features indicative of nickel mineralisation.
‘’This is an exciting part of the exploration process and we look forward to updating the market with drill results.”
Good local knowledge and outstanding prospectivity
Galileo was founded by Mark Creasy, one of Australia’s most successful mining entrepreneurs in terms of making prominent discoveries.
He remains the major shareholder in Galileo with a stake of 31%.
Creasy has been particularly successful in the Fraser Range region, playing an integral role in the Nova discovery, a project which he is still heavily invested in through his stake in IGO Ltd (ASX:IGO).
On a similar note, he has a stake of nearly 27% in Legend Mining, the company that made the Mawson discovery, which as shown below lies just to the north of Galileo’s Lantern prospects.
What is particularly worth noting is that Legend made its discovery at Mawson by conducting deeper reaching diamond drilling at an area that had previously been the subject of successful shallower drilling.
Galileo is now in a position to capitalise on highly promising data collected through its reverse circulation drilling conducted earlier in the year, which we outlined were just as impressive as Legend’s early-stage RC results at Mawson.
The ultramafic unit at Lantern South has near-surface dimensions of 260 metres by 100 metres with sulphide mineralisation occurring on the margin of the unit.
Mineralisation intersected by the first RC drilling program, completed in March 2020, will be followed up with RC drilling immediately along strike and down dip.
Drill spacing will be approximately 40 to 80 metres from the known sulphide zone with the aim of identifying further nickel and copper sulphides associated with the ultramafic intrusion.
A structural and geological target 200 metres north-west of the sulphide mineralisation will be tested with a combination of RC and diamond drilling.
This location is considered to be highly prospective as it occurs on the margin of the large gabbronorite intrusion at an abrupt lithological change.
The magnetic image at this position shows an embayment which may be related to post emplacement modification of the major intrusion associated with a mineralising event.
EM surveying over this zone showed some evidence of a conductive body at an estimated depth of 200 metres, however it was unable to be adequately modelled due to the overlying conductive cover rock.