Why the Galileo Mining (ASX:GAL) share price is racing 12% higher today

The base metal company is moving ahead with its exploration efforts.

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The Galileo Mining Ltd (ASX: GAL) share price is shooting to a 5-month high during Tuesday trade.

This follows the resources company’s announcement that it has begun a drilling campaign at one of its prospects.

At the time of writing, Galileo shares are up 12.54% to 33.2 cents. The last time the company’s share price reached this level was back in early March 2021.

Galileo commences exploration activities

Investors are snapping up Galileo shares on the news the company has started deep drilling operations.

According to its announcement, Galileo advised that reverse circulation (RC) drilling is underway at its Delta Blues prospect. The site is located within the Fraser Range Nickle Belt in southern Western Australia.

Galileo stated both DB1 and DB2 prospects represent convincing targets with electromagnetic (EM) findings supported by positive results. This includes magnetic, gravity, and aircore drilling data.

The company plans to drill 5 holes for a depth of 1,000 metres to test the top of EM conductors at DB1 and DB2.

Follow-up diamond drilling is expected later in the year, testing the deeper parts of the EM conductors. However, it’s worth noting this is subject to timings and rig availability.

Diamond drilling is a more efficient way for precise sampling and analysis, whereas RC drilling is used for extracting bulk samples. When it comes to speed, RC drilling is the faster method; however, diamond drilling is employed when seeking accurate results.

Galileo managing director Brad Underwood touched on the company’s upcoming drilling program, saying:

We are very excited to have started the first deep drilling campaign at our Delta Blues prospect. The quality of the modelled EM conductors combined with the magnetic and gravity interpretations provide a strong case for potential sulphide mineralisation.

RC drilling will deliver a good test of the near surface sections of the DB1 and DB2 targets. The present drilling campaign is expected to take two weeks to complete, and we look forward to updating the market as results become available.

Galileo share price summary

The past couple of months have seen Galileo shares see-saw around the 30-cent mark. The company’s share price reached a 52-week high of 45 cents during early 2021. Year-to-date, Galileo shares are up an impressive 46%, but down 5% on this time last year.

Galileo has a market capitalisation of roughly $47.2 million, with approximately 143 million shares on its registry.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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