Why the Galileo Mining (ASX:GAL) share price rocketed 10% today

The company's shares ended today on a high…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Galileo Mining Ltd (ASX: GAL) share price ended Tuesday's trading session firmly in the green. With no announcements out of the resources company today, it appears yesterday's news could be behind the gains.

At the closing bell, Galileo shares finished 10.34% higher to 32 cents. In comparison, the All Ordinaries Index (ASX: XAO) closed 0.52% higher to 7,829 points.

Happy man with a mining hat pumping his fist, on a mobile phone.

Image source: Getty Images

What did Galileo Mining update the ASX with?

On Monday, Galileo released the results of its electromagnetic (EM) surveying in the Fraser Range region of Western Australia. The Galileo Mining share price seesawed on the news yesterday.

The company highlighted a new nickel sulphate target less than 5 kilometres from drilled nickel sulphides in the Fraser Range.

The shallow, large, and conductive target was near the Lantern South Prospect, where previous drilling intersected nickel-copper sulphides. The results included:

  • 41 metres at 0.19% nickel and 0.14% copper (LARC012)
  • 5 metres at 0.49% nickel and 0.46% copper, including 1 metre at 0.66% nickel and 0.75% copper (LARC003)

Additionally, the company said it was continuing EM surveying within the project area to define other nickel-copper sulphide targets for drill testing.

Managing director Brad Underwood touched on the activities that could be driving the Galileo Mining share price today:

Our Fraser Range drilling earlier this year focused on the Lantern Prospects where the potential for discovery was demonstrated by the identification of nickel-copper sulphides. Since then, we have been aggressively exploring the area with EM surveys designed to look for buried sulphides.

This work is beginning to show results with a new target identified just 5 kilometres along strike from Lantern South in a similar geological setting. Infill EM surveying and modelling will now be undertaken to refine the target prior to drill testing.

Galileo Mining share price summary

Over the past 12 months, the Galileo Mining share price has taken investors on a rollercoaster ride, with sharp downturns included. In that period, its shares have lost about 20% of their value, while they have gained 40% year to date.

Galileo has a market capitalisation of roughly $45 million based on today's closing price, with 143 million shares on hand.

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.

More on Share Market News

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy return to gains this Wednesday.

Read more »

Doctor sees virtual images of the patient's x-rays on a blue background.
Share Market News

Why might Pro Medicus shares soon be under pressure?

The winners and losers from index rebalances have been named.

Read more »

Woman staring at chocolate cake.
Opinions

I love Wesfarmers shares. Here's why I'm not buying more

According to Buffett, price and value are not the same.

Read more »

Two men in business suits sit across from each other at a table with a chess board on it.
Mergers & Acquisitions

Northern Star shares tumble as takeover hopes fade

Northern Star shares fall again as takeover hopes lose momentum.

Read more »

A man flies fast through a digital space with numbers all around him.
IPOs

Elon Musk wants everyday investors in the SpaceX IPO. Is that a red flag?

SpaceX’s Nasdaq debut could test retail demand.

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Broker Notes

3 compelling reasons to buy the rebound in Coles shares today

A leading analyst expects the rebound in Coles shares could have much further to run.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Broker Notes

Up 58% in a year, are BHP shares still a good buy today?

Two leading analysts offer their outlooks for BHP’s surging shares.

Read more »

Two company members shaking hands on a deal.
Mergers & Acquisitions

Could this struggling ASX 200 stock be about to receive a takeover offer?

Steadfast shares are frozen as investors wait on potential takeover news.

Read more »