Why did the Galileo Mining share price tumble 18% in early trading on Thursday?

The Galileo share price soared yesterday after the junior ASX miner announced a big discovery.

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A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today

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Key points

  • Galileo Mining shares cooled off this morning after exploding by almost 220% yesterday
  • The cooling was short-lived though, with the ASX mining share now in the green 
  • Yesterday, the company announced a significant intersection of palladium, platinum, copper, gold, and nickel mineralisations at its Norseman project in WA

The Galileo Mining Ltd (ASX: GAL) share price fell heavily in early morning trade, reaching an intraday low of 52 cents — down 18.75% on yesterday’s close — shortly after the open.

The ASX mining share has since recovered and is now up 2.36% to 65 cents at lunchtime.

There’s been no price-sensitive news out of Galileo’s camp today. However, its share price is coming off a near-220% gain in yesterday’s session.

What’s up with the Galileo Mining share price?

ASX investors rallied behind Galileo yesterday following the release of a company announcement.

The company announced it had intersected significant palladium, platinum, copper, gold, and nickel mineralisations at its 100%-owned Norseman project in WA.

The project contains “278km2 of prospective ground at the southern end of the prolific Norseman-Wiluna greenstone belt”. The tenements are reportedly prospective for several minerals such as nickel sulphide, gold, lithium, and nickel-cobalt.

As we reported yesterday: “The 33 metre intersection is within a broader 55 metre disseminated sulphide zone. Galileo said this shows the potential for a large mineralised system.”

Meanwhile, the company mentioned that it remains fully funded with $8.2 million available for this quarter in order to “continue aggressive exploration programs at all [its] projects”.

The Galileo Mining share price exploded on the news, hitting an all-time high of 66 cents. It closed the session at 63.5 cents.

Trading volume was extremely high yesterday and that momentum has continued today. At the time of writing, the number of Galileo shares already swapped today is 196% of Galileo’s four-week average.

The company followed up today with an investor presentation and webinar. They outline the value proposition and investment opportunity of the discovery, in addition to news on other joint ventures and assets.

Specifically, Galileo Mining mentioned it is a “[w]ell funded and supported junior exploration company …[with] highly prospective Norseman & Fraser Range projects … “.

Galileo Mining share price snapshot

In the past 12 months, the Galileo Mining share price has soared by more than 150%. It is up 185% for the year to date.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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