Why is this ASX mining share exploding 57% today?

We take a look at why shares of this ASX mineral explorer are skyrocketing today.

| More on:
happy mining worker fortescue share price

Image source: Getty Images

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

Key points

  • This ASX mining share soared 57% today before pulling back 
  • The company's share price is still up 30% on yesterday's close
  • This explorer discovered a new sulphide zone with 72 metres of mineralisation 

The S&P/ASX 200 (ASX: XJO) is climbing 0.94% in late afternoon trading, but this ASX mining share is soaring far higher.

The Galileo Mining Ltd (ASX: GAL) share price soared 57% from 54 cents to 85 cents today. However, the company's share price has since retreated and is up 30% at the time of writing.

Let's take a look at what is going on with this ASX mining share.

What's going on?

Galileo shares are soaring today after the company discovered a "new sulphide zone" with a "72 metre drill hit".

Drilling at the company's Callisto palladium-nickel discovery within the Norseman project in Western Australia revealed a thick sulphide zone.

Assays from the drilling delivered results including:

  • 72 metres at 1.16 g/t 3E (palladium 0.95 g/t, platinum 0.16 g/t and gold 0.05 g/t), 0.2% copper, and 0.24% nickel from 498 metres
  • 39 metres at 1.46 g/t 3E (palladium 1.19 g/t, platinum 0.2 g/t and gold 0.06 g/t), 0.26% copper and 0.28% nickel from 503 metres.

The company is already working on more drilling and has $20 million of cash available to fund what lies ahead.

This means Galileo does not need to raise any short-term capital during the "current market volatility".

Commenting on the results, Galileo managing director Brad Underwood said:

Today's results are firm confirmation of our view that we have only just started to comprehend the full extent and potential of our Callisto discovery.

To intercept 72 metres of sulphides from our northernmost drill line targeting the centre of the host intrusion is an extraordinary result and a highly encouraging sign for the potential discovery of more mineralisation along strike to the north.

Galileo has five kilometres of prospective rocks to the north of Callisto, Underwood said.

Share price snapshot.

The Galileo Mining share price has returned a mammoth 245% to investors in the past year.

This ASX mining share has a market capitalisation of about $143 million based on the current share price.

Motley Fool contributor Monica O'Shea 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.

More on Materials Shares

A person wears a roaring lion mask.
Materials Shares

Who is buying 55,000 Liontown shares this week?

Lithium prices remain at multi-year lows, but this insider is putting $53,350 into the industry.

Read more »

Miner looking at a tablet.
Materials Shares

Core Lithium share price rockets 14% amid 'positive achievements'

Investors are sending the Core Lithium share price surging today. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

BHP share price on watch after record-breaking FY24 iron ore production

BHP's iron ore operations were on form during the fourth quarter and full year.

Read more »

Miner looking at his notes.
Materials Shares

Should you buy Rio Tinto shares after the miner's update?

Let's see what analysts at Goldman Sachs are saying about the mining giant.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Materials Shares

Own Pilbara Minerals shares? Here's what to expect from next week's Q4 update

Here's what the market is expecting from the lithium miner.

Read more »

Two miners standing together.
Materials Shares

Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?

A soft second-quarter update from one of the major miners appears to have spooked investors today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

IGO shares drop on $295 million hit

IGO is impairing assets following a review.

Read more »

Miner looking at a tablet.
Materials Shares

Rio Tinto shares fall on soft second quarter update

How did Rio Tinto perform during the first half?

Read more »