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

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrid day on the markets.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Energy Shares

5 ASX 200 energy shares smash multi-year highs after oil price spike

The ASX 200 Energy Index reached a two-year high of 11,071.80 points on Thursday.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Market News

ASX 200 down as fresh missile strikes on energy assets send oil prices higher

The Brent crude oil price jumped 4% to US$112 per barrel today.

Read more »

A man looking at his laptop and thinking.
Broker Notes

Buy, hold, sell: What this leading broker is saying about Lynas shares

Is it bullish or bearish? Let's find out.

Read more »

share buyers, investors, happy investors
Broker Notes

Bell Potter's top ASX 200 holdings revealed

These are the top holdings in the broker's core portfolio.

Read more »

An athlete runs fast with a trail of yellow smoke billowing out behind him.
Broker Notes

Up 139% in a year, why this buy rated ASX All Ords rare earths stock could keep racing higher

A leading broker forecasts more outperformance to come from this surging ASX rare earths stock.

Read more »

Business women working from home with stock market chart showing per cent change on her laptop screen.
52-Week Lows

CSL and these ASX 200 stocks just hit 52-week lows: Should you buy the dip?

Market volatility has pushed a number of high-quality stocks lower. Here’s how I’m thinking about this.

Read more »

Miner with thumbs up at a mine.
Gold

2 ASX gold miners to buy for solid share price gains, according to Barrenjoey

The Africa-focused companies are deeply undervalued after recent sell-offs, the broker says.

Read more »