gal.jpg

Galileo Mining

ASX:GAL

Last Price:

$1.010

Our Investment Summary

Date of Initial Coverage

01-Mar-20

Initial Entry Price

$0.247

Returns from Initial Entry

310%


Our Big Bet for GAL

GAL increases the size/scale of its Norseman PGE discovery to a stage where the project/company is acquired by major shareholder IGO Ltd (or another major miner) for over $1BN.

Investment Memo: Galileo Mining (ASX:GAL) - CLOSED

Opened: 09-Feb-2022

Closed: 30-Aug-2022

Shares Held at Open: 1,935,000

Shares Held at Close: 2,161,544

Reason Memo Closed: New Memo created


What does GAL do?

Galileo Mining (ASX: GAL) is focused on the discovery of base metals in Western Australia. The company is particularly focused on nickel deposits in the Fraser Range region.

What is the macro theme?

Nickel is a critical raw material in the production process of electric vehicle batteries. Nickel makes batteries energy dense so that cars can run further on a single charge. We expect that the electrification of global car fleets will result in exponential increases in Nickel demand globally.

[Memo Assessment - 30-Aug-2022]: Grade A

Nickel remains a critical raw material in the production of electric vehicle batteries. The conflict with Russia/Ukraine has created more supply side issues, given Russia produces ~11% of all nickel supply. GAL’s new discovery also produced an unexpected surprise, with the company now an exposure to palladium-platinum-rhodium.

Why did we invest in GAL?

Aiming for a large metals discovery

GAL holds highly prospective grounds in the Fraser Range region. The Fraser Range nickel belt in WA hosts the $1.8 Billion Nova Nickel discovery and more recently the Silver Knight discovery (65% sold for $45M). We are invested in GAL to see it go and replicate a discovery of this magnitude.

[Memo Assessment - 30-Aug-2022]: Grade A

Whilst GAL didn't make a discovery at its Fraser Range project, its PGE discovery at its Norseman project has seen its share price go from ~18.5c per share to now trade at $1.30 per share. We view this as success in delivering a “large metals discovery”.

Tight capital structure

Mark Creasy currently owns 24.61% of the company whilst Independence Group (Capped at $9.3 billion) owns 8.9%. Creasy was behind the Nova nickel discovery which was sold to IGO for $1.8B. After those two large holders (who hold ~33.5% combined), there aren’t many more shares to go around - which means GAL could re-rate significantly off of a discovery being made.

[Memo Assessment - 30-Aug-2022]: Grade A

Mark Creasy continued supporting the company with purchases on market and then again in the company’s capital raise. With broader market sentiment relatively negative, we think GAL’s tight capital structure contributed to its almost 1,000%+ move to a peak of ~$2 per share earlier in the year.

Experienced management team

GAL’s Managing Director Brad Underwood leads a team that has worked alongside Mark Creasy when they made the Silver Knight Discovery in the same region, Silver Knight’s nickel project was also sold to IGO. The team knows the region and what to look for when it comes to a large nickel discovery.

[Memo Assessment - 30-Aug-2022]: Grade A

We think that the discovery and subsequent capital raise of ~$20.4M in a tough market is a testament to the quality of the management team.

Active explorer

GAL is an active exploration driller running multiple drilling campaigns every calendar year. With $9M cash in the bank, GAL is well-funded to conduct more drilling programs throughout 2022. The more drilling, the more shots on goal when it comes to making a discovery.

[Memo Assessment - 30-Aug-2022]: Grade A

GAL continued drilling its projects despite market sentiment turning negative. Normally in a tough market, junior explorers go into “go slow” mode where they look to preserve cash. GAL continued drilling despite the market conditions and its persistence paid off with the Callisto PGE discovery.

What do we expect GAL to deliver?

Objective #1: Drilling in the Fraser Range nickel province

We want to see GAL run more drilling campaigns in the Fraser Range on well defined targets over the course of 2022.

Objective #2: Define additional Fraser Range drill targets via EM surveying

We want to see GAL run additional EM surveys across its Fraser Range projects as part of target generation work which will give GAL compelling drill targets to hit.

Objective #3: Drilling at the Norseman project (for nickel)

GAL to drill the highest priority targets generated by the recent air core drilling program and any follow-up EM surveys.

Objective #4: Cobalt and palladium exploration at Norseman

As a side bet, we want to see some more progress on Norseman’s cobalt and palladium potential. The project already has a cobalt JORC resource of 25Mt nickel-cobalt laterite. Previous exploration has demonstrated the presence of palladium in soil sampling.

What could go wrong?

Exploration risk

GAL is an early-stage explorer, a lot of the exploration work currently underway is prospective with no discovery formally announced at any of its projects. There is still the risk that GAL makes no discovery and its projects are considered stranded.

[Memo Assessment - 30-Aug-2022]: Grade = A

GAL has mitigated this risk by making its Callisto PGE discovery.

Financing risk

GAL is currently well funded ($9M in cash on Dec 31st, 2021) but inherently needs capital markets to stay open to providing finance for high-risk drilling programs. With no revenues or profits, GAL will continuously need to tap investors for more funds.

[Memo Assessment - 30-Aug-2022]: Grade = A

GAL has mitigated this risk by raising $20.4M in cash at $1.30 per share. At last notice, GAL holds $26.4M in cash as of 21 July 2022 and so this risk has now been addressed for at least 6-12 months.

What is our investment plan?

We have been holding GAL since May 2020, with an average entry of 25.5c. We still hold 95.1% of our total investment in GAL

GAL hasn’t really had a big share price run yet as it hasn't delivered any material results from its drilling. We are awaiting some positive drill results or anticipation of positive results which lead to a share price re-rate, where we would look to sell about 25% of our position.

[Memo Assessment - 30-Aug-2022]: Grade = C

We gave ourselves a C on executing our Investment plan because we did NOT stick to our usual Investment plan after GAL ran to $2 on its discovery announcement. On a material share price re-rate we would usually look to Free Carry and Take Profit by selling around 25% of our position, but in the case of GAL we held, then increased our position in the placement at $1.20. We believe there is more to come in proving out GAL’s discovery, and we back managing director Brad Underwood to deliver and believe there is a strong chance of a takeover in the future if positive drill results keep coming in.


Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 1,935,000 GAL shares at the time of writing this memo. S3 Consortium Pty Ltd has been engaged by GAL to share our commentary on the progress of our investment in GAL over time.

Investment Memo: Galileo Mining (ASX:GAL) - LIVE

Opened: 30-Aug-2022

Shares Held at Open: 2,161,544


What does GAL do?

Galileo Mining (ASX: GAL) is focused on expanding its PGE discovery in the Norseman region, WA whilst also chasing a large scale nickel discovery in the Fraser Range.

What is the macro theme?

Among the rarest metals on earth, PGEs face constrained supply and very strong demand growth amid the ‘greening’ of economies globally.

Palladium, platinum and rhodium are critical components in catalytic converters that turn toxic auto emissions into less harmful waste products.

Nickel and cobalt are critical raw materials in the production of electric vehicle batteries. We expect that the electrification of global car fleets will result in exponential increases in nickel demand.

Our Big Bet

We hope that GAL will continue to expand its recent PGE discovery, hit more high grade zones, prove commercial potential and ultimately be taken over, possibly by IGO Ltd (8.3% GAL holder) based on its previous track record.

Mark Creasy (26.8% GAL holder) was Sirius Resources largest shareholder when it was sold to IGO in 2015. We really like IGO and would love to one day acquire IGO shares to hold as a dividend play.

Why did we invest in GAL?

New PGE discovery in WA

GAL made a major palladium-platinum discovery in May 2022 at its Norseman Project. The “Callisto” discovery has over 5km of known prospective strike length and has drawn comparisons to South Africa’s Platreef deposits, which are said to contain over 80% of the world's known PGE deposits.

Well-funded for exploration

GAL is an active explorer, running multiple drilling campaigns every calendar year. With $26.4M in cash (at 21 July 2022) GAL is well-funded to expand its new PGE discovery whilst also pursuing additional discoveries.

Tight capital structure & potential to re-rate

Mark Creasy is GAL’s largest shareholder with 26.21% after participating in a recent placement and buying on market. Creasy was behind the Nova Nickel Discovery which was sold to IGO for $1.8B. IGO, capped at $9.1B, who also participated in the raise, is GAL’s second largest shareholder. Together, the pair hold more than one-third of GAL’s shares on issue, leaving not many more shares to go around. This means that it doesn’t take much for GAL to significantly re-rate off positive newsflow.

Experienced management team

GAL’s Managing Director Brad Underwood leads a team that has worked alongside Mark Creasy when they made the Silver Knight Discovery in the same region, Silver Knight’s nickel project was also sold to IGO. The team have experience at all stages of an exploration projects lifecycle from discovery to eventual sale.

Fraser Range nickel potential

GAL still holds highly prospective grounds in the Fraser Range Nickel Belt in WA in a JV with Creasy Group (67% GAL / 33% Creasy). This is the location of the $1.8 billion Nova Nickel Discovery and more recently the Silver Knight Discovery. This was the original reason we Invested in GAL over two years ago and still think the projects have discovery potential.

What do we expect GAL to deliver?

Objective #1: Execute drilling campaigns at Norseman (Callisto) PGE Discovery

We want to see GAL continue to explore the potential for a large mineralised system. GAL has five kilometres of untested strike length along with good potential for more mineralisation of the same style.

Milestones

RC drilling to test for continuity of mineralisation along strike and at depth. We want to see GAL’s deposit extend in all directions (north/south/east/west).

Diamond drilling to test for extensions at depth.

Assay results: (Bull case = over 3.0 g/t, Base Case = over 1.0 g/t, Bearish case = grades start to fall below 1g/t.)

BONUS: High grade zones or massive sulphides discovered.

Objective #2: Collect data to support mine development studies

Collect data to support mine development studies at Norseman Project.

Milestones

Step out drill campaign discovers new zones

Preliminary JORC resource released

Positive Met work results released

Commence an economic feasibility study (economic assessment/scoping study).

Objective #3: Exploration at Norseman regional targets

Exploration across the regional targets at the Norseman project (Jimberlana and Mission Sill) which sit on a combined prospective strike of over 15km.

Milestones

Planning and commencement of exploration programs

Objective #4: Drilling in the Fraser Range nickel province

We want to see GAL run more drilling campaigns in the Fraser Range on its highest priority drill targets over the course of 2022.

Milestones

Target generation works - geophysical/geochemical surveys to put together high priority drilling targets

Drill testing highest priority targets

What could go wrong?

Development risk

Now that GAL has made a discovery, the major risk is that the project is not deemed commercially viable. Having an established discovery is not always enough to get it into production and there is no guarantee the discovery turns into an operating mine.

Financing risk

GAL raised over $20M in July 2022, yet as it does not generate revenues or profits at some point it will need to tap investors for more funds to continue its exploration programs.

Market risk

The economic potential of GAL’s projects are reliant on supportive commodity markets, including positive supply/demand dynamics and supportive market sentiment.

What is our investment plan?

We have held GAL in our Portfolio since May 2020, with an average entry of 24.7c (prior to our participation in the last placement at $1.20).

We DID NOT execute our previous Investment plan to sell 25% after GAL ran to $2 on its discovery announcement.

On a material share price re-rate we would usually look to Free Carry and Take Profit by selling around 25% of our position, but in the case of GAL we held, then also increased our position in the placement at $1.20.

We believe there is more to come in proving out GAL’s discovery in the current drilling campaign. We back Managing Director Brad Underwood to deliver and believe there is a strong chance of a company takeover in the future if positive drill results keep coming in.

We delayed execution of our initial sell down plan, but we may look to execute on a 25% sell down on the next significant re-rate from current levels if/when that occurs.


Disclosure: Disclosure: S3 Consortium Pty Ltd (The Company) and Associated Entities own 2,161,544 GAL shares, and the Company’s staff own 14,000 GAL shares at the time of publishing this article. The Company has been engaged by GAL to share our commentary on the progress of our Investment in GAL over time.


Investment Milestones for GAL

Initial Investment: @24.65c
Top Slice
🔲 Free Carry
✅ Increase Investment: @23c
🔲 Free Carry
✅ Increase Investment: @29c
🔲 Free Carry
✅ Increase Investment: @26c
🔲 Free Carry
✅ Increase Investment: @$1.20
🔲 Free Carry
🔲 Take Profit
✅ Price increases 300% from initial entry
✅ Price increases 500% from initial entry
✅ Price increases 1000% from initial entry

12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years

Our Past Commentary on Galileo Mining

Date Title
24-Oct-2022 $ Understanding it all… in 3D
15-Oct-2022 $ 1.240 Which stock will be our best performer of 2022?
10-Oct-2022 $ ANOTHER discovery OR one giant discovery? GAL hits thick sulphides on 400m step out drills
17-Sep-2022 $ 1.265 Meeting management matters: In person catch ups with GAL, DXB and LRS
30-Aug-2022 $ GAL Hits “Massive” Sulphides - Here’s Why It Matters
20-Aug-2022 $ 1.065 Following a company's progress and why context matters
08-Aug-2022 $ 1.010 Why do small-caps take so long to execute?
03-Aug-2022 $ GAL’s discovery drilling timeline, visualising the sulphide body and what’s next
14-Jul-2022 $ Mark Creasy Doubles Down on GAL in $20M Cap Raise (and so did we)
21-Jun-2022 $ GAL Hits Sulphides on Every New Hole
28-May-2022 $ 1.710 Share price moves on expected vs unexpected announcements
26-May-2022 $ Latest news from Galileo Mining (ASX:GAL) palladium-platinum discovery is getting bigger - Rhodium assays awaiting
21-May-2022 $ 1.170 Commodities super cycles
14-May-2022 $ 0.625 Small caps in a shocking market
11-May-2022 $ GAL Hits a Significant Palladium Platinum Intercept - A New WA Metals Discovery
04-May-2022 $ GAL hits sulphides, assays pending, what’s to the east?
21-Apr-2022 $ GAL has started RC drilling. We expect to see sulphides - but how much?
12-Mar-2022 $ 0.220 Nickel, the War and Under Investment in Exploration
05-Mar-2022 $ 0.215 Mainstream Media Catching on to the Commodities Supercycle
03-Mar-2022 $ GAL closes in on a palladium - RC Drilling in April
26-Feb-2022 $ 0.190 The War Begins, Cybersecurity, Food Security, Energy Independence and Precious Metals
12-Feb-2022 $ 0.205 Energy Transition Metals, Raw Materials, McKinsey, Supply and Demand Economics
09-Feb-2022 $ AC drilling followed by Strong EM Conductors Under Massive Sulphides - Next Stop RC Drilling
18-Dec-2021 $ 0.205 Investing 101: Taking Stock of your Stocks and Diversification
04-Dec-2021 $ 0.230 Omicron, Inflation and Investment Memos
20-Nov-2021 $ 0.260 Australia bets big on Hydrogen at COP26, investment in companies that solve problems
17-Nov-2021 $ GAL hits unexpected massive sulphides in shallow aircore drill program
06-Nov-2021 $ 0.235 COP26, Battery Metals, Green Energy
01-Nov-2021 $ GAL Started Drilling this Morning - More Planned in December
09-Oct-2021 $ 0.250 Investing 101: Key lessons for small cap investors
18-Sep-2021 $ 0.285 Why uranium stocks are soaring, one good movie recommendation
13-Sep-2021 $ 0.295 Quick fire commentary on the six stocks making progress today
11-Sep-2021 $ 0.295 The thematics we are investing in right now
04-Sep-2021 $ 0.000 Annual Reports, Uranium and a Welcome to New Subscribers
31-Aug-2021 $ 0.285 GAL readies itself for next rounds of drilling
28-Aug-2021 $ 0.285 Recap of the KNI IPO and share price run
21-Aug-2021 $ 0.280 Market fluctuations and portfolio news and quick takes
14-Aug-2021 $ 0.360 Bookmark it, a new Pick of the Year is coming next week
11-Aug-2021 $ 0.350 Sulphides intersected - First drill holes test top of GAL’s Sirius-like EM conductor at Fraser Range
07-Aug-2021 $ 0.345 Market swings back up as small caps scramble towards the end of the year
03-Aug-2021 $ 0.305 GAL’s Nickel Drilling Campaign has begun
24-Jul-2021 $ 0.315 Why stocks go into "Quiet Execution Mode", how to spot a cap raise, stock "Confession Season"
17-Jul-2021 $ 0.305 Cash is King, Gold Stocks and Enough of VUL and EMN
14-Jul-2021 $ 0.265 We Increased our Holdings in GAL - while we wait for next piece of news
17-May-2021 $ GAL Reveals Promising Palladium Drill Results
27-Apr-2021 $ 0.290 Our Portfolio Performance from January 1st to March 31st 2021
12-Apr-2021 $ 0.295 GAL Identifies Drill Ready Fraser Range Nickel Target
09-Mar-2021 $ 0.250 No significant sulphides were recorded in this drill hole
05-Mar-2021 $ 0.300 Our Top Two Stocks to Cop a Post-Drop Price Pop
20-Jan-2021 $ 0.280 DOUBLE DOWN ALERT: We Have Just Increased Our Holdings in this Stock
20-Jan-2021 $ 0.280 GAL Ready for Fraser Range Drilling - Starts in Coming Weeks
07-Jan-2021 $ 0.220 Our Stock Picks for 2021
21-Aug-2020 $ 0.315 GAL Just Days Away from Fraser Range Diamond Drilling
13-Jul-2020 $ 0.285 Game Time for GAL: WA Nickel Explorer Set to Drill Advanced Targets
23-Apr-2020 $ 0.235 GAL Drilling Tomorrow – Accelerating in Fraser Range Race to Catch $440M LEG
30-Mar-2020 $ 0.170 Fraser Range Heats Up: $18M GAL Closely Tracking Big Brother $158M LEG
03-Mar-2020 $ 0.150 Is this Mark Creasy Backed ASX Stock the Most Highly Leveraged to a Nickel Discovery?



Rhodium grades increasing at depth

ASX:GAL  

Nov 23, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 2 : Diamond drilling to test for extensions at depth.


This morning Galileo Mining (ASX: GAL) put out the highest grade rhodium assays we have seen from its PGE discovery in WA.

Rhodium is one of the metals also linked to the decarbonisation thematic because of its use in automotive pollution control systems.

In today’s announcement, GAL posted a 1m intercept with rhodium grades of 0.13g/t from a depth of ~267m.

At first glance this may seem like a low number but an economic rhodium grade is a lot different to other metals.

This is primarily because current rhodium prices are ~US$13,300 per ounce. This means that even a small amount of rhodium can add a lot of value to any new discovery.

For some context, the Platreef project in South Africa, which GAL has previously compared its discovery to, is a much deeper underground deposit and has rhodium grades measuring ~0.14g/t as part of its ore reserves.

The Platreef mineralisation starts from ~700m and extends to a depth of ~1,200m.

Importantly, GAL’s assay result today is at a similar grade but comes from a much shallower depth of only ~267m.

What’s next for GAL:

GAL is still drilling its project and has plenty of assay results pending, which we have highlighted IN purple below.

Palladium and nickel grades increasing - 20+ more assays pending

ASX:GAL  

Nov 16, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 2 : Diamond drilling to test for extensions at depth.
Milestone 3 : Assay results: (Bull case = over 3.0 g/t, Base Case = over 1.0 g/t, Bearish case = grades start to fall below 1g/t.)


This morning our long term Investment Galileo Mining (ASX: GAL) put out the assay result from one of its deeper holes to the southeast of its PGE discovery.

The assay results came from drillhole NRCD280 and returned some of the highest grades to date from GAL’s discovery - up to 4.01g/t PGEs.

Importantly, today’s assay result shows that GAL’s discovery continues to extend towards the east, with the width of the discovery now measuring ~500m. Grades are increasing in this direction.

GAL’s diamond drilling program to the east is ongoing whilst it awaits the results from ~20 assays that are pending.

Assay results are expected between late November to January.

All of the assays pending are testing for mineralisation at depth where we have been seeing most of the high grade assay results come from and where GAL has hit massive sulphides in.

We updated our 3D model with today’s result and have shown the upcoming assay results in the image below (coloured in purple).

What’s next for GAL?

New nickel sulphide discovery confirmed

ASX:GAL  

Nov 03, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 1 : Drilling in the Fraser Range nickel province


Our WA exploration Investment Galileo Mining (ASX:GAL) today reported on assays from the first four drillholes that intersected disseminated nickel sulphide mineralisation 400 metres north of the Callisto discovery.

Results included a big 50 metre drill intersection (from drillhole NRC346) containing higher grade nickel intervals, of 0.32% nickel from 95m (~80m below surface).

We like that these assays revealed a new style of mineralisation for the project area with nickel sulphide contained within a mafic-ultramafic intrusion.

In short, new targets and new mineralisation mean today’s results further increase the overall prospectivity of GAL’s Norseman project.

GAL also reported that a large-scale mafic-ultramafic intrusion is interpreted to occur 100 metres north of drillhole NRC346 that has the potential for a substantial nickel discovery.

This area, as seen circled in the image below, is now a priority follow-up drill target. Upcoming drill holes will focus on defining the sulphide zone and its potential relationship with the interpreted intrusion.

The large-scale mafic-ultramafic intrusion to the north and the nickel sulphide zone, for which assays were reported today, are each believed to be separate mineralised domains from Callisto to the south.

Norseman has seen minimal exploration in the past. The reason the area remains largely unexplored is because the mineralisation does not outcrop, whereas the historical exploration undertaken was only guided by surface sampling.

Now with the Callisto under its belt, GAL can effectively explore and discover the next generation of deposits that are not detected by surface prospecting techniques.

Today’s announcement is further progress for our #1 Objective for GAL, as outlined in our Investment Memo — to execute drilling campaigns at Norseman (Callisto) PGE Discovery.

GAL continues to explore the potential for a large mineralised system along its five kilometres of untested strike length, along with the potential for more mineralisation of the same style.

Palladium grades increasing; corridor expands

ASX:GAL  

Oct 27, 2022

Announcement

Investment Memo: GAL IM-2022
Investment Thesis 5 : Well-funded for exploration
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 2 : Diamond drilling to test for extensions at depth.
Milestone 3 : Assay results: (Bull case = over 3.0 g/t, Base Case = over 1.0 g/t, Bearish case = grades start to fall below 1g/t.)


Diamond core drill assays are starting to come in from Galileo Mining’s (ASX:GAL) Callisto palladium-platinum discovery at its Norseman Project in WA.

GAL has so far completed 25 diamond core drill holes and yesterday reported on assays from drillhole NRCD279m, which included 5 metres @ 3.28 g/t 3E (2.64 g/t palladium, 0.46 g/t platinum, 0.18 g/t gold), 0.54% copper & 0.45% nickel from 265m:

These results — 3E (palladium + platinum + gold) grades above 3g/t intercepted over a five-metre interval — are from the lower disseminated sulphide zone at Callisto and show palladium-platinum-gold-copper-nickel grades increasing at depth.

GAL expects further assays to be back from the lab from mid-November onwards. We look forward to these results, especially given managing director Brad Underwood’s comment:

“...we believe that the potential for further success continues to be exceptional”.

We note that these results further expand the west-east corridor, with the distance between the western most drill hole that had significant assays and hole NRCD279 in the east now measuring over 500 metres and it remains open in both directions.

Plus, GAL still has over five kilometres of prospective rocks to explore to the north. (GAL expects assays from regional scout RC drilling to the north to be back from the laboratory in early to mid-November.)

A lot more drilling is needed to determine the full extent and grade of palladium and other metals in the Callisto region. That shouldn’t be a problem, with GAL confirming in its quarterly activities report this morning that it remains well funded to continue drilling with around $23.5M cash in the bank.

On Monday we took a deeper dive into GAL’s exploration program at Callisto, providing 3D models of our interpretation of the drilling results to date.

You can read that report here: Understanding it all… in 3D.

High grade assays again…

ASX:GAL  

Oct 12, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery


Galileo Mining (ASX: GAL) just put out more high grade assays from its Callisto PGE discovery in WA.

Today’s results come to the west of the known mineralised area and could be considered step out drillholes.

Some of the highlight assays are as follows:

  • 22m at 1.64 g/t PGE’s from 111m.
  • 23m at 1.36 g/t PGE’s from 117m.
  • 11m at 1.63 g/t PGE’s from 143m
    • inside this intercept GAL also hit a higher grade zone measuring 3m at @ 2.96 g/t PGE’s.

Our key takeaway from today’s news is that GAL has now extended the known mineralised zone of its discovery to the west/north-west.

Today’s announcement is just more proof that GAL’s discovery continues to get bigger with grades staying consistent throughout the areas being intercepted.

What’s next for GAL?

We want to see the assay results from the recent massive sulphide intercepts that the company made towards the eastern part of its discovery.

We think that these massive sulphides could be a game changer for GAL’s discovery because they tend to be the host rock for higher grade zones of mineralisation.

We touched on the significance of these massive sulphides in our last GAL note which you can read here: GAL Hits “Massive” Sulphides - Here’s Why It Matters.

On top of this, we also want to see the assays from the newly intercepted sulphides to the north of GAL’s discovery.

Again, we think that if the results are positive here then these could also be a game changer for the company too indicating that either:

  1. The original discovery is suddenly way bigger - assuming that the ore body extends all the way from the original discovery to the step out drill holes, and assays come back positive.

    OR
  2. GAL has found an entirely new mineral system - today’s new potential discovery may NOT be connected to the original discovery to the south, meaning an entire new system has been discovered, with a further 5km of highly prospective ground to the north.

To read our deep dive on that bit of news check out our last GAL note here.

Billionaire Mark Creasy purchases $2.86M in shares on market

ASX:GAL  

Sep 29, 2022

Announcement

Investment Memo: GAL IM-2022
Investment Thesis 4 : Tight capital structure & potential to re-rate


Yesterday we saw a “change in substantial holding” from mining billionaire Mark Creasy for our portfolio company Galileo Mining (ASX: GAL).

The notice showed Creasy had purchased $2.86M in shares on-market at an average price of ~$1.18 per share.

This isn’t the first time Creasy has come on market to buy shares in GAL after the company announced a palladium/platinum discovery at its Norseman project.

In recent months Creasy has purchased just over $11.5M in GAL stock, taking his shareholding to 27.43% of the company.

With the share price having come off its recent highs near $2 per share and now trading slightly below GAL’s placement price of $1.20, on-market buying from someone like Mark Creasy is a huge vote of confidence in the company.

The last time Creasy was aggressively buying shares on market, GAL’s share price went from ~70c per share to its high of just under $2 per share. We are hoping the same thing happens again.

What’s next?

With GAL actively drilling its Norseman project and assays from 8,600 metres of RC drilling and 1,400 metres of diamond drilling pending, we anticipate more positive newsflow from GAL.

Up next we expect the assays from the recent massive sulphide intercepts that the company made towards the eastern part of its discovery.

We think that these massive sulphides could be a game changer for GAL’s discovery because they tend to be the host rock for higher grade zones of mineralisation.

We touched on the significance of these massive sulphides in our last GAL note which you can read here: GAL Hits “Massive” Sulphides - Here’s Why It Matters.

More high grade assays from shallow zone of discovery

ASX:GAL  

Sep 21, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 2 : Exploration at Norseman regional targets


Yesterday morning, our long term exploration Investment Galileo Mining (ASX: GAL) put out another batch of assays.

The assays confirmed consistently high grade PGE mineralisation in the shallow western section of GAL’s discovery.

Some of the highlight assays are as follows:

  • 30m at 2.08g/t PGE’s from 149m.
  • 30m at 1.88g/t PGE’s from 152m.

The main takeaway is that GAL’s discovery continues to extend to the west, where the discovery looks like it is getting closer to surface.

The significance of shallow mineralisation is that it is much cheaper and easier to mine, which is a positive for the overall economics of the discovery.

Next:

We are waiting for the assays from the recent massive sulphide intercepts the company made towards the eastern part of its discovery (green section in the image above).

We think massive sulphides could be a game changer for GAL’s discovery because they are generally the host rock for higher grade zones of mineralisation.

We touched on the significance of these massive sulphides in our last GAL note which you can read here: GAL Hits “Massive” Sulphides - Here’s Why It Matters.

With 8,600 metres of RC drilling and 1,400 metres of diamond drilling completed as part of GAL’s current drilling program, there are still plenty of assays to come.

We hope the rest of the drillholes continue to show continuity in all directions and an overall increase in the size of GAL’s discovery.

Critical minerals quickly becoming a priority in the EU

Sep 20, 2022

Macro: Commodities


Readers who follow our Investment Portfolios will know that we have been making strategic Investments in commodities that have made critical minerals lists for the EU, USA, Japan, India and Australia.

These minerals are considered critical to the digitisation and decarbonisation macro thematic and include lithium, graphite, cobalt, nickel and PGE’s, to name a few.

Over the weekend, the following speech from the president of the European Commission, Ursula von der Leyen, gave a speech announcing that the EU would look to pass a “European Critical Minerals Act”.

The aim is to avoid the position Europe finds itself in with oil and gas, where it relies on a single trading partner like Russia.

The act would see the EU put in place:

  1. Agreements with partners like Chile, New Zealand, Mexico, India and Australia for the supply of critical minerals.
  2. Identification of strategic projects across all along the supply chain from mine sites to processing/refining projects.
  3. The act would also see the setting up of strategic reserves of these critical minerals.

All of this bodes well for our Investments across commodities identified as “critical minerals” giving these projects strategic importance on the world stage.

To see a list of all the critical minerals in the Australian Critical Minerals strategy document, check out the following link.

Here is a snippet from that speech:

More RC holes intersect sulphides; diamond drilling underway

ASX:GAL  

Aug 19, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Galileo Mining (ASX:GAL) yesterday announced that it has commenced diamond drilling at its Callisto PGE (palladium-platinum-gold-rhodium-copper-nickel) discovery in WA, while it also reported that it has intersected sulphides in a further eight RC drill holds.

GAL reported that the mineralisation at the Callisto discovery remains open in all directions, where it plans to undertake an initial 2,000 metres of diamond drilling with a particular focus on the down dip potential.

The first diamond drill tail to be undertaken is on hole NRC278, which had ended in mineralisation:

In addition to the diamond drilling program, the RC drill rig is now 25% of the way (2,479 metres) through the current 10,000-metre RC drill program.

GAL has now completed eight drill holes to date in the current program, each intersecting sulphides. Disseminated sulphide zones of 16m to 48m thick were logged in completed drill holes — the drill samples are at the lab with assays expected back next month.

Four of the drill holes were pulled up early to allow for diamond drill tails to be completed through the mineralised zone.

The RC drill rig is focused on both the shallow sections of the known mineralisation at a 50m spacing as well as the excellent prospectivity for further discoveries along strike. It will target the along-strike potential up to one kilometre north.

Here, GAL has planned a sequence of 12 RC drill holes between 300m and 1,000m north of the current drilling with the opportunity for additional new discoveries to be made.

On the plan view below, you can see both the RC (in red) and diamond drill (in green) target zones around known sulphide mineralisation for the current drill campaigns. The regional drilling up to one kilometre away from existing drill holes is located off the plan to the north.

Completed drillholes in the current RC drill program are shown as red dots and the blue dots are from the prior RC drill program, including the discovery hole.

Further rhodium mineralisation at Callisto

ASX:GAL  

Aug 04, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Galileo Mining (ASX:GAL) this morning announced that assays from drilling at its Callisto PGE discovery in WA revealed consistent rhodium grades.

The assays reported today are from the first four drill holes of the second RC program at Callisto and have returned consistent rhodium grades over the previously reported mineralised intervals.

GAL has now confirmed rhodium mineralisation across all drill holes analysed to date.

This is significant as rhodium is now priced at ~US$14,700 per ounce (~$A745 per gram) — so the occurrence of rhodium at Callisto has potential to add significant value to the overall project.

Rhodium is a very rare metal, almost always produced as a by-product of platinum, palladium, copper, or nickel mining. It is predominantly used in automotive catalysts for pollution control, as well as jewellery.

The last time GAL reported rhodium mineralisation assays we noted how the deposit was shaping up against the Platreef PGE deposits in South Africa.

Brad touched on this in today’s announcement mentioning that GAL’s Callisto discovery has the same disseminated sulphide style as seen at Platreef.

For some context, GAL’s assays returned rhodium grades of ~0.03-0.06g/t, while the Platreef deposit’s resource has rhodium grades of ~0.07g/t, both using a 1g/t cut off.

The key difference between the two is the depth of mineralisation. GAL’s discovery starts from a depth of ~110m, whereas the Platreef deposits starts from ~500m and extend to depths of up to 1,200m.

Here are updated major drill intercepts, now including rhodium in 4E calculation where available (4E = palladium + platinum + gold + rhodium):

It had already been a busy news week for GAL with today’s rhodium assays following an announcement on Tuesday of GAL’s planned 50-hole RC drilling program, followed by assay results on Wednesday. You can read more on those updates in our Note from yesterday.

Having only recently raised capital, GAL has $26.4 in the bank (as at 21 July) — plenty to further expand drilling as required.

With this cash balance and GAL’s more than five kilometres of prospective strike length, we can expect plenty more drilling ahead.

RC drilling aims to unveil an even larger mineralised system

ASX:GAL  

Aug 02, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Following up on its Callisto PGE discovery at the Norseman Project in WA, our long term exploration Investment, Galileo Mining (ASX:GAL) has commenced a 10,000 metre RC drill campaign.

The ~50 drill hole campaign will see GAL begin to test the true extent of mineralisation discovered at Callisto. GAL has five kilometres of untested strike length along with good potential for more mineralisation of the same style.

The drill campaign consists of 50-metre spaced drill holes around the known mineralisation as well as stepping out up to one kilometre to the north of the existing drill holes.

Below are the target zones around known sulphide mineralisation for the upcoming drill campaign:

Regional drilling up to one kilometre away (off plan to the north) from existing drill holes is also planned within the current program.

What’s Next?

The drilling program is expected to run for twelve weeks with samples will be delivered to the lab weekly and assay results from this round of drilling expected from early September 2022.

GAL also reports that it has signed a diamond drilling contract with that program planned to start in the coming weeks.

Callisto geological section with discovery drill hole NRC266:

Noosa Mining Investor Conference round-up

Jul 22, 2022

Macro: Commodities


Spanning three days on the pristine Sunshine Coast of Queensland, the Noosa Mining Investor Conference kicked off its 12th year on Wednesday. Attracting a diverse and large spread of corporates, brokers, retail and institutional investors, this year’s event featured over 60 companies presenting and over 1,000 people in attendance, all hosted within the coastal town's Peppers Resort.

At the event, we caught up with a number of executives from our Investment companies (including AKN, AOU, BPM and PFE) as well as companies of interest, either as potential additions to one of our Portfolios, or to gain expert insight to macro and regional headwinds impacting the markets.

The conference is held in the ideal location to mix work with pleasure, and meet a host of CEOs of ASX juniors. Each day ends with a short ‘business at the bar’ session that quickly morphs into talking tactics about where to eat and drink. On Thursday and Friday nights, many head to the Noosa Surf Club for its networking sessions, enjoying its glassed indoor area and open deck to the beach.

We look forward to providing updates on companies we met with down the road.

China considering US$1.1 trillion infrastructure stimulus

Jul 15, 2022

Macro: Commodities


China plans to make up to US$1.1 trillion in financing available for infrastructure spending, which we think will increase commodity demand. Read the following Bloomberg article for details.

Read the full article here.

Below are our key takeaways:

  • China is making 7.2 trillion yuan ($1.1 trillion) in funds available for infrastructure spending.
  • According to Citigroup, infrastructure investment in 2022 is likely to rise by 7.7% versus 2021.
  • President Xi Jinping has called for an “all out” effort to increase infrastructure spending this year to fuel economic growth and meet a GDP growth target of around 5.5%.

The Bloomberg article touches on the impacts of China’s COVID induced lockdowns on the domestic economy.

With economic growth tipped to slow, the Chinese government is getting ready to lean on fiscal stimulus through infrastructure investment to spur economic growth.

We think this type of fiscal stimulus is likely to become a common theme in China and the West, with macro themes like decarbonisation requiring massive CAPEX.

This infrastructure spending forms part of our “commodities supercycle” investment thesis, where we see increased fiscal stimulus and CAPEX investment spurring higher demand for commodities already facing supply shortages.

Second round of drilling completed, assays expected in August.

ASX:GAL  

Jul 13, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


This morning our long term exploration Investment Galileo Mining (ASX: GAL) put out an update on the ongoing drilling program at its “Callisto” PGE discovery at its 100% owned Norseman project in WA.

Today, GAL confirmed that eleven additional drill holes have now been completed with every drill hole intersecting sulphides that are geologically consistent with the first round of drilling.

The drilling results have now increased the mineralised sulphide zone so that:

  1. Extends over a 300m strike length in the southern/central sections.
  2. Extends over a 200m strike length over the northern sections

GAL also confirmed that all of these drill samples are now at the assay labs with results expected in August this year.

Next: GAL expects the next round of RC drilling to commence in late July, which will then be followed up with diamond drill rigs in August.

Highest grade palladium-platinum assays yet

ASX:GAL  

Jul 11, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


It was more good news for our long term exploration Investment Galileo Mining (ASX:GAL) this morning.

GAL announced the highest grade palladium and platinum assays to date at its “Callisto” PGE discovery at its Norseman project in WA.

Assays from four drill holes measured as high as 8.25 g/t Pd and 1.94 g/t Pt over one metre in drillhole NRC275 — the highest-grade palladium and platinum assays GAL has recorded so far.

These high-grade palladium and platinum results show potential for the occurrence of high-grade zones within the overall mineralised system.

Importantly, the assays confirm that the discovery extends along strike to the east over 300m. GAL also confirmed that mineralisation remains open in all directions, which means the discovery has more room to grow into.

With over five kilometres of prospective strike length at Callisto, there remains a lot more drilling to come.

Assays received for drillholes NCR274, NRC275, NRC276, NRC277 (circled in blue).
Assays received for drillholes NCR274, NRC275, NRC276, NRC277 (circled in blue).

As you can see, the mineralisation (in red) remains open and starts to dip east, further onto GAL’s mining lease. NRC278 ended in mineralisation at this location and will be completed with a diamond drill rig, as will further step out holes to the east.

GAL also reported significant thicknesses of mineralisation of over 20 metres.

With grades remaining relatively strong and the higher grade 8.25g/t intercept made today, we think the drilling program so far sits firmly in our bull case which was to see the deposit get bigger to the east and grades increase towards the 2.5g/t measure we had set.

GAL now has the funds needed to accelerate that RC and diamond drilling and test along the five-kilometre prospective strike length, having just raised $20.4M in an oversubscribed placement that saw cornerstone investments by major shareholders Mark Creasy and IGO.

The second drill program is nearly complete with next assays expected next month.

The third round of RC drilling is scheduled to begin in late July, followed by diamond drilling which is planned to start in August.

GAL’s share price was already up 535% since announcement of the discovery hole on 11 May 2022 and was up a further 23% this morning on this latest news.

✅ Trading halt for assay results at Norseman PGE discovery

ASX:GAL  

Jul 08, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


This morning our long term exploration Investment Galileo Mining (ASX: GAL) went into a trading halt “pending the release of an announcement to the market in relation to material drill assay results from the Company’s Callisto discovery (Assay Results)”.

Today’s trading halt comes two weeks after GAL intercepted more sulphides along strike from its discovery hole at its PGE discovery in WA.

Below is an image of where the upcoming assays are likely to be from.

In a previous GAL note, we mentioned that we are watching for the discovery to continue to the east — the sulphide intercepts were a positive first sign that this could be the case.

We then set some expectations for the assay results as follows:

  • Incredible case: 40m at over 3.0 g/tonne
  • Bull case: Mineralisation keeps going, grade increasing to 2.5 g/tonne
  • Base case: Grade above 1.0 g/tonne, 10m + intersection lengths
  • Bear case: Grade below 1.0 g/tonne, intersection lengths reduce

At this stage, we know that the mineralisation continues along strike to the east with every hole so far intercepting greater than 20m of sulphides, with a peak intercept of ~28m.

We now want to see the grades from coming assays be on par or above those from the discovery hole. If we see grades improve off of the discovery hole then the results would be in between our bull case and incredible case expectations.

We think this could be a positive surprise to the market and lead to a move higher in the company’s share price. We are now looking forward to Tuesday when GAL expects to come out of its trading halt.

China considering US$220Bn in infrastructure stimulus

Jul 08, 2022

Macro: Commodities


The following Bloomberg article highlights China’s plan to spend up to US$220 billion to spur economic growth through infrastructure spending.

All of this new infrastructure will require more commodities.

Read the full article here.

Below are our key takeaways:

  • China’s Ministry of Finance is considering US$220 billion of infrastructure funding aimed at shoring up the country’s beleaguered economy.

  • The funding is to be brought forward from next year’s quota, marking the first time the issuance has been brought forward due to concerns around the dire state of the world’s second largest economy.

  • The funding would primarily be used on infrastructure spending to boost an economy hit by Covid lockdowns and a housing downturn.

  • Commodities rallied in European trading hours following the news, with copper moving 3.6% higher on the London Metal Exchange.

For over two years, we have been writing about an upcoming commodities supercycle brought about by infrastructure spending, following decades of underinvestment in the “real economy”.

All this investment in the “real economy” requires raw materials, which is why we think the macro backdrop for commodities over the next decade is strong.

The Bloomberg article highlights the readiness of the Chinese government to lean on fiscal stimulus to spur economic growth at a time when the Chinese economy is slowing down.

Generally, governments would try to respond to slowdowns in economic growth by cutting interest rates. With this tool exhausted after the COVID pandemic, we think infrastructure spending will become the new policy of choice for governments worldwide.

Again, this infrastructure spending will increase demand for commodities which we expect will take commodity prices higher.

VW CEO breaks down batteries and supply chain issues

Jul 08, 2022

Macro: Commodities


The following Bloomberg article showcases the moves major carmaker Volkswagen is making in the batteries industry.

Read the full article here.

Below are our key takeaways:

  • VW is pressing forward with investments along its battery supply chain, commencing construction at a new cell factory in Salzgitter, Germany, one of five facilities in Europe under the carmaker’s PowerCo subsidiary.
  • Salzgitter is home to VW’s main motor factory, and it is where the company last year opened an $80 million facility to research, develop and test EV batteries.
  • Roughly $2 billion will be invested in the new cell factory, where production is scheduled to begin in 2025.
  • VW expects its battery business to generate €20 billion in revenue by the end of this decade.
  • VW CEO Herbert Diess said, “We are invested in some startups and we are looking forward to a joint venture together with Bosch for the machine tools and equipment for those plants, so we’re really gearing up to become one of the bigger battery cell producers”.

The news is just another sign that downstream investment in battery supply chains is showing no signs of slowing down.

VW is one of the world's largest carmakers and is heavily investing in downstream production capacity. It expects this part of its business to generate over €20 billion in revenues by the end of the decade.

This is a situation where investment in midstream/downstream (manufacturing/battery industry) is far ahead of upstream investment (mining), this leads to the supply/demand imbalances for the raw materials required to produce batteries only becoming worse.

The imbalance comes from the timing of these mega projects. Building a downstream / midstream facility could take 1-4 years whereas it takes around 7 years on average to bring a new resource discovery into the production stage.

As a result, we think that raw materials prices will remain high for at least the next decade whilst the mining industry catches up to demand.

📈 Mark Creasy and IGO back $20.4M raise to accelerate drilling

ASX:GAL  

Jul 06, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Risk 1 : Financing risk


This morning our long term exploration Investment Galileo Mining (ASX: GAL) came out of a trading halt having raised capital to accelerate drilling at its new PGE discovery in WA.

GAL managed to raise $20.4M via a placement at a share price of $1.20 per share with the shares expected to be issued on the 13th of July 2022.

Importantly, the placement closed oversubscribed with cornerstone investments by GAL’s major shareholders Mark Creasy and IGO for a combined $8.7M.

Before the placement mining billionaire Mark Creasy owned 24.82% of GAL and IGO 8.89% for a combined ownership of ~34%. After tipping in $8.7M of the $20.4M raised, we expect to see the combined shareholdings of the two increase.

The significance of this is that IGO has previously purchased projects from Mark Creasy backed companies, including the Nova mine for $1.8 billion and the Silver Knight discovery.

We think that the cornerstone investments from both Mark Creasy and IGO are a strong vote of confidence for the recent PGE discovery GAL made and show that there is institutional interest in the company’s projects.

GAL expects to have $26.5M in cash after the capital raise and is already putting the cash to work procuring a third RC drill program which is scheduled to begin at the end of July followed by a diamond drilling program planned to commence in August.

Next: We are eagerly waiting to see what comes from GAL’s ~4,000m of RC drilling to test for extensions to its new PGE discovery.

💪 IGO & Mark Creasy cornerstone investors in GAL's cap raise

ASX:GAL  

Jul 04, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Investment Thesis 2 : Experienced management team


This morning our long term exploration Investment Galileo Mining (ASX: GAL) went into a trading halt “pending the release of an announcement in relation to a capital raising”.

The AFR reports that, “The term sheet sent to potential investors said Galileo would raise $20 million at $1.20 per share” with IGO and ‘mining billionaire’ Mark Creasey expected to cornerstone the raise.

Read the full article here.

Below are our key takeaways:

  • These cornerstone investments from IGO and Mark Creasy come just weeks after the AFR said fund managers believed that IGO was on the hunt for something to buy in the Fraser Range, with GAL seen as the best possible fit.
  • IGO already owns (~8.89%) and Mark Creasy owns (24.82%) of GAL (before the capital raise).
  • IGO has previously purchased projects from Mark Creasy backed companies, including the Nova mine and the Silver Knight discovery.

With GAL’s recent PGE discovery and its current drilling to test for extensions to grow the size of the discovery, the cornerstone investments are just another vote of confidence for what GAL has on its hands.

We are yet to see how the capital raise plays out in its entirety, but we are looking forward to seeing just how much of the reported $20M is taken up by IGO and Mark Creasy.

Next: We are eagerly waiting to see what comes from GAL’s ~4,000m of RC drilling to test for extensions to its new PGE discovery.

📰 AFR: Fund managers tipping GAL as IGO’s next takeover target

ASX:GAL  

Jun 07, 2022

Investment Memo: GAL IM-2022 [Archive]


The following article from the AFR claims that our long term exploration Investment Galileo Mining (ASX: GAL)has landed on resources investors’ radars, with fundies tipping it as acquisitive IGO’s next potential target”.

Read the full article here.

Below are our key takeaways:

  • IGO has been seeking to restock its deposit book as production from its Nova mine dips and it has just bought Western Areas (for $1.26 billion) to help.
  • Fund managers reckon if IGO were to hunt for something to buy in the Fraser Range close to its Nova mine, Galileo would be the best fit.
  • IGO already owns (~8.89%) of GAL and have previously purchased projects from Mark Creasy backed companies. Including the Nova mine and the Silver knight discovery. Creasy owns 24.82% of GAL and could be a factor in any takeover considerations by IGO.

This type of speculation always seems to come about after a junior explorer makes a new discovery.

With GAL having recently made its PGE discovery we suspect some of the bigger fund managers who previously couldn't invest in GAL because of its size and risk profile (as a junior explorer) are now starting to do their homework.

IGO is currently trading with a market cap of $9 billion and had $442M in cash at the end of the March quarter so we think the finances of a deal like this wouldn't be an issue.

Next: We are eagerly waiting to see what comes from the ~4,000m of RC drilling GAL is doing to test for extensions to its new PGE discovery.

✅ More drilling has started at the new Callisto discovery

ASX:GAL  

Jun 06, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


This morning our long term exploration Investment Galileo Mining (ASX: GAL) announced that its 4,000m RC drilling program at the newly discovered Callisto discovery had started.

In a previous note we mentioned that we are looking forward to this upcoming drilling program as it will ultimately determine whether or not GAL’s PGE discovery extends to the east and will show us just how big the deposit could be.

GAL expects the assay results from the drilling program to become available in late July.

Below is an image of where the drilling program will be targeting:

✅ Rhodium picked up in assays, discovery now more valuable

ASX:GAL  

May 30, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Late last week our long term exploration Investment Galileo Mining (ASX: GAL) put out more assays from the recent discovery hole made at its PGE project.

In a note on Thursday we mentioned that the company was waiting on assay results that were testing the discovery intercept for rhodium mineralisation.

Today we received those results with rhodium values up to 0.094 g/t with average values across the 33m interval of 0.05 g/t.

At first glance this may seem like a low number but the rhodium price trades at ~US$15,450 per ounce as a result of increasing demand for rhodium linked to its use in automotive pollution control systems.

This means that even a small amount of rhodium can add a lot value to any new discovery

For some context, the Platreef project in South Africa which GAL has previously compared its discovery to is a much deeper underground deposit and has rhodium grades measuring ~0.14g/t as part of its ore reserves.

With GAL’s first result coming back at an average grade across the first intercept of 0.05g/t, we think this is a good start especially considering GAL has heaps of drilling to come to test for extensions to its new discovery.

Next: We want to see the 4,000m RC drilling program start to test for extensions to the discovery into the main primary target zone.

👀 Mark Creasy purchases $1.74M in shares on market

ASX:GAL  

May 16, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]


Mark Creasy has purchased another $1.74M in shares on market at 58c per share, increasing his shareholding in GAL to 26.35% of the company.

The ASX “change in substantial holding” notice came a day after the announcement last week of a new major palladium/platinum discovery at its Norseman project.

After the share price briefly touched ~70c on the day of the announcement, it's a positive sign that someone with the experience of Mark Creasy steps up and buys up a large chunk of shares when the share price has a minor pullback.

One of the key reasons we continue to hold GAL in our portfolio is because of the high quality management team and the experienced major shareholders backing the company.

We think the aggressive buying by Mark Creasy after the material news put out last week is positive affirmation as to the potential of the new discovery GAL announced.

Check out our 2022 GAL Investment Memo to see all of the key reasons why we hold GAL, what we want the company to achieve this year and the key risks to our Investment thesis.

👨‍💼Galileo presents at Mines & Money

ASX:GAL  

Apr 05, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]


Galileo Mining (ASX:GAL) is presenting at the Mines and Money conference this week and has today released its presentation to the ASX.

GAL is exploring for base metals in WA and has been held in our Next Investors portfolio for over two years.

The primary reason that we continue to hold GAL in our portfolio is in hope of a large metals discovery. GAL holds highly prospective grounds in the Fraser Range nickel belt which hosts the $1.8 billion Nova Nickel discovery and the more recent Silver Knight discovery (65% sold for $45M). We are invested in GAL to see it replicate a discovery of this magnitude.

However, we have also been impressed with the company’s progress at its Norseman Project, which has delivered strong nickel-copper-cobalt-palladium assays from aircore drilling.

You can see all the reasons why we continue to hold GAL in our portfolio and the objectives that we have set for it to achieve this year in our 2022 Investment Memo, here.

The presentation slides outline GAL’s planned upcoming drilling at its Norseman Project where it has identified palladium, nickel, and copper sulphide targets. A 1,500 metre RC drill campaign is planned to commence this month at Norseman’s Mt Thirsty prospect over five kilometres of untested strike.

This follows first aircore drilling at the project late last year that identified a massive nickel-copper-palladium sulphide intercept at just 60m depth. The follow up geophysical surveys and RC drilling is planned around and below nickel, cobalt, palladium, and platinum drill intercepts.

🚀 “Fantastic” nickel cobalt drilling results

ASX:GAL  

Mar 28, 2022

Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Galileo Mining (ASX:GAL) has reported high grade nickel and cobalt results from first pass aircore drilling at the Norseman Project in WA.

Drilling at the project was one of the key objectives that we set for GAL to achieve this year, as was to see progress on the project’s cobalt and palladium potential. Given today’s results, we mark this as a success.

Results included up to 1.66% nickel and 0.16% cobalt from the Jimberlana prospect add further weight to the area’s prospectivity. This is an area known to have potential as it is underlain by large and highly conductive EM targets. As mentioned in a Quick Take last week, we were particularly interested in drilling where GAL initially hit a 1m massive sulphide intercept right in between two EM conductors, which we wrote about in a longer Note here.

Additionally, palladium and platinum drill results now extend over nine kilometres of strike length along a well-defined geological trend.

Underwood explained that the high nickel and cobalt assays, combined with the elevated levels of precious metals (gold, palladium and platinum), suggest that the results may be related to basement mineralisation beneath and adjacent to the aircore drill holes.

We’ll be watching GAL’s follow up geophysical surveys and RC drilling that’s planned around and below the nickel, cobalt, palladium, and platinum drill intercepts. This will define the best positions for further drill testing.

To see the reasons why we continue to hold GAL in 2022 and all the key objectives that we set for the company to achieve this year see our 2022 Investment Memo here.

✅ More high grade palladium & platinum assays from Norseman

ASX:GAL  

Mar 24, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Today our long term exploration investment Galileo Mining (ASX:GAL) put out some more assay results from its recent aircore drilling program at its palladium-nickel-cobalt Norseman project in WA.

The results included two of the highest grading drilling results seen to date at the Norseman project with peak intercepts as follows:

  • 8m @ 1.44g/t 2E (palladium + platinum), 0.11% nickel from 8m.
  • 4m @ 1.7g/t 2E (palladium + platinum), 0.11% nickel from 12m.

These grades are especially high for an aircore drilling program.

For context, $2.6 billion capped Chalice’s Julimar discovery has a JORC resource with a palladium grade of ~1.6g/t.

With this latest batch of results, GAL has now proved up to a ~9km strike length and will be following all of these results up with deeper RC/diamond drilling.

With more targets generated worthy of following up with deeper drilling, we think the aircore drilling program has fulfilled its purpose so far, which was ultimately to identify some high priority drill targets for follow up.

We are particularly interested in the upcoming drilling where GAL initially hit a 1m massive sulphide intercept right in between two EM conductors. We have written about this target in our previous GAL note which can be read here.

To see the reasons why we continue to hold GAL in 2022 and the key objectives we set as things we want to see the company achieve in 2022 read our 2022 Investment Memo here.

✅ Significant palladium & platinum results out of Norseman

ASX:GAL  

Mar 21, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


GAL today announced that it has received further positive palladium and platinum assay results from aircore drilling at its Norseman Project in WA.

Six out of seven holes drilled on a single line returned significant results with maximum grades of four metres at 0.69 g/t 2E (palladium plus platinum). The location of the aircore results extends the known strike length of anomalous palladium and platinum to over eight kilometres.

At the very beginning of the air core drilling program GAL hit a 1m massive sulphide intercept and then after running EM surveys in the area found that the intercept sat right in the middle of two large EM conductors.

The primary reason for air core drilling was to set up new drill targets that could be followed up with RC drilling. These results have now identified a new target for follow up RC drill programs, with the aim of locating potentially economic mineralisation.

With GAL confirming PGE’s across a ~8km of potential strike length and the high priority EM targets (Jimberlana) found, we think the air core drilling program has been relatively successful and are looking forward to seeing the follow up drilling across GAL’s Norseman project.

The current and planned drilling sees GAL meet the third objective that we set for it in our 2022 GAL Investment Memo.

While progressing its palladium exploration program, GAL is also working to meet the first two objectives that we identified for the year relating to its Fraser Range nickel project. Having undertaken its first drill program of the year at the Fraser Range project, GAL confirmed that it plans to increase its activities here and continue to develop more targets for drill testing during the year.

✅ Fraser Range Nickel exploration update

ASX:GAL  

Mar 15, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 1 : Drilling in the Fraser Range nickel province


Yesterday morning GAL put out an update across all of the exploration work ongoing at its Fraser Range project.

The key takeaways for us from today’s announcement was:

  1. 940m of RC drilling has been completed so far across one prospect.
  2. EM surveys progressing across three prospects as part of target generation works for future drilling programs.

Todays announcement confirms to us that GAL is actively working towards delivering objectives #1 and #2 that we set in our 2022 Investment Memo as “what we wanted to see GAL achieve in 2022”.

With EM surveying ongoing across three different parts of its Fraser Range project and an RC drilling program running concurrently GAL is setting itself up for a busy year across its Fraser Range project.

One of the primary reasons we continue to hold GAL in our portfolio is because the company is busy all year round with exploration work which increases the probabilities that a discovery can be made, todays announcement is more confirmation of this.

✅ Assays: More palladium from aircore drilling at Norseman

ASX:GAL  

Mar 08, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Today, GAL announced another batch of assay results from its recently completed 8,700m aircore drilling program at its Norseman project.

The goal of this aircore drilling is to identify targets for follow up RC drilling, and the assay results released today delivered some impressive intercepts, with peak results as follows:

  • 18m @ 0.29g/t palladium from surface.
  • 22m @ 0.21g/t palladium from surface.
  • 32m @ 0.2g/t palladium from surface.

These type results are more than enough for GAL to commit more capital to its Norseman project and come back with heavier rigs that can test these anomalies at depth.

We covered the first batch of results and highlighted what we think is the most interesting target we want to see GAL follow up on its Norseman project in our last note which you can read here.

With the palladium price up ~15% at one point overnight as markets fear supply disruption from Russia (who make up ~40% of global production), if GAL was to make a discovery at the Norseman project it would be coming at a great time.

Our 2022 Investment Memo for GAL has two clear objectives and that is to see the company aggressively drill both its projects, to see this and why we invested in GAL check out our 2022 Investment Memo here.

✅ 1,000m RC drilling program commenced in the Fraser Range

ASX:GAL  

Feb 28, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 1 : Drilling in the Fraser Range nickel province


On Monday, GAL announced that it had started a 1,000m RC drilling program to test three new EM targets as well as re-test two targets in an area that was previously tested with shallow aircore drilling.

In its last round of drilling in ~2018, GAL hit 36 metres @ 0.2% nickel from 18m including a higher grade section of 3 metres @ 0.56 % nickel from 24m during a shallow aircore drilling program where the average depth in each hole was ~41m.

Rarely are nickel sulphide deposits found at that depth and with the nickel price trading at 10 year highs we think GAL is taking shots on goal at the right time in search of a large scale nickel discovery in the Fraser Range region.

Whilst we wait for the assays from ~8,700m aircore drilling program from its norseman project, we will be watching to see if GAL makes any visible sulphide intercepts from this RC drilling program.

✅ RC drilling scheduled on Fraser Range EM targets

ASX:GAL  

Feb 21, 2022

Investment Memo: GAL IM-2022 [Archive]
Objective 1 : Drilling in the Fraser Range nickel province


Today GAL announced that it had contracted 1,000m of RC drilling over some EM targets in the Fraser Range region.

Drilling is planned to commence later this month, and assays to start coming back from the labs in April-May 2022.

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