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GAL completes deal with MinRes + drilling update


Published 12-JUN-2024 10:54 A.M.


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Our long-term exploration Investment Galileo Mining (ASX: GAL) just closed its lithium deal with $13BN Mineral Resources (MinRes) and put out a batch of drill results.

Last week GAL announced a lithium deal with MinRes which would see GAL receive up to $7.5M in exchange for 30% of the lithium rights on its Norseman project.

The deal could see MinRes eventually take its stake in the lithium rights up to ~70% by funding all exploration through to a decision to mine.

Today, GAL received the first $5M payment as part of the initial 30% sale, the remaining $2.5M is due on or before 30 May 2025.

The cash adds to GAL’s existing $10M cash balance (at 31 March 2024).

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We wrote a detailed note on the MinRes deal and what we think it means for GAL here: $14BN MinRes to pay GAL $7.5M for 30% of its Lithium Rights

GAL also put out a batch of drill results:

In last week’s note we also mentioned that we were looking forward to the drill results from the drilling GAL did in April and May.

GAL recently finished a 2,700m RC drill program across some geophysical anomalies near its existing Calisto PGE-nickel discovery.

The objective for the drill program was to see if GAL could make additional discoveries similar to (if not better) than Calisto.

GAL got some decent hits from the drill program including a 64m hit at 0.22g/t PGE and an 84m hit at 0.13g/t PGE.

While they arent enough on their own for GAL to declare new discoveries they are showing us that GAL’s geophysical anomalies could represent areas of mineralisation.

At a very high level, it has validated GAL’s strategy of running IP surveys, and then drilling the anomalies the surveys are finding.

GAL’s next round of drilling will focus on the geophysical anomaly next to one of its hits from today:

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And the area ~10km north of its Calisto discovery:

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That next round of drilling is expected to start in August.

What’s next for GAL?

IP Survey results and drilling across Norseman Project:

  • 🔲 IP Surveys
  • 🔲 Drill targets selected
  • 🔲 Drill commenced

This chargeable response will be the subject of follow up drill testing scheduled for August. Detailed dipole-dipole IP modelling of this section line displayed a marked difference to the original pole-dipole modelled results. Regional poledipole modelling will now be used only for reconnaissance drilling of chargeable IP features with detailed dipole-dipole data to be used for more focused follow up drill testing.