Why the Galileo Mining (ASX:GAL) share price rocketed 10% today

The company's shares ended today on a high…

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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.

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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.

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