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Galileo Mining well-funded for Fraser Range exploration with completion of $5 million placement

Last updated: 01:56 12 May 2020 EDT, First published: 01:19 12 May 2020 EDT

Galileo Mining Ltd - Galileo Mining well-funded for Fraser Range exploration with completion of $5 million placement
A total of 22,727,273 shares will be issued at a price of 22 cents per share

Galileo Mining Ltd (ASX:GAL) has completed reverse circulation (RC) drilling at Lantern Prospect within its Fraser Range Project Joint Venture with prominent regional player Creasy Group.

Lantern sits around 50 kilometres along strike from Legend Mining Limited's (ASX:LEG) Mawson discovery which has attracted plenty of attention.

Three RC drill holes were completed around the existing geochemical anomaly generated from previous aircore drilling with a best result of 12 metres at 0.38% nickel and 0.33% copper from 124 metres downhole, including 5 metres at 0.49% nickel and 0.46% copper.

Maximum 1-metre values were 0.66% nickel and 0.75% copper.

With more than two kilometres of untested strike length, there is potential for a large mineralised system and several high-quality drill targets have been developed at the prospect.

“Enormous potential”

Galileo managing director Brad Underwood said: “During the [March] quarter, we undertook our first ever RC drilling program at the Lantern Prospect to depths beyond the range of the aircore drilling completed so far.

“On this first program, we were able to demonstrate that the geochemical results from aircore work were related to disseminated nickel-copper sulphide mineralisation.

“This indicates that the prospect has an enormous amount of potential and, with a relatively minor amount of work completed to date, we are optimistic that upcoming drilling will yield more positive results.

“Our ground has had no previous nickel exploration which provides Galileo with a first-mover advantage on a virgin greenfields property in an exciting new nickel belt.”

Galileo prospect locations in the Fraser Range Nickel Belt

Program of work approval

Program of Work approvals from the Department of Mines have been received post end of quarter to allow follow-up drilling.

The aircore drilling program north of the Lantern Prospect, which was postponed due to COVID-19 restrictions, aims to define new prospective targets.

Once initial aircore drilling is completed and assay results received, any anomalous zones will be earmarked for further work including infill aircore drilling, EM surveying and RC/diamond core drilling.

$5 million placement

Galileo is well funded with approximately $4.8 million in cash as at March 31, 2020, and the recent completion of a $5 million placement to accelerate Fraser Range exploration on 23 April.

The placement of 22,727,273 shares at an issue price of 22 cents per share closed oversubscribed with a cornerstone investment by IGO Ltd (ASX:IGO) with the prominent Fraser Range miner and explorer emerging with an 8.9% substantial holding in Galileo.

IGO has extensive Fraser Range ground with its Nova nickel-copper-cobalt operation and Tropicana Gold JV.

“Accelerating exploration”

Underwood said: “This placement, in conjunction with the company’s existing cash reserves, puts Galileo in a very strong position to accelerate its exploration programs in the Fraser Range and in particular the follow-up exploration of the nickel-copper sulphides already discovered at the Lantern Prospect.

“We are delighted to have received such strong support for the placement and will immediately double our drilling program.

“We have outstanding targets along strike from Legend Mining’s Mawson discovery and are looking forward to updating the market with new results in the near future.”

The current drilling program has been doubled from 4,000 metres to 8,000 metres as a result of the funding.

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