No significant sulphides were recorded in this drill hole
Email Sent On: 09-03-2021
Galileo Mining Ltd (ASX:GAL) is exploring for nickel in the Fraser Range, however yesterday announced that its recently completed drill hole in its multi hole campaign didn’t deliver a discovery.
Sometimes compelling drill targets, once drilled, don’t deliver the result investors are looking for, so now we move on to the next drill hole.
While the GAL share price took a smack yesterday on the news - down to as low of 22.5c today - we are comfortable holding GAL and are not selling.
Yesterday’s result is just one in a rolling drilling campaign to test many targets over the coming weeks and months.
We initially invested in GAL in March 2020 at around 20c and doubled our holding again in January this year in the low 20s.
We undertook significant due diligence before we invested in GAL as a long term hold, and we continue to hold the shares, here is why:
- Small number shares on issue ( ~143M, can rise very fast on a nickel strike)
- Mark Creasy factor - holds 26% of GAL - discovered the $1.8 Billion Nova nickel deposit and put the Fraser Range on the map as a high potential nickel region
- Brad Underwood MD - worked with Creasy on previous Fraser Range nickel discoveries - between the two of them, they know exactly what it takes to make a large discovery
- $6.9M in bank - very well funded for the coming months of exploration
- Many High Value Targets in the Fraser Range - GAL’s next drilling has already started, and will be completed in the coming days.
Regarding yesterday’s disappointing drill result, we always appreciate when a Managing Director doesn’t sugar coat bad news.
Thanks to GAL MD Brad Underwood for an easy to digest announcement - onto the next drill hole!