Mark Creasy-backed Galileo Mining (ASX: GAL) has pleased investors today after likening nickel-copper-cobalt targets at its Fraser Range project to Independence Group’s (ASX: IGO) world-class Nova ore body.
Shares in the junior explorer – which listed on the ASX in May – soared as much as 28% or A$0.065 on the news, hitting an intraday high of A$0.30 with over 1 million shares changing hands by 11:30am AEST.
Galileo has carried out detailed gravity surveying at the Nightmarch prospect at the Fraser Range project which lies 60km along strike of the Creasy Group’s Silver Knight discovery.
According to the company, coincident magnetic and gravity anomalies at the targets suggest potential for intrusive rocks similar to the Nova and Silver Knight nickel-copper-cobalt deposits.
The results show the area is highly prospective at shallow depths with modelling indicating target rocks from just 36m below surface.
Galileo Managing Director Brad Underwood said the gravity results were a successful first step in progressing the Fraser Range project where nickel exploration drilling had never been completed.
“The shallow cover over the Nightmarch prospect area means that no exploration for base metals has ever been completed on the tenement,” he said.
“Using modern high-quality gravity and magnetic surveying has allowed us to see below the cover rocks with great results. With next generation mineral deposits more likely to be discovered in areas that have been traditionally overlooked we are very encouraged that our first program has yielded such good results.”
Mr Underwood said the Fraser Range was developing into a significant mineralised province with two confirmed discoveries at Nova and at Silver Knight.
“Galileo is very optimistic that further discoveries will be made in the Fraser Range and we will be pursuing an aggressive exploration program to create value for our shareholders,” he added.
Galileo will now seek to obtain permitting approvals for first pass drilling at the Nightmarch prospect and an electromagnetic survey at the Empire Rose prospect designed to detect conductive nickel-copper-cobalt ore bodies.
The company also holds tenements near Norseman with over 22,000 tonnes of contained cobalt, and 106,000t of contained nickel, in JORC compliant resources.
Discovered in 2012, Independence Group’s wholly owned Nova operation began commercial production in July 2017.
Nova’s total resource as at 30 June 2018 is 13.1 million tonnes at 2% nickel, 0.8% copper, 0.07% cobalt with ore reserves of 11.7 million tonnes at 1.86% nickel, 0.76% copper and 0.06% cobalt.
Shares in Galileo were at A$0.265 in early afternoon trade.