Mark Creasy’s punt on Galileo Mining (ASX: GAL) has proved positive so far, with the company reporting it has unearthed up to 1.10% cobalt from diamond drilling at its Norseman project in Western Australia’s goldfields.
The diamond drilling campaign pulled up numerous thick and high-grade cobalt intersections from shallow depths.
Better results from the program included 7m at 0.42% cobalt and 1.08% nickel from 13m, with a 1m interval containing 1.10% cobalt and 1.71% nickel from 16m.
Other intersections were 29m at 0.20% cobalt and 0.76% nickel from 22m, and 11m at 0.20% cobalt and 0.98% nickel from 31m.
“The diamond drilling has reinforced the unique high grades of our cobalt mineralisation with over 1% cobalt recorded in some samples,” Galileo managing director Brad Underwood said.
He added drilling had also provided “high-quality” samples for metallurgical analysis.
“Our recent test work demonstrated significant cobalt upgrade from 0.1% to 0.28% through conventional processing and we will continue to focus on beneficiation to maximise the value of the potential cobalt product,” Mr Underwood said.
He pointed out that ore concentration had been used successfully in lithium mining and if it was successfully achieved with Norseman’s cobalt, it could “dramatically” lower the capital outlay required for developing a mine.
Mr Underwood also said if this process was achieved, it would bring forward production time frames and generate earlier revenue.
As part of this strategy, Galileo will undertake comprehensive metallurgical test work over the next few months on ore from the diamond drilling program.
Test work will involve beneficiation, mineralogical analysis, variability and pilot scale laboratory testing.
Norseman cobalt-nickel project
Galileo’s Norseman project hosts 22,500t of contained cobalt and 106,000t of contained nickel in inferred and indicated resources.
In addition to the cobalt and nickel battery metals, up to 1.20% manganese has been identified at the Norseman tenements.
Galileo has set an exploration target for Norseman of up to 20Mt at 0.12% cobalt.
Mark Creasy is a renowned WA prospector who sold the Bronzewing and Jundee gold deposits in 1994 for A$130 million.
Mr Creasy currently holds about 31% of Galileo.
Despite the positive news, Galileo’s share price dropped more than 5% to A$0.27 in early morning trade in line with falls on the ASX 200, All Ords and Small Cap indices.