Galileo Mining

Primary ticker: ASX:GAL
Stage of development: Exploration
Primary minerals: Nickel, copper, cobalt, gold
Project to promote: Norseman Project and Fraser Range Project

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Galileo is a well-funded and active exploration company focussed on its highly prospective Fraser Range and Norseman projects in Western Australia. At the Fraser Range Galileo has two project areas with strong potential for nickel and gold. The operating Nova nickel mine, owned by Independence Group – a Galileo shareholder, sits between the two Galileo project areas.
At Galileo’s Norseman project the company has a 25Mt cobalt-nickel resource containing over 26,000 tonnes of cobalt and 122,000 tonnes of nickel. The project is located adjacent to the regional town of Norseman in an infrastructure-rich area just two hours’ drive from the deep-water Port of Esperance.

View Research Report by RaaS on 29 April 2019

Management Profile

Brad Underwood – Managing Director

Brad Underwood is a geologist with over 18 years’ experience in exploration, prospecting and mining. He has been involved in copper, gold, nickel and cobalt discoveries and the development of numerous prospects over a variety of commodities. Between 2010 and 2018, Brad worked for Mark Creasy as General Manager of several private exploration companies and the Creasy Group is now Galileo’s major shareholder.
Noel O’Brien is a metallurgist and processing expert who was formerly Managing Director in South Africa for SNC-Lavalin Inc, a leading global engineering and construction group, and was responsible for delivering base metal smelters and refinery projects across Africa. Noel has a deep understanding of metallurgy and possesses processing expertise in smelting, gravity separation, flotation, leaching and solvent extraction.

What is your rationale for attending 121 Mining Investment?

Galileo Mining aims to meet with investors interested in the growing demand for nickel and cobalt. Galileo has an existing nickel-cobalt resource and has significant experience in the discovery of nickel deposits in Western Australia. Galileo is well positioned to capitalise on the increasing demand for these metals which are an essential requirement in new battery technologies, especially electric vehicles.
Galileo would like to meet investors with a positive view of nickel and cobalt who can invest on market or who might like to participate in a future capital raise as Galileo grows.

What recent news would you like to highlight to investors attending?

Galileo has two highly prospective West Australian resource and exploration projects being:
1) The Norseman Project with a 25Mt JORC compliant cobalt-nickel resource; and
2) The Fraser Range Project with a ground holding highly prospective for nickel-copper-cobalt deposits.
Work on the Norseman Project is currently focussed on the progression of the permitting required for mining and development.
At the Fraser Range Project several targets prospective for world class magmatic nickel-copper deposits are being progressed. The most advanced of these is the Lantern Prospect which represents a large-scale target with anomalous nickel and copper in drilling. Additional drilling is currently being undertaken with results expected shortly.

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Exploration drilling of prospects leading to the discovery of new resources
Update metallurgical studies of the Norseman cobalt-nickel resource

6 Months:
Development of new targets for drill testing
Exploration drilling of targets leading to the discovery of new resources
Completion of exploration drilling and resource updates at Norseman

12 Months:
Permitting approvals for the Norseman nickel-cobalt project

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

A key risk factor for Galileo is the profitability of mine development at the Norseman Project due to the nature of commodity price fluctuations. The nickel price has risen and the cobalt price has dropped over the previous 12 months. However increasing demand is expected to be a price driver for both metals in the medium to long term. The company is actively mitigating risk by improving the recoverability of nickel and cobalt from the ore using low cost processing techniques. This will lead to a higher margin operation in an environment of fluctuating metal prices.

In a sentence, what do you think makes your company such a compelling investment?

Galileo Mining represents an opportunity to invest in an exploration and resource development company supported by some of Australia’s most successful mining entrepreneurs. All of Galileo’s assets are in the tier one mining jurisdiction of Western Australia and are close to established infrastructure. We have a history of discovering deposits as well as owning a 25Mt cobalt-nickel resource. Both the current resource and our exploration assets provide a high degree of leverage to the increasing demand for battery metals.