Galileo share price dips 7% despite project milestone

A little boy holds a toy digger with a confused look on his face.A little boy holds a toy digger with a confused look on his face.

The Galileo Mining Ltd (ASX: GAL) share price is heading south on Monday despite the company’s drilling announcement.

It appears the broader All Ordinaries Index (ASX: XAO) is weighing down investor sentiment today with a 0.41% loss. This comes after Wall Street recorded heavy falls late last week.

At the time of writing, Galileo shares are down 7.87% to $1.64.

Galileo commences exploration activities

Investors are driving down the Galileo share price regardless of the news that the company has started drilling operations.

According to its release, Galileo advised that reverse circulation drilling is underway at its Callisto discovery. The site is located in the Norseman Project area in Western Australia.

The company plans to drill 20 holes for a depth of around 200 metres to target the sulphide zone.

In total, the 4,000-metre program is scheduled to run for approximately five weeks.

The miner expects to test priority targets as a follow up to the recent palladium-platinum-gold-nickel-copper-rhodium sulphide intersections.

The drilling results, along with the laboratory assays, will be provided from late July 2022.

Galileo managing director Brad Underwood touched on the company’s drilling program:

It is great to be back drilling at Callisto so soon after the release of results from the first drill program in May.

The current drilling aims to expand on the early results with drilling designed at a 50-metre spacing across strike to be followed by drill lines along strike to the north.

The mineralisation intersected to date contains palladium, platinum, gold, copper, nickel, and rhodium, and the grades appear to be increasing towards the eastern target zone.

Galileo share price summary

The past couple of months have seen Galileo shares rocket from around the 20 cent mark to $1.72.

The company’s share price reached a 52-week high of $1.95 last month.

Year to date Galileo shares are up an impressive 660%.

Galileo has a market capitalisation of roughly $318 million, with 178.8 million shares on its registry.

The post Galileo share price dips 7% despite project milestone appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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