Why is this ASX mining share exploding 57% today?

The S&P/ASX 200 (ASX: XJO) is climbing 0.94% in late afternoon trading, but this ASX mining share is soaring far higher.

The Galileo Mining Ltd (ASX: GAL) share price soared 57% from 54 cents to 85 cents today. However, the company’s share price has since retreated and is up 30% at the time of writing.

Let’s take a look at what is going on with this ASX mining share.

What’s going on?

Galileo shares are soaring today after the company discovered a “new sulphide zone” with a “72 metre drill hit”.

Drilling at the company’s Callisto palladium-nickel discovery within the Norseman project in Western Australia revealed a thick sulphide zone.

Assays from the drilling delivered results including:

• 72 metres at 1.16 g/t 3E (palladium 0.95 g/t, platinum 0.16 g/t and gold 0.05 g/t), 0.2% copper, and 0.24% nickel from 498 metres
• 39 metres at 1.46 g/t 3E (palladium 1.19 g/t, platinum 0.2 g/t and gold 0.06 g/t), 0.26% copper and 0.28% nickel from 503 metres.

The company is already working on more drilling and has $20 million of cash available to fund what lies ahead.

This means Galileo does not need to raise any short-term capital during the “current market volatility“.

Commenting on the results, Galileo managing director Brad Underwood said:

Today’s results are firm confirmation of our view that we have only just started to comprehend the full extent and potential of our Callisto discovery.

To intercept 72 metres of sulphides from our northernmost drill line targeting the centre of the host intrusion is an extraordinary result and a highly encouraging sign for the potential discovery of more mineralisation along strike to the north.

Galileo has five kilometres of prospective rocks to the north of Callisto, Underwood said.

Share price snapshot.

The Galileo Mining share price has returned a mammoth 245% to investors in the past year.

This ASX mining share has a market capitalisation of about $143 million based on the current share price.

The post Why is this ASX mining share exploding 57% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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