Galileo Mining’s share price rose 23.33% yesterday after outstanding cobalt extraction results from Norseman. But things quickly settled in today’s market as investor excitement came back down to earth, to level out shares to $ 0.18, a fall of 5.14%.
Things are still looking positive for the company as more test results will be revealed in due course.
Galileo Mining Ltd [ASX:GAL] is an exploration company, with projects based in Western Australia near Norseman and the Fraser Range.
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Galileo Mining’s share price helped by test results
After announcing results from its Norseman Cobalt project yesterday, Galileo reported higher cobalt and nickel metal extraction rates from all three tests, compared to its prior tests completed before the company’s listing.
Preliminary results reveal extraction rates of 90% cobalt and 60% nickel to be achievable at Norseman.
This, along with the low cost of its sulphur dioxide atmospheric leaching process, is aiding Galileo’s climbing share price, by highlighting the untapped potential of its cobalt project.
The company’s managing director, Brad Underwood commented on the findings:
‘Results from the recent round of metallurgical test work show we are making substantial progress understanding the best way to extract cobalt and nickel from our Norseman resources. Earlier test work, reported in the prospectus (1), showed cobalt and nickel extractions of approximately 80% and 25% respectively. We have advanced significantly from those early results and will continue to optimise test work to look for further improvements in overall metal recovery.’
Along with test results, Galileo’s mineral estimate of its Goblin Prospect is being finalised by CSA-Global.
But investors should also take into account, as with any stock trading outside of the top 200 on the ASX, a positive mine result (such as the one seen by Galileo Mining) will tend to impact share price significantly.
But this also means investors should also consider that these prices will eventually have to settle, which is already evident in today’s trading.
What’s next for Galileo Mining?
As you might expect, the extraction results from Galileo Mining’s Norseman project might help the company to a good start for the New Year.
Elsewhere, Galileo Mining has joint ventures with the Greasy Group over tenements at Fraser Range which have nickel, copper and cobalt deposit prospectuses.
But one thing is accounted for, as the commodity boom continues, companies are looking to make big plays in untapped resource sectors. Cobalt demand in the battery sector has tripled since 2011, which is why a lot of resource analysts are dubbing it ‘blue gold’.
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