Galileo Mining Ltd (ASX:GAL, OTC:GLMGF) has wrapped up a farm-in and joint venture agreement with Mineral Resources Ltd (ASX:MIN) and welcomed results from recent drilling at the Norseman Project in WA.
MinRes gets the lithium
The company has received a tranche one payment of $5 million for 30% of the lithium rights on the Norseman Project tenements.
This cash injection ensures Galileo is fully funded for its planned nickel, platinum group element (PGEs) and gold exploration programs at Norseman and the Fraser Range Project.
Recent drilling at Norseman uncovered additional mineralised zones of palladium and platinum, with results including:
- 64 metres at 0.22 g/t 3E (palladium, platinum and gold) from 104 metres, including 4 metres at 0.41 g/t 3E from 108 metres; and
- 84 metres at 0.13 g/t 3E from 208 metres.
Galileo managing director Brad Underwood said: “With completion of the MinRes lithium joint venture agreement, lithium exploration will now begin at the Norseman project.
“MinRes has an incredible depth of experience in the lithium business and have secured the rights to work on our untested lithium potential at Norseman.
GAL takes nickel, PGEs and gold
“In return Galileo shareholders will benefit from a focused program of lithium exploration while the company continues to concentrate on the extensive potential for nickel, PGEs and gold in the same region.
“The $5 million tranche one cash boost will increase Galileo’s capacity to undertake aggressive exploration programs.”
A second payment of $2.5 million is expected by May 30, 2025.
The current joint venture is a 30%-70% ownership split between MinRes and Galileo, respectively, for lithium exploration and potential mining on Norseman tenements.
MinRes may increase its interest to 55% by sole funding an additional $15 million and to 70% by funding to a decision to mine, after which Galileo can either contribute to development costs or convert its interest into a royalty.
Some 2,700 metres of reverse circulation (RC) drilling was conducted in April and May to identify mineralisation related to geophysical anomalies.
Sulphide minerals were intersected in various geological settings, including disseminated sulphide within ultramafic and mafic units and sediments.
Significant results from recent drilling have indicated more prospective palladium and platinum zones near geophysical anomalies.
Follow-up drilling for the two drill holes that yielded bounty, along with some new IP targets, is scheduled for August, as Galileo continues its cyclical exploration strategy aimed at making further discoveries within the largely unexplored tenement package.