Galileo Mining (ASX: GAL) has kicked off a new 5,000-metre air core drilling campaign at its Norseman Project in Western Australia, targeting palladium and nickel deposits. With exploration aimed at the Mission Sill and Jimberlana prospects, about 8 km from Galileo’s flagship 17.5 Mt Callisto resource, the program underscores Galileo's confidence in the mineralisation potential of these nearby formations.
The Mission Sill prospect, with similar ultramafic host rocks as Callisto, has drawn Galileo’s attention for its basal contact, which remains mostly untested. This contact is a promising geological feature that could yield sulphide deposits, similar to those found at Callisto. Galileo’s Managing Director Brad Underwood is upbeat about the campaign’s potential: “We are excited to kick off this drilling campaign targeting both palladium and nickel at the Mission Sill and Jimberlana prospects,” he said, emphasising that these efforts could shed light on broader mineralisation trends across the Norseman region.
Air core drilling underway at the Norseman Project
What’s in Focus
The initial priority for Galileo’s drilling program is to explore areas with little or no prior drilling, especially along a 3 km strike length of the basal contact at Mission Sill. By targeting zones previously untouched or drilled only in shallow laterite formations, the company aims to tap into potentially rich mineralised layers. The Mission Sill’s basal contact, along with the intersection of the Jimberlana Dyke, is particularly enticing, as it could offer up sulphide mineralisation indicative of substantial deposits.
This isn’t Galileo’s first rodeo with Mission Sill. Prior to discovering Callisto, Galileo had already conducted preliminary drilling in the centre of the sill and found that the host rocks displayed encouraging levels of palladium and platinum. Among these results were intercepts like 8 metres at 1.44 g/t 2E (palladium + platinum) and 20 metres at 0.32 g/t 2E, sparking optimism about the geological promise of this area. Since Callisto’s discovery, Galileo’s understanding of the Mission Sill’s mineralisation has grown, bringing new focus to the basal unit and its prospects for hosting Callisto-style sulphide deposits.
Strategic Rationale and Funding
This new exploration campaign builds on the 2022 discovery of the Callisto deposit, Australia’s first find of its kind, with a mineralisation style analogous to South Africa’s Platreef deposits. Callisto’s resource, defined as 17.5 Mt at 1.04 g/t 4E (palladium, platinum, gold, and rhodium), 0.20% nickel, and 0.16% copper, has put the Norseman Project squarely on the radar of investors interested in battery and precious metals.
According to Underwood, Galileo has the financial stamina to see this through, sitting on a cash balance of approximately $12 million. This funding security means the company can maintain its pace in exploration activities while methodically evaluating the Norseman project’s potential: “With a healthy ~$12 million cash balance, Galileo remains in a strong financial position,” Underwood said. “We are fully funded to undertake all planned activities and able to maintain our focus of advancing exploration efforts and unlocking value at Norseman”.
Timing and Market Response
The drilling at Mission Sill and Jimberlana is expected to wrap up in three to four weeks, with initial assay results anticipated around a month after that. With this timeline, investors and analysts could soon gain insights into whether these exploratory gambles will pay off. In the best-case scenario, Galileo could delineate new resource areas close to Callisto, possibly boosting the economic appeal of the entire Norseman project.
In a broader market context, the timing aligns well with the strong demand for palladium and nickel, driven by electric vehicle (EV) and green technology trends. Palladium’s role in catalytic converters and nickel’s necessity in EV battery production lend extra relevance to Galileo’s findings. As such, a significant mineral intercept could lift Galileo’s market profile, especially with Australia’s resource sector keenly focused on strategic metals.
The Bigger Picture
Galileo’s Norseman tenements, encompassing a total area of 255 km², are highly prospective beyond just palladium and nickel, with potential for platinum, copper, cobalt, and even rhodium mineralisation. This diversity complements Galileo’s joint venture in the Fraser Range with the Creasy Group, where it seeks nickel-copper-cobalt deposits akin to those at the operating Nova mine. Together, these projects position Galileo as a diversified player in the metals market, potentially able to supply materials critical to both automotive and electronics sectors.
With the new Norseman drilling campaign underway, Galileo Mining is moving closer to its goal of proving up economically viable deposits in WA. Investors will be watching closely as assay results emerge, eager to see if Galileo’s optimism in Mission Sill and Jimberlana’s geological potential is well-founded.
