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GALILEO MINING LTD Interim / Quarterly Report 2022

Jul 20, 2022

64962_rns_2022-07-20_89802841-56d3-4d2c-99fb-352914d72aad.pdf

Interim / Quarterly Report

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21 July 2022

ASX: GAL

QUARTERLY ACTIVITIES REPORT

Norseman – 100% GAL

Corporate Directory

Directors

Chairman & MD Brad Underwood

Non-Executive Director Noel O’Brien

Non-Executive Director Cecilia Camarri

  • Significant exploration event during June Quarter 2022 with major palladium-platinum discovery at Norseman - the Callisto discovery

  • Discovery drillhole (NRC266) returned significant palladium-platinumgold-copper-nickel-rhodium mineralisation over 33 metres;

  • 33 metres @ 2.05 g/t 4E (1) (1.64 g/t Pd, 0.28 g/t Pt, 0.09 g/t Au, 0.05 g/t Rh), 0.32% Cu & 0.30% Ni from 144m (NRC266)

  • All six RC drill holes completed at Callisto contained significant zones of mineralisation and confirm initial results from the discovery drill hole NRC266.

Subsequent events

Non-Executive Director Mathew Whyte

  • Second round of RC drilling at Callisto completed with 3,939m drilled over 16 drill holes and three pre-collars

  • First four holes returned significant palladium-platinum-gold-coppernickel assays

Projects

Fraser Range Project: Nickel-Copper-Cobalt

Norseman Project: Palladium-Nickel-CopperRhodium-Platinum-Gold

  • Highest grade palladium and platinum assays recorded to date with 8.25 g/t Pd & 1.94 g/t Pt over one metre in NRC275

  • Samples from reported intersections are now being analysed for rhodium content.

  • 11 drill holes hit sulphide mineralisation with portable XRF analyses confirming the presence of nickel and copper sulphides. Assays expected in August

  • Mineralised sulphide zone extends over 300m across strike on the southern and central lines, and over 200m across strike on the northern line

Fraser Range - 67% GAL / 33% Creasy Group JV

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  • EM surveying of recently acquired tenement along strike of sulphide mineralisation at the Lantern South prospect is continuing

  • Infill EM surveying of highly conductive Green Moon prospect is planned to refine targets for drill testing

Corporate

  • Highly experienced mining lawyer Cecilia Camarri joins the board as an Independent Non-Executive Director

  • Well-funded to continue exploration programs with approximately $7.0 million in cash as at 30 June 2022

Subsequent event

Contact Details

T: +61 8 9463 0063 E: [email protected] W: www.galileomining.com.au 13 Colin St, West Perth, WA

  • Successful Placement raising $20.4 million (before costs) with cornerstone investments by major shareholders Mark Creasy and IGO

  • Funds to be used for RC and diamond drill programs at Callisto and drilling at the highly prospective Mission Sill and Jimberlana palladium and nickel targets at Norseman

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Commenting on the recent activities, Galileo Managing Director Brad Underwood said:

“This has been a defining period in Galileo’s short history with the discovery of the Callisto palladium-platinumrhodium-gold-copper-nickel target at our wholly-owned Norseman project in Western Australia in May 2022.

Results of the first program at Callisto were remarkable, as all six RC drill holes contained significant zones of mineralisation with strong confirmation of the initial results from discovery drill hole NRC266.

We were quick to get back on site and start our second drill campaign to expand on the early results with drilling designed at a 50-metre spacing across strike and followed by drill lines along strike to the north.

Post quarter end, we reported assays from the first four RC drill holes of this second program at Callisto which demonstrated the extensive continuity of mineralisation intercepted with significant thicknesses over 20 metres at the 1.0 g/t 3E cut-off grade and over 30 metres at the lower 0.5 g/t 3E cut-off reported.

Most importantly, the mineralisation is open at the end of the 6,448,000-drill line where it starts to dip east, further onto our granted Mine Lease. NRC278 ended in mineralisation at this location and will be completed with a diamond drill rig, as will further step out holes to the east.

We plan to begin a third round of RC drilling in late July with diamond drilling scheduled to start in August.

With over five kilometres of strike length at the Callisto discovery, and highly prospective targets at the Jimberlana and Mission Sill prospects, the potential for additional mineralisation is very high.

On the corporate front, we were very pleased with the strong market support for our $20.4 million placement with $8.7 million of the funds coming from our major shareholders, Mark Creasy and IGO. This funding now allows us to aggressively explore this significant new palladium province within our Norseman Project area.

In addition, we welcomed highly experienced mining lawyer Cecilia Camarri to the board as an Independent Non-Executive Director. Cecilia’s appointment will assist us with our aim to transition from exploration company to resource development company on the back of the Callisto discovery.”

Galileo Mining Ltd (ASX: GAL, “Galileo” or the “Company”) is pleased to provide a summary of activities for the quarter ending 30[th] June 2022 from its Norseman palladium-platinum-gold-copper-nickel-rhodium project and Fraser Range nickel project in Western Australia.

Norseman (100% GAL)

During the quarter, Galileo reported the discovery of significant palladium-platinum-copper-nickel-sulphide at the Callisto target.[1]

Six holes for 1,142 metres were drilled at Callisto[2] . The target is a mineralised sulphide unit developed at the base of an ultramafic sill where it intrudes into a package of sedimentary rocks.

Drill holes from the initial campaign were completed on two east-west lines spaced 50 metres apart with a 50metre drill spacing along the lines.

Each of the six drill holes intersected palladium-platinum-gold-copper-nickel sulphide intersections. Of the six holes, drill hole NRC266 recorded the widest interval of sulphide mineralisation with sulphide abundance increasing to the east in the drilling.

Interpretation of results from Callisto have shown similarities with South Africa’s Platreef deposits with disseminated sulphide mineralisation hosted in the lower unit of a layered ultramafic sill.

Drill assays from NRC266 were analysed to include the presence of rhodium in addition to palladium-platinumgold-copper-nickel.[3] These metals also occur in the Platreef deposits in a similar disseminated mineralisation

1 Refer to ASX announcement dated 11th May 2022

2 Refer to ASX announcement dated 4th May 2022

3 Refer to ASX announcement dated 27th May 2022

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style and in a similar host rock. Petrographical examination of drill chips from NRC266 is ongoing with the intention of describing the host rock in more detail.

Table 1: Significant intersections for drill hole NRC266

Hole ID From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC266 144 177 33 2.00 1.64 0.28 0.09 0.32 0.30
including 159 165 6 2.69 2.21 0.37 0.11 0.41 0.36
and 176 177 1 3.21 2.66 0.41 0.14 0.48 0.46

Table 2: Significant intersections for drill holes NRC264, NRC265, NRC267, NRC268, NRC269. Cut off is 1 g/t 3E, maximum of 2m internal dilution

Hole ID From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC264 133 147 14 1.26 1.02 0.19 0.06 0.25 0.28
NRC265 135 147 12 1.36 1.11 0.19 0.06 0.19 0.22
NRC267 124 143 19 1.69 1.38 0.23 0.09 0.24 0.28
NRC268 137 165 28 1.58 1.29 0.22 0.07 0.27 0.26
NRC269 135 157 22 1.60 1.32 0.21 0.07 0.25 0.26

In June, the Company commenced a second program of RC drilling at the Callisto discovery 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.[4]

Figure 1: RC Drilling Underway at Galileo’s Callisto Discovery near Norseman

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4 Refer to ASX announcement dated 6th June 2022

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Galileo reported each of the first four drill holes of the 20-hole program[5] had intersected disseminated sulphide mineralisation geologically consistent with the first round of drilling. The first round of drilling showed that the sulphide layer at the base of the layered ultramafic sill was associated with palladium, platinum, gold, rhodium, nickel and copper.

Figure 2: RC chips with disseminated sulphides (1% – 5%) in NRC274. Depth labels in metres

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Post quarter end, Galileo reported drill assays from the first four RC holes of the second RC drill program at Callisto and confirmed significant palladium-platinum-gold-copper-nickel results.[ 6]

This included the highest-grade palladium and platinum assays recorded to date of 8.25 g/t Pd & 1.94 g/t Pt over one metre in NRC275 which add even more prospectivity to the Callisto area with the possibility of highgrade zones occurring within the mineralised system.

The Company reported significant thicknesses over 20 metres at the 1.0 g/t 3E cut-off grade and over 30 metres at the lower 0.5 g/t 3E cut-off.

Mineralisation is open in all directions and now extends over 300 metres across strike on section 6,448,000N.

Table 3: Significant intersections for drill holes NRC274, NRC275, NRC276, NRC277 with a 1.0 g/t 3E cut off, maximum of 1m internal dilution. Rounding may have slight effect on the calculation of 3E

Hole ID From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC274 144 167 23 2.12 1.74 0.30 0.09 0.35 0.35
and 172 174 2 1.79 1.43 0.26 0.10 0.29 0.28
NRC275 143 172 29 2.22 1.80 0.33 0.09 0.32 0.31
including 170 171 1 10.46 8.25 1.94 0.26 0.36 0.22
NRC276 150 170 20 1.79 1.47 0.25 0.07 0.27 0.30
and 174 176 2 1.28 1.07 0.18 0.03 0.92 0.20
and 180 181 1 1.00 0.83 0.13 0.04 0.23 0.17
NRC277 147 159 12 1.81 1.48 0.25 0.08 0.31 0.30
and 172 173 1 1.16 0.94 0.17 0.05 0.17 0.22
and 177 199 22 1.67 1.33 0.23 0.11 0.27 0.27

5 Refer to ASX announcement dated 21st June 2022

6 Refer to ASX announcement dated 11th July 2022

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Table 4: Significant intersections for drill holes NRC274, NRC275, NRC276, NRC277 with a 0.5 g/t 3E cut off, maximum of 3m internal dilution. Rounding may have slight effect on the calculation of 3E

Hole ID From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC274 138 174 36 1.63 1.33 0.23 0.07 0.27 0.28
NRC275 136 174 38 1.84 1.49 0.28 0.08 0.26 0.28
NRC276 146 183 37 1.26 1.04 0.18 0.05 0.25 0.22
NRC277 142 159 17 1.50 1.22 0.21 0.07 0.25 0.26
NRC277 169 200 31 1.40 1.11 0.19 0.09 0.22 0.24

Eleven additional drill holes have been completed with each drill hole intersecting disseminated sulphide mineralisation geologically consistent with the first round of drilling.[7]

The geometry of the sulphide mineralisation appears to be flat lying before it begins to dip to the east. Mineralisation is not yet closed off on the flat lying areas to the west with the possibility of extensions to the west at a relatively shallow depth below surface. Mineralisation is also open to the north, south and east.

Figure 3: Callisto preliminary geological drill section 6,448,000mN with major drill intercepts at 1.0 g/t 3E cut-off. NRC278 finished in mineralisation and NRC279/280 are pre-collars.

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7 Refer to ASX announcement dated 13th July

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Figure 4: Callisto preliminary geological section 6,448,050mN with target sulphide zone.

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Figure 5: Callisto preliminary geological section 6,448,050mN with target sulphide zone.

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Figure 6: Plan map view of completed drilling. 6,448,050mN and 6,448,100mN section lines are in

Figures 4 & 5 respectively

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Figure 7: Norseman Project with Callisto, Mission Sill and Jimberlana palladium-nickel-copper prospects outlined (over TMI1VD magnetic image).

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Next Steps

The next assays from the second-round drill program at Callisto are anticipated in August 2022.

The third round of RC drilling at Callisto is scheduled to begin in late July. This drilling aims to expand the known mineralisation along strike and to the west.

Diamond drilling is planned to start in August and will focus on the down dip zones to the east.

The drilling programs allow for a broader interpretation of the mineralisation setting, and a better understanding of the regional potential for more discoveries.

Drill programs at the Mission Sill and Jimberlana prospects are also being planned for later in the year. These programs aim to follow up on the multitude of anomalous aircore drilling results generated in these areas (see ASX announcements dated 03/08/22, 08/03/22, 21/03/22, 24/03/22 and 28/03/22). Figure 8 shows the relative locations of the Callisto discovery, Mission Sill prospect, and Jimberlana prospect, at the Norseman project.

Figure 8: Norseman project location map with a selection of regional mines and infrastructure

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Fraser Range (67% GAL / 33% Creasy Group JV)

While the priority for Galileo during the quarter was exploration at Norseman, the Company continued to progress exploration work at its Fraser Range project.

EM surveying is ongoing at Galileo’s northern Fraser Range project area with the aim of defining new undercover nickel targets for drill testing. Previous drilling at the Lantern South and Lantern East prospects has established the area as highly prospective for sulphides. The conductive anomaly at the Easterly prospect is northeast along strike from known sulphide mineralisation at the Lantern prospect and is ready for drill testing.

The conductive target at the Green Moon prospect requires infill EM surveying to refine the target prior to drill testing. The current parameters of the EM models at these locations are shown in Table 5. The location of the prospects is shown in Figure 8 with the target intrusions on the new tenement along strike to the south.

Figure 9 – Location of untested EM targets at the Easterly and Green Moon prospects and the interpreted intrusive targets on new tenement to the south (TMI magnetic background imagery)

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Table 5: Modelled parameters of Green Moon and Easterly conductors

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Corporate

Galileo is well funded to continue exploration with $7.0 million in cash as of 30 June and $26.4 million at the date of this Report. This puts the Company in a very strong position to undertake all its planned exploration programs.

Please refer to the attached Appendix 5B report for the period ended 30 June 2022 for further information.

During the quarter, Galileo appointed highly experienced mining lawyer Cecilia Camarri as an Independent NonExecutive Director of the Company. Cecilia is Special Counsel at a WA law firm and has extensive experience specialising in the mining industry having acted for many WA based exploration and mining companies and was the In-House Counsel for the Creasy Group between 2012 and 2016.

Post quarter end, Galileo completed a Placement to sophisticated and institutional investors raising gross proceeds of $20,400,000 by the issue of 17,000,000 shares at $1.20 per share (“Placement”).

The Placement was well supported with cornerstone investments by major shareholders Mark Creasy and IGO.

Funds raised pursuant to the Placement will primarily be used for:

  • Accelerated diamond and RC drill programs at the Callisto palladium-nickel discovery and target testing along the five-kilometre prospective strike length (Norseman Project);

  • Drilling and exploration of highly prospective Mission Sill and Jimberlana palladium-nickel prospects (Norseman Project); and

  • General working capital purposes.

Inyati Capital Pty Ltd (“Inyati”) acted as lead manager to the Placement.

Capital Structure

The Company’s capital structure as at the date of this Report is as follows:

ASX Code Security **Number **
Quoted
GAL Fully Paid Ordinary Shares 197,408,260
Unquoted
GALAN Options Ex $0.52/ Exp 15/9/2023 2,500,000
GALAO OptionsEx$2.40/Exp14/7/2024 974,615

ASX Additional Information

  1. ASX Listing Rule 5.3.1: Exploration and Evaluation expenditure during the June 2022 Quarter was $904,000. Full details of exploration activity during the June 2022 Quarter are set out in this Report.

  2. ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the Quarter.

  3. ASX Listing Rule 5.3.3: Please refer to Appendix 5 for Galileo’s Tenement Schedule at 30 June 2022.

  4. Rule 5.3.5: – Payments to related parties of the Company and their associates during the Quarter (as detailed in Section 6 of the Company’s Appendix 5B Quarterly Cash Flow Report) totalling $154,000 was paid to Directors and Associates for salaries, superannuation, and director and consulting fees. Please see the Remuneration Report in the 2021 Annual Financial Report for further details on Directors’ remuneration.

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Competent Person Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Mr Brad Underwood, a Member of the Australasian Institute of Mining and Metallurgy, and a full time employee of Galileo Mining Ltd. Mr Underwood has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Underwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

With regard to the Company’s ASX Announcements referenced in the above Announcement, the Company is not aware of any new information or data that materially affects the information included in the Announcements.

Authorised for release by the Galileo Board of Directors.

Investor information: phone Galileo Mining on + 61 8 9463 0063 or email [email protected]

Media: David Tasker Managing Director Chapter One Advisors E: [email protected] T: +61 433 112 936

About Galileo Mining:

Galileo Mining Ltd (ASX: GAL) is focussed on the exploration and development of palladium, nickel, copper, and cobalt resources in Western Australia. GAL’s tenements near Norseman are highly prospective for palladium-copper-nickel sulphide deposits as shown by the Callisto discovery. GAL also has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are prospective for nickel-copper sulphide deposits similar to the operating Nova mine. GAL’s Norseman Project contains a near surface laterite deposit with over 26,000 tonnes of contained cobalt, and 122,000 tonnes of contained nickel, in JORC compliant resources (see JORC Table below).

JORC Mineral Resource Estimates for the Norseman Cobalt Project (“Estimates”) (refer to ASX “Prospectus” announcement dated May 25[th] 2018 and ASX announcement dated 11[th] December 2018, accessible at http://www.galileomining.com.au/investors/asx-announcements/). Galileo confirms that all material assumptions and technical parameters underpinning the Estimates continue to apply and have not materially changed).

d).
Cut-off
Cobalt %
Class Tonnes Mt Co Ni
% Tonnes % Tonnes
MT THIRSTY SILL
0.06 % Indicated
Inferred
Total
10.5
2.0
12.5
0.12
0.11
0.11
12,100
2,200
14,300
0.58
0.51
0.57
60,800
10,200
71,100
MISSION SILL
0.06 % Inferred 7.7 0.11 8,200 0.45 35,000
GOBLIN
0.06 % Inferred 4.9 0.08 4,100 0.36 16,400
TOTAL JORC COMPLIANT RESOURCES
0.06 % Total 25.1 0.11 26,600 0.49 122,500

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Appendix 1:

Callisto RC Drill Hole Collar Details

Hole ID Prospect East North RL Azimuth Dip Depth
NRC264 Callisto 372370 6448010 368 270 -70 200
NRC265 Callisto 372420 6448010 364 270 -70 180
NRC266 Callisto 372470 6448010 361 270 -70 198
NRC267 Callisto 372420 6448060 368 270 -70 181
NRC268 Callisto 372470 6448060 364 270 -70 191
NRC269 Callisto 372520 6448060 360 270 -70 192

Note: Easting and Northing coordinates are GDA94 Zone 51.

Appendix 2: Callisto RC Drill Hole Summary Logs

NRC264 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 48 Clay/upper saprolite
48 70 Saprolite
70 130 Variably weathered to fresh ultramafic
130 134 Ultramafic, weakly disseminated sulphides
134 151 Ultramafic, disseminated sulphide
151 155 Ultramafic, weakly disseminated sulphides
155 168 Ultramafic
168 176 Chert
176 200 Dolerite(basalt?)/Sediment

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NRC265 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 58 Clay/upper saprolite
58 78 Saprolite
78 122 Ultramafic
122 129 Ultramafic, weakly disseminated sulphides
129 153 Ultramafic, disseminated sulphide
153 155 Ultramafic, weakly disseminated sulphides
155 158 Ultramafic
158 180 Chert/sediment

NRC266 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 42 Clay/upper saprolite
42 76 Saprolite
76 126 Ultramafic
126 142 Ultramafic, weakly disseminated sulphides
142 177 Ultramafic, disseminated sulphide
177 181 Ultramafic, weakly disseminated sulphides
181 192 Chert/sediment

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NRC267 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 32 Clay/upper saprolite
32 68 Saprolite
68 107 Saprock/Ultramafic
107 114 Ultramafic
114 125 Ultramafic, weakly disseminated sulphides
125 147 Ultramafic, disseminated sulphide
147 150 Ultramafic, weakly disseminated sulphides
150 152 Fault with gouge fill
152 169 Ultramafic
169 180 Chert/sediment

NRC268 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 37 Clay/upper saprolite
37 72 Saprolite
72 130 Ultramafic
130 135 Ultramafic, weakly disseminated sulphides
135 165 Ultramafic, disseminated sulphide
165 168 Ultramafic, weakly disseminated sulphides
168 174 Ultramafic
174 191 Chert/sediment

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NRC269 Drill Log Summary (Mine Lease sulphide zone). Thin section petrography required to determine precise rock classifications.

From (m) To (m) Comment
0 43 Clay/upper saprolite
43 72 Saprolite
72 127 Ultramafic
127 135 Ultramafic, weakly disseminated sulphides
135 158 Ultramafic, disseminated sulphide
158 160 Ultramafic, weakly disseminated sulphides
160 170 Ultramafic
170 174 Sediment

Appendix 3:

Logging of Sulphide Mode, Type, and Percentage

Cautionary Statement: Sulphide estimates are completed by visual observation with analytical laboratory results pending for all drill holes.

Galileo Field Logging Guide

Sulphide Mode Percent Range (visually estimated)
Weakly disseminated < 1 %
Disseminated 1 – 5 %
Heavily disseminated 5 – 20 %
Matrix 20 – 40 %
Net textured 20 – 40 %
Semi-massive >40 to < 80 %
Massive >80 %

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Appendix 4: Galileo Mining Tenement Schedule as at 30[th] June 2022

Project Tenement Interest at Interest at Nature of
reference
& Location
beginning of
Quarter
end of Interest
As at end of
Quarter
Quarter
NORSEMAN PROJECT All tenements are in
Western Australia
E63/1041 100% 100% Active
E63/1764 100% 100% Active
P63/2053 100% 100% Active
P63/2105 100% 100% Active
P63/2106 100% 100% Active
P63/2107 100% 100% Active
P63/2108 100% 100% Active
P63/2109 100% 100% Active
P63/2110 100% 100% Active
P63/2111 100% 100% Active
P63/2112 100% 100% Active
P63/2113 100% 100% Active
P63/2114 100% 100% Active
P63/2115 100% 100% Active
P63/2116 100% 100% Active
P63/2117 100% 100% Active
P63/2118 100% 100% Active
P63/2123 100% 100% Active
P63/2136 100% 100% Active
P63/2137 100% 100% Active
M63/671 100% 100% Active
L63/83 100% 100% Active
L63/85 100% 100% Active
L63/86 100% 100% Active
L63/87 100% 100% Active
L63/88 100% 100% Active
FRASER RANGE
PROJECT
All tenements are in
Western Australia
E28/2064 67% 67% NSZ(1) Active
E28/2912 100% 100% Active
E28/2949 100% 100% Active
E28/2797 100% 100% Active
E63/1539 67% 67% FSZ(2) Active
E63/1623 67% 67% FSZ(2) Active
E63/1624 67% 67% FSZ(2) Active

(1) 67% owned by NSZ Resources Pty Ltd a wholly owned subsidiary of Galileo Mining, 33% Great Southern Nickel Pty Ltd (a Creasy Group Company).

(2) 67% owned by FSZ Resources Pty Ltd a wholly owned subsidiary of Galileo Mining, 33% Dunstan Holdings Pty Ltd (a Creasy Group Company).

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