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Galileo Resources Share Price Plunges after Drilling at 2 Retained Licences Finds No Copper

Updated: 8 Nov 2021

Shares of Galileo Resources (LON: GLR) have decreased over 15% Monday after the company provided an update on drilling at the Kalahari Copper Belt.

The results cover over 5,000m of mixed core and reverse circulation drilling on five of the Kalahari Copper Belt exploration licences in Botswana, including Galileo's retained licences and the ones it sold to Sandfire Resources.

Also read: The Best Copper and Copper Mining Stocks to Buy

Shares of Galileo are trading around 1.09p, down over 16% after it told investors that the drilling in two of its retained licences found no copper mineralisation.

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However, one hole intersected a 6.32m interval of 2-5% fine-grained disseminated pyrite, which the company said might “represent a hydrothermal mineral system lateral to a copper occurrence.”

On the other hand, drilling on the Sandfire licences intersected visible copper mineralisation. 

Colin Bird, Chairman & CEO of Galileo, said: “We are very pleased that drilling on the Sandfire Agreement licences hit mineralisation of a type that can be associated with copper deposits on the KCB. This intersection site is located within a licence block where Sandfire has a US$4m exploration commitment over the following two years. 

“Initial results bode well for our prospects of earning a deferred consideration and we look forward to results of further drilling by Sandfire on these licences. Drilling on the other sites is encouraging in that the target horizon has been successfully found in most holes and drilling is continuing. We have now commenced drill testing on a further promising EM target on PL39/2018.”

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