Following on from last Sunday's “fund managers” lunchtime presentation here in Frankfurt (about GAL's spectacular PGE discovery), GoldInvest released the following report late yesterday (which of course is in German):
"Conico profitiert von spektakulärer PGE-Entdeckung des Nachbarn Galileo" - 16. Mai 2022:
Here is the translation of this report by me. Please note: I have no official affiliation with GoldInvest, nor am I a certified translator.
"Conico benefits from spectacular PGE discovery of neighboring Galileo" - May 16th, 2022:
Anyone who, in view of the weak stock market for junior explorers, who has already doubted whether discoveries will still be rewarded by the market should take a look at the course of the Australian company Galileo Mining Ltd. (ASX:GAL). The company's stock price has more than quadrupled from A$0.20 (May 10) to A$0.85 in just one week following a spectacular platinum-palladium-copper-nickel discovery at its Norseman project in Western Australia. GAL's market value is currently around AUD 143 million. If the company can confirm its thesis that it holds the key to a "new platinum-palladium province" in the style of South Africa's Platreef model, this could be just the beginning.
Of course, the immediate neighbors also benefit from the discovery. The word "immediate" is quite literal in this case, as the Galileo discovery is just 200 meters north of the property line of the Mt. Thirsty project, which Conico Ltd (ASX: CNJ; FRA: BDD) and Greenstone Resources own Limited (ASX:GSR) together hold 50/50 each. Conico and Greenstone share prices have each roughly doubled since May 10th. Conico went from 0.011 to 0.021 AUD (approx. 24 million AUD), whereas Greenstone rose from 0.028 AUD to 0.043 AUD (approx. 39 million AUD).
Again, this reassessment may be more than just a flash in the pan, as there is strong geological evidence that in particular what Galileo called the "Callisto Trend" (see Figure 1, circled in green) on the Mount Thirsty JV ("MTJV") property could continue. Findings from lithology and geophysics support this thesis. Ironically, the eastern edge of the joint venture area, which is considered particularly promising because of the recent Galileo discovery, has been totally neglected in the past. In addition, only a full 3.5% of all drilling at Mt Thirsty even goes deeper than 100 meters into the ground! What opportunities there are becomes clear when you consider that Galileo's most recent discovery came from a drill section between 126 and 188 meters deep. The particularly high-grade platinum-palladium interval over 33 meters does not start until 144 meters. An initial review of the data indicates that 1.5km of the prospective mineralized horizon encountered by Galileo may extend onto the MTJV property.
Figure 1: Thanks to the neighbor Galileo. The million dollar question now is whether the Calisto trend (circled in green) will continue on the Mt. Thirsty JV's license. A corridor of 1,500 meters is open.
Conico and Greenstone don't want to waste any time now. Therefore, both companies are already planning a 2,000 meter drill program to start within the next 6 to 8 weeks. The drilling itself is expected to last around four weeks. Greenstone and Conico will share the cost.
Summary: So fast can things go. Just as Conico prepares for the second season of drilling at its two main projects, Ryberg and Maestersvig in East Greenland, welcome news bursts in, in the form of a spectacular discovery by their Australian neighbor Galileo. That's what's called a windfall profit, since few investors would have had Conico's Australian Mt. Thirsty joint venture on their radar. The Mt. Thirsty project appeared to be somewhat stranded despite extensive drilling and an Inferred and Indicated JORC resource of 26.9Mt grading 0.126% cobalt and 0.54% nickel and a theoretical NPV of several hundred million dollars. The ownership structure in a 50/50 JV has done the rest. This is why the two JV partners, Conico and Greenstone, decided only a few weeks ago to independently list the project on disallowed. Recent developments could now give this plan significantly better chances. This is finally good news for long-suffering Conico shareholders. For now, shareholders can enjoy two parallel exploration campaigns: in Greenland and in Australia. It however, remains to be seen whether there will actually be two companies in the end.
End of translation.
IMHO, the above report is very well researched and IMHO, it sums up the current position extremely well.
GLTAH.
GAL Price at posting:
79.0¢ Sentiment: Hold Disclosure: Held
(20min delay)