Galileo Mining confirms rhodium from assays as shares soar more than 700% in May

The sheer hype and momentum behind Galileo Mining (ASX: GAL) cannot be questioned. Shares in the exploration company has rallied more than 700% since May 6 and up 25% in early trade on Friday.

Rhodium added to the mix

Assays from recent drilling activities confirm the presence of rhodium within the Callisto discovery at Galileo’s 100% owned Norseman project in WA.

Rhodium is a rare, silver-white metallic element that is highly reflective and corrosion-resistant. The metal is used in automotive, chemicals and nuclear energy industries. 

Previous drilling confirmed the discovery of significant palladium-platinum-gold-copper-nickel mineralisation at Callisto.

Catalyst heavy 

“With step out drilling expected to commence next week we will now be including rhodium in the assay suite for any further sulphide rich intersections,” said Managing Director, Brad Underwood. 

“Based on the six drill holes completed so far at Callisto we anticipate more sulphide intersections in the next drill program and are hopeful that an increase in sulphide content will be matched by an increase in metal content.”

Insider buying

Billionaire mining entrepreneur Mark Creasy added roughly $1.7m in shares on Monday, 16 May. His ownership has increased to 26.35% from 24.61%.

High stakes

Galileo has rallied more than 700% in a matter of weeks, buoyed by a steady flow of drilling results, the major palladium-platinum discovery and today's rhodium assays.

The company seems to have plenty of ammunition left with pending assay results, RC drilling planned to resume next week and deeper diamond core drilling planner for later in the year. However, at such an elevated price point, investors should price for more volatility.

Galileo reported $8.2m cash at the end of the March quarter and with more aggressive exploration programs planned for the near-term, one can't help but wonder if a capital raising is on the horizon - especially after such a parabolic share price move.

Galileo share price chart