Galileo Mining : Quarterly Activities Report December 2021

For personal use only

27 January 2022

ASX: GAL

Corporate Directory

Directors

Chairman & MD

Brad Underwood

Non-Executive Director

Noel O'Brien

Non-Executive Director

Mathew Whyte

Projects

Fraser Range Project Nickel-Copper-Cobalt

Norseman Project Nickel-Cobalt-Palladium

Contact Details

T: [phone]

1. [e-mail]

1. www.galileomining.com.au
   13 Colin St, West Perth, WA

QUARTERLY ACTIVITIES REPORT

Corporate

• Accelerated exploration programs at both the Fraser Range and Norseman projects following $6.5 million capital raising completed in the September 2021 quarter
• Well-fundedto continue aggressive exploration programs with approximately $9.0 million in cash as at 31st December 2021

Fraser Range (Nickel-Copper-Cobalt)

• Two deep diamond drill holes completed at the Delta Blues prospect with matrix, stringer, and disseminated sulphides intercepted
• The drill holes tested for mineralisation beneath initial prospective RC drill intercepts:
  o 4m @ 0.29 g/t gold and 0.29% copper from 188m (DBRC001) including 1 metre @ 0.61 g/t gold and 0.66% copper from 190m
  o 5m @ 0.10 g/t gold and 0.25% copper from 167m (DBRC002) o 4m @ 0.21 g/t gold and 0.27% copper from 154m (DBRC003)
• Sulphides occur in association with tonalite intrusion (described petrographically as a trondhjemite)
• Further potential at Delta Blues to be assessed through laboratory assays and down hole EM surveys
• Ongoing regional EM surveys around the Lantern Prospect aiming to define new targets for drill testing
• Acquired new strategic Fraser Range tenement along strike from known nickel-copper sulphide mineralisation at the Lantern Prospect

Norseman Project (Nickel-Cobalt-Copper-Palladium)

• Significant aircore drilling program (8,700m) completed with mineralised nickel-copper-cobalt-palladium sulphides confirmed
• First assays from aircore drill program showed magmatic nickel-copper-cobalt-palladium mineralisation
• One metre of sulphide from 60 metres downhole with 1 metre @ 0.24% nickel, 0.35% copper, 0.04% cobalt and 0.25 g/t palladium (NAC105)
• Aircore drilling unable to break through massive sulphide and drill intersection is open in all directions

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Norseman Project (continued)

• Massive sulphide intercept at shallow depth significantly increases the prospectivity of Galileo's project area
• Bulk of assays from aircore drilling are expected to be received from mid-February onwards
• Follow-upwork to include EM surveying prior to RC drill testing

Galileo Mining Ltd (ASX: GAL, "Galileo" or the "Company") is pleased to provide a summary of activities for the quarter ending 31st December 2021 from its Fraser Range and Norseman projects in Western Australia.

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

"It has been a busy three-month period for Galileo where we significantly progressed with our exploration campaigns at our Fraser Range and Norseman projects with drilling programs undertaken at both projects yielding highly encouraging results.

At Delta Blues prospect in the Fraser Range, two diamond drill holes tested a conductive target beneath sulphide mineralisation at DB2 with matrix, stringer, and disseminated sulphides intercepted in both holes. Our focus now is on down hole EM surveys and laboratory assays, planned for the current quarter to gain a better understanding of the prospect's potential. Regional EM surveying of prospective areas within our Fraser Range tenure will also continue over the current quarter.

At the Norseman project, mineralised nickel-copper-cobalt-palladium sulphides were confirmed from one of many priority targets drilled. The aircore program encompassed 8,700m of drilling with the majority of assays pending. We look forward to providing investors with an update on assays from this drilling which are now expected to be received from mid-February onwards. Mineral assay laboratories in Western Australia have been experiencing high demand for their services and the time taken for reporting of results has significantly increased over the previous six months.

We are now undertaking targeted EM surveying of the newly discovered massive sulphide occurrence at Norseman. The results from this work will be used in the design of follow up drill testing at this outstanding greenfields prospect.

On the corporate front, we remain well-funded with approximately $9.0 million cash at the end of December 2021 to progress our exploration campaigns at both projects into the foreseeable future."

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

In October, Galileo reported the results of EM surveying from the Company's Delta Blues prospect within the Fraser Range Belt in Western Australia.1

DHEM surveying at the Delta Blues DB2 prospect defined a highly conductive target with modelled conductivity up to 10,500 Siemens. The most conductive zone was positioned below drill holes DBRC001 and DBRC003. Both RC drill holes recorded sulphide intercepts with anomalous amounts of copper and gold in the first round of drilling undertaken at the prospect.2 Modelled conductor dimensions up to 500m by 500m represent a large-scale target with all three drill holes completed to date showing sulphide indications over a minimum strike length of 210 metres.

Diamond core drilling commenced in late November to test for economic mineralisation at the DB2 prospect.3

Drill holes DBDD001 and DBDD002 (see collar details in Appendix 2) were designed to test a conductive target beneath sulphide mineralisation previously intercepted in RC drilling at DB2 target.4

Figure 1 - Diamond drilling at the Delta Blues prospect in the Fraser Range

1. Refer to ASX announcement dated 27th October 2021
2. Refer to ASX announcement dated 13th September 2021
3. Refer to ASX announcement dated 29th November 2021
4. Refer to ASX announcement dated 13th September 2021

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Matrix, stringer, and disseminated sulphides were intercepted in both drill holes, however it is unsure whether the modelled conductor can be adequately explained by the mineralisation intercepted or is in part related to graphite which accompanies some sections of the sulphide mineralisation. 5

Figure 2 - Matrix sulphide mineralisation at 399m downhole in DBDD001 (field of view approximately

20cm across)

Observed sulphides are predominantly pyrrhotite with minor chalcopyrite. Geological logging recorded typical Fraser Range meta-sediments and mafic granulites as well as units of felsic (tonalite) intrusive rocks. The intrusive units occur proximal and adjacent to the sulphides and may have a causative relationship. Felsic intrusive samples from RC drill hole DBRC001 were examined petrographically under the microscope and were determined to be trondhjemite, a variety of tonalite.

Summary drill logs are provided in Appendix 1.

EM surveying at the Delta Blues DB1 prospect was not successful in replicating earlier modelling and the target wasn't drilled during this drill program.

Upcoming work

Core samples from diamond drilling were submitted in mid-December to the laboratory for assaying with full results expected towards the end of the current quarter.

Down hole EM surveying is planned to determine whether there are further targets for drilling within the prospect area.

Ongoing regional ground EM surveying aiming to define new targets for drill testing.

5 Refer to ASX announcement dated 15th December 2021

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DBDD001

EOH 436m

Figure 3 - Cross section schematic of drill hole DBDD001 with modelled EM target

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