Conico hits sulphides, magnetite at first Sortekap hole

Conico’s first hole at the Sortekap prospect in Greenland has provided encouragement while piquing its interest after returning multiple styles of mineralisation.

The collar of the hole was located on serpentinised ultramafic rock, transitioning to massive units of magnetite containing between 5% to 10% disseminated sulphide – most of which is chalcopyrite with subordinate pyrrhotite.

Conico (ASX:CNJ) adds that magnetite begins to be intersected at 121.9m where it then persists to 236.7m downhole with intermittent pauses in-between.

Meanwhile, the company has made it seven for seven at the Miki prospect after the latest hole successfully intersected the Miki Fjord Dyke and zones of copper sulphide mineralisation.

It has also completed the aeromagnetic-radiometric survey across the Ryberg Licence area and has identified numerous areas of interest, some of which will be drill-tested in the coming weeks.

“The find at Sortekap is significant, we are seeing multiple styles of mineralisation all in one drill-hole,” chief executive officer Thomas Abraham-Jones said.

“The IP survey coupled with surface geochemistry has successfully guided us to a very prospective location that also happens to have the most magnetic readings of all the Ryberg Project area – as indicated by the recently completed regional magnetic survey.

“This opens up a very large area of interest that we will now be assessing in earnest.”

Sortekap drilling

SODD001 is the first ever hole at the Sortekap prospect and was drilled to target nickel sulphide mineralisation as seen at surface, and a conductive anomaly seen in the 2020 induced polarisation survey.

While the intersection of massive sulphides indicates that the IP survey has successfully identified sulphide mineralisation, the magnetite encountered in the hole is massive in form and fine-grained.

This differs from known deposits in Australia where iron is present mostly in banded iron formation and is more akin to the long-lived Cogne deposits in Italy that produced magnetite from the Middle Ages to 1979.

Conico noted that the preliminary findings are encouraging, and the presence of magnetite is something that the IP survey did not identify.

It added that the recently completed heliborne magnetic survey has identified Sortekap and the Pyramiden target about 13km to the southeast as the most strongly magnetic locations within the entire Ryberg project area.

Iron oxide has been observed during initial reconnaissance of Pyramiden with further work planned to locate sites for drilling this season.

This article was developed in collaboration with Conico, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.