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Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

March 25 2021, 15:40 GMT

Conico

  • ASX: CNJ
  • Shares Outstanding: 832M
  • Share price A$0.04 (18.03.2021)
  • Market Cap: A$30M

Conico is a mineral exploration company based out of Australia.  Their main focus is locating new Magmatic Sulphides on the remote and unpopulated east coast of Greenland, with their Ryberg project.

Today we are talking with Tom Abraham-James from Conico who is based in Reykjavik, Iceland.

Originally from England, Tom Abraham-James was educated in Australia, and has been working as an exploration geologist all over the world.

Getting his start with a thesis on the Bushveld complex in South Africa, Abraham-James soon started working with Argyle Diamonds in the mining space but soon realized his passion was in being an explorationist.  

He then went to work for Platine Resources, an ASX PGE exploration company whose mandate was to locate new Platinum deposits outside of South Africa, and that’s how he ended up in Greenland, where he had been since 2008.

Company Overview

Conico is a dedicated exploration company whose projects include:

The expansive Ryberg Project, their flagship project in Eastern Greenland which is interested in locating Copper, Nickel, Palladium, Cobalt and Gold.  A project in Australia for Nickel and Cobalt.  Sortekap, a Gold project, and the Mestersvig Lead-Zinc project comprising a 1,800km2 land package in the North of Greenland.

The History of the Ryberg Project:

The goal of the Ryberg project is to discover the next big Magmatic Sulphide deposit. With a first-mover advantage in a large, 4,500km2 land mass located in a remote area on the East Coast of Greenland, Thomas Abraham-James first discovered it in 2008 while still working on a project called Skaergaard, a Palladium-Gold Resource. That company he worked for at the time, was not interested in pursuing the project, but recognised there might be some exciting mineralisation.

The difference with the Ryberg project is that Conico is looking for high tonnage, high grade Sulphides in a location that has not seen any systematic exploration.  The first explorers, in the 1980’s, identified the clear mineralization, but had other projects that took their focus away from the area.

The area is unique in that you can see large globular Sulphides right at the surface.  This is quite compelling from an exploration standpoint.  Initial, data testing done on the mineralization at the surface was not compelling, however, at a later date, Abraham-James had the data re-interpreted which deemed the previous data was incorrectly acquired and marred by noise.  

At this point, Abraham-James started his own company, called Longland Resources to spearhead this new area of research.

Conico acquired Longland Resources last year in October because they saw potential, and with some additional work in the form of geophysics and geochemistry, felt it could be a compelling geological find.Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

Greenland: Challenges and Opportunities

The number of companies exploring Greenland has increased, and some of the major players in mining like Anglo American are now the large license holders in Greenland. These companies are not only going after “known” projects but conceptual projects and taking out large license areas because of the potential for large resource acquisitions in Greenland.  Conico is the third-largest license holder in Greenland.  

That said, Greenland does have its challenges. With ice conditions or close proximity to populations and communities, it can pose problems including jurisdictional issues.  An example being the upcoming April 6th election where the Rare Earth Element Project in South Greenland will be up for discussion because of its proximity to an agricultural area and town. This may not be an issue in the Ryberg project: technically the closest people to the project are abroad, in neighbouring Iceland joked Abraham-James. Everyone is waiting for the outcome of the elections.

Other advantages are that exploration is not in a national park or in any place of environmental significance, and will have a small environmental footprint.  For accommodations, Conico will be using vessels that will be brought in and taken out and will so that no permanent footprint will be left.

Additionally, the close proximity to Iceland and their large Aluminium smelters may play an advantageous role in the future of this project.  Other advantages include a collaboration with Iceland and Greenland where both Greenlanders and Icelanders are involved in the processing, by employing them in the workforce.

Infrastructure, Seasonality, Future Plans: Pros and Cons of Being Remote

With key ingredients in place, the main challenge of working remotely is in infrastructure and bringing in rudimentary energy.

The Ryberg project is powered by arctic diesel fuel.  Everything on-site is portable via helicopter, and it is now accessible with ATVs, which will reduce reliance on helicopters (a goal of Conico), which should bring cost reduction with it.  With an abundance of freshwater, aggregate material and an airstrip, the key ingredients are there and plans to work a larger field season are also in place.  Normally starting in June, the company plans to bring in an excess of fuel this year so that the following season, they can then start earlier in April and go through until October.Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

In regards to their Mestersvig project in North Greenland, in the 1950’s their mining operation worked 11 months of the year and with the technology we now have, they could remain operational for the extra month of the year.Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

Even with a lack of geophysics, Conico sees this as a positive.  Had pre-existing data already been recorded, someone may have already started to explore the location. The company itself is putting a lot of investment into providing regional datasets.Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

What Matters For Investors:

With $4M in the bank, and most contracts signed, including the drilling contract, all key items are in place.  The main focus of their projects will be the Ryberg project that carries the most potential.  They have also increased their licence area with their Mestersvig project that started with 180km2 and has now expanded tenfold to 1,800km2.  A recent discovery made last year, a vastly unexplored large intrusion with Rare Earth elements, and in particular, the mineral Zelatine being discovered, was very much of interest and will be looked at further.  

The unique formation of the land in Greenland looks like it could be a strong mineral deposit.  This is an exploratory project.  There is what looks like a conduit which is 160m under the ground that is flashing up with an electromagnetic anomaly. Additionally, there are large blebs of Sulphide with decent grades.

For investors, Conico notes that they have only seen rock chips at surface, but when they get a drill hole going in July 2021, if their assumptions are correct, Conico should be onto a very large discovery and that is only 1% of the entire area licensed by Conico.

Conico has been looking at a small part of the land, initially, but they plan to blanket this area with their team and discover the best locations. That’s why they licenced such a large, geologically unique area.

There is also a second drill target area a little further North, which is their Gold project called the Sortekap prospect.  Conico discovered it by pure chance, but it has a significant IP anomaly plus grade at surface.

So from an investor standpoint, these are 2 proven discoveries that are exciting, and part of the excitement is just how much valuable geological finds will be uncovered by the Ryberg project.

The $4M will get Conico through the 2021 season.  If they find what they expect to find, they will need to raise more cash.  Conico has a good team and track record of raising cash.  Their focus is the exploration aspect of this project.  That’s their core strength - not mining.  Then they plan to sell it to a development company to continue the mining process, and they will continue to focus on new discoveries in the field.Conico (CNJ) - Greenland Copper, Nickel, Gold Exploration

To find out more, got to  the Conico Ltd Website


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