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Conico’s (ASX:CNJ) share price drops on drilling trouble at Ryberg Project

Mining
ASX:CNJ      MCAP $1.805M
11 August 2021 11:50 (AEST)

Source: Conico

Conico (CNJ) and its subsidiary Longland Resources have received the preliminary results from drilling at its Miki prospect within the Ryberg Project in Greenland.

Longland is the owner and operator of the licences that cover the project area hosting the magmatic sulphide prospect.

Drilling so far hasn’t been easy, with holes located on a glacier the company had to abandon one drill hole due to issues with rigs moving on the ice.

Two holes that were collared on the glacier and oriented to intersect the Miki Fjord Dyke both intersected gabbro which CNJ said is likely to be from the dyke.

However, the holes were terminated prior to reaching the planned depth due to the rig moving on its pad.

With all holes on the glacier now complete, the company said the ground conditions are better known and future holes won’t be on a glacier.

Despite the delays and disruptions, the company is encouraged by the results received so far with every hole intersecting sulphide mineralisation.

Director Guy Le Page said drilling will now step out over as much of the 50-kilometre Miki Fjord dyke that can be accessed, guided by surface expressions of mineralisation.

The mineralisation already observed at surface includes grades up to 2.7 grams of gold per tonne and 0.3 per cent nickel, giving the company the opinion that the system is likely to be fertile at depth.

A heli-borne combined magnetic and radiometric survey is being conducted across the project area by New Resolution Geophysics, and is said to be advancing with around 65 per cent complete.

The survey is the first ever regional geophysics undertaken at Ryberg and the company will use the data in the hopes of significantly enhancing future exploration programs on the license area.

Shares dropped 21.7 per cent to trade at 5.4 cents at 11:25am AEST.

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