Conico is set to spin the rods this week on a 5,800m maiden drilling probe at its Mt Thirsty platinum group metal project as it seeks to extend Galileo Mining’s major discovery at Callisto that sits only 200m from its fence line.
With all approvals in place and the imminent arrival of the rig, Conico is keen to test the underexplored mineralised horizon on its patch of dirt that has recently delivered a slew of head turning results for its neighbour, only 16km from Norseman in Western Australia.
Galileo set a rocket under its share price in May, spiking from 20c to $1.80, when it reported its discovery hole returned 33m going 2.0 grams per tonne 3E, with assays showing 1.64 g/t palladium, 0.28 g/t platinum and 0.09 g/t gold from 144m.
The company released another string of stellar hits last month from its evolving discovery including 29m at 2.22 g/t 3E, with assays showing 1.80 g/t palladium, 0.33 g/t platinum and 0.09 g/t gold from 143m.
Remarkably, the same hole contained a metre with the highest grade palladium and platinum assays recorded so far, peaking at 8.25g/t palladium and 1.94g/t platinum, suggesting the mineralised system has the potential to host high-grade zones.
The Mt Thirsty Joint Venture, or “MTJV” is an equal share project between Conico and operator Greenstone Resources.
Initial focus for the JV partners was the Mt Thirsty cobalt and nickel oxide deposit containing a JORC mineral resource of 26.9 million tonnes at 0.126 per cent cobalt and 0.54 per cent nickel.
Whilst much of the historical drilling at Mt Thirsty has targeted the shallow oxide resource in the top 100m, only a few holes have perforated the potential lucrative mineralised horizon below this depth. Of the holes that have extended deeper into the ultramafic sequence, none has systematically been assayed.
Importantly, Galileo’s discovery hole intersected the mineralised ultramafic sill 144m downhole.
With target generation and drill planning now complete, Conico and Greenstone are ready to plumb 20 holes into the prospective horizon, intially pursuing the continuity of the prospective ultramafic sill just south of the Callisto deposit.
The explorer’s geological review indicates a further 1.5km of its neighbour’s prospective mineralised horizon may extend into its ground.
Pending the outcomes of its maiden probe, Conico says a further 14,350m of drilling is planned to increase the geological confidence of mineralisaton and target additional geophysical and structural anomalies.
Conico Executive Director, Guy Le Page said: “The recent review by leading technical experts has given much higher priority to hard rock exploration at Mt Thirsty following the Callisto discovery by Galileo Mining, less than 200 metres from the tenement boundary. This review has identified horizons prospective for PGEs with an apparent strike in excess of 1.8kms. Phase 1 drilling will test for southern extensions onto the joint-venture tenement, as well as other geological features of interest.”
Quickening the pulses of all players in the area are the geological similarities between the Callisto discovery and the world-famous Platreef deposits on the northern limb of the Bushveld Complex in South Africa. The South African deposits are very large and have combined indicated resources exceeding 700Mt at a 1 g/t palladium, platinum and gold cut-off.
Adding to its grab bag of compelling battery and platinum group metals prospects, Conico and Greenstone are also undertaking a geological review targeting lithium along the western margin of the project. Inspired by Galileo’s recent report of rock chip samping returning up to 2.3 per cent lithium oxide just 150m to the west, a review of historical drilling and mapping has highlighted pegmatitie occurences within the MTJV tenure.
With the drill rig of truth set to make its mark at Mt Thirsty this week, market meerkats will be keen to see if Conico can replicate the success of its successful neighbour.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
