Conico Ltd is gearing up for a second drilling phase at its Mt Thirsty joint venture to target scandium, a critical mineral commanding sky-high prices. The company’s recent recapitalisation and leadership changes have strengthened its balance sheet ahead of exploration.
- Phase 2 drilling planned to expand scandium resource
- Corporate restructure completed with strong cash position
- Guy Le Page appointed Executive Chairman
- Mt Thirsty JV hosts significant cobalt-nickel-manganese-scandium mineralisation
- Exploration costs minimal; no production activities this quarter
Mt Thirsty JV Targets High-Grade Scandium Zones
Conico Ltd (ASX:CNJ) is preparing a Phase 2 drilling campaign at its Mt Thirsty joint venture in Western Australia, focusing on scandium; a rare and critical mineral that commands prices around US$670,000 per tonne. This second round of drilling aims to delineate both an upper zone and a potentially higher-grade lower zone of nickel-cobalt-manganese-scandium mineralisation, building on promising intercepts from Phase 1 that revealed scandium grades exceeding 40 grams per tonne.
The Mt Thirsty project, a 50:50 JV with Maritana Minerals (ASX:MRT), is already one of Australia’s most advanced undeveloped cobalt-nickel oxide deposits. However, the recent discovery of widespread scandium mineralisation, previously unassayed in historical campaigns, adds a high-value dimension to the resource. Scandium’s strategic importance spans aerospace alloys, hydrogen fuel cells, and green technologies, making a domestic Australian supply potentially significant.
Drill pads and access tracks from earlier programs remain in place, streamlining mobilisation for the upcoming aircore/reverse circulation drilling. The company’s plans follow the initial confirmation of three distinct flat-lying mineralised zones hosting scandium alongside cobalt, nickel and manganese.
Recapitalisation and Leadership Changes Bolster Exploration Readiness
Conico’s recent corporate overhaul has positioned the company well for this next exploration phase. The completion of a fully underwritten entitlement offer in January 2026, followed by a private placement in February, has left Conico with a robust cash balance of A$2.69 million at quarter-end. This financial boost comes after a period of clearing legacy legal and financial issues, with Guy Le Page appointed as Executive Chairman in December 2025 to steer the company forward.
The follow-on private placement, which raised additional funds to satisfy excess demand from the entitlement offer, complements the recapitalisation and supports upcoming drilling activities. Payments to related parties during the quarter totalled A$156,000, including executive fees and advisory services related to the recent capital raising.
Greenland Projects and Broader Exploration Pipeline
Beyond Mt Thirsty, Conico continues to evaluate its 100% owned Greenland projects at Mestersvig and Ryberg, although no significant development or production activities were reported this quarter. The board remains open to acquiring new exploration projects across various commodities and jurisdictions, signaling a broader strategic ambition.
Exploration expenditure for the quarter was modest at A$22,000, primarily covering tenement management and renewals. The absence of production or development activity underscores the company’s current focus on exploration and resource definition.
Financial Position and Outlook
Conico’s cash flow report highlights a net operating cash outflow of A$247,000 for the quarter, offset by strong financing inflows from equity issues totaling A$2.63 million. The company reports an estimated funding runway exceeding 10 quarters at current expenditure levels, providing a comfortable buffer as it advances its exploration programs.
With drilling preparations underway at Mt Thirsty and a strengthened balance sheet, Conico is poised to unlock value from its critical mineral assets. The market will be watching closely for upcoming drilling results that could validate the potential of scandium as a new cornerstone of the project’s economics.
This follows Conico’s earlier recapitalisation and strategic repositioning, which laid the groundwork for the current drilling push and broader exploration ambitions in Greenland and beyond follow-on private placement recapitalisation completed.
Bottom Line?
Conico’s strengthened finances and targeted drilling at Mt Thirsty set the stage for a potential scandium resource breakthrough, but results remain pending.
Questions in the middle?
- Will Phase 2 drilling confirm economically viable scandium zones at Mt Thirsty?
- How will Conico prioritise its Greenland projects amid shifting geopolitical and market conditions?
- What impact will global scandium demand have on the valuation of Conico’s resource base?