Hi Tim, 
 
If it's soft enough to be cut by a cord, that implies its soapstone, which it looks like.  As such, it's not a purpose-built weapon. 
 
Personally, I think it's someone's art project.  While I don't profess to be an expert on inuit soapstone, I've certainly never seen anything like this.  I have, however, goofed around with carving soapstone, and it's always tempting to create a fake ethnographic piece. 
 
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