Ann: Gold Assays at Sortekap, page-28

Hi,

I get it that a few posters here are dead-set against Conico, and investment in highly speculative mineral exploration companies generally.

In fact, the success rates of mineral exploration companies is so low, eg. in gold exploration, that only ca. 1 in every 1,000 prospects actually ever becomes a commercially producing mine.

Having said this, these odds improve significantly once a level of advanced mineral exploration has been reached i.e. from 1 in 1,000 down to 1 in 10. In this regard, this is where I expect Conico to be at Miki, Sortekap and Mestersvig by the end of this year.

Given the "unknown" factor at Pyramid (apart from some excellent EM and other geophysical data), it will probably take an additional year before one can say that Pyramid will also be at an advanced mineral exploration stage.

Predicting the location of and then discovering new economically viable mineral resources is a significant challenge at the best of times. A variety of factors influence the chances of success. These include the availability of capital, land access, the availability of a team of appropriately skilled professionals, top equipment, having the latest scientific and geophysical data, as well as employing state of the art exploration techniques and technologies.

Just as importantly, the head geologist (in this case TAJ) must have a broad professional experience as well as excellent judgement, and lastly, the courage to recommend and take responsibility for spending sizeable sums of money, knowing full well the risk of failure.

However, in this modern exploration world, it is important to also recognize the need for specialist geological scientists i.e. it is increasingly the geophysicists, the geochemists etc. who not only assist the head geologist, but will probably also play a major role the discovery of major ore bodies.

Turning to Conico specifically, and where we are now, TAJ and his team have clearly determined their objectives for this coming season i.e. to drill Sortekap, Miki, Pyramid and Mestersvig this year (and probably in this order) as they have quite clearly have the highest probabilities of discovery success.

Successful head exploration geologists are a rare breed. Generally, the important attributes of an exploration geologist are, apart from physical fitness, creativity, intelligence, optimism, persistence, boldness and a sense of adventure. More specifically, a head exploration geologists cannot even hope to turn a potential mineral resource into a world-class mineral deposit, without plenty of imagination. Therefore, and particularly in this day and age, it is the thinking geologist who utilizes research data and applies it in a discovery orientated manner that will ultimately be successful.

Having said this, however imaginative the head exploration geologist is, and no matter what is said about the potential of naturally occurring minerals in an area, these highly prospective areas are worth nothing until they have been discovered. In this regard, not all head exploration geologists are good discoverers of ore. Therefore, their fertile imagination must also be combined with a very sound knowledge of the geological sciences, with particular reference to the results of research into the specific environments of these potential mineral deposits (in this case East Greenland).

Finally, "conventional" prospecting is a thing of the past. These days it is all about conceptual geology, i.e. the application of the concepts of metal occurrence and metallogenic environments, assisted by well-applied geophysics and geochemistry. In this regard, with Thomas Abraham-James heading up things, and with the considerable help of his experienced colleague D. A. Holwell, I personally am very optimistic about Conico's chances of success, as TAJ and his team sail off to East Greenland.

GLTAH.