Ann: Ryberg Project Update, page-61

Now that the blame game has subsided (mostly in my direction ), and almost everyone here has written off East Greenland almost immediately and entirely (which is fair enough, but IMHO, very premature, given that we haven't even received the "official" assay results from Ryberg yet, and, that we still have absolutely no information at all about the results of this year's drilling program at Mestersvig), I would like to put in my two cents worth about today's announcement.

However, before I do so, let me make three things very clear:

1. The main game at the moment is the MTJV exploration program (which has been the case since GAL's Callisto discovery!) i.e. the MTJV is the odds-on favourite at the moment, not East Greenland.

2. I have made this fact (see point 1.) 100% clear on this forum since GAL's Callisto discovery announcement i.e. the potentially very positive effect that GAL's Callisto discovery announcement would have on CNJ (due to the immediate proximity of Callisto discovery to the MTJV tenement R63/4). Disclaimer: I also bought a boat load of CNJ shares at the same time.

3. Up until now, my take that GAL's Callisto discovery announcement would have a potentially very positive effect on CNJ (due to the immediate proximity of Callisto discovery to the MTJV tenement R63/4), has so far been proved to be 100% correct (according to the "preliminary" drilling results given to us by CNJ so far). Having said this, I was not the only one on this forum to immediately decide that GAL's Callisto discovery announcement would have a potentially very positive effect on CNJ. In a much broader sense (yes there is a another world outside of this forum!), the greater investing public also very quickly grasped the importance of GAL's Callisto discovery announcement to CNJ (hence the strong rally in the CNJ SP since GAL's Callisto discovery announcement on May 11th).

Moving onto today's announcement, which is only about Ryberg (!), Ryberg is clearly "a work in progress" i.e. it is a huge tenement and trying to find a major resource within it is like trying to find a needle in a haytstack. Having said this my take on Ryberg (based on today's announcement) is as follows:

1. The presence of Bornite at Mikki could be very important (Bornite is relatively rare and contains 63% copper by mass, whereas chalcopyrite only contains 34.5% copper by mass)
2. You often can’t see the gold, unless it is high grade (at Sortekap?).
3. We will have to wait for the assays to see if there are any PGEs (a couple of the holes at Miki could easily come up with some of these)
4. IMHO, there was a mistake in the drill logs at the end, with CNJ saying "weakly disseminated" instead of "disseminated" for one of the 3% sulphide intervals (MIDD014).
5. Mikki holes 11 and 14 (in particular) could easily come up with some very good assays.
6. There was now news at all about Mestersvig. Presumably, CNJ will report on Mestersvig separately, and fairly shortly (potentially very good news?).


Based on the above, it is IMHO very premature to completely write off Ryberg (as we haven't even received the official assay results yet!). Having said this, Ryberg (due to its massive size) is very clearly a work in progress and will probably remain so for another couple of years. Hence, CNJ will clearly have to make some very hard decisions before the end of this year about whether they will raise additional money and return there next year. In this regard, I would prefer that CNJ spin off Ryberg separately and have a major company come in and take 75% of Ryberg and do all of the heavy lifting/funding with CNJ being "free-carry" (as I have already suggested several times on this forum).

Turning to Mestersvig, where we still do not have any news (?!), if there was ever going to be real breakthrough or significant discovery at East Greenland this year, it was always far more likely to be at Mestersvig (which I have also pointed out many times in the past on this forum, and which I think still may be the case).

If my suspicions are correct, CNJ have decided to report on Mestersvig separately (and fairly shortly?), as the news from Mestersvig is likely to be far better than at Ryberg i.e. this year's drilling has confirmed significant mineralisation there.

In this regard, and if I am right, I believe that CNJ may already be discussing entering into a JV with a major and/or spinning off Mestersvig into a new northern European listed company (IPO?), probably where the major has a 75% stake in this new company, accordingly the Mestersvig tenement, with the major doing all of the heavy lifting/funding with CNJ again being "free-carry" (as I have also already suggested several times on this forum).

Perhaps the following may happen i.e. TAJ is given back 75% ownership of Ryberg (under Longland) with CNJ thus being "free-carry", and Mestersvig ends up being part of an entirely new northern European listed company (IPO?), with CNJ holding 25% and thus being "free-carry". This would then leave CNJ to be able to concentrate all of their manpower and capital on the MTJV exploration program, which is without doubt the main game!

Finally, I will comment in detail on East Greenland again only after we have received further news from Ryberg (assay results etc.), as well as an update about Mestersvig (assay results, JV plans etc.?).

Until then, I am very much looking forward to the impending "preliminary" drilling results from the MTJV, as well as those absoutely now extremely crucial "official" MTJV related assay lab results (which after today's Ryberg news, have probably now become even more crucial to the success of CNJ!).

Wishing you all good fortune over the coming days, weeks and months (and as always, invest responsibly!)