IMHO, there is a major difference between GAL and CNJ, apart from the sad fact that until TAJ came along in late 2020, CNJ had no dedicated geologist as at all i.e. they were all consultants. It is therefore no real wonder that major mistakes were made, and at least one potential major PGE resource was totally overlooked i.e. the up to 1.5 km extension of GAL's Callisto strike into the eastern part of R63/4) as well as quite possibly an entirely separate high-grade major nickel resource at depth to the west (again within R63/4). I suppose we should be thankful that CNJ have the Mt. Thirsty JORC compliant Cobalt/Nickel Project within R63/4 at all (with a PFS). Enough said.
Having said this, for investors who have only just taken up a major shareholding in CNJ (like me), and the hundreds of other investors who have got on board over the last few days and weeks, and for those who are still planning to do so in the short term, this major geological oversight (or blooper?) by CNJ is actually a godsend IMHO, as it has presented us all with a major investment opportunity. Why?
1. CNJ now have TAJ at the helm who is an extremely experienced and now (finally!) a dedicated CNJ head geologist (and CNJ CEO). TAJ is currently reassessing all of the gravity, the surface samples and drilling assay results, geophysical and all other related data that CNJ already has available on the R63/4 tenement (fortunately CNJ already has plenty of this and it is of excellent quality!) and he is thus putting this all together in order to develop a totally new and state of the art geophysical model for the entire R63/4 tenement, in order to help him ascertain the new and the right way forward. BTW, this new geophysical model may also include a brand new 3D model of all three resources (see points 2, 3 and 4).
2. Within tenement R63/4, CNJ, as we all know, already has their Mt. Thirsty JORC compliant Cobalt/Nickel Project with a recently completed PFS, which currently has a NPV of ca. A$530 million (based on today's spot prices for both Nickel and Cobalt). In my view, this now significant asset is likely to increase in value for a number of reasons i.e. due to further rises in the nickel and cobalt prices, as well as the need for companies to find reliable and major sources of nickel and cobalt outside of Russia (and outside of Africa?).
3. Within tenement R63/4 may also have the "Sleeping Beauty" resource (my name) which is a potentially major PGE discovery which should quite simply be an 1.5 km extension of GAL's Callisto strike into the eastern part of R63/4 (existing geosphysical data has already confirmed that this extension clearly exists). Right now it is really all about the tonnages and the grades, hence the upcoming drill program there to test this.
4. Also within tenement R63/4, CNJ may also have a high-grade major nickel resource at depth and to the west. IMHO, an important part of TAJ's current job may also be to put together a geophysical model for this entirely new prospect (Prince Charming?) which may again include 3D a model of this potential major resource..
In a nutshell, I believe that within the 6-8 weeks i.e. before drilling starts at "Sleeping Beauty", CNJ may present the market with a new and state of the art geophysical model of the entire R63/4 tenement (with perhaps a 3D model of each resource).
Returning to why GAL have a major discovery on the hands (right on CNJ's doorstep!) and why CNJ failed to make this discovery themselves and perhaps 10 years ago, you only have to take one look at the BOD's at GAL to know the answer i.e. apart from having Mark Creasy as their major shareholder and leader, GAL have:
- Brad Underwood, who, apart from being the Chairman and Managing Director of GAL, is a geologist with over 18 years’ experience in exploration, prospecting and mining and who has been involved in nickel, gold, copper and cobalt discoveries and the development of numerous prospects. BTW, between 2010 and 2018 Brad had already worked for Mark Creasy!
- Noel O'Brien is a metallurgist who has been actively involved with iron ore, gold, base metals, battery metals, lithium, graphite and cobalt projects
Enough said.
Wishing you and all holders a good weekend
CNJ Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
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