MTJV Phase 1 and Phase 2 Drilling Programs - Situation Analysis

MTJV Phase 1 and Phase 2 Drilling Programs - Situation Analysis

IMHO, there is a major difference between the Phase 1 and Phase 2 drilling programs, which I believe that some CNJ and GSR observers may be missing.

The Phase 1 drilling program area was undertaken chiefly to the east of the proven MTJV Cobalt/Nickel deposit (with PFS), and was more of a nearology play i.e. this drilling program was undertaken to in order to test for the extension of the Callisto strike into the MTJV tenement. Therefore, and IMHO, the Phase 1 drilling program was more of a punt i.e. it was undertaken in the almost totally unexplored eastern area of the MTJV tenement (nevertheless, it could still turn out to be money very well invested).

On the other hand, and IMHO, the current Phase 2 drilling program is a completely different kettle of fish i.e. the current Phase 2 drilling program area is being undertaken, in order to explore an area that has already returned excellent assay results (high-grade nickel and the presence of pegmatites).

Therefore, and IMHO, the Phase 2 drilling program has very little to do with Callisto, i.e. the goal of the Phase 2 drilling program is simply to rediscover the pegamatites and the high-grade nickel that are known to exist in the area (from the historical assay results). In this regard, the Phase 2 area is the most likely to contain the low hanging fruit.

On this basis, I am convinced that CNJ and GSR have considered it to be very well worth returning to the Phase 2 drilling area (based on the excellent historical assay results that they already have, as well as their extensive knowledge about the geology, as well as the information from their EM Surveys etc. in the area). Otherwise, CNJ and GSR are simply wasting shareholders money on a wild goose chase i.e. at the end of the day it is shareholders money which is paying for all these drilling programs.

Quite possibly, CNJ and GSR are also very encouraged by the significant exploration success that GAL are currently having in the very large, and still almost totally unexplored Norseman/Mt. Thirsty area.

Summarising, IMHO, it will not be about whether CNJ and GSR have discovered high-grade nickel and pegmatites with their Phase 2 drilling program (IMHO they will), but rather, how much i.e. the potential value of a potential resource. To a large extent, the entire future of CNJ could well be decided upon this result.


Where are we now?:

As we know from the recent quarterly, the goal of the initial part of current the Phase 2 drilling program is to rediscover the pegamatites that are known to exist in the area (from the historical assay results). Therefore, it is highly likely that the assay results from the early part of the Phase 2 drilling will also confirm the presence of these pegmatites. The billion dolllar question is rather, whether these pegmatites contain copius amounts of high-grade Lithium. I would suggest that we will know the answer to this crucial question in December i.e. when the official assay results have been announced.

With regard to the bulk/remainder of the current Phase 2 drilling program, this is designed to rediscover the high-grade nickel which is also known to exist in the area (from the historical assay results). IMHO, there is little doubt that this current Phase 2 drilling will again confirm the presence of this high-grade nickel (low hanging fruit). Here the billion dolllar question will be if CNJ and GSR have discovered various major intervals, and most importantly, what the overall average nickel grade is. I would suggest that we will know the answer to this question in January (when the official assay results have been announced).

The above is simply my analysis of the situation as I see it. I am not trying to paint an overly optimistic picture, rather, I am simply telling things how I see them.

Whether CNJ and GSR are ultimately successful with their Phase 2 drilling program (and Phase 1?) is beyond my control. I can only make assumptions on the cold hard facts that I currently have at my disposal (which are almost entirely from the historical assay results).

Due to the fact that these historical assay results (primarily in the Phase 2 drilling area) were excellent, I consider CNJ and GSR to have excellent chances of repeating this success (with their current Phase 2 drilling program).

Finally, IMHO, if CNJ and GSR also have significant success with their Phase 1 drilling program, which is definitely not out of the question, this would be a major bonus.

I hope some of you might find the above helpful (please note: the above is not investment advice!).

Wishing you all good fortune, in all aspects of your daily lives.