Assay result delays are part and parcel of the exploration game. It has been this way for decades. COVID has only exacerbated this problem. On top of this, there has also been a huge rush of exploration activities, which has been spurred on by strong commodity prices supported by government stimulus, decarbonisation targets (EV's) and therefore unprecedented demand across a broad range of sectors eg. lithium, cobalt, nickel, copper, REEs etc.. As a result, there are reports of long delays at minerals testing laboratories, with explorers and mining companies now waiting many months longer for assay results than they had originally anticipated. In nutshell, we currently have a double whammy.
Whilst for CNJ shareholders, who are nervously sitting on the edge of their seats wating for these crucial assays from CNJ's first round of drilling in Greenland, for CNJ, these delays are will have very little negative impact at all. Why?
Assays are vital for exploration planning. At the earliest, CNJ will be putting boots on the ground in April. Therefore, CNJ will still have at least 3 months time in order to analyse these first round of assays and prioritise drill targets. For CNJ, it is all about making informed decisions about where to drill next, based on these very detailed assays, and thereby maximising both their chances of success as well as the exploration dollars they they spend.
Of course there is an additional advantage here i.e. it will probably now be the end of January before we have received all of the assays from CNJ's first round of drilling. Therefore, it will then only be about 3 months before drilling commences in April/May. This relatively short amount of time should mean that some investors may refrain from selling out of CNJ and returning in April (just prior to the announcement of CNJ's second round of drilling). This should mean that the SP will remain at a much higher level i.e. it will not suffer from a major pullback, which is often the case with junior explorers in the "drilling-waiting-assays-waiting-drilling" exploration/stock market carousel.
Summarising, the current delay in obtaining these final assays could just be a godsend, not only for CNJ, but also for those CNJ investors who intend to hold for the long term and not trade in and out of CNJ several times year, which is usually the norm.
My suggestion at the moment is to lay off the wild speculation here on HC, take a chill pill, and simply wait for the assays to arrive.
GLTAH!
CNJ Price at posting:
3.6¢ Sentiment: Buy Disclosure: Held
(20min delay)