Sarissa Resources Inc (SRSR): SRSR Gold Valuation View… Sari...

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Saturday, 11/17/2007 4:24:33 PM

Saturday, November 17, 2007 4:24:33 PM

SRSR Gold Valuation View…

Sarissa Resources, Inc. Acquires Gold Property in Pacaud Township, Kirkland Lake Ontario
Wednesday November 7, 9:17 am ET
http://biz.yahoo.com/iw/071107/0325495.html

SRSR has recently acquired Gold property representing approximately 40 acres of land within the bosom of the historic gold producing area of Kirkland Lake in Northern Ontario. This area has historically produced 22,000,000 ounces of gold (1,433,600 lbs.) since the first discovery in 1913 as confirmed by the Canadian Government below:
http://www.mndm.gov.on.ca/mndm/mines/Default_e.asp

From subtracting 2007 from 1913, you get a difference of 94 years. To get an average amount of ounces produced per year from the 22 million ounces of gold produced since the first discovery of 1913, consider below:

22,000,000 ÷ (2007 – 1913) = 234,043 ounces produced per year

Logically speaking, the 234,043 ounces produced per year is the average amount of Gold extracted from the area where the SRSR gold property is located right in the heart of.

These areas owned by SRSR are officially proven areas for high yield deposits for Gold confirmed by the Canadian Government. Reference post below:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24371701

**The Price of Gold is $785.00 per ounce as of 16 Nov 07:
http://www.kitco.com/market/
http://www.monex.com/monex/controller?pageid=prices
http://goldprice.org/

Consider below if SRSR extracts the average amount of 234,043 ounces of Gold per year that have been extracted from the same area of which SRSR’s property is located right in the heart of considering the current price of Gold:

234,043 ounces x $785.00 = $183,723,755

SRSR Financials released on 13 Nov 07 (& Post) as of 30 Sep 07 confirms (& Explains) below:
http://www.pinksheets.com/otciq/ajax/showFinancialReportById?id=12759
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24513398
** 693,566,058 Outstanding Shares (OS)
** $10,436 per quarter in Liabilities
** $81,717 per quarter in Expenses
** SRSR is virtually debt free

Let’s say that as a worse case scenario, SRSR only extracts half of the 234,043 ounces per year average and extracts 117,022 ounces to sell. Let’s even say that SRSR will sell their Gold at half of the current $785.00 per ounce price of Gold. Then observe below:

117,022 x $392.50 = $ 45,931,135 in Revenues

4 Quarters x $81,717 = $326,868 in Expenses

Revenues – Expenses = Income

$45,931,135 - $326,868 = $ 45,604,267 in Income

Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

$45,604,267 ÷ 693,566,058 (OS) = 0.065 EPS

.065 EPS x 12 PE Ratio (Conservative) = $0.78 Per Share Value

The above thoughts are not saying that SRSR would definitely be able to extract the average amount of Gold from the already proven to be high yield area for Gold. Please, this is not me talking, but instead are the facts that reflect a legitimate highly probable potential that actually exist from officially proven areas for high yield deposits for Gold confirmed by the Canadian Government. With Scott Keevil and his TEAM, I like our chances for even extracting half of the above average as a worse case scenario.

This is one of the reasons why I think Scott Keevil made the decision to become the new CEO of SRSR. The above is what I believe Scott will logically use as leverage to do a Joint Venture (JV) with a major company where they split what’s extracted 50/50; SRSR has the goods and the major JV company supplies the equipment, supplies, labor, and "know how" to extract everything out from the ground.

Scott has over 20 years of experience in the mining exploration industry. His family is historically known; especially his father and grandfather both named Norman Keevil. His father is the Chairman and majority shareholder of Teck Cominco which trades at $42.00+ as TCK on the NYSE. Please see the post below:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24432431

Hopefully you can clearly see that if SRSR only does a fraction of what all was indicated above, it is well worth the graduation of trading into the pennies. I trust the historical accomplishments of the Keevils enough to where some of those family genes of mining brilliancy have been passed down to Scott. I think Scott will do wonders for his new company, SRSR, as the new CEO. I would be very surprised if Scott’s father or some other major mining entity wouldn’t want a piece of this pie.

v/r
Sterling

Sterling's Trading & Investing Strategies:
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