Sarissa Resources Inc (SRSR)

[jim6103]

Jon..."Im curious why no one has answered the question about the cost of the drilling. if we are sitting on 9 billion of material and its going to cost 8 billion to extract it this changes things greatly. Does anyone have any ideas or projections on the cost to extract this from the ground?"

I already answered this question earlier to another poster. The costs would only be a wild guess right now and will take a very extensive feasibility study. It appears as though the mine will be an open pit, which is certainly less costly to operate than an underground facility. First things first. We need to define the resource now - then on to proving up reserves and getting a profitability study.

From this AM:


"The company is in the process of defining a Niobium resource on their Lake Nemegosenda property. We anticipate getting an "indicated" resource categorization from the much anticipated National Instrument43-101 report that is presently being worked in by a third party "qualified person". Our resident qualfied persons - Drs. Cam Cheriton and Alan Hawke - are not allowed to do the study as a safeguard against undo prejudice.

There is no financial cost data involved with defining the resource. We are expecting to get an amount of Niobium - total tonnage of resource (deposit tonnage X % Niobium/tonne). The categories are measured, indicated, and inferred with measured being the most decisive. We presently have enough sampling data from the distant past and from our recent 9 hole drill program to define an "indicated resource" that could exceed 400,000,000 lbs. of Niobium. We know that the market is somewhere between $20-$25/ lb. Do the math and you'll come up with what our resource is worth in the ground.

As far as getting the actual costs of mining of the "resource" and the profitability of same, a prefeasability study will need to be performed. After more drilling of the Zones and applying the costs in another very costly and time-consuming study, Proven and probable reserves can be established. Right now with the present data, we are anticipating getting "Indicated" and "inferred" resources. "Resources" now and "reserves" later.....Jim