APRIL 22 Press Release observations:
1) "It should be noted that the drilling program successfully confirmed both the mineralized zone data historically reported, and that the mineralization continues below what had previously been identified as the depth of the mineralized zone."
The historically reported mineralization was 20 million tons of .47% niobium, which amounts to a historic non compliant resource of 188,000,000 lbs of Niobium. The PR states that we have not only confirmed the old data, but have increased the deposit at depth.
2) "Sarissa's current drilling program has increased the confidence level in the historic exploration and subsequent evaluation to the point that an indicated resource may now be calculated for the D Zone."
The comment here that the company's present drilling program has given credence to the old Dominion Gulf data is huge. This may indicate that the Independent geologists working on the compliance report are able to use the Dominion Gulf data because of the validation that was accomplished from the recent drilling program.
3)"The company is on schedule to produce an N.I. 43-101 mineral resource report. With our work to date, we expect the results of our evaluation to accomplish a number of objectives, including:
A) Materially increase the reported historical resource and;
B) Establish that the Nemegosenda mineral resources represent one of the larger mineral niobium resources in North America and;
C) Outline the potential mineralized area within the South East Zone."
The company's expectation is to "increase the historic resource". Since the historic resource is 188,000,000 lbs Niobium, the report will have a total of indicated and inferred resource in the D Zone larger than this historic figure.
The company also intends upon "outlining the potential mineralized area within the SE Zone". I believe that they intend upon doing that with the assistance of the 1988 Musto re-assaying of the original drill cores from Dominion Gulf. I believe that the company is hoping the "Qualified Persons" working on the NI43-101 will have enough confidence in the data to be able to justify inclusion of it and a calculation of an inferred resource for the SE Zone. From the PR:
"In 1988 Musto Explorations Limited ("Musto") carried out an evaluation of the so called "East Zone" (the South East Zone), which is located some 1500m south east from the D Zone. Musto re-assayed nine drill holes from core which was still available. These nine drill holes are from an area of 250m x 700m and to a depth of 200m. Sarissa has checked the reports, maps and sections from this area and have calculated that there is a potential resource with a weighted average grade of some 0.35% Nb2O5 within this block of 250m x 700m x 200m. * This reported resource is historical in nature and, therefore, not compliant with National Instrument 43-101 reporting standards; however, they are considered material to the prospectivity of the Nemegosenda Project. A "qualified person," as defined under NI-43-101, has not done sufficient work to comment on the relevance or reliability of these historical estimates."
After stating that the old data is not "compliant with National Instrument 43-101 reporting standards", the company states, "however, they are considered material to the prospectivity of the Nemegosenda project. A "qualified person" as defined un NI 43-101, has not done sufficient work to comment on the relevance or reliability of thse historic estimates". Alan Hawks could never comment on the possibility of using the Musto/Dominion gulf drillings as he is not allowed to do the NI 43-101 - must be independent QP's. This is the first opportunity for an independent qualified source to comment and possibly include the old data in the calculations. The company appears to be telegraphing the possible use of the old data along with our present drilling.
Calculations:
The company left us with some very succinct figures that I believe can be used to calculate what the company is hoping to see in the independently done NI 43-101. Here are those company provided figures and my calculations.
A) Zone D; "Drill hole intersections, with a weighted average grade of 0.43%, are located within a surface area of some 76,250 square metres and to a depth of at least 200m."
76,200 sq m X 200 m = 15,250,000 cu m X 2.8 m/tonne = 42,700,000 tonnes X .43% Ni/tonne = 183,610 tonnes Niobium X 2204.6 lbs/tonne = 404,786,606 lbs. Niobium
B) SE Zone: "Sarissa has checked the reports, maps and sections from this area and have calculated that there is a potential resource with a weighted average grade of some 0.35% Nb2O5 within this block of 250m x 700m x 200m."
250m X 700m X 200m = 35,000,000 cu m X 2.8 tonnes/m = 98,000,000 tonnes X .35% Niobium = 343,000 tonnes Ni X 2204.6lbs/tonne = 756,177,800 lbs. Niobium.
Conclusion:
I believe that the old data will be used in conjunction with our 9 drillings to arrive at an indicated resource amount and an inferrred amount. The company is "hoping" that the QP's working on the report will have enough confidence in the old data to be able to utilize it in the calculations of at least an "inferred" resource.
The total from the figures given by the company totals 404,786,606 lbs. Niobium from the D Zone and 756,177,800 lbs. Niobium from the SE Zone for a total of 1,160,964,406 lbs. of Niobium.
The present drilling program covered 30% of the D Zone. My guess is that an indicated resource will be derived from this drilling and we get around 120,000,000 lbs in the indicated category. Since the company stated that they expect the compliance report to increase the historic resource, the inferred resource could be the difference;
404,786,606 lbs - 121,435,981 = 283,350,625 lbs inferred
resource
The company stated the report would "Outline the potential mineralized area within the South East Zone."
The figures that were provided calculated to a total of 756,177,800 lbs. of Niobium. I believe that all or a certain percentage of this world class figure may be used to obtain an "inferred" resource for the SE Zone.
Any way you slice it, by Sarissa's own figures, there is a deposit of niobium that is now estimated at 1,160,964,406 lbs of Niobium. At $20/lb that is a market value in excess of $23 BILLION. The 64,000 question is what will show up on the NI 43-101 report?
If only a fraction shows up - so what? The company is confident in what they have and the next drilling program will prove up more etc. This report is very important in that it will bring real value to this company. The report will most probably give us a resource anywhere between $2 Billion and $23 Billion. In my book, anything over a billion bucks is a world class start....Good investing all...Jim
