Replies to post #23161 on Sarissa Resources Inc (SRSR)

[lc45]

Bigshow01, Welcome to the SRSR Family. Don't feel bad about not contributing right away, you are joining a lot of us "READERS", and some of us don't know enough of mining operations to do anything but ask what we hope are intelligent questions.I am solidly in the read group. Fortunately, there are several members with excellent DD skills, and deep mining knowledge to help educate us. And a good company for them to contact. I feel this is a long term play of at least 6 months, more likely a year. GLTY LC

[cmzio]

the shares are there because of the previous companies before it became sarissa
but actually the share count doesn't matter, it's the market cap that matters

in the end a company with 1000 shares valued at 10$ is the same as having 10000 valued at $1, they both have a market cap of $10000

sarissa has a market cap of $14-15M right now, which is laughable with the gigantic potential of the Nemegosenda deposit alone!


Do the Wall Street Shuffle

Every Breath Bernanke Takes...

[seabreezing]

you might want to at least take a look at the share structure which seems to be your only question here since you said you know little of NIO. Might be worth reading through some Pr's and check out the website so you have at least an idea of the value the company is estimating the niobium is worth and how much they have. Back to the original point. Maybe I am being diluted by the dilution I see in pink sheet stocks as a group but if you look at some of the estimates of the shares and what is in whats called the" float "you might change your notion ,not sure if its a question or an answer but most assumptions are half the outstanding are "tightly held " as they say leaving (using your numbers) about 350,000,000 shares in the float. at .02 thats $700,000.00 available to the likes of you and I.Look at the Hawkes report where 20,000,000 tons of niobium alone at say 26.00 a lb is there and add to that the updated seemingly validated new projections that there might be or is up to another 20,000,000 to 40,000,000 tons of Niobium and I think the point you make about the shares tempts me to say clip is back. however if you look at those share totals and the price now of the company shares and it seems how many shares this company has outstanding is less relevant than how undervalued each share could be bought at currently...aside from that I suggest you read up just a little as we all had to so the issue might take on a different perspective for you..or not

[SPARK]

Answers will come from the company..all you have to do is call..let us know how you make out~

[goforthebet]

bigshow01

if you want to learn a bit about Niobium, you may have a look at this videos.. Sarissa may have as well REE and maybe other materials in the ground.

imo you made a great desicion to buy SRSR at this level. I stared buying at 0,067 and averaged down since than.. great entry you have

chapleau

niobium

Rare Earth minerals

(Drilling)

[OntaREEo]

Bigshow - here is most of what you need to know right now:

Three words and four letters that could make you rich!

Sarissa – Keevil – Nemegosenda – SRSR

Add these three words to your investment vocabulary. They add up to billions in minerals for a stock that is still trading under a nickel!

TOP TEN REASONS FOR YOU TO OWN SARISSA

1. Sarissa Resources (SRSR) is a start-up junior mining company, with 5 properties currently. More accurately, it is a mineral exploration company with strong potential to grow into a mining company. This company is still way under the radar affording you the chance to get in at a fantastic price!

2. Scott Keevil, the new CEO, is from mining royalty, a third generation miner. Scott came on board December 1, 2007 with the intention of building value for Sarissa shareholders, which was reiterated in his 6-month progress report to shareholders on June 5, 2008. Scott is not paid a salary, but was given 30 million restricted shares (2 years until Nov 2009). His father Norm Keevil is chairman at Teck Cominco (TCK), and as majority shareholder is valued at $11 billion. Teck Cominco has made clear they are interested in strategic joint ventures. The mining game requires patience, but Scott is in the process of executing all the steps in the proper order, and is so far delivering on his promises. His experience, connections, and compensation structure can only add up to huge increases in shareholder value for himself, and you!

3. Nemegosenda is the first property Sarissa purchased under Scott’s leadership, and the one with the most immediate potential and focus. This northern Ontario property held great promise as a 50 year old Gulf Dominion study indicated niobium on the property. Two samples also indicated various REE (rare earth elements), but REE’s were not a big deal back then. They are now. To verify that study, Sarissa commissioned an independent geologist report from Hawk Engineering to verify Gulf study. Released in May, it confirmed at least $5 billion in niobium in one zone alone, and was subsequently described as a “world-class asset.” Conversations with management unofficially indicate the Hawk report was understated. Wherever there is niobium, there is tantalum. Privately, they believe Nemegosenda has $15 billion in niobium and tantalum (tantalum is always found with niobium). We are still not talking about (a) REE’s, (b) other properties, or (c) resource price increases in the next few years. $5 billion in minerals is huge, and we are likely talking about several times this number!

4. Ultimately, the company needs to document compliant reserves, known as the NI43-101 standard. Following the Hawk report, the next step is to drill core samples and have them tested for niobium, tantalum, the REE’s etc. The company has told shareholders that they will drill in both Zone D and the East Zone, which both have most promise. This is being set up, exact stage unknown, but test results should be in July-August. In the press release for the Hawk Report, Scott Keevil indicated redrilling of Zone D “will be a little like shooting fish in a barrel.” They first need to clear some roads for the drilling equipment, of which were completed in mid-June. The company also indicates a 580 foot adit from 50 years ago is dry and in good condition to rehabilitate and will assist with this phase. A second phase of drilling of core samples and testing may be required to ultimately meet the standard. At this point, it seems very possible that this second phase would also occur in 2008 before winter would suspend such operations. However, from people knowledgeable of the process, the first round of testing is most critical to shareholders and potential partners in proving the value of the reserves, and subsequent testing is more of a routine process. When the results of this testing are made public and confirms the mineral resource at Nemegosenda, the stock will pop!

5. Niobium is used in steel production. Tantalum is used in electronics. The REE’s are critical to many modern products, including batteries, headphones, disc drives, cell phones, etc. China currently controls most of these markets. More details on these elements and their uses are easily available on the web. See http://www.americanelements.com/nb.html for Niobium, and click on the various other elements. Also see Eric Hommelberg’s article (http://www.kitco.com/ind/Hommelberg/may282008.html) for an explanation of how these mineral companies are at an eight-year low and are expected to reverse in the next couple of years. These elements are in demand and of limited supply, which points to stable or rising prices!

6. Recently hired geologist Dr. Cam Cheriton is a top name in his field with 50 years experience in the mining industry and a Harvard degree and adds considerable credibility to Sarissa. Sarissa has also just (June 2008) appointed seasoned mining industry veteran and project geologist, Alan A. Hawke B.Sc. M.Sc to its Board of Directors. Mr. Hawke, currently based in Tianjin, China, will offer his considerable experience to assist Sarissa in the ongoing exploration program of its Nemegosenda carbonatite deposit and extensive industry connections to source new and compelling exploration properties for the Company's property portfolio. In a 30 year career on three continents, Mr. Hawke has operated in key managerial roles -- encompassing mine development and construction management. Keevil – Cheriton – Hawke – it keeps getting better!

7. Sarissa is currently suffering from being a pinksheet stock, where pump and dump is rampant. The company is taking steps to uplist to an exchange where it will have more credibility, as well as access to many investors that can’t or won’t touch a pinky. Specifically, they have engaged an auditor for its financial statements. A press release could be coming soon, although the actual uplisting is likely 2-4 months away. Investor Relations has recently indicated that they will first uplist to the OTCBB exchange, and subsequently the TSX.V exchange. The company obviously believes the current share price “grossly undervalues” the company, and indicates that insiders have been buying the stock on the open market as well. While a pink sheet stock does not have to disclose more details, the company has indicated that approximately 450 million of the 740 million shares are “tight”. 264 million are restricted, and the rest being held by people close to the company that are holding for much higher values. When Sarissa uplists, the added credibility and transparency, and the new investors will likely cause the share price to rise significantly!

8. Sarissa has four choices – (a) develop the mine themselves, (b) get bought out, (c) take on a partner or joint venture, or (d) a Chinese off take agreement. From conversations with the company, the last two are more likely, and are better for shareholder value. It has been suggested that Scott Keevil wants to make Sarissa his legacy and is not interested in selling out. A Chinese off take agreement is where the Chinese guarantee they will buy the entire product at market prices or at an agreed floor price, and put up the resources for Sarissa to extract the minerals. The company is obviously developing these options but has not yet had to disclose them. Once the uplisting and drilling results are in, an announcement should follow soon after. This announcement transfers the company from an exploration to a mining company, and the stock price will rise accordingly!

9. The value of the company once it has compliant reserves is dependent on the total resources available, the price of these elements, and the percentage put on these mining companies. Shareholders estimate significant price increases when the stock is uplisted, when the first core sample test results are available, and ultimately when the reserves are compliant. Also important would be the announcement of their extraction method. Estimates of the potential for this company vary widely, but once uplisted and initial tests are complete in 2008 the stock could conservatively reach $0.30 to $0.60. Once compliant reserves are established and the JV or method of financing extraction are complete, and evaluation of its other properties potential is known, the stock could trade between $1 and $5 in the 3-5 year time frame. Valuation estimates based on companies on similar tracks (Commerce Resources) indicate the company could be valued at 5-20% of NI43-101 reserves. Commerce stock spiked to 10.8% of the value of its resources once they became known. Applying this percentage to Sarissa and using $15 billion in niobium and tantalum only at Nemegosenda results in an estimate of $2.28 per share. Again this does not include REE’s, other properties, or commodity price increases. Even if only a portion of this valuation comes to fruition short term, with the stock trading for pennies, the potential is enormous. Long term, this estimate is conservative!

10. The major downside risk to this company according to Scott Keevil is a commodity price collapse for niobium, which given the recent price increases, and the continued need for steel, batteries, and gadgets, is not very likely. Scott Keevil has indicated that even with a significant price decrease, there was plenty of profit to be made. Extraction costs are estimated at 35% - 40%. They have a “world class asset” which will be verified (not if, but when), and the only possible downside is a collapse in niobium prices!


SRSR is currently trading around .03 per share. Incredibly, since the Hawk report came out, verifying the mineral resources, the stock has mostly drifted lower. This is primarily attributed to the pink stock environment dominated by market makers and their practices, although the June 5 update made clear that 154 million shares became unrestricted recently, which is applying some selling pressure.

BOTTOM LINE: A company with billions in reserves and stellar management very concerned about shareholder value suffering from pink sheet status is making all the right moves and is currently trading for pennies! Truly a retirement investment opportunity! Watch for uplisting, drilling test results, NI 43-101 compliance, extraction plans, and other positive management surprises!