Replies to post #88221 on Sarissa Resources Inc (SRSR)

[downsideup]

At the same time there will utility in looking more closely at the separations issues... there is also a fairly obvious "doorknob gap" that is apparent between the DD effort focused on considering the organizational issues... that has the discussion here solidly focused on where the puck used to be... not where it is... and not where it is going to be.

The DD effort here... is lagging now, well behind historic norms.

There isn't much being said, now, about any of the things that we KNOW are what Dahlman Rose has as their primary focus... the "connect the dots" effort in pairing a resource with the "end to end" management of the supply chain from the point of production to the end customer.

I don't see much effort applied either in the more speculative elements in considering SRSR's future potential role in meeting market requirements in the markets they will address...

I find that a particularly unusual oversight, given that SRSR isn't exactly a "hard case" in addressing those issues in DD.

The fact that SRSR is NOT going to be selling niobium by the pound from the web site, to home users paying with PayPal... points out that the required effort in market analysis isn't exactly rocket science...

Not sure why it is, but, miners apparently like to think about their community as being one that is fairly "small". That is true, in terms of there not being a lot of professional people involved in the industry, relative to the values being addressed by their efforts.

If "mining" is a fairly small community... the community of those mining specialty metals that are the target of the SRSR focus have to be... like a single postage stamp in the flow of the mail.

Considering the potential SRSR market... isn't that hard. There aren't that many major unknowns in their market. There aren't that many customers in their market. There aren't that many competitors... and not that many new entrants you have to consider in parsing the potential that SRSR is likely to be "the one" that breaks through the competitive barriers, to become the future supplier of choice for future producers. But, to figure out those things... you DO have to make the effort ? I've not seen much evidence that effort has been made... here.

While the "community" is small in terms of the numbers of potential participants... making the DD "not hard"... the values that are in play are NOT small... and the NUMBERS are HUGE.

Given that makes the effort in doing the DD "not hard"... while also making REALLY worth the effort in doing it, I find it pretty curious that there seems not to have been much effort made here, recently... to try to parse "where the puck will be".

JMHO

[webpence]

You read my mind on this one, or at least we think the same here. When I put together the report that I did, I realized that I was not considering any of the forward looking elements. I ended it with to be continued, both in terms that the SRSR story is a work in progress, but also that the DD effort put forth in that was incomplete - again because the lack of a forward looking element as you describe.

My thought was that a part 2 is in order, and the next steps in the path to mining would be explored.

The parts I know are that we will have a scoping study, which will lead to a decision on whether to pursue feasibility. Then, we have a feasibility study, where we see a handful of possible scenarios emerge and where the company will select a base case scenario to form the backbone of the subsequent business plan that is developed. And, then of course the company would also be preparing for mine construction, processing facility construction, and ultimately the day the mine opens and production begins. I am definitely oversimplifying the amount of work that could be done in that respect, but that's how I think it plays out.

I would like to look at other scoping studies from other niobium projects. What did they learn? How does Sarissa compare? How long did that process take, etc. Then, do the same for the niobium projects that have announced completed feasibility studies. Again, what was learned and how does SRSR compare? We'd need to address such questions like how many tons of ore will they process each day, a potential mine lifespan, net present value for the project, mine construction and processing facility costs, extraction rates, processing of REE's, where to build the processing facility, where to mine first, etc. I am only scratching the surface here.