BAY CITY, MI, Jan 17, 2008 (MARKET WIRE via COMTEX) -- Sarissa Resources Inc. (PINKSHEETS: SRSR) announced today it has entered into an agreement to acquire an approximately 1,800 acre property in Northern Ontario, Canada that, in historic exploration and testing, has indicated the existence of considerable carbonatite-hosted niobium mineralization. Under the terms of the agreement, Sarissa has purchased a 100% interest in the Nemegosenda property for $380,000 Canadian -- payable over a four-year period -- and 2% royalty concessions on all mineral and/or metal production from the property. Sarissa Resources, however, retained the right to repurchase 1.5% of the royalty concessions at any time in the future for a predetermined price.
Niobium, also known as columbium, is a rare exotic soft metal that is primarily obtained from pyrochlore; a mineral found occurring in carbonatites. Well known for its corrosion resistant and highly conductive properties, niobium's melting point of 2,468 degreesC enables the metal to maintain its qualities at very high temperatures. Approximately 89% of worldwide niobium consumption is dedicated to the production of steel; while 9% is used in the production of "superalloys" and the final 2% is used in the development of superconductor applications within the technology, electronics and medical industries.
The Nemegosenda Property was identified in the mid-nineteen fifties through aeromagnetic surveys conducted by Gulf Minerals Canada Limited. Subsequent exploration and testing, as summarized in the Ontario Geological Survey study 34 by R.P Sage in 1987, highlighted a number of "higher grade niobium zones." Of particular note, Zone D indicated "20,000,000 tons of 0.47 percent Nb2O5 material in a block 600 by 800 feet in size and to depths up to 600 feet," based on Gulf's drilling and a 580 foot adit which penetrated 235 feet into the zone. Based on this historic (non-NI-43-101-compliant) data (Pg 34), this indicates the potential for approximately 9.4 pounds of Nb2O5 per ton of ore in situ. Other zones within the property have also indicated smaller, but meaningful niobium mineralization. A qualified person, as defined under NI-43-101, has not done sufficient work to comment on the relevance or reliability of this historical estimate. The company is not treating the historical estimate as, nor can the historical estimates be relied upon as, current mineral resources or reserves. Sarissa currently does not have access to more recent estimates or data relating to the Lake Nemegosenda property.
By comparison, the world's largest niobium deposit, located at Araxa, Brazil, is operated by CBMM, and averages between 2.5% and 3.0% Nb205. Two other currently operating pyrochlore mines are the Anglo American Brasil Mineracao (Brazil), grading at 1.34% niobium oxide and the Iamgold-owned Niobec (Quebec) at their St. Honore deposit, grading at 0.67% niobium and mined underground. Niobec was previously a joint venture owned 50% by Teck Corporation and 50% by Cambior Inc.
Scott Keevil, Sarissa's President and CEO, commented, "The Nemegosenda Lake property represents a very significant addition to our portfolio and we are pleased our Board of Directors unanimously decided to acquire this advanced stage property. While niobium's already numerous applications are growing and driving global demand growth, no 'spot market' yet exists for the metal. As such, price volatility is inherent in the worldwide market. Nonetheless, with recent prices of approximately $25.00 per pound, the potential economics indicated by the earlier studies suggest a truly outstanding potential opportunity for Sarissa Resources and its shareholders in the future." He continued, "We look forward to further investigation of this exciting property and are continuing with plans to extract value from our other holdings as well as seeking out other promising properties."
Sarissa has begun initiating steps to confirm the historically identified mineralization at the property.
Dr. Cam Cheriton, a director of Sarissa, is a "qualified person" within the meaning of National Instrument 43-101 and has read and is responsible for the technical information contained in this news release.
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Please correct me if I'm wrong on my math. Don't yell at me if it is, I'm not an expert...lol.
9.4 pounds of Niobium X 20,000,000 Tons = potential 188,000,000 pounds of Niobium X $25 Market Price = potential $4,700,000,000 in Value of Niobium
Posts: 272 | Registered: Apr 2007
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