Sarissa Resources Inc. Shareholder Letter
OAKVILLE, Ontario, Feb. 11, 2015 /PRNewswire/ --
Dear Shareholders:
When I joined the Sarissa Resources Inc. [SRSR:OTCPK], management team in September I presented a phased plan to move the Company's Nemegosenda Niobium property forward by completing 3 main milestones. Those milestones were: first an independent consulting report incorporating the historical results of Dominion Gulf into a NI 43-101 compliant inferred category of resource (as a minimum), and possibly higher categories of indicated and measured. The second milestone was a separate listing of the Nio-Star subsidiary and a spinout of Nio-Star shares to existing Sarissa Resources Inc. shareholders. The third milestone is a completed Preliminary Economic Assessment ("PEA"). A PEA will determine the economic potential of the Nemegosenda property. At the time I laid out the steps the company would take to reach these three milestones as well as promising to be transparent and communicative with shareholders along the way.
The Nemegosenda property is an exceptional one. It was extensively explored by Dominion Gulf and resulted in a report "An Analysis of Process and Economics" By BJ Lerner. The property was subsequently explored further by Musto Explorations and presently by Sarissa Resources Inc. The property has also seen significant mention in the Ontario Geological Survey and other publications. All of the Dominion Gulf exploration work was completed prior to the implementation of the National Instrument (NI) 43-101 standards in Canada. This disclosure standard was originally implemented as protection for investors in mineral exploration and mining projects in Canada and has now become a recognized disclosure standard for mining globally. Moving the Nemegosenda's Niobium project into compliance with the NI 43-101 standard has been the primary focus of the Company's work plan since September.
In the past year the Company drilled 4 additional holes, completed assay work on those holes, evaluated several existing Dominion Gulf drill cores, performed gyroscopic down hole surveys on Sarissa D-Zone holes and worked closely with Roscoe Postle and Associates ("RPA") to begin modeling of the Niobium deposit r to provide an updated NI-43 101 resource estimate for the Nemegosenda property D Zone. Having a compliant resource estimate has two significant benefits: (i) it allows us to show potential next stage financiers (be they mining companies, private equity funders, end users or other potential joint venture partners) that a significant niobium resources exists at the Nemegosenda property; and (ii) an updated NI-43 101 resource estimate will greatly expedite our listing applications.
Through the results of this work we discovered new information that positively supplemented our existing knowledge of the property. The work completed in the past year correlates highly with Dominion Gulf's work and provides further confidence that their body of work could be incorporated into an updated NI 43-101 resource estimate. Some of our work on historical Dominion Gulf drill core was not as conclusive as we had hoped. Through inspection of the historical drill cores that had been made available to us by the Ministry of Northern Development and Mines it was determined that there were significant missing intervals making the core from these historical holes unsuitable for verification sampling. Subsequently it was determined that additional verification drilling would be necessary and resulted in the drilling of a 4th hole (DDH 14-86), during which the historical collar location for Dominion Gulf hole DDH 55-10 was located. Locating this collar was significant in that the Company is now able to provide highly accurate collar locations for all historical Dominion Gulf drill holes within the D Zone, which in turn allows the Company to more precisely drill verification holes. Management anticipates that the ultimate benefit of this development for shareholders will be to provide a higher NI 43-101 compliant resource categorization (i.e. Indicated reserves as opposed to inferred) for RPA's D Zone resource estimate and PEA.
Due to the extra drilling, timetable changes are required and the Company has decided to slightly alter its plan of attack to deliver the milestones mentioned above and continue our rapid development of the Nemegosenda project. The company has engaged the author (an Independent Qualified Person) of the previous Technical Report to update it with the additional work the company has completed since that time, with the primary goal of having an updated report for our listing application for Nio-Star. During this time we will continue to work with RPA on the updated Resource Estimate, and our legal counsel will work with the auditors of Nio-Star Corp. to complete a preliminary prospectus and engage in the process of having that prospectus finalized and given a receipt by the Ontario Securities Commission. In parallel, Nio-Star Corp. would apply for a listing on the Canadian Securities Exchange (CSE). The CSE was chosen for several reasons. The CSE is an up and coming exchange and has a regulatory model and environment that is more similar to US based exchanges. The cost and time required to get listed is shorter and less expensive. When talking to other mining company executives, potential financing groups and other industry participants we only received positive comments that this was the best option for us at this time.
Additionally work has already begun on the spinout of Nio-Star Corp. shares. Nio-Star Corp. is currently a subsidiary of Sarissa Resources Inc., and it owns the Nemegosenda niobium property. Nio-Star is planning to issue to Sarissa Resources Inc., 31,666,667 shares. This is being done in connection with the plan to distribute the shares of Nio-Star to the shareholders of Sarissa Resources Inc. as a dividend. The distribution would be made to those parties who are shareholders of record of Sarissa Resources Inc. on a record date that would occur (and will be announced) at a future date, prior to Nio-Star Corp. becoming a separate reporting issuer (i.e. a public company) in Canada. This record date is expected to be announced in conjunction with the prospectus completion.
Lastly, we are continuing with the work with RPA to complete their updated Resource Estimate and subsequent PEA. Along with this the Metallurgy Study from Hatch Engineering will also be completed. We view these reports from RPA and Hatch as the cornerstone for bringing in the next stage of project financing. Management is expecting that the initial D Zone resource estimate prepared by RPA for the Nemegosenda Project will include both inferred and indicated resources with great potential for resource expansion through future drilling in the D Zone, the SE Zone, and other prospective targets along the 14 kilometer circumference of the Nemegosenda alkaline complex.
In closing it is important for shareholders to understand that the project continues to move forward. The management team of Sarissa Resources Inc., and its Nio-Star subsidiary are planning, reacting and adapting its approach in order to achieve our stated goals and unlock the vast economic potential this project has for our shareholders. Our management team is also working diligently to be transparent and communicative about any new project or corporate developments. The capital for this work has been secured and any additional funding requirements necessary for the completion of the Phase 1 milestones can be accessed as needed.
We are excited about the future of the Nemegosenda Niobium project and the opportunities that lay ahead of us.
If you have any questions regarding this update or other information about Sarissa Resources Inc., and its Nio-Star subsidiary please contact me at [email protected].
Sincerely,
Daniel M. Byrnes
President and Interim CFO
About Sarissa Resources Inc.
Sarissa Resources Inc. is a junior exploration company with interests in properties in Northern Ontario, Canada. Sarissa and Nio-Star are specifically focused on the development of the Nemegosenda niobium project as well as the Shining Tree Resources Corp. gold projects. Visit www.sarissaresources.com for additional information.
Safe Harbor
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Sarissa Resources Inc. and Nio-Star Corp., as well as members of their respective management, in addition to the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of financial results and positions, the ability to compete successfully and the ability to complete above-referenced exploration and testing, as well as business transactions. Neither Sarissa nor Nio-Star undertakes any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Further information contact: Sarissa Resources Inc.
Telephone: 866-307-1331
Webpage: www.sarissaresources.com
Email: [email protected]
SOURCE Sarissa Resources Inc.
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