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 ir@NioStar.com.
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: ir@niostar.com
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SOURCE Sarissa Resources Inc.