Nemegosenda

Sarissa currently owns a 100% interest in the 1,800 acre Nemegosenda property in Northern Ontario, Canada (Chewett and Collins Townships) that, in historic exploration and testing, has indicated the existence of considerable carbonatite-hosted niobium mineralization.

This property was purchased in January 2008 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

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°C 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.

Property Details

The Nemegosenda Property (map) 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 (click to read the full report) 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. The original drill logs from Gulf can be viewed here. 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.

Exploration Progress

In February 2008, Sarissa engaged the services of Hawk Exploration Consultants, an independent and highly-regarded Toronto-based geological consulting firm to conduct a preliminary assessment report on the property. The report was commissioned to complete an independent review of the historical work done on the property and to assess the compliance with NI 43-101 of Dominion Gulf's historical reserve estimates. This report was completed in May 2008 and can be read here (PDF). A summary follows below:

Based on an analysis of the available data and on a site visit conducted by the author, the Sarissa Resources Inc. Nemegosenda Lake Property is considered a property of merit. The historical work done to date is detailed and of high quality. The mode of emplacement is well understood and the potentially economic D Zone has been well outlined. The Nemegosenda deposit appears to be of the strata bound type and consequently, the lateral and vertical extensions for the areas of mineralization could be extensive, particularly in the East Zone. The detailed work of the OGS in the 1970's and 80's has largely confirmed the interpretations and the historical exploration work of Parsons and the Dominion Gulf Company.

The D Zone historical reserve estimate of 20,000,000 tonnes grading 0.47 % Nb2O5 is within the range currently considered economic in carbonatite-alkalic rock complex literature for commercial production. Tantalum and REE are commonly associated with these niobium occurrences. Therefore the economic potential of the Nemegosenda complex could be substantially greater than what has historically been inferred by the presence of tantalum, REE and uranium.

The East Zone has seen a lot less drilling and has only been partially explored. Numerous radioactive boulders and soils are present here and their presence originally stimulated interest in this area. Parsons reported that the amount of drilling here was insufficient to provide a reserve estimate or to outline the higher grade zone niobium zones. Also the East Zone area has good potential to substantially increase the overall reserves of the property.

The author obtained a copy of the Ontario Department of Mines and Northern Development Mineral Resources Circular 14 entitled "Columbium (Niobium) Deposits in Ontario" by Stewart Ferguson, 1971. The circular reported that approximately 1,000 tons of mineralized material was mined from the D Zone, of which 40 tons were shipped for metallurgical pilot plant testing. The results of the test yielded 90% recovery of niobium.

It is recommended that additional drilling and evaluations be conducted on the property to obtain a 43-101 compliant reserve estimate. In addition, it is recommended that an exploration program be conducted in the southeast area of the Sarissa property to expand known niobium occurrences there. Also, exploration work should include analyses for tantalum, uranium and rare earth elements such as lanthanum (La), neodymium (Nd) and cerium (Ce).

Nemegosenda Property Visit April 2008 Photos

100_0649   100_0650   100_0651   100_0652   100_0667   100_0673   100_0680

This is an image slideshow, click the images to see a bigger version.

References:

Parts of the following publication were used:
Sage R.P. 1987: Geology of Carbonatite - Alkalic Rock Complexes in Ontario: Nemegosenda Lake Alkalic Rock Copmplex, District of Sudbury; Ontario Geological Survey, Study 34, 132 p."