Sparton Project Updates and New Share Options
TORONTO, ONTARIO -- (Marketwire) -- 06/22/12 -- Sparton Resources Inc. (TSX VENTURE: SRI) (the "Company"), announced today that new exploration activities are underway on the Sierra Rosario and Battle Mountain Ridge royalty and option properties in Mexico and Nevada.
SIERRA ROSARIO PROJECT, MEXICO
In Mexico, American Consolidated Minerals Corp. (TSX VENTURE: AJC), ("AJC") and International Northair Mines Ltd. (TSX VENTURE: INM) ("Northair") have reported that on May 29, 2012 a core drill program had commenced at their Sierra Rosario silver/gold 50/50 joint venture property ("Property"), located in Sinaloa State, Mexico. Induced Polarization ("IP") and soil sampling surveys were completed on the property in March and April 2012, and a drill program is currently underway totalling approximately 1,400 metres in six holes. It is designed to test a minimum 600-metre length of a 1400 metre long coincident IP and silver/gold geochemical soil anomaly. This drilling is the first to be conducted on the property and will focus on the San Rafael Zone and its southeastern extension where significant widths of silver-gold mineralization were discovered in an extensive trenching surface program. The exploration is managed by Northair, the project operator. Recent geochemical results have returned values of up to 326g/t silver, 0.712g/t gold and 3470 ppm lead in soil samples coincident with the IP anomaly zone. Sparton holds net smelter return royalties on the Sierra Rosario property equal to 3% of AJC's share of base metal production, 2% of AJC's share of gold production and 1.5% of AJC's share of silver production.
BATTLE MOUNTAIN RIDGE (SBD) PROJECT, NEVADA
The Battle Mountain Ridge (formerly SBD) property currently under option to Waseco Resources Inc., is located in the middle of Nevada's prolific Battle Mountain Trend, in close proximity to Goldcorp and Barrick's Marigold Mine (approx.3 Million oz Au) and immediately adjacent to Newmont Resources' Trenton Canyon Mine (approx. 300,000 oz Au production). The claims are approximately 6 miles north of Newmont's Phoenix Gold Mine operations which has a gold endowment exceeding 10 million ounces. The claims host a non-N-I 43-101-compliant historic Resource of 2.9 million short tons of 0.023 oz/t Au (0.80/g/T Au) reported by previous operators in 1997.
Under the terms of the option agreement, Waseco can earn a 75% interest in the claims by paying all property carrying costs and carrying out $900,000 of exploration expenditures over 3 years. Waseco is to be the operator of the joint venture. Other terms of the Agreement include that if either party is diluted down to a 10% interest in the joint-venture, that interest shall be converted into a 1% net smelter return royalty (NSR); and if the property is subsequently sold to a third party the 1% net smelter return royalty will be converted to 10% of the value of the proceeds of the sale.
Waseco has recently completed additional soil geochemical surveys on the claims and a compilation of previous exploration data. Once all analytical results from the geochemical work is available Waseco is expected to commence a core drilling program later this season to expand the known mineralized zones and test new areas. No core drilling has ever been done on the property and this information will serve to provide a clear understanding of the nature of the gold mineralization at Battle Mountain Ridge.
NEW SHARE OPTIONS
According to Sparton's Stock Option Plan ("SOP") the Company has reserved for issuance share purchase options to directors, officers and consultants to purchase a total of 3,400,000 common shares at $0.10 per share for a period of 3 years, vested immediately, and expiring on June 21, 2015. There will be approximately 4,000,000 options remaining unassigned under the SOP.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.
This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
We Seek Safe Harbour.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Sparton Resources Inc.
A. Lee Barker
President and CEO
416-366-3551 or Mobile: 416-716-5762
Sparton Resources Inc.
Edward G Thompson
Int'l +1 416-366-6083
Richard D. Williams
Int'l +1 416-425-8502