Sparton Resources Inc.

Sparton Resources Inc.

January 04, 2005 11:51 ET

Sparton Reports More Encouraging Results From Core Drilling at Luxi Gold Project, Yunnan Province, China


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SPARTON RESOURCES INC.

TSX VENTURE SYMBOL: SRI

JANUARY 4, 2005 - 11:51 ET

Sparton Reports More Encouraging Results From Core
Drilling at Luxi Gold Project, Yunnan Province, China

TORONTO, ONTARIO--(CCNMatthews - Jan. 4, 2005) -



RESULTS INCLUDE HOLES GU04-20 WITH 3.2g/10m
GU04-21 WITH 2.48g/10m, and 5.6g/4m
GU04-28 WITH 2.2g/6m and 8.0g/7m


TWO DISTINCT ZONES IDENTIFIED IN GUANLINGPO MINE AREA

LUXI PROJECT HIGHLIGHTED AT CHINA MINING CONFERENCE

Sparton Resources Inc. (TSX VENTURE:SRI)(the "Company") announced today
assay results from its second stage drill program completed in late
December 2004 at its 80% owned Luxi Gold Project (20% Yunnan Nuclear
Geological Exploration Brigade 201), ("201") in western Yunnan Province.
Results for drill holes GU04-11 to GU04-28 inclusive are reported here.
Results from the first 10 drill holes were summarized earlier (see news
releases dated September 15, 2004 and August 3, 2004). Yunnan Sparton
Minerals Company ("YSMCL", 80% the Company, 20% 201) may earn a 75%
interest in The Guanlingpo Mining Licence area by completing a positive
feasibility study.

The second stage drill program was completed in approximately 9 weeks
using Company owned equipment and staff, and involved a total of 2145
metres of predominantly HQ core drilling, in 18 separate holes. This
work was designed to test the gold mineralization found in the
Guanlingpo Mine main pit during the first stage drilling, and to
evaluate primary mineralization associated with the oxide soil gold
occurrences associated with Pits 2, 3, 4 in the northeast part of the
Guanlingpo Mine area.

Drill hole spacing ranges from 25 metres to over 100 metres along a
total strike length of 825 metres. In most cases only one hole has been
drilled on each section. Most intersections are thought to approximate
true widths as the mineralized zones appear to dip north westerly at
40-45 degrees.

The results reported here are from samples prepared and analysed at the
local Chinese laboratory set up in the Luxi Project Area

Duplicate analyses of pulps from a representative number of samples from
several of these holes are being analyzed by SGS Lakefield Research in
Canada for comparison with the analyses by the local laboratory as a
quality control procedure.

All hole locations, with summary assay results, and results of surface
sampling in the Guanlingpo Mine main pit area may be seen on the Company
website www.spartonres.ca.

NEW DRILLING RESULTS

The following table summarizes the drilling results from Holes
GU04-11-GU04-28 inclusive. Drill holes with values over 1.0 g/t Au are
highlighted.



---------------------------------------------------------------------
Hole Angle Total Interval Au Value Width
Number Depth grams/tonne
---------------------------------------------------------------------
GU04-11 -70 deg. 152.2m 44.2-61.2 0.70 g/t 17.0m
68.2-77.2 0.60 g/t 9.0m
86.2-99.2 0.63g/t 13.0m
GU04-12 Vertical 98.8m 56.8-58.8 0.4g/t 2.0m
GU04-13 -70deg 137.5m 41.7-44.7 0.90g/t 3.0m
GU04-14 -50deg 47.5m Poor Core Recovery - Abandoned
No Significant Values
GU04-15 -70deg 115.5m 46.5-60.5 0.5g/t 14.0m
100.5-103.5 0.7g/t 3.0m
GU04-16 -60deg 107.2m 91.2-102.2 0.7g/t 11.0m
Including 91.2-92.1 5.6g/t 0.9m
GU04-17 -70deg 125.5m 38.5-44.5 0.6g/t 6.0m
GU04-18 -70deg 107.3m 39.3-45.3 2.64g/t 5.0m
GU04-19 -50deg 119.5m 50.5-54.5 0.6g/t 4.0m
62.5-84.2 1.1g/t 22.0m
including 68.5-74.5 2.7g/t 6.0m
GU04-20 -70deg 98.5m 73.5-83.5 3.2g/t 10.0m
Including 73.5-78.5 4.6g/t 5.0m
GU04-21 -70deg 122.6m 65.6-75.6 2.5g/t 10.0m
including 72.6-75.6 6.2g/t 3.0m
79.6-81.6 0.75g/t 2.0m
91.6-95.6 5.6g/t 4.0m
98.6-103.6 0.74g/t 5.0m
GU04-22 -50deg Poor Core Recovery -
Abandoned in Fault
No Significant Values
GU04-23 -70deg 169.3m 6.5-11.5 0.5g/t 5.0m
30.5-34.5 1.0g/t 4.0m
GU04-24 -70deg 170.2m 107.2-110.2 0.80g/t 3.0m
GU04-25 -70deg 128.5m 34.5-51.5 0.43g/t 17.0m
83.5-88.5 0.72g/t 5.0m
GU04-26 -70deg 150.0m 24.0-30.0 1.3g/t 6.0m
39.0-43.0 0.5g/t 4.0m
51.0-53.0 0.75g/t 2.0m
113.0-137.0 1.22g/t 24.0m
GU04-27 -70deg 99.5m 23.3-36.3 2.0g/t 13.0m
42.3-49.3 7.0g/t 7.0m
72.3-74.3 1.6g/t 2.0m
GU04-28 Vertical 98.0m 38.0-44.0 2.2g/t 6.0m
68.0-75.0 8.0g/t 7.0m
---------------------------------------------------------------------


DISCUSSION OF RESULTS

Two distinct zones (North and South) have now been identified by the
Guanlingpo Mine area drilling. Both zones are open along strike and at
depth. The South Zone, intersected in the first phase drill program, is
associated with altered and brecciated impure Permian dolomite and
argillaceous mudstone, structurally disrupted within the 10 km long
Shangmanggyang Fault system.

The newly identified North Zone mineralization is associated with
discrete breccia bodies developed within extensive silicified and
brecciated zones in Permian dolomite which are also related to the
Shangmanggyang Fault System. Mineralization in these breccia bodies
appears to be 'open space filling' in nature and less related to
discrete impure stratigraphic units in the host rocks. This breccia
mineralization is believed to be similar to material which has produced
the oxide deposits being mined in the Maiwoba and Guoyan areas located
about 2 km to the northeast of Pit 4.

Both the north and South zones are characterized by higher grade zones
of gold mineralization (eg. values greater than 5.0 g/t Au in 1 to over
5 metre widths) contained in a broad envelope of lower grade material
(0.3-1.0 g/t). Many holes have multiple intersections.

INTERPRETATION

While the current drilling information is not detailed enough to
quantify gold mineral resources as defined in National Instrument
43-101, Company management believes that the current drilling results
have identified a significant exploration target with potential primary
gold content similar to the historical gold production from the oxide
deposits in the Guanlingpo Mine Area (approximately 7.35 tonnes or
210,000 ounces produced to date). Company management believes that the
potential of this exploration target is in the order of 4.0 to 6.0
million tonnes with grade in the range of 1.5 to 3.0 g/t Au. This
estimate is based on the results of the 28 holes drilled to date and on
the extent of untested target horizons along strike and down dip from
the drilled area.

This potential tonnage and grade is conceptual in nature and it is
uncertain if further drilling will result in confirmation of this
exploration target. Detailed infill and sectional drilling will be
required in order to prepare a mineral resource estimate. The two zones
identified to date are open along strike and at depth and have not been
fully delineated.

FUTURE PROGRAM

All drilling and surface sampling information is currently being
compiled into a GEMCOM database. Once this work is completed a detailed
drilling program will be planned to better define the primary gold
mineralization in the Guanlingpo Mine Area, leading to a mineral
resource estimate. This is expected to begin in the second quarter of
2005.

Currently the Luxi Project field activities include detailed gridding,
mapping and outcrop sampling in the Mabozi and Hebienzhai-Guanming areas
in preparation for induced polarization surveys scheduled to begin in
these areas in late January 2005. Additional surface chip sampling has
also been completed on newly exposed faces in the Guanlingpo Mine pit
areas. Initial results from the auger drilling program completed along a
1.5 km zone to the southwest of the Guanlingpo Mine area are being
compiled and will be reported shortly.

CHINA INTERNATIONAL MINING CONFERENCE

The Company is also pleased to announce that the Luxi Gold Project was
highlighted at the China Mining Conference as one of the most advanced
and successful mineral joint venture projects currently underway in
Yunnan Province. This conference, held in Beijing in late November 2004,
hosted over 1000 delegates, of whom 50% were representatives of senior
and junior international exploration and mining organizations based
outside of China. In an open forum presentation to all delegates Mr. Li
Lianju, Director of the Yunnan Gold Bureau, mentioned the Luxi Joint
Venture Project as a positive example of commercial and technical
success. Luxi was ranked it near the top of a group of over 35 mineral
joint venture projects in Yunnan. The project was also highlighted in
the weekly "Land and Resources" newspaper published by the Yunnan
Ministry of Land and Resources. A translation of this article may be
seen on Sparton's website www.spartonres.ca.

Sparton's exploration program in China is being carried out under the
direct supervision of A. Lee Barker, P. Eng., P Geol., the Company's
President and CEO who is a Qualified Person under National Instrument
43-101.

Sparton Resources Inc. is a diversified mineral exploration company,
which has been an active participant in the Canadian junior resource
sector for over 20 years. In addition to its Chinese, Mexican and
Canadian portfolio of gold exploration properties it also holds an
interest in a significant offshore natural gas reserve in eastern Canada.

SPARTON RESOURCES INC.

Listed: TSX Venture Exchange

Trading Symbol: SRI

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sparton Resources Inc.
    A. Lee Barker
    President and CEO
    (416) 366-3551
    (416) 366-7421 (FAX)
    info@spartonres.ca
    or
    Sparton Resources Inc.
    Edward G. Thompson
    Chairman
    (416) 366-6083
    (416) 366-2713 (FAX)
    egt@interlog.com
    www.spartonres.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for adequacy or accuracy of the content of the
    information contained herein.