Sparton Resources Inc.

Sparton Resources Inc.

January 06, 2005 09:00 ET

Sparton Reports Positive Initial Results From Auger Drilling Program at Luxi Gold Project, Yunnan, China; Anomalous Gold Mineralization Extended A Further 1.5km SW From Guanlingpo Mine Area


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SPARTON RESOURCES INC.

TSX VENTURE SYMBOL: SRI

JANUARY 6, 2005 - 09:00 ET

Sparton Reports Positive Initial Results From Auger
Drilling Program at Luxi Gold Project, Yunnan, China;
Anomalous Gold Mineralization Extended A Further 1.5km
SW From Guanlingpo Mine Area

TORONTO, ONTARIO--(CCNMatthews - Jan. 6, 2005) - Sparton Resources Inc.
(TSX VENTURE:SRI) (the "Company") announced today geochemical results
from the first three auger drill profiles, at its 80% owned Luxi Gold
Project (20% Yunnan Nuclear Geological Exploration Brigade 201), ("201")
in western Yunnan Province. Analytical results from an additional five
profiles are expected shortly.

The auger drilling data reported here are for the first three sections
located approximately 1.2km southwest of the main Guanlingpo Mine Pit. A
total of approximately 1500 metres of auger drilling has now been
completed in 91 holes on eight profile sections spaced about 200 metres
apart. The current auger drill program was designed to extend known gold
mineralization along the Shangmanggyang Fault system across overburden
covered areas in the 8km long zone southwest of the Guanlingpo Mine
towards the Yangshishan, Mongmo, and Sashuipo oxide gold deposit areas.
The technique has proven to be efficient and effective in penetrating
thick sterile overburden and recovering samples of basal soil and
decomposed bedrock. Overburden thickness in this area frequently exceeds
25 metres in depth and in most cases the auger system was capable of
retrieving either basal soil or decomposed bedrock material for analysis.

The successful identification and precise location of the anomalous gold
zones along this trend will now permit accurate location of induced
polarization surveys planned for the area. The equipment will be also be
used elsewhere on the 250sq. km Luxi Project exploration licences.

The sample profiles, individual hole locations and analytical results
from the first three profiles may be seen on the Company website
www.spartonres.ca.

The results reported here are from samples prepared and analysed using
geochemical level techniques with a lower detection limit of
approximately 5ppb gold at the Yunnan Provincial Analytical Laboratory
in Kunming, Yunnan.

Duplicate analyses of pulps from a representative number of samples from
several holes will be analyzed by SGS Lakefield Research in Canada for
comparison with the analyses by the Kunming Lab as a quality control
procedure.

RESULTS

The following table summarizes the results from Profiles 1-3 in the
Yangshishan Area. Profile Line 3 could not be extended to the southeast
due to steep terrain. Maximum anomalous values are highlighted. See map
on Sparton website for details.



---------------------------------------------------------------------
---------------------------------------------------------------------
Profile Line Approx.Background Sample Au Value Comments
Number Number Values-ppb Type Range-ppb
---------------------------------------------------------------------
Line 1 115 South 100ppb Basal soil 6-760 ppb 2 zones
---------------------------------------------------------------------
50ppb Rock chips 8-370 ppb 1 zone
---------------------------------------------------------------------

---------------------------------------------------------------------
Line 2 200 South 20 ppb Basal soil 5-190 ppb 1 zone
---------------------------------------------------------------------
50 ppb Rock chips 3-730 ppb 1 zone
---------------------------------------------------------------------

---------------------------------------------------------------------
Line 3 325 South 100ppb Basal soil 30-980ppb 1 zone
---------------------------------------------------------------------
70ppb Rock chips 8-1160ppb 1 zone
---------------------------------------------------------------------
---------------------------------------------------------------------


DISCUSSION

These results clearly indicate that the gold-anomalous Shangmanggang
structural zone extends continuously an additional 1.5 km southwest of
the Guanglingpo Mine area. Results for the 5 additional profiles already
completed will provide data for an additional one kilometre along this
zone towards the Mongmo area and locate anomalous zones more precisely
to permit accurate location of induced polarization geophysical survey
profiles planned for the first quarter of 2005. The analytical results
for these profiles will be reported when available.

ONGOING PROGRAM

The Auger drill program will continue in the Shangmanggyang Fault area
through the early part of 2005. Following completion of this work the
machinery will be used to begin detailed basal soil or rock chip
sampling in covered areas of the 2km long gold in soil anomaly
previously located by 201 in the Hebianzhai-Guangming zone in the
southwestern part of the Luxi Project Area. This work is expected to
begin in late February after detailed mapping, rock chip sampling and
gridding are completed.

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 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)
    E-mail: info@spartonres.ca
    or
    Sparton Resources Inc.
    Edward G. Thompson
    Chairman
    (416) 366-6083
    (416) 366-2713 (FAX)
    E-mail: egt@interlog.com
    Visit the Company's website at: 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.