Sparton Resources Inc.

Sparton Resources Inc.

July 20, 2009 09:32 ET

Sparton Options Strategic Gold Properties in Northern Ontario Initial Sampling Returns Values up to 48 G/T Gold

TORONTO, ONTARIO--(Marketwire - July 20, 2009) -


Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that it has executed option agreements with a group of independent prospectors (the "Vendors") for two large claim groups located in northern Ontario. These represent a total of 437 claim units covering over 6800 hectares of favourable structural zones, new and historic gold showings and drill targets. Known as the West Hammond Contact ("WHC") and Clement Lake ("CL") properties, they are located contiguous to the large claim holdings of Brett Resources Inc. ("Brett"), approximately 25 km. north of the town of Atikokan.

Recent Brett news releases have reported that the Hammond Reef deposit, located on its property contains an inferred resource (NI 43-101 compliant) of 4.8 million ounces of gold, (141.5 million tonnes at 1.05 grams per tonne Au).


Under the terms of the option agreements Sparton will earn a 100% interest in the claims by making total cash payments of  $500,000 ($65,000 on signing) and issuing 1.5 million common shares ( 335,000 on signing) to the vendors over a 4 year period. Once fully vested, each of the properties will be subject to payment of a 2% net smelter return production royalty ("NSR"). One half of this NSR may be purchased at any time after completion of a feasibility study on either property for the sums of $1,750,000 on the WHC claims and, $1,500,000 on the CL claims respectively. After the end of the fourth year, if Sparton has fully vested its interest in either or both of the properties, the WHC and CL claims will be subject to advance annual royalty payments of $60,000 and $40,000 respectively.


Prior to entering into these agreements Company staff and consultants conducted a due diligence program including field examinations, sampling, and a review of available information for the Brett Hammond Reef Deposit. Several exciting new showings located by the Vendors on the optioned claims were also examined and sampled.

The Hammond Reef style of mineralization is somewhat unique and mostly unrecognized in the Canadian Shield. Hosted in granitic rocks of the Marmion Batholith, and lower in average grade than more common vein type gold deposits found in traditional mining camps, Hammond style mineralization is continuous, uniform, occurs in wide structural zones and is amenable to low cost bulk mining and processing. The Brett Hammond Reef deposit appears to be open to expansion in all directions. For example, drilling information on the Brett Website has reported an intersection of 1.02 g/t gold over 267 metres in drill hole BR-65. Surface alteration is subtle and overall sulphide content is less than 1% making this type of mineralization a difficult prospecting target. Hammond Reef was only recognized as a large, potentially bulk mineable deposit in the early 1980s and its true size potential was not fully defined by drilling at that time due to low gold prices.

There are numerous known historic gold occurrences that were developed in the area prior to, and in the early 1900's. These tended to follow high grade but small and discontinuous quartz vein systems associated with silicified shear zones in the granites and lower grade mineralization marginal to the veins was of no interest. 


The West Hammond Contact claim group (287 units) is contiguous to, and west of the Hammond Reef deposit. It covers a 20km long contact between the Marmion Batholith and the Finlayson Volcanic Belt. This contact zone is altered and sheared and limited surface prospecting has located at least three new showings with Hammond style mineralization, and there are two known historical gold zones located on the claims. The newly discovered Stubby, Broken Bottle, and D2008 zones (located along a 12 km length of the contact) were sampled by company staff and local prospectors. Stubby is a northeast trending zone hosted in sheared and carbonate altered granite with a stockwork of narrow quartz veins. It is exposed for a 100 metre strike length, and is at least 15 metres wide.

Eight grab samples of typical Stubby mineralization taken by Sparton staff and analysed by ALS Chemex returned values ranging from 0.31 g/t gold to 9.81 g/t gold. Two selected samples of Stubby vein material containing visible gold gave analyses of 28 and 48 g/t gold respectively. Mineralization and alteration seen and sampled at Stubby is very similar to that seen in the Hammond Reef deposit exposures. A second showing in sheared altered granite and along strike from Stubby known as the Broken Bottle zone was also sampled and results are pending. The D2008 zone near the granite - volcanic contact contains sheared and altered volcanic material with disseminated pyrite. Assays of several grab samples returned results of up to 3.0 g/t gold. With additional surface work Stubby certainly will become an excellent drill target. All of the other known zones will be subjected to stripping and more detailed sampling and a comprehensive surface prospecting program is planned for the claims. The historical Burrill and Burrex zones will also be thoroughly evaluated in this work.


The 150 unit Clement Lake claim group is located southeast, and contiguous to the Brett claim group. It is completely underlain by granitic rocks of the Marmion Batholith. Satellite image analysis indicates that the claim area covers several northeast trending structural linear features similar to the one hosting the Hammond Reef deposit. There has been little or no historical prospecting done in this area for Hammond style gold mineralization. The claims are accessible and a detailed prospecting program will begin in August, 2009.

It is also expected that once initial detailed mapping and sampling are completed on the WHC block that a drill program will be undertaken late in 2009. The Company believes that the unique Hammond style of gold mineralization  represents a new and important exploration target in the huge, completely under explored areas of granitic rocks in the Canadian Shield. 

Sparton's international exploration, development, and evaluation programs are 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.

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to exploration and development, the environment, local and foreign government regulation, currency fluctuation infrastructure, capital markets and additional funding requirements and the departure of key executives as well as those factors discussed in the Company's documents filed on SEDAR (

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Sparton Resources Inc. is available at

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.

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.

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