Sparton Resources Inc.

Sparton Resources Inc.

September 12, 2011 09:00 ET

Sparton Provides Exploration Update on Company Claims Surrounding Hammond Reef Gold Deposit, Ontario

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2011) - SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to report on progress for the 2011 exploration program on Sparton's claims in the Atikokan Ontario gold area with Osisko Hammond Reef Gold Ltd. the operating subsidiary of Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX). The claims straddle Osisko's Hammond Reef Gold Project property which hosts a NI 43-101 compliant inferred resource of 6.7 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface. (See Sparton News release dated May17, 2011).


Osisko, as the program operator, has completed a significant portion of the comprehensive surface exploration program approved earlier by the project management committee. (See Sparton news release dated May 12, 2011). Approximately 2700 outcrops have been prospected and over 1400 whole rock samples have been taken on both the West Hammond and Clement Lake Claim groups. Assay results are available for about one third of these samples. To date, values up to 0.6 g/t Au were reported on the Clement Lake claims block.

To facilitate the prospecting and sampling 125 km of new grid lines were cut on the West Hammond claims. A basal till sampling program was also completed to explore till-covered areas representing potential extensions of known surface mineralization and to locate new mineralized zones.

A 27.5 line km soil sampling program is currently under way at the north end of the West Hammond Claim block in the Sawbill Grid Area where grab samples returned values ranging from 0.105 to 6.86 g/t Au. The mineralization is hosted in quartz veins at the contact between sheared altered volcanic and Marmion Batholith granitic rocks similar to mineralization found further southwest and on Osisko's Hammond Reef Property.

Similar mineralization has recently been located approximately 3 kilometres northeast of the South Silicified Zone. This zone is at least 300 metres long and extends from Osisko's property southwest onto Sparton claims. It is several meters wide and sampling assay results are pending. A spectral induced polarization survey is scheduled to begin shortly to trace this zone as well as locate others. Stripping and trenching are also being planned on some of these new occurrences.


Osisko expects to begin a 3000 metre drilling program this autumn that will initially focus on deeper drilling under the mineralization identified by Sparton at the south end of the West Hammond grid in the South Silicified and Stubby Zone areas.

At least 5 to 6 holes are planned to test the depth extensions of these wide zones of mineralization and alteration identified by Sparton's 2009 and 2010 drill programs. Drilling may also be done on the newly mapped mineralization located on the Sawbill Grid area and in other areas once the geochemical and geophysical surveys are completed and all assay data is available.


"Clearly these new results from the ongoing work at West Hammond by Sparton and Osisko indicate the potential for new discoveries in this emerging gold mining camp in the Atikokan area. We look forward to the new drilling program and additional positive results for the work completed to date. Osisko's Hammond Reef program, with over 15 drills operating in the property area, is one of the largest mineral development programs in North America" stated Lee Barker, Sparton's President and CEO. "We are committed to working diligently with Osisko to advance the potential of the Properties".

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.

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