Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

January 05, 2007 09:01 ET

Sparton Receives Geophysical Results From SBD Property in Battle Mountain Area, Nevada

At Least Six High Priority Target Areas Identified Drilling Planned in Q1 2007

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2007) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that it has now received final results for the geophysical surveys recently completed over the SBD Gold Property in the prolific gold producing Battle Mountain area of Nevada, USA.

Over 23 line kilometres of detailed CSAMT (Controlled Source Audio Magneto Telluric) and ground magnetic surveys were completed over the entire claim group late in 2006 by Quantech Geoscience of Reno, Nevada. These types of surveys have not been previously done on the property and are used to identify features related to gold mineralization found by previous exploration and also to locate new target areas. Lines were surveyed in both north south and east west directions to allow interpretation structural zones in all directions and locate structural intersections which are important gold hosts in the area. The work has been successful in locating a number of excellent well defined low resistivity anomalies (conductive zones) that have not been previously drill tested. The work also highlighted similar conductive anomalies associated with the three main zones of gold mineralization previously discovered.

Until Sparton began its work program in mid 2006 no new work had been done at SBD since 1997. (See Company News Releases dated March 22 and July 11, 2006)

In addition to the encouraging resistivity data, a well defined magnetic anomaly approximately 800 metres by 600 metres in size has also been identified in the south west part of the claim area. This is likely related to a group of intrusive rocks, some of which were intersected as dykes in previous drilling. These rock types are considered important gold hosts or have a close relationship to gold and associated copper mineralization in the immediate Battle Mountain area. In this part of the Battle Mountain Trend gold mineralization is either directly related to intrusive rocks or their contact zones. These intrusives may be either buried or may come to surface as smaller dykes or intrusive sills. Several of the conductive (low resistivity) zones are closely associated with the margins of this magnetic feature.

For comparison Newmont's nearby Trenton Canyon Mine (approximately 250,000 ounces gold produced) is less than 800 metres to the north west of the SBD claim boundary, and there, gold mineralization is directly related to the Trenton Canyon Stock. At the Fortitude skarn type Gold Deposit about 6 km to the south (approximately 1.9 million ounces gold produced) mineralization is directly associated with the contact zone of a granodiorite intrusion and favourable sedimentary rocks. This is part of Newmont's general Phoenix Mine development and production area with reported reserves in 2004 of 8.5 million ounces of gold and 660 million pounds of copper (Newmont published information).

DISCUSSION OF RESULTS

Four new significantly conductive areas have been highlighted in the central part of the claim area. These appear to represent buried targets and there are indications of associated rock alteration including mapped silicification and iron oxide development in the geological database for each of these zones. They vary in size from 300 metres long by 50 metres wide to about 900 metres long and over 100 metres wide. None have been previously drill tested.

As well, the known gold zones in the western part of the SBD claim area (Stibnite, West and South Gold Zones) are all associated with conductivity trends and structural intersection zones that are incompletely tested.

The South Gold Zone, where past drilling by Echo Bay Mines Limited had intersected two zones of 8m of 1.54g/t and 33 m of 1.54g/t gold in drill hole number 19-93 is associated with a conductivity zone nearly 900 metres long. It is located at the south west margin of the large magnetic feature and known gold mineralization from past drilling is known to be associated with intrusive dykes. The intersections in hole 19-93 were never followed up and several nearby holes in the area were drilled vertical with little chance of intersecting near vertical structures, or they were located away from the conductive zone found in the current program. Several other shallow holes drilled by Sante Fe Pacific (now Newmont) in this area also intersected highly anomalous gold values adjacent to intrusive rock dykes (0.5 to 0.8g/t gold over 5-20 metre widths) but were not followed up.

ONGOING WORK

Following completion of data interpretation a drilling program is expected to begin in about 6 weeks time to test various new target areas and further define the mineralization previously located. It is expected an initial core drilling program will be used to test the known zones and better understand the geological controls of the gold mineralization. This will be followed by reverse circulation drilling as follow up. Negotiations are underway with various drilling contractors in the area, permit applications are nearly completed and approvals expected shortly.

"We are very encouraged by these results, especially the identification of the new zones which have had no previous drilling", commented A. Lee Barker Sparton's President. "This key property has essentially remained completely dormant for nearly 10 years during the slump the gold market and our systematic approach using up to date exploration technology has certainly proven that there are new targets to be found along the Fortitude -Trenton Canyon structural corridor. We certainly look forward to success in the upcoming drill program".

Maps showing the anomalous areas will be available shortly on the Company website www.spartonres.ca.

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