Sparton Resources Inc.

Sparton Resources Inc.

September 30, 2010 12:19 ET

Sparton Reports Results from Summer Exploration, Atikokan Gold Area, Ontario; Four New Gold Zones Located

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce the results from its recent summer exploration program on its extensive claim area covering the Marmion Batholith and its contact zones in the Atikokan area of Ontario. The land position straddles Osiko Mining Corporation's property which hosts the + 6.7 million ounce Hammond Reef gold deposit. Sparton's summer program consisted of reconnaissance mapping and prospecting and has highlighted several new gold zones with values of up to 4.51 g/t Au including a new broad area of alteration and gold mineralization called the Sawbill Road Zone.

The work was completed in mid September, consisted of reconnaissance sampling, mapping and prospecting to cover unexplored areas of Sparton's strategically located claim position (7,664 hectares) surrounding Osisko's property. Four new gold zones were found on the West Hammond Contact claims along a strike length of over 20 kilometers. The gold zones sit along a major altered auriferous shear zone marking the contact between the intrusive rocks of the Marmion Batholith and volcanic rocks of the Finlayson Greenstone Belt. This shear zone is several hundred meters wide and is semi continuous over the entire length of Sparton's claims which cover a 25 kilometer strike length of this contact. 

The four new zones are:

  1. Silicified Zone Area: This zone was found by prospecting last year and shallow drilling in early 2010 by Sparton outlined a 100 meter wide altered mineralized zone similar in many ways to Osisko's Hammond Reef Deposit style of mineralization. The best intersection was 0.34 g/t Au over 39.4 meters section with numerous higher internal values of up to 8.48 g/t gold over 1 metre widths. This summer the grid covering this zone was extended and mapping outlined a parallel zone some 300 meters north of the silicified zone where grab samples returned up to 4.51 and 1.24 g/t gold.
  1. Sawbill Road Zone: Ten grab samples were taken from four separate locations over an area 1.3 kilometers long and 400 meters wide all returned anomalous gold values of up to 0.50 g/t Au. This mineralizaton was discovered in an area of recent new road construction by Osisko near their Sawbill Bay drill camp.
  1. South Raft Lake Road: This area is some 6.5 kilometers northeast of the Silicified Zone, and is on strike. Several grab samples returned up to 0.37 g/t Au.
  1. North Raft Lake Road: This zone is 1.5 kilometers southwest and on strike with the + 6.7 million ounce Hammond Reef gold deposit. Grab samples returned 0.27 and 0.24 g/t Au.


Values of 0.25 g/t Au and higher are considered very encouraging in this area when assessing the unique style of Hammond Reef gold mineralization. Osisko and its independent consultants have used a 0.3 g/t Au cut-off grade for published resource calculations at the Hammond Reef deposit.

These new gold zones outlined by basic prospecting have opened up new areas for follow up and subsequent detailed exploration work. Sparton is preparing to enter into a fall follow up program and detailed work to outline new drill targets in these and other areas. Additional deeper drilling is also planned for the Silicified Zone area where the past drill program clearly showed grade and width improvements with depth, similar to the Hammond Reef mineralization.

"Work by Sparton only started less than one year ago and we have been impressed by the number and size of the new gold zones we have found in such a short period of time" stated Lee Barker, Sparton's President and CEO. "We have strong hopes for this property in what appears to be a new emerging gold camp. It's a completely different style of gold occurrence for Archean deposits and with the help and direction of our project manager Denis Villeneuve P. Geo., who was responsible for the early work for Brett Resources at Hammond Reef, we possess an excellent understanding of this new model for gold mineralization and believe we have a clear competitive advantage in understanding and exploring for this style of gold deposit". 

Barker further added: "Osisko currently has over 15 drills operating on their property and it is obvious that there is a serious commitment to developing both the Hammond Reef deposit itself and conducting new exploration on their claim area. We believe Sparton has the best strategic property position in the area and the current success in locating new gold zones after a very short time is very encouraging".

Sparton Resources Inc. is a Canadian mining and exploration company focussed on gold exploration in Canada. It is also presently operating (through its subsidiaries) a producing germanium mine in China, and developing secondary uranium recovery businesses in China and Canada from radioactive waste such as coal ash, mine waste and tailings, and other types of material.

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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