Sparton Resources Inc.

Sparton Resources Inc.

July 10, 2007 09:49 ET

Sparton Secures Exclusive Rights to Process Uranium Bearing Coal Ash From Yunnan Power Station in China


TORONTO, ONTARIO--(Marketwire - July 10, 2007) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") reported today that it has secured exclusive rights for its China based group to process all coal ash produced by, or in storage at the Guodian Xiaolongtang Thermal Power Plant in central Yunnan Province PRC. See earlier news releases dated April 23, April 4, and January 16, 2007.

Under terms of a confirmation letter from the China Guodian Xiaolongtang Power Plant ("XLT") , Sparton and its China partners, ARCN (the Airborne and Remote sensing Branch of the China National Nuclear Corporation) along with Beijing Sparton Minerals Company, have been given exclusive rights to utilize existing waste piles of ash, and ash produced at the XLT power plant for processing for uranium extraction. This right is subject to any production of uranium compounds complying with provincial and federal regulations related to such operations and XLT having ongoing rights to use the processed ash for its own commercial benefit. Following completion of the uranium extraction testing program currently underway, and receipt of any required production permits, XLT has also indicated an interest in becoming an equity participant in the commercial operation on terms to be negotiated and confirmed prior to production.


As reported previously, small ash samples from XLT were previously submitted to the Beijing Number 5 Institute for uranium recovery tests and the production of a small quantity of U3O8 material from the leach solutions. Previous test work by Lyntek in North America has successfully put up to 73% of the contained uranium in the ash into solution using acid leaching methods.

However, the Institute has now been requested to provide a proposal for design and construction of a portable bulk sampling pilot plant to be used for the larger scale testing of XLT ash, and larger samples are required. The smaller samples have been reshipped to Lyntek in Denver Colorado USA for this work. Large samples are now being prepared and sent to the Institute for the tests needed for the pilot plant design.


Historical records at the XLT station indicate there is an accessible dry waste pile containing approximately 5 million tonnes of fly ash immediately adjacent to the power station. Currently the station is producing 2000-2500 tonnes of new fly ash per day. Historical and recent analyses of the fly ash provided by XLT and verified in numerous analyses by the Company at laboratories both in China and Canada (SGS Lakefield) indicate the fly ash contains an average of approximately 160 ppm uranium or 0.42 pounds of U3O8 per tonne. It has now been learned that XLT did not use lime to control sulphur dioxide emissions until 2002, or 15 years after startup of the original burners in 1987. It is likely that the lower portions of the waste pile will not contain an excess of lime, thus reducing the acid consumption and overall cost of extracting uranium from this part of the accessible waste material. A drilling program will begin shortly to systematically test the waste pile in order to establish the actual tonnage and volume of the waste material available, its uranium content and bulk chemistry. An independent technical report will be written on this program following its completion to verify the results, and the daily ash production from the plant. Leaching tests, including lab scale heap leach simulations will also be done on the samples taken from the waste pile to establish if this low cost technique is a viable processing alternative for future uranium production.


As the first foreign member of the newly formed China New Energy Advisory Council of the All China Federation for Industry and Commerce, Sparton has been asked to provide comments to the Legislation Committee of the National People' Congress on the newly drafted "China Energy Conservation Law" currently being formulated by the Chinese Central Government. This new legislation is designed to provide directives and incentives to all parts of Chinese society, state and private, as well as commercial and industrial consumers, for the more efficient use of existing and future power supplies. As well, it will encourage new forms of alternative energy to be developed in China, including clean, emission free nuclear power generation. The Company's brief, which will be submitted shortly, will stress a more efficient approach to power consumption using such methods as off peak load use by heavy industry. Recommendations will also be made to encourage development of smaller, efficient, local power generation centres in remote areas using hydro, solar and wind power options. For the future it will be necessary to reduce the overall amount of power produced by fossil fuel combustion to meet the long term pollution reduction goals and make a transition into a higher amount of energy generation overall using non green house gas producing methods.

Sparton's international exploration 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of the content of the information contained herein.

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