TORONTO, ONTARIO -- (Marketwire) -- 11/17/11 -- SPARTON RESOURCES INC. (TSX VENTURE: SRI), (the "Company') is pleased to announce the start of a 3,300 meter drill program on its Hammond Gold Area Properties, near Atikokan, Ontario, which are currently joint-ventured with Osisko Mining Corp. ("Osisko") (TSX: OSK)(FRANKFURT: EWX). (See Sparton News Release dated March 21, 2011).
Sparton's claims straddle Osisko's Hammond Gold Project property, which hosts a NI 43-101 compliant global inferred resource of 10.52 million ounces gold. (See Osisko News Release dated November 8, 2011).
Osisko has confirmed that the diamond drilling program will commence towards the end of November 2011, and will focus on the West Hammond claim area. Access roads and drill site preparation have been completed and equipment is being mobilized to the area. Initially, 6 to 8 holes are planned, for a total of approximately 3,300 meters. These are designed to follow-up, at depth, the earlier discoveries by Sparton at the south end of the West Hammond claim block, where several wide, shallow, gold intersections were found in past drilling. These include 0.74 gm of gold over 14.8 meters and 0.80 gm of gold over 7.5 meters (See Sparton Press Release dated March 1, 2010).
The mineralization in these holes is hosted in a 50-200 meter wide zone of highly sheared, silicified and mineralized granitic rocks with variable amounts of altered intercalated mafic and intermediate volcanic material. This style of mineralization is similar to that of the Osisko Hammond Reef Deposit.
Osisko, as the program operator, has completed a comprehensive surface exploration program, approved earlier by the project management committee. Approximately 2,700 outcrops were prospected and over 1,400 whole rock samples have been taken on both the West Hammond and Clement Lake Claim groups. To facilitate the prospecting and sampling, 125 km of new grid lines were cut on the West Hammond claims.
A 27.5 line km soil sampling program was also carried out to cover new occurrences found 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. An induced polarization survey and ground magnetic survey were also completed in the southern portion of the same claim block. Targets generated by this work may be considered for drilling as well.
The work being carried out by Osisko is part of a $12 million earn-in, of which the initial year's expenditure was to be a minimum of $1 million dollars. The parties have recently agreed to extend the expenditure period for a further 120 days, to March 10, 2012, and the subsequent annual expenditure periods from November until the respective year ends.
Sparton Resources Inc. is a Canadian mining and exploration company focused 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 there from radioactive waste such as coal ash, mine waste and tailings, and other types of material. It is also developing a world class vanadium resource in southern China.
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.
Contacts:
Sparton Resources Inc.
A. Lee Barker
President and CEO
416-366-3551 or Mobile: 416-716-5762
416-366-7421 (FAX)
info@spartonres.ca
Sparton Resources Inc.
Edward G. Thompson
Chairman
416-366-6083
416-366-2713 (FAX)
egt@interlog.com
www.spartonres.ca
