Sparton Resources Inc.: Blizzard Uranium Project Title Dispute Settled.TORONTO -- Sparton Resources Inc., ("Sparton")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:SRI)(the "Company") announced today a settlement of the title dispute which had delayed the implementation of a technical program to evaluate the amenability of developing the Blizzard blizzard, winter storm characterized by high winds, low temperatures, and driving snow; according to the official definition given in 1958 by the U.S. Weather Bureau, the winds must exceed 35 mi (56 km) per hr and the temperature 20°F; (−7°C;) or lower. Uranium deposit, in the Greenwood Mining Division of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , using low environmental impact in situ In place. When something is "in situ," it is in its original location. solution recovery methods. Details of the settlement are reported in today's new release by Santoy Resources Ltd. ("Santoy")(TSX VENTURE:SAN) which is available on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review and the Sparton and Santoy websites. The information is summarized here. As a consequence of this agreement, Sparton will now receive $50,000 dollars cash (paid prior to the settlement), 1 million Santoy Common Shares, and 1 million Santoy share purchase warrants (exerciseable at a price of $0.75), and will be eligible to receive a production royalty of $0.30 per pound of uranium produced from the Blizzard Deposit. The transaction involves the consolidation of all Blizzard interests into a public company (Boss Gold International, "Boss"), which will issue various amounts of its shares, cash and other considerations amongst the settlement parties. Boss will then hold Blizzard as its main asset and assume the responsibility of financing and implementing the technical evaluation The study and investigations by a developing agency to determine the technical suitability of material, equipment, or a system for use in the Military Services. See also operational evaluation. of the Blizzard project and any obligations (such as the Sparton royalty) arising out of the settlement. A large claim package surrounding the Blizzard deposit will also become part of the Boss holdings. Sparton's senior management were closely involved with the original discovery and development of Blizzard and will continue to provide advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to Boss going forward. The Blizzard Deposit The Blizzard Uranium deposit was discovered by Lacana Mining Corporation in 1977-8 and is a "basal-type", hydrogenic uranium deposit hosted in an old stream channel. A total of 21,184 metres of drilling in 478 reverse circulation and diamond drill holes were completed on the deposit. In August 1979 Kilborn Engineering issued an Engineering Feasibility Study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. based on the extensive drilling and engineering studies on behalf of a joint venture comprised of Norcen Energy Resources, Lacana Mining Corporation, Campbell Chibougamau Mines, E & B Explorations and Ontario Hydro Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies . The drilling information was used to estimate an historic resource reported by Norcen, of 2,200,000 tonnes grading 0.214 percent U308, using a cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, grade of 0.025% U308 and including 15% mining dilution (for an estimated 10.4 million pounds of U308). A technical report (the "Technical Report") was prepared by Dr. Peter A. Christopher, PhD, P.Eng, ("Christopher") a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), and dated August 31, 2005 and filed by Santoy on SEDAR. This report is also available on the Sparton Website. Kilborn's 1979 feasibility study provided historic reserve estimates were converted by Christopher to an indicated and inferred resource to reflect current usage and conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the more stringent reporting requirements of NI 43-101 as follows: Blizzard Deposit Historic Indicated and Inferred Resources(i) for Blizzard Deposit after Kilborn (1979)
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Category Tonnes Grade % U3O8 "Contained Kg
(%U3O8)"
Kilborn/1979)
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INDICATED(ii) 1,914,973 0.247(iii) 4,728,428
INFERRED(ii) 4,685 0.162(iii) 7,595
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(i) Reported as Reserves but rules dictate classification as
resources
(ii) Indicated and Inferred Reserves were converted to Indicated and
Inferred Resources
(iii) Rounded to 3 places
Dr. Christopher Dr. John R. Christopher, known popularly as "Dr. Christopher" was one of very few nationally prominent doctors of herbal medicine of the middle third of the 20th century, a "dark ages" of herbalism and was responsible for the herbal renaissance of the 1960s. had access to all historical data including drill logs and historical feasibility studies as prepared by Kilborn (1979). The deposit is interpreted to have been formed by the concentration of uranium minerals leached from nearby highly radioactive intrusive rocks (Geol.) rocks which have been forced, while in a plastic or melted state, into the cavities or between the cracks or layers of other rocks. The term is sometimes used as equivalent to plutonic rocks ltname>. It is then contrasted with effusive or volcanic rocks. See also: Intrusive and deposited in an old riverbed channel, which was preserved from glacial erosion by a cover of younger volcanic rocks rocks which have been produced from the discharges of volcanic matter, as the various kinds of basalt, trachyte, scoria, obsidian, etc., whether compact, scoriaceous, or vitreous. See also: Volcanic . The estimate cited above predates and therefore does not conform to the more stringent reporting requirements of NI 43-101 and thus should not be relied upon according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. these standards; however, while the drill and assay data have not subsequently been verified, Sparton believes that the calculations are a favourable indication of the potential of the deposit and are therefore relevant to this news release. A geological evaluation of the project can be found in the Technical Report. The deposit may be amenable to exploitation by widely used, low environmental impact, in situ solution recovery processes ("ISL ISL - Interface Specification Language. Xerox PARC. Interface description language used by the ILU (Inter-Language Unification) system. Includes descriptions of multiple inheritance, exceptions and garbage collection. E-mail: Bill Janssen <janssen@parc.xerox.com>. " recovery) involving only minimal surface disturbance. The Kilborn feasibility study did not consider ISL as an extraction option and was based on the application of a conventional open pit mining method. Evaluating the use of ISL recovery methods for Blizzard will be the focus of the Boss program going forward. Relevant History On June 13, 2005, the Company and Santoy announced that they had each acquired a 50% initial interest in the Blizzard Uranium deposit in an option agreement with Adam Travis, an independent prospector. As stated in a news release August 9, 2005, this option agreement was amended and Santoy acquired all of Sparton's interest in the Blizzard Uranium deposit in return for issuing to Sparton 1 million common shares and 1 million share purchase warrants (exercisable at $0.75) of Santoy, $50,000 cash, the assumption of all of Sparton's obligations under the option agreement and a production royalty of $0.30 per pound of uranium. As indicated in a Santoy news release dated September 28, 2005, notice was filed with the Gold Commissioner, under the Mineral Title Act by a previous property owner, claiming superior right, title and interest to the Blizzard Uranium deposit. The settlement agreement reported today represents an agreement by all parties involved to resolve all title issues related to Blizzard and cooperate in the ongoing financing and technical evaluation for the possible development of the deposit. Sparton's management is extremely pleased with this settlement and looks forward to the longer term evaluation and exploration program of the Blizzard deposit and area. Advances in technology and processing methods involved in ISL recovery techniques will be important factors in the ultimate development of the property. This work will be planned using the strictest environmental standards including an initial stringent baseline monitoring program. Visit the Company's website at: www.spartonres.ca The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept resp onsibility for adequacy or accuracy of the content of the information contained herein. Sparton Resources Inc. (TSX VENTURE:SRI) |
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