Sparton Signs Option Agreement To Evaluate Five Strategic Nevada Gold Properties.TORONTO -- TOTAL PROPERTY PACKAGE COMPRISES 82 LODE lode, deposit of ore. AND PLACER MINING placer mining: see mining. placer mining Oldest method of recovering gold from alluvial deposits. It takes advantage of gold's high density, which causes it to sink more rapidly from moving water than the lighter siliceous materials with which it is CLAIMS SIGNIFICANT GOLD MINERALIZATION Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. RECORDED ON THESE CLAIM GROUPS Sparton Resources Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:SRI) (the "Company") reported today, it has signed a due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. option agreement with the legal representative of Golden Phoenix USA, a company to be immediately incorporated in Nevada, ("GP") to evaluate GP's mineral lode and placer claim holdings (the "Nevada Properties') in Lander, Eureka and Esmeralda Counties Nevada, USA. GP's legal representative holds the properties under the terms of various lease agreements (the "Leases") from underlying owners of the claims. Under the terms of the option the Company has been granted by GP, the exclusive right for a 60 day period beginning January 16, 2006, to conduct a full evaluation of all technical information available for the claim groups, and to negotiate a subsequent agreement (the "Agreement") wherein Sparton may acquire up to a 100% interest in the Nevada Properties subject to any terms of the underlying Leases. The option period may be extended for subsequent 30 day periods by mutual agreement between GP and Sparton. The Company will pay GP the sum of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $15,000 for the initial 60 day option and USD $10,000 for any subsequent 30 day extensions. The terms of any final Agreement will be subject to the approval of the Boards of Directors of Sparton and GP, 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. , and any other regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities having jurisdiction over the transaction. THE NEVADA CLAIMS GP's holdings comprise a total of 82 claims (60 lode claims and 22 placer claims) in five separate, strategically located groups in Lander, Eureka, and Esmeralda Counties, the heart of Nevada's prolific current and past gold production, and ongoing new exploration and development projects by many major and junior companies. They include the SBD SBD - Smart Battery Data claims (29 lode claims), Goldwatch (1 lode claim), and Mule Claims (2 lode claims), the Kay claims 28 lode claims) and the 22 Placer group claims respectively. The 22 Placer claims may be converted to lode claims upon application. GOLD MINERALIZATION Partial exploration data for the various claim groups has been reviewed by Company management and is documented here. An independent, Nevada based consulting group has been engaged to review all available information and make an independent report to the Company during the option period. This work is currently underway and information reported here is based on data available to Sparton management at the time of signing the option agreement. SBD Claims The SBD 29 claim group is located in the Battle Mountain - Cortez gold area adjacent to the Newmont's Trenton Canyon pit and immediately south of the Glamis Gold Glamis Gold Ltd. was a Reno, Nevada based gold producer with operations in the Americas. In 2006 they expected to produce 620,000 ounces of gold at a total cash cost of US$190 per ounce. They remained 100% unhedged. On 31 August 2006, Goldcorp acquired Glamis Gold for $8. Ltd.'s Marigold marigold, any plant of the genus Tagetes of the family Asteraceae (aster family), mostly Central and South American herbs cultivated elsewhere as garden flowers. The two common species of marigold, both annuals, are distinguished as African, or Aztec (T. mine.. Newmont's Phoenix Project is 9 km south east of SBD and in part comprises the Fortitude Fortitude See also Bravery. Fratricide (See MURDER.) Asia despite torture, refuses to deny Moses. [Islam: Walsh Classical, 35] Calantha fulfills wifely and queenly duties despite losses. [Br. Lit. deposit which produced over 1 million ounces of gold from skarn skarn In geology, a metamorphic zone developed in the contact area around igneous rock intrusions when carbonate sedimentary rocks are invaded by and replaced with chemical elements that originate from the igneous rock mass nearby. type mineralization closely associated with 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 . Most of the adjacent area is also held by Newmont and is part of its general Phoenix development area. (8.5 million ounces of gold and 660 million pounds copper, based on Newmont public data). Exploration work on the SBD property by Echo Bay Mines Limited The Echo Bay Mines Limited company was organized in 1964 to develop a silver deposit at Great Bear Lake, Northwest Territories, which became known as the Echo Bay Mine. The company leased the old Port Radium settlement from Eldorado Mining and Refining Limited and used the old camp and Calneva Resources between 1992 and 1998 included over 14,000 feet of reverse circulation drilling in approximately 40 shallow angled drill holes which tested two parts of a 1500 metre long north trending zone of gold in soil and bedrock anomalies. Highlights of the drilling from currently available data, include intersections in 6 holes drilled by Echo Bay in 1993 as follows:
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HOLE INTERVAL (m) LENGTH (m) GOLD(g/tonne) REMARKS
NUMBER
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SBD12-93 3-6.5m 3 m 1.72 g/t North Zone
(141.6m)
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43.5-46.5 3 m 1.89 g/t
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49.5-56.0 6.5 m 0.65 g/t
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55.5-57.0 1.5 m 1.85 g/t
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69.0-76.5 7.5 m 2.64 g/t Includes 1.52m
of 8.82g/t
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108-111 3 m 0.93 g/t
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120-124.5 4.5 m 2.16 g/t
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SBD18-93 36-51 15 m 1.03 g/t South Zone
(150m)
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60-67.5 7.5 m 0.86 g/t
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SBD19-93 99-106.5 7.5 m 1.54 g/t South Zone
(190.5m)
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123-156 33 m 1.54 g/t
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163.5-165 1.5 m 1.65 g/t
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SBD21-93 192-195 3.0 m 1.54 g/t North Zone
(222m)
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204-207 3.0 m 0.51 g/t
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210-217.5 7.5 m 1.13 g/t
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SBD22-93 129-144 15 m 1.54 g/t North Zone
(222m) Includes 3.05m
of 4.90 g/t
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SBD23-93 11.5-16 4.5 m 0.82 g/t North Zone
(150m)
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(Data from Calneva Resources news release dated Sept. 27, 1993 converted from original imperial units to metric units) These holes vary from 65 to 250 metres apart testing the two zones, and all are inclined at -45 degrees to the east except SBD18-93 which is vertical. Holes SBD18 and SBD19 are 250 metres apart. Based on data reviewed to date there is no evidence of any significant detailed infill or follow up drilling having been done in this area, although limited additional drilling by International Calneva Gold from a 15 hole, 1250m program in 1996 reported similar results (company report, February, 1998). Preliminary metallurgical testing of oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. drill cuttings Drill cuttings typically refer to any solids removed from a wellbore while drilling. The term specifically refers to shale cuttings generated when drilling petroleum wells, and is usually removed by circulating the drilling fluid over shale shakers. (bottle roll tests) reported in Calneva documents indicate approximately 80% gold recovery for the oxide material tested, showing the suitability of this mineralization to heap leach recovery techniques. Kay Claims The 28 Kay claims are located 2 km northeast of Beowawe, about 6 km south of highway I-80 and 40 km southwest of the Newmont's Gold Quarry deposit.. Exploration, including drilling was undertaken in the claim area by Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Pacific Gold as part of its 'Bob Creek Project' in 1995-96. One drill hole (DBB DBB Deutscher Beamtenbund (German: National Union of Civil Servants) DBB Dynamic Bass Boost DBB Double Block & Bleed (valve) DBB Design Bid Build DBB Digital Baseband DBB DescentBB 018) reported 12.0 metres grading 1.10 grams gold per tonne near surface (Santa Fe report to Royal Gold Inc. June, 1996). No follow up drilling or geophysical exploration data have as yet been located for the area. This will be undertaken during the option period. 22 Placer Group This 6 claim area group encompasses a total of over 5 square miles (12 square km) covering the northeast trending zone hosting the Mule Canyon, Argenta and Fire Creek gold deposits. The Fire Creek Mine is located approximately 5 km west of the claim areas. The claims are largely overburden o·ver·bur·den tr.v. o·ver·bur·dened, o·ver·bur·den·ing, o·ver·bur·dens 1. To burden with too much weight; overload. 2. To subject to an excessive burden or strain; overtax. n. 1. covered and geophysical data will be required to fully evaluate their potential. The placer claims can be converted to lode claims by application if necessary and sufficient positive exploration data is generated. Goldwatch Claim This one claim is located in the historic Goldfield Goldfield, small town, SW Nev., a former gold-mining center. Gold was discovered there in 1902, and after an early period of disappointment, large yields of high quality gold were extracted. mining area of Nevada and was historically mined in the early 1900's. There are several mine dumps on this property, and the gold mineralization is associated with a large alteration area with strong structural control. There is no data available at this time indicating that any modern exploration activities have been completed. Mule Claims This 2 claim group is strategically located adjacent (south east) to the Cortez Joint Venture Horse Canyon Horse canyon is a small canyon near the town of Boulder, Utah. It is one of the three canyons which meet at a fork and turn in to Horse canyon, which is followed down to the Escalante River. Little Death Hollow meets up with Horse canyon about 5 miles in. mine. DISCUSSION Sparton views the potential acquisition of the Nevada Properties as major opportunity for the Company. Nevada is North America's most prolific gold producing area and major new discoveries continue to be made there on an ongoing basis. The GP property package represents an excellent combination of claim groups with known, but incompletely evaluated mineralization with grades similar to nearby producing operations (SBD, Kay), and unexplored, strategically located properties within known mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. trends, or nearby known deposits (Mule, Goldwatch, 22 Placer). The technical due diligence evaluation and acquisition negotiations are ongoing and will proceed as quickly as possible. Sparton's senior management have had considerable exploration and operating experience in Nevada with previous employers ( Duval-Battle Mountain Gold, Lacana Mining Corp.- Cordex Syndicates, Corona Corporation), and have been involved in numerous discoveries that led to successful gold producers being brought on stream. Sparton Resources Inc. is a diversified mineral exploration company, which has been an active participant in the Canadian junior resource sector for over 20 years. It holds a portfolio of Chinese, Mexican, U.S. and Canadian mineral exploration properties focussing on base and precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. , and maintains a 12.5% interest is the south part of the undeveloped Chebucto natural gas discovery in offshore Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography Canada. NOTE: The metric conversion for imperial measure assay data is one ounce per short ton equals 34.3 grams per metric tonne, and one foot equals 0.30 metres. The TSX Venture Exchange 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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