SRI: TSX-Venture
   

News Release

July 11, 2006                                       
       

 

Sparton Begins Work Programs on Battle Mountain Area Nevada Gold Properties

   

 

RESULTS FROM LA JOSCA DRILLING IN MEXICO

NEW INCENTIVE OPTION

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") reported today, it has begun the summer field program on the 29 claim SBD Property ("SBD") in Lander County, Nevada, USA, near Battle Mountain (see news release dated June 22, 2006), and the Coal Canyon property near Lovelock.

The SBD claims comprise 29 lode claims covering approximately 2 square kilometres which are located in Section 20, Township 32N, Range 43E, approximately 10 km west of Battle Mountain. They are approximately 800 metres east of Newmont's Trenton Canyon open pit and approximately 6 km northeast of Newmont's new Phoenix Mine infrastructure. Glamis Gold's Marigold Mine is located about 5km to the north. The property is part of the general Phoenix (8.5 million ounces gold) development area, and within the prolific Battle Mountain - Eureka Gold Trend.

INDEPENDENT TECHNICAL REPORT RECOMMENDATIONS

The NI 43-101 compliant Independent Technical Report (the "Report") on SBD prepared by Arthur R. Leger P. G., a Nevada based consulting geologist provides recommendations for a work program budgeted at USD$450,000. The recommended work involves geophysics, geochemistry, and drilling. A total of approximately 25 line km of magnetic and CSAMT surveys are planned at SBD to define the structural corridors controlling the known gold mineralization and locate any structural intersections on the claims, such as those known to host higher grade gold zones in the general Battle Mountain area. The magnetic survey will help to define the location of any buried intrusives in the claim area similar to the nearby Trenton Canyon Stock which controls gold mineralization at Newmont's Trenton Canyon deposit located only about 800 metres to the west of SBD.

Three distinct gold zones are known at SBD and appear to be related to structures hosting intrusive rocks related to the Trenton Canyon Stock. Highlights of past drilling have been reported in previous Company news releases (March 22, 2006, June 22, 2006) and are summarized in the Report which is available on the Company website www.spartonres.ca.

COAL CANYON CLAIMS

Detailed surveys totalling approximately 10 line kilometres will also be completed on the Coal Canyon property which was acquired earlier in 2006 by the Company (see news release dated March 22, 2006). The Coal Canyon claims are located east of Lovelock in the West Humboldt Range of Pershing County. The property is southwest of Jipangu Inc.'s (formerly Appollo Gold) Florida Canyon Mine (over 1 million ounces produced), and the Willard and Rochester gold deposits. Previous exploration has outlined a north west trending 1200 metre by 250 metre soil and rock chip gold geochemical anomaly with values up to 3 g/t gold and associated anomalous values in arsenic, antimony and mercury. The zone is associated with a large coincident area of intense hydrothermal alteration with extensive jasperoid development in impure calcareous sediments intruded by felsic and mafic sills and dykes which appear to have been emplaced along thrust faults. A second parallel mineralized zone approximately 500 by 150 metres in size has been defined by recent mapping to the east of the main anomaly.

Sparton consultants recently visited Coal Canyon and samples taken have returned values of up to 2.6 g/t gold over narrow widths in altered material associated with the known structures.

A well defined structural intersection zone is interpreted to be centred on the claim group. No drilling has ever been done on the property since it was first identified by modern exploration in 1994.

These work programs at SBD and Coal Canyon are expected to take approximately 6 weeks to complete and results will then be compiled in advance of a drilling program which is planned for September of this year.

LA JOSCA DRILLING RESULTS MEXICO

Seven holes totalling 775 metres in length were completed at Josca and tested approximately a 600 metres section of the 1.1 kilometre long Josca structure. The structure was intersected in all holes and varies form 4 to 12 metres wide with local heavy sulphide mineral concentrations and silicification. The best results were 2.62g/t gold over 1 metre core length in Hole 7 and 1.12 g/t gold over a 1 metre core length in Hole 3. Minor base metal values are associated with these intersections. It appears that the gold may be hosted in secondary structures trending in a different direction to the main Josca structure and additional mapping and trenching will be required to establish this relationship. Drilling at the San Rafael Zone in the north part of the property has been postponed until later this year due to lack of water in the area.

OPTIONS

The Company also reports that, pursuant to the Company Stock Option Plan approved at the Annual General and Special Meeting of Shareholders held on June 22, 2006, incentive options to purchase a total of 810,000 common shares at a price of $0.21 and expiring on July 7, 2011, have been granted to Sparton's consultants, a Company director, and a consulting company controlled by a Company director.

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, and maintains a 12.5% interest is the south part of the undeveloped Chebucto natural gas discovery in offshore Nova Scotia Canada.

 

For further information on Sparton Resources Inc.

A. Lee Barker, President and CEO
Tel.: 416-366-3551
Fax: 416-366-7421
E-mail: info@spartonres.ca
Edward G. Thompson, Chairman
Tel.: 416-366-6083
Fax: 416- 366-2713
E-mail: egt@interlog.com

SPARTON RESOURCES INC. Company website: www.spartonres.ca
Listed:TSX Venture Exchange
Trading Symbol: SRI
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