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Sparton
Resources Inc. (TSX VENTURE:SRI)Sparton Resources Inc. (TSX
VENTURE: SRI) (the "Company")
reported today that it will proceed with a bulk uranium extraction test program
on coal ash from the Xiaolongtang ("XLT") Power Station in Yunnan, southwest
China (See news releases dated December 19, 2006, January
16, 2007, and April
4, 2007). The testing work will be done by the Beijing Number 5 Testing
Institute under the direction and supervision of the Company's process engineering
consultants, Lyntek Inc. of Denver, Colorado USA.
As previously reported, the early stage
testing of fly ash samples from XLT by Lyntek has indicated that the material
contains approximately 0.46 pounds of U308 per tonne of ash (160-180 parts per
million uranium), and that over 70% of this contained uranium is soluble in
acid extraction solutions. At current world U3O8 prices the value of the recoverable
uranium oxide in this material is over $US35 per tonne.
The bulk test work will
involve the processing of approximately 25-50 tonnes of fly ash from the XLT
power station and is expected to recover 3.5 to 7 kg of uranium oxide (yellowcake).
Laboratory scale testing will precede the bulk testing during preparation of
the testing facility at XLT. This bench scale work will refine the procedures
for the larger scale program. The over all program is expected to require 3-4
months to complete. Budgeting for the work is currently underway.
BEIJING NUMBER
5 TESTING INSTITUTE
This institute is one of the largest and comprehensive process
testing organizations and is fully licensed to undertake the testing and extraction
of radioactive materials from a wide variety of sources. It will be responsible
for organizing and executing the testing program under the direction of Lyntek's
process engineering specialists, and using procedures recommended by Lyntek.
The program is fully supported by CNNC the China national Nuclear Corporation,
Sparton's partner in the overall program to evaluate the extraction of uranium
from non conventional sources in PRC, and China Guodian Power Corporation the
owner of the XLT station.
DISCUSSION
The acceleration of the next phase to bulk
testing is a result of the positive extraction results reported earlier this
month. Bulk testing will speed up the time line leading towards a scoping or
pre-feasibility study level of technical evaluation. The bulk test work will
define the parameters for the possible commercialization of uranium extraction
at XLT. The XLT station has an accessible stockpile of stored fly ash containing
over 2.5 million pounds of contained U3O8 and is producing over 600,000 tonnes
of fly ash per year containing over 275,000 pounds of uranium oxide. The nearby
coal mine supplying the station has adequate coal to supply the station for
over 20 years at current boiler burning capacity.
Sparton's China based team
continues to obtain new samples of high uranium ash from other Chinese power
stations. A number of these have now been sent to Lyntek for preliminary uranium
extraction tests.
Once again Sparton's management and engineering team is extremely
pleased how rapidly progress has been achieved in this program.
The
commercialization of uranium extraction from readily available
coal ash or other waste material removes for the investor, many
geologic and other technical risks, high costs, and long and expensive
exploration, development and permitting times involved in conventional
uranium deposit discovery and production, particularly in remote
areas with no infrastructure.
The Company has now identified one readily available,
ongoing supply of high uranium waste material of similar uranium content
to many exploration projects currently in progress. It is fully confident
it will locate additional similar sources both in, and outside PRC. In reality,
future commercialization and production of much needed uranium as a source
of clean energy from these types of material can be accomplished much faster,
at far lower cost, and with more positive environmental impact implications
than new mine development.
Sparton's exploration and non conventional uranium extraction
programs in China and elsewhere are 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.
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