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Sparton
Resources Inc. (TSX VENTURE:SRI) (the "Company")reported
today that it has secured exclusive rights for its China based
group to process all coal ash produced by, or in storage at the
Guodian Xiaolongtang Thermal Power Plant in central Yunnan Province
PRC. See earlier news releases dated April 23, April 4, and January
16, 2007.
Under
terms of a confirmation letter from the China Guodian Xiaolongtang
Power Plant ( “XLT”) , Sparton and its China
partners, ARCN (the Airborne and Remote sensing Branch of the
China National Nuclear Corporation) along with Beijing Sparton
Minerals Company, have been given exclusive rights to utilize existing
waste piles of ash, and ash produced at the XLT power plant
for processing for uranium extraction. This right is subject to
any production of uranium compounds complying with provincial and
federal regulations related to such operations and XLT having ongoing
rights to use the processed ash for its own commercial benefit.
Following completion of the uranium extraction testing program
currently underway, and receipt of any required production permits,
XLT has also indicated an interest in becoming an equity participant
in the commercial operation on terms to be negotiated and confirmed
prior to production.
TESTING PROGRAM UPDATE
As reported previously, small ash samples from XLT were previously
submitted to the Beijing Number 5 Institute for uranium recovery
tests and the production of a small quantity of U3O8 material from
the leach solutions. Previous test work by Lyntek in North America
has successfully put up to 73% of the contained uranium in the
ash into solution using acid leaching methods.
However, the Institute has
now been requested to provide a proposal for design and construction
of a portable bulk sampling pilot plant to be used for the larger
scale testing of XLT ash, and larger samples are required. The
smaller samples have been reshipped to Lyntek in Denver Colorado
USA for this work. Large samples
are now being prepared and sent to the Institute for the tests
needed for the pilot plant design.
WASTE
PILE DRILLING PROGRAM
Historical records at the XLT
station indicate there is an accessible dry waste pile containing
approximately 5 million tonnes of fly ash immediately adjacent
to the power station. Currently the station is producing 2000-2500
tonnes of new fly ash per day. Historical and recent analyses
of the fly ash provided by XLT and verified in numerous analyses
by the Company at laboratories both in China and Canada (SGS
Lakefield) indicate the fly ash contains an average of approximately
160 ppm uranium or 0.42 pounds of U3O8 per tonne. It has now
been learned that XLT did not use lime to control sulphur dioxide
emissions until 2002, or 15 years after startup of the original
burners in 1987. It is likely that the lower portions of the
waste pile will not contain an excess of lime, thus reducing
the acid consumption and overall cost of extracting uranium from
this part of the accessible waste material. A drilling program
will begin shortly to systematically test the waste pile in order
to establish the actual tonnage and volume of the waste material
available, its uranium content and bulk chemistry. An independent
technical report will be written on this program following its
completion to verify the results, and the daily ash production
from the plant. Leaching tests, including lab scale heap leach
simulations will also be done on the samples taken from the waste
pile to establish if this low cost technique is a viable processing
alternative for future uranium production.
SPARTON REQUESTED
TO PROVIDE COMMENTS ON
NEW CHINA ENERGY CONSERVATION LEGISLATION
As the first
foreign member of the newly formed China New Energy Advisory
Council of the All China Federation for Industry and Commerce,
Sparton has been asked to provide comments to the Legislation
Committee of the National People' Congress on the newly drafted “China
Energy Conservation Law” currently being formulated by the Chinese
Central Government. This new legislation is designed to provide
directives and incentives to all parts of Chinese society, state
and private, as well as commercial and industrial consumers, for
the more efficient use of existing and future power supplies. As
well, it will encourage new forms of alternative energy to be developed
in China , including clean, emission free nuclear power generation.
The Company's brief, which will be submitted shortly, will stress
a more efficient approach to power consumption using such methods
as off peak load use by heavy industry. Recommendations will
also be made to encourage development of smaller, efficient,
local power generation centres in remote areas using hydro, solar
and wind power options. For the future it will be necessary to
reduce the overall amount of power produced by fossil fuel combustion
to meet the long term pollution reduction goals and make a transition
into a higher amount of energy generation overall using non green
house gas producing methods.
Sparton's international exploration
and evaluation programs are being 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. FOR FURTHER INFORMATION PLEASE CONTACT:
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