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Sparton Resources Inc.
(SRI) (the "Company") is pleased to announce that its 60% owned Chinese joint
venture company, Yunnan Sparton New Environ Tech Ltd. ("SNET") has signed a
Letter of Intent ("LOI") with the Fourth Institute ("FINE") of Nuclear
Engineering for the final engineering design and construction of a bulk sampling
plant to finalize a production flowsheet for processing uranium bearing waste
coal ash in the Lincang area of Yunnan Province of PRC. SNET is 30% owned by
ARCN the Remote Sensing Branch of the China National Nuclear Corporation
("CNNC") and 10% owned by Beijing John Hanseng Investment Company. |
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Lee Barker, Sparton's President with
it's partner and the Canadian Premiers at the event
in Beijing, China where the company signed the agreement |
FINE is also a CNNC subsidiary and is responsible for the design, permitting and
approvals of all uranium production facilities in China. The agreement was
signed on November 3, 2008 during the Ontario Environmental Trade Mission to
China lead by Ontario Premier Dalton McGuinty.
The LOI, with a total possible value of approximately 40 million RMB
(approximately USD$5.6 million) allows for the initial Phase I construction of a
semi-portable bulk sampling plant with a processing capacity of 10-15 tonnes
waste ash per day. Following completion of testing of a minimum of 500 tonnes of
uranium bearing ash and finalization of process flowsheet and design parameters,
the agreement calls for a Phase II program involving the final design and
construction of a production plant having a capacity of approximately 750 tonnes
of ash per day. Both a Phases will be expedited on a turn key basis by FINE.
The design flowsheets will incorporate technology for uranium recovery from
waste coal ash that has been patented by Sparton in China.
Elsewhere Sparton's wholly owned Yunnan subsidiary company Yunnan Blue Bay
Mining is moving forward with the acquisition of the initial 60 % interest in
the Huajun germanium operations at Lincang in Yunnan Province. The share
transfer process is currently underway and going through the approval process
with various government departments.
This agreement is believed to be unique in that it represents the first document
of its type where a foreign organization has contracted the construction of a
uranium recovery system in China. Sparton's reports and presentation on progress
in developing a secondary uranium recovery program in PRC was very well received
at the 2008 China Mining Conference held in Beijing from November 11-13, 2008.
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.
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