|
Sparton Resources Inc. (SRI) (the "Company")
announced today that it has executed option agreements with a group of
independent prospectors (the "Vendors") for two large claim groups
located in northern Ontario. These represent a total of 437 claim units
covering over 6800 hectares of favourable structural zones, new and
historic gold showings and drill targets. Known as the West Hammond
Contact ("WHC") and Clement Lake ("CL") properties, they are located
contiguous to the large claim holdings of Brett Resources Inc.
("Brett"), approximately 25 km. north of the town of Atikokan.
Recent Brett news releases have reported that the
Hammond Reef deposit, located on its property contains an inferred
resource (NI 43-101 compliant) of 4.8 million ounces of gold, (141.5
million tonnes at 1.05 grams per tonne Au).
OPTION TERMS
Under the terms of the option agreements Sparton will
earn a 100% interest in the claims by making total cash payments of
$500,000 ($65,000 on signing) and issuing 1.5 million common shares (
335,000 on signing) to the vendors over a 4 year period. Once fully
vested, each of the properties will be subject to payment of a 2% net
smelter return production royalty ("NSR"). One half of this NSR may be
purchased at any time after completion of a feasibility study on either
property for the sums of $1,750,000 on the WHC claims and, $1,500,000
on the CL claims respectively. After the end of the fourth year, if
Sparton has fully vested its interest in either or both of the
properties, the WHC and CL claims will be subject to advance annual
royalty payments of $60,000 and $40,000 respectively.
SPARTON PROGRAM
Prior to entering into these agreements Company staff
and consultants conducted a due diligence program including field
examinations, sampling, and a review of available information for the
Brett Hammond Reef Deposit. Several exciting new showings located by
the Vendors on the optioned claims were also examined and sampled.
The Hammond Reef style of mineralization is somewhat
unique and mostly unrecognized in the Canadian Shield. Hosted in
granitic rocks of the Marmion Batholith, and lower in average grade
than more common vein type gold deposits found in traditional mining
camps, Hammond style mineralization is continuous, uniform, occurs in
wide structural zones and is amenable to low cost bulk mining and
processing. The Brett Hammond Reef deposit appears to be open to
expansion in all directions. For example, drilling information on the
Brett Website has reported an intersection of 1.02 g/t gold over 267
metres in drill hole BR-65. Surface alteration is subtle and overall
sulphide content is less than 1% making this type of mineralization a
difficult prospecting target. Hammond Reef was only recognized as a
large, potentially bulk mineable deposit in the early 1980s and its
true size potential was not fully defined by drilling at that time due
to low gold prices.
There are numerous known historic gold occurrences that
were developed in the area prior to, and in the early 1900's. These
tended to follow high grade but small and discontinuous quartz vein
systems associated with silicified shear zones in the granites and
lower grade mineralization marginal to the veins was of no interest.
HWC CLAIMS
The West Hammond Contact claim group (287 units) is
contiguous to, and west of the Hammond Reef deposit. It covers a 20km
long contact between the Marmion Batholith and the Finlayson Volcanic
Belt. This contact zone is altered and sheared and limited surface
prospecting has located at least three new showings with Hammond style
mineralization, and there are two known historical gold zones located
on the claims. The newly discovered Stubby, Broken Bottle, and D2008
zones (located along a 12 km length of the contact) were sampled by
company staff and local prospectors. Stubby is a northeast trending
zone hosted in sheared and carbonate altered granite with a stockwork
of narrow quartz veins. It is exposed for a 100 metre strike length,
and is at least 15 metres wide.
Eight grab samples of typical Stubby mineralization
taken by Sparton staff and analysed by ALS Chemex returned values
ranging from 0.31 g/t gold to 9.81 g/t gold. Two selected samples of
Stubby vein material containing visible gold gave analyses of 28 and 48
g/t gold respectively. Mineralization and alteration seen and sampled
at Stubby is very similar to that seen in the Hammond Reef deposit
exposures. A second showing in sheared altered granite and along strike
from Stubby known as the Broken Bottle zone was also sampled and
results are pending. The D2008 zone near the granite - volcanic contact
contains sheared and altered volcanic material with disseminated
pyrite. Assays of several grab samples returned results of up to 3.0
g/t gold. With additional surface work Stubby certainly will become an
excellent drill target. All of the other known zones will be subjected
to stripping and more detailed sampling and a comprehensive surface
prospecting program is planned for the claims. The historical Burrill
and Burrex zones will also be thoroughly evaluated in this work.
CL PROPERTY
The 150 unit Clement Lake claim group is located
southeast, and contiguous to the Brett claim group. It is completely
underlain by granitic rocks of the Marmion Batholith. Satellite image
analysis indicates that the claim area covers several northeast
trending structural linear features similar to the one hosting the
Hammond Reef deposit. There has been little or no historical
prospecting done in this area for Hammond style gold mineralization.
The claims are accessible and a detailed prospecting program will begin
in August, 2009.
It is also expected that once initial detailed mapping
and sampling are completed on the WHC block that a drill program will
be undertaken late in 2009. The Company believes that the unique
Hammond style of gold mineralization represents a new and important
exploration target in the huge, completely under explored areas of
granitic rocks in the Canadian Shield.
Sparton's international exploration, development, 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.
|
