Sparton signed an option agreement in March 2004 with Northair Mines Ltd. giving Sparton the right to earn a 51% interest in the Sierra Rosario project. At least six gold and silver occurrences discovered by Northair staff occur within the property.

The project covers 500 hectares in the Sierra Madre Occidental Mineral Belt of Sinaloa Province in northern Mexico , approximately 25 kilometres northwest of the town of Choix ; and 40 kilometres east of the town of Alamos . Both areas have a strong precious metals mining history.

Northair geologists were initially introduced to the area by local prospectors and artisanal miners known as “gambusinos”, who have historically produced placer gold from a number of drainages down slope from, and within the claims. A 1.5 kilometre long portion of a main drainage within the property contains dozens of historic placer gold workings, and most of the smaller drainage areas within the southern portion of the property are also reported to contain placer gold. Gambusinos have also produced gold from residual soils and colluvium in this southern area, suggesting that underlying mineralized bedrock may be the source for the production.

Sparton's first work program on the property was completed in 2005 and consisted of the collection of 565 soil and stream sediment samples, 60 rock and chip samples and approximately 20 line kilometres of electrical and magnetic geophysical surveys.

High grade gold-silver mineralization was explored in three zones on the property.

In the Las Tahunas zone, a distinct electrical anomaly (VLF) approximately 200 metres long, was located along strike with mineralization found in a trench near high grade (up to 33 gpt gold) mineralized boulders associated with old mine workings. Further trenching will be required to better expose the mineralization.

The La Josca zone is in the south central part of the property. In 2005 Sparton traced the La Josca shear zone for about 1100 metres. It contained coincident soil, rock chip samples anomalous in silver, gold and base metals, and geophysical (VLF and magnetics) anomalies. The eastern part of the zone had been accessed by two short tunnels in the past.

The mineralized zone has been extended beyond 1.1 kilometres in strike length. It varies in width from 8 to 30 metres and is characterized by a wide pyritic gossanous zone with strong silicification and quartz veining. Grab samples assayed up to 1.8% copper; gold values varied from 1.0 to 16 gpt gold.

Seven holes totalling 775 metres drill tested a 600 metre section of the La Josca structure in the spring of 2006. The structure was intersected in all holes over widths varying from 4 to 12 metres. The best assay results were 2.62 gpt gold over 1 metre core length in hole 7 and 1.12 gpt gold over 1 metre core length in hole 3.

Work is now focussed on the San Rafael Zone in the northern part of the property. It contains strong gold-silver mineralization in a rhyolite porphyry that has been traced on surface for over 150 metres. The alteration at San Rafael measured approximately 250 by 120 metres, but the associated magnetic anomaly of the mineralized area and intrusive body is over 400 by 200 metres in area. Samples from a mine dump near old workings produced assays averaging 146 gpt silver, 0.71 gpt gold, and 0.2% copper from a total of 105 samples collected by Sparton in 2005.

During Q1 2007 road access to San Rafael will be established from the existing road to the La Josca Zone. Once this is completed and a water source located a drill program will be organized to test the targets in the San Rafael area. At least 1000 metres will be required to properly evaluate the known zones.