| | Published : August 04th, 2010 | Finalizes initial Acquisition Phase of Guojiaping Vanadium-Uranium Project in Southeastern China/ In |
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New - Interview- July 13, 2010
Interview of
Lee Barker, Sparton's President by Michael Vaughan, Financial Journalist
- click image
at left
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August 3, 2010
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SPARTON
RESOURCES INC.
SPARTON FINALIZES INITIAL ACQUISITION PHASE OF GUOJIAPING
VANADIUM-URANIUM PROJECT IN SOUTHEASTERN CHINA
INDEPENDENT TECHNICAL REPORT COMPLETED
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Sparton Resources Inc. (SRI: TSX-V) (the
"Company")announced today that it has exercised its option
to complete the initial acquisition phase of a 65% interest
in the Guojiaping Exploration Licence in Jiangxi Province, China which
contains a significant vanadium deposit and several zones of uranium
mineralization. Completion of this transaction followed receipt and review of
a positive National Instrument 43-101 compliant Independent Technical Report
by Quest Geological Consultants of Reno Nevada USA, for the Guojiaping
Project.
Sparton subsidiary Yunnan Sparton EnvironTech (?YSET?) has made an initial
payment of 3 million RMB (approximately CAD $450,000) to Team 267 of the
Exploration Bureau of the Jiangxi Nuclear Industry (?267?) which holds, and
has completed the initial evaluation of the Guojiaping Exploration Licence.
ABOUT VANADIUM
Vanadium is a specialty metal most well known for its alloying qualities
and use in making specialty steels. However it is now seeing increasing
uses in technology applications, especially in new generation high capacity
storage batteries used in pure electric and hybrid autos and solar and wind
energy applications. Chemical grade vanadium oxide is sold most commonly as
+98.5% V205 and recent pricing is in the range of USD$17-19 per kilogram
(USD$ 8-9 per pound). Based on available reported information from
competitors the Guojiaping project ranks near the top in most technical and
commercial aspects critically related to economic development of the
deposits. Additional information about vanadium and Guojiaping can be
viewed on the Company website www.spartronres.ca.
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Vanadium is added to metals to create
lightweight and
ultra-strong alloys. Primary uses include the high growth sectors of
batteries, aviation, and infrastructure
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DISCUSSION
Sparton?s management is delighted to have received independent confirmation
of the economic potential at Guojiaping and will continue working on the
evaluation and acquisition of the vanadium and uranium deposits on the
Licence. The Company has been fully supported by its new Chinese partners on
this unique project, and by ARCN, the Remote Sensing Branch of the China
National Nuclear Corporation (?CNNC?). This support clearly illustrates the
social licence Sparton has received in PRC for its initiatives in evaluation
of the vanadium opportunity and its environmental cleanup programs in
secondary uranium production.
As a current specialty metal producer in PRC (germanium production in Yunnan)
the vanadium project fits well with the Company?s initiatives to identify and
develop new opportunities to supply specialty metals for newly developing
energy saving applications. Many new opportunities have been received through
its strong relationships with CNNC and these are expected to continue. The
potential to extract uranium from new non conventional sources is also a
significant step for Sparton?s established and environmentally positive,
clean tech uranium extraction programs from various forms of waste material.
QUEST INDEPENDENT
TECHNICAL REPORT
The Quest Report covers the vanadium due diligence work program completed
on the Guojiaping Exploration License (9.02 sq. km.) and has confirmed the
reliability of past exploration work by 267 which includes a total,
7,760 meters of core drilling , 3,528 cubic metres of trenching,
several shallow shafts , and related geological mapping, sampling,
and analyses. Quest took independent samples, confirmed 267
analytical data using an international accredited analytical laboratory
(SGS Tianjin, PRC), reviewed due diligence data accumulated by YSET staff
and its consultants, and 267 drilling information and calculations for the
size of the vanadium deposit outlined. Quest indicated that the deposit can
likely be mined by low cost open pit methods with minimal environmental
impact and a very low stripping ratio. Quest also reported positive initial
metallurgical recovery tests completed internally by YSET in its own
laboratory, and independently by Lyntek Inc. of Denver Colorado USA, the
Company?s Process Engineering Consultants.
Quest concluded that Guojiaping project represents an excellent opportunity
for the Company. Quest indicated that the size of the vanadium
deposit can likely be increased substantially upwards from the size
reported by 267
(approximately 220,000 tonnes of contained V2O5 based on Chinese 333 and
334 category standards ) and recommended a further drilling, metallurgical
testing and environmental assessment program costing approximately
USD$ 500,000. A copy of the report will be posted on the Company website, www.spartonres.ca,
and on the SEDAR public company electronic reporting system www.sedar.com.
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Click Here to View
Report
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TRANSACTION STRUCTURE
The acquirer, YSET is a Sino-foreign joint venture company which is 30% owned
by ARCN, and 70% owned by Sparton. The Company, through YSET, now has the
legal right to acquire a 65% interest in Green River Mining (?GRM?) which
will own and operate the development of Guojiaping Licence area (see Sparton news release dated November 23,
2009).
This payment was made in accordance with a prepayment agreement negotiated
between the Company and 267 following completion of the due diligence program
and completion and receipt of the Independent Technical Report by Quest. The
payment will be credited towards the full purchase price of 45 million RMB
according to the original option agreement between 267 and YSET (see Sparton
news release dated November 23, 2009). A final comprehensive purchase
agreement is under negotiation with 267 and will include a schedule of
additional payments to complete the acquisition which will be tied to
technical and regulatory milestones.
Green River Mining is a Sino Foreign Joint Venture Company owned 65% by YSET
and 35% by 267. The Guojiaping licence contains a large shale hosted
vanadium deposit with associated uranium mineralization which has been
explored by 267 since May, 2007. Under related agreements ARCN will only
participate in development of the uranium mineralization in the licence and
vanadium development will be completely for Sparton?s account through its 65%
interest in Green River.
Sparton's unique 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.
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For more information contact:
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A. Lee Barker, President and CEO
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Charles Ge, Director
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Tel.: 416-366-3551
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Tel.: int'l +86 10 8559 2276
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Fax: 416-366-7421
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Tel: +86 10
8559 2276
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Mobile:416-716-5762
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Fax: +86 10 8559
0411
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E-mail: info@spartonres.ca
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E-mail: Charlesge@vip.163.com
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Company
website: www.spartonres.ca
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Listed:TSX Venture Exchange
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Trading Symbol: SRI
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This
press release contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward- looking
terminology such as "plans", "expects" or "does not
expect", "is expected", "budget",
"scheduled", "planned", "estimates",
"forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may" ,"could", "would", "might" or
"will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, closing of transactions, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to
exploration and development, the environment, local and foreign government
regulation, currency fluctuation infrastructure, capital markets and
additional funding requirements and the departure of key executives as well
as those factors discussed in the Company's documents filed on SEDAR
(www.sedar.com).
Although
the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable
securities laws. Further information on Sparton Resources Inc. is available
at www.sedar.com.
This
news release and the information contained herein does not constitute an
offer of securities for sale in the United States and securities may not be
offered or sold in the United States absent registration or exemption from
registration.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for adequacy or accuracy of the content of the
information contained herein.
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Sparton Resources Inc
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EXPLORATION STAGE |
CODE : SRI.V |
ISIN : CA8472431029 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Sparton Res. is a silver exploration company based in Canada. Sparton Res. holds various exploration projects in Canada, in China, in Mexico and in Mongolia. Its main exploration properties are WEMINDJI, BLIZZARD and WHISKEY in Canada, SIERRA ROSARIO in Mexico, LUXI in China and TIANSHAN GOLD BELT in Mongolia. Sparton Res. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 3.3 millions as of today (US$ 2.4 millions, € 2.3 millions). Its stock quote reached its highest recent level on December 31, 2004 at CA$ 1.05, and its lowest recent point on October 02, 2015 at CA$ 0.01. Sparton Res. has 111 375 460 shares outstanding. |
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