Sprott Resource Corp. Files Updated NI 43-101 Compliant Technical Report on Mantaro Phosphate Deposit
TORONTO, March 11, 2010 (TSX: SCP) ? Sprott Resource Corp. (?SRC?) announced today that it has filed on SEDAR (www.sedar.com) an NI 43-101 Standards of Disclosure for Mineral Projects (?NI 43-101?) compliant report titled ?Technical Report on Mantaro Phosphate Deposit, Junin District, Peru?, dated February 21, 2010 (the ?Report?) in respect of the Mantaro Phosphate Deposit (the ?Deposit?) owned indirectly through its subsidiary Stonegate Agricom Ltd. (?Stonegate Agricom?). SRC owns 73 percent of the issued and outstanding common shares of Stonegate Agricom on an undiluted basis and 62 percent on a fully-diluted basis.
The Report discloses a Measured and Indicated Mineral Resource for the West zone of the Deposit of 39.523 million tonnes grading 10.0% P2O5 and an Inferred Mineral Resource of 376.265 million tonnes grading 9.0% P2O5.
?We are very excited by the resource estimate in the updated 43-101 report. It demonstrates the significant potential of this project?, said Kevin Bambrough, President and CEO of SRC. ?We look forward to Stonegate Agricom advancing its development.?
The Report indicates that there is potential to expand the resource base. The East and Far East zones of the Deposit have been geologically mapped and exhibit surface mineralization widths similar to the West zone. Given that the Deposit is of marine sedimentary origin, the Report states that there is every reason to believe that comparable grades and depth of mineralization are present within the East and Far East zones. Based on this assumption, the Report indicates that the potential mineral deposits are estimated to be 425-435 million tonnes grading 9% P2O5 in the East zone and 280-290 million tonnes grading 9% P2O5 in the Far East zone.
These potential quantities and grades are conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in these targets being delineated as a mineral resource. However, should such conceptual resources be confirmed by trenching and drilling, the Deposit would rank as one of the most significant phosphate deposits in the world.
The Report states that the program of mineralogical and metallurgical test work conducted by SGS Mineral Services (Lakefield) and Bateman Advance Technologies has confirmed historical beneficiation work. Laboratory scale tests produced phosphate concentrates ranging from 28.8% P2O5 (drill core samples) to 32.5% P2O5 (trench samples) with acceptable phosphate grade and mass recoveries and quality suitable in the marketplace. The Report also states that the projected phosphate concentrate grades are suitable for production of merchant grade phosphate rock concentrate and production of concentrate for use in phosphate fertilizers such as single superphosphate (SSP) and potentially the ammonium-based phosphate fertilizers DAP and MAP. Stonegate Agricom intends to conduct additional test work to improve phosphate concentrate grade, recovery and quality.
The technical and scientific information contained in this news release is based on information contained in the Report, which was prepared by Donald H. Hains, P.Geo. and Michelle Stone, Ph.D., P.Geo. Both Mr. Hains and Ms. Stone are Qualified Persons in accordance with NI 43-101 and have reviewed and are responsible for the technical and scientific information presented in this news release. Mr. Hains and Ms. Stone are independent consultants to SRC and Stonegate Agricom.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to invest, directly and indirectly, in natural resources. Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. SRC is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting Limited Partnership ("SCLP"), of which Sprott Inc. is the sole limited partner. Pursuant to a management services agreement between SCLP and SRC, SCLP provides day-to-day business management for SRC as well as other management and administrative services.
Forward Looking Statements
This news release includes certain forward-looking statements respecting the future performance of SRC?s business, its operations, as well as management?s objectives, strategies, beliefs and intentions. SRC does not intend, and does not assume any obligation, to update these forward- looking statements unless required by law. Forward-looking statements are frequently identified by such words as ?may?, ?plan?, ?expect?, ?anticipate?, ?estimate?, ?intend? and similar words referring to future events and results. These forward-looking statements represent management?s best judgment based on current facts and assumptions that management considers reasonable. SRC makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks, uncertainties and other factors that may cause SRC?s actual results, performance or achievements to be materially different from those expressed or implied from such information, including, but not limited to, the speculative nature of mineral exploration and development, capital expenditure requirements, the costs and timing of construction and development of resources, fluctuating commodity prices, competitive risks and the availability of financing. Please also refer to the factors described in SRC?s recent continuous disclosure filings available at www.sedar.com. Although SRC has attempted to identify important factors that could cause its actual results, performance and achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance and achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management?s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking statements and the information contained therein.
For further information:
Kevin Bambrough
President and CEO
Tel: (416) 977-7333
Fax: (416) 977-9555
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