SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce
that the Huajun 306 Germanium Coal Mine ("Huajun") has received its new coal
mining licence from the Yunnan Provincial Government authorities, in China. The
new mining licence is valid for nine years and five months. The Huajun Mine is
85% owned by Sparton, subject to certain payments triggered by the delivery of
the licence.


Receipt of the licence allows for the resumption of operations and for
production of germanium concentrates to be re-established. Huajun has been on
standby and maintained in good condition since the summer of 2011, when
stockpiled coal, mined within the old mining licence area, had been processed. 


The licensing process had been ongoing for more than two years due to various
delays caused by changes in PRC coal mining regulations. The most recent and
final filings were the Rehabilitation and Safety Plans, and the payment of the
resource tax, which have been accepted and approved.


The new mining licence covers an area of approximately 0.82 square kilometres
and extends approximately 225 metres vertically below the lowest level
previously developed in the mining area. It represents the consolidation of
three separate mines on the property, Chuang Zhong, 306, and Defu, which will
now be operated as one mine under Huajun's management. Both internal and
independent calculations (NI 43 -101 non-compliant) of the germanium contained
in coal in the new mining Licence Area indicate that there are over 40 tonnes of
Ge metal available for extraction. Management is confident that this can be
further expanded through exploration and development. It is estimated that new
production from Huajun can commence in about 8 weeks time, after rehabilitation
of underground infrastructure is completed.


During the period Jan 1-June 30, 2012, new PRC guidelines for the consolidation
of small coal mines under larger operators, designated Huajun as an operation
that was required to be consolidated with a larger, local operator. Negotiations
are currently underway for the purchase and sale of the Huajun assets. The
Company is seeking fair compensation for the sale of Huajun in the context of
the local market value. Management believes that the receipt of the mining
licence enhances the value of the assets and may increase the options open to
the Company in its negotiations. The fact that Huajun has itself acted as a
consolidator in the area may also be a factor in these negotiations. 


PRECIOUS METALS PROJECTS

At the Sierra Rosario silver-gold project in Mexico, American Consolidated
Minerals Corporation ("AJC") and its 50% partner, International Northair Mines
Ltd., completed a comprehensive surface geophysics and soil sampling program and
six core holes on the property during Q2, 2012. Results were positive. The most
significant drill results were obtained in Hole SR-003 where a 7.5 metre
interval returned 179.3 g/t silver and 0.287g/t gold and a 4.9 metre interval
yielded 66.7 g/t silver and 0.614g/t gold. In Hole SR-005, located approximately
400 metres to the southeast of Hole SR-003, a 3.35 metre interval returned 84.1
g/t silver, 0.102 g/t gold and 1.59% lead. Further work is being planned to
follow up these results and test several other target areas on the claims.
Sparton holds production royalties on base and precious metals from AJC's
interest in the property. 


In Nevada, Waseco Resources Ltd. ("WRI") is continuing core drilling on the
Company's SBD claims in the prolific Battle Mountain Gold Area. Waseco may earn
a 75% interest in the property by spending $900,000 in exploration on the
property. Results are expected once the initial drill program is completed. 


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.


Full information is available at www.sedar.com and on the Company's web site at
www.spartonres.ca.


Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors disclosed under
the heading "Risk Factors" in the Company's filings with Canadian securities
regulators. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
Company does not assume any obligation to update any forward-looking statements,
save and except as may be required by applicable securities laws.


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.


We Seek Safe Harbour.
Sparton Resources (TSXV:SRI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024 Click Here for more Sparton Resources Charts.
Sparton Resources (TSXV:SRI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024 Click Here for more Sparton Resources Charts.