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Sparton Resources Inc. - Company Options Rights to Acquire Former Sir Harry Oakes Gold Property in Ontario
TORONTO, Sept. 25, 2019 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV.SRI) ("Sparton" or the "Company") announced today that it has secured an option to purc
About this update from Sparton Resources Inc.
[{"type":"text","content":"TORONTO, Sept. 25, 2019 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV.SRI) (\"Sparton\" or the \"Company\") announced today that it has secured an option to purchase a strategic gold prospect, comprising 3 Mining Leases (the “Leases”) in the Matachewan gold mining area of northern Ontario. In addition, the Company has also acquired through staking an additional 12 Mining Claim Units (approximately 300 hectares) adjacent to the area of the Mining Leases (the “Claims”). OPTION TO PURCHASE AGREEMENT Sparton has executed a 4-year Option to Purchase Agreement with a private owner of the Leases whereunder (subject to a 90-day due diligence period and the payment of $1.00 in cash) it will have the right to purchase a 100% interest in the Leases. The Company must cover the Lease renewal costs on behalf of the current private owner and plans an exploration program on the Leases and Claims. If the Company elects to exercise its option and purchase the Leases it will pay the current private owner a total of 1,500,000 common shares of the Company over the 4-year option period, and the current owner will be eligible to receive a 1% Net Smelter Return Production Royalty from production on the Leases and any other property acquired by Sparton within one kilometre from the Lease boundaries. TECHNICAL INFORMATION AND HISTORY The three Mining Leases (totalling approximately 45 hectares) were historically held by the Sir Harry Oakes Interests in the 1930’s and explored by a shallow shaft with lateral workings, several trenches and several short drill holes which were completed between 1934 and 1936. They are accessible by a 1.5 km long trail from Ontario Highway 566. Gold mineralization was reported to be hosted in quartz veins in sheared and altered syenite porphyry reportedly similar to the mineralization and host rocks at the Young Davidson Mine to the south (see below) which produced over 1 million ounces of gold between 1934 and 1957 and is currently in production. The early historical technical information reviewed to date is limited to parts of a 1936 technical report on work on the historical mining claims comprising the Leases. These reported the following gold assay results from 3 drill holes, the shaft and a trench in the vicinity of the shaft, along a 125 metre strike length, which included results (in Imperial and Metric Units) of:...