Sparton Resources Inc. is pleased to announce that it has approved a Memorandum of Understanding for the advanced evaluation and possible acquisition of a 70% interest in the 16 square km. Yao Wan Polymetallic Exploration License, in the Zhen'an area of Shaanxi Province, China.
The Memorandum of Understanding ("MOU") has been entered into by a newly incorporated subsidiary of the Company, VStar Industries Inc. ("VStar"), and Warwick Mining Development Company Ltd. ("WMD") a local Chinese private company. Under the terms of the MOU, VStar will be responsible for all advanced exploration and evaluation expenditures up to the point of a China compliant feasibility study suitable and accepted for application for a vanadium mining license at Yao Wan. Further development of a mining operation would be paid for jointly as to 70% V Star and 30% WMD, with each party credited for its past expenditures.
Yao Wan Vanadium Project
The YW License has been extensively explored by WMD, Past work completed between 2006 and 2015 included surface and underground core drilling, surface trenching, and tunneling. The Vanadium mineralization is strata bound and similar to other "stone coal" carbonaceous shale type vanadium deposits in China. In this particular area, host rocks have been weakly metamorphosed and both the vanadium horizon and host wall rocks appear more competent than those in other areas evaluated by the Company subsidiaries.
The license contains a, Chinese Category 332 and 333 vanadium pentoxide (V2O5) mineral inventory (see Cautionary Statement below) which may be considered under NI 43-101 as "Historical Estimates". Six vanadium zones have been identified along an 11 kilometer strike length within a 9 square kilometer section of the YW License.
A total of 37,280,900 tonnes of vanadium mineralization in Chinese categories 332 and 333, grading an average of 0.85% V2O5 has been calculated for the six vanadium zones. This equates to 316,096 tonnes of contained V2O5.
Of this total, 33% or 12,302,900 tonnes are classified as Chinese category 332 with an average grade of 0.82 % V2O5 containing 999,912 tonnes of V205. The remaining 24,973,000 tonnes are classified as Chinese category 333, grading an average of 0.86% V2O5, containing 216,284 tonnes of V2O5.
The vanadium horizon varies from 3 to 8.25 meters in thickness.
Historical Estimates provided by the WMD database, and included in the total above, also indicate a near surface vanadium mineralized zone containing 5,433,900 tonnes grading 1.02% V2O5 and containing 75,632 tonnes of V2O5.