Posted in | Gold | Mining Business

Sparton Resources Secures Option to Purchase Sir Harry Oakes Gold Property

Sparton Resources, Inc. reported recently that it has secured an option to buy a strategic gold prospect, including three Mining Leases (the “Leases”) in the Matachewan gold mining area of northern Ontario. Furthermore, the company has also bought through staking an extra 12 Mining Claim Units (about 300 hectares) next to the area of the Mining Leases (the “Claims”).

Option to Purchase Agreement

Sparton has implemented a four-year Option to Purchase Agreement with a private owner of the Leases, wherein (conditional on a 90-day due diligence period and the payment of $1.00 in cash) it will have the right to buy a 100% interest in the Leases. The company will have to cover the Lease renewal costs in support of the current private owner and plans an exploration program on the Leases and Claims.

If the company chooses to exercise its option and buy the Leases, it will pay the present private owner 1,500,000 common shares of the company in total, spanning the four-year option period. Moreover, the present owner will be entitled to receive a 1% Net Smelter Return Production Royalty from the yield on the Leases and any other property bought by Sparton within 1 km from the Lease boundaries.

Technical Information and History

The three Mining Leases (totaling about 45 hectares) were historically owned by the Sir Harry Oakes Interests in the 1930s and probed by a shallow shaft with lateral workings, numerous trenches, and more than a few short drill holes that were completed between 1934 and 1936. A 1.5 km-long trail from Ontario Highway 566 made it accessible.

Gold mineralization was said to be hosted in quartz veins in altered and sheared syenite porphyry supposedly akin to the mineralization and host rocks at the Young Davidson Mine to the south, which yielded more than 1 million oz. of gold from 1934 to 1957 and is presently in production.

Review of early historical technical information to date is restricted to parts of a 1936 technical report on work on the historical mining claims including the Leases.

The following gold assay results were reported from three drill holes, the shaft and a trench in the neighborhood of the shaft, along a 125 m strike length, including results (in Imperial and Metric Units) of:

  • 0.137 oz. per ton over 18.5 ft (5.2 g per ton over 5.6 m) in hole DDH 2A
  • 0.24 oz. per ton over 5 ft (9.06 g per ton over 1.5 m), and 0.42 oz. per ton over 3.0 ft (15.85 g per ton over 0.9 m) in hole DDH 3
  • 0.20 oz. per ton over 6 ft (7.55 g per ton over 1.85 m), 0.11 oz. per ton over 4.9 ft (4.15 g per ton over 1.45 m), and 0.10 oz. per ton over 2 ft (3.77 g per ton over 0.65 m in hole DDH5)

Besides samples collected from the shaft (which seems to have been sunk on a quartz vein structure) were said to assay 0.32 oz. per ton over 3 ft (12.1 g per ton over 0.9 m) at a 24 ft depth, where other samples were obtained along a 29 ft length of the shaft (which could be grab samples) ranging in values from 0.06 to 9.02 oz. per ton (2.26 to 340.0 g per ton). A trench located about 150 ft east of the shaft called “Pit 4” reported 0.03 oz. per ton along a 50 ft interval (1.0 g per ton over 15 m) supposedly taken as a chip sample.

The Young Davidson Mine

The Mining Claims and Leases are situated about 3 km north of the Young Davidson Gold Mine presently operated by Alamos Gold Inc. The Young Davidson yielded 45,000 oz. of gold in the second quarter of 2019 and operates at an underground production rate of 6500 tons per day. It is projected to yield 180–190,000 oz. of gold in 2019.

Summary

Sparton is quite excited to have the opportunity to evaluate this historic property. It is not often the opportunity arises to acquire a strategic and historically significant property in an active mining area. If our due diligence work confirms the historic data we will begin a detailed exploration program on the Leases and nearby claims as quickly as possible.

A. Lee Barker, CEO, Sparton Resources, Inc.

Source: http://www.spartonres.ca/

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Submit