Hello Peter
On the wire from a lurker:
Printable Version
Freewest Resources Canada Inc. [FWR MSE]
October 23, 2000
Sparton To Participate In Diamond Exploration In Northern Ontario
SPARTON RESOURCES INC ("YSP-V")
SOUTHERNERA RESOURCES LTD ("SUF-T")
FREEWEST RESOURCES CANADA INC ("FWR-M")
- Sparton To Participate In Diamond Exploration In Northern Ontario
Edward G. Thompson, President of Sparton Resources Inc., announced that Sparton has entered into an letter of intent agreement with SouthernEra Resources Ltd. and Freewest Resources Canada Inc. to explore for diamonds and other minerals in Ontario.
The agreement will provide Sparton with a 20% interest in a diamond exploration program covering an area of approximately 7000 square km in the Superior Geologic Province of northern Ontario. Freewest has a 20% participating interest in this project, and SouthernEra as operator of any diamond exploration program, holds a 60% interest. As operator, SouthernEra retains the right to market any diamonds produced on behalf of the parties to the agreement.
Within the same area, Sparton and Freewest will operate all non-diamond exploration activities, with each company holding a 35% interest. SouthernEra will retain a 30% interest in the non-diamond program. An independent consultant, who is a party to the agreement, retains a production royalty related to any mineral deposits that may be developed by the participating parties within the area.
Earlier in 2000, in cooperation with the independent consultant, the three companies identified a number of geophysical targets in the area with kimberlite pipe type signatures. Subsequent claim staking activities resulted in the acquisition of a number of these targets, and follow up detailed airborne magnetic and electromagnetic surveys were completed on several of the claim groups using the new Aerotem helicopter borne geophysical system. The new Aerotem data confirmed the discrete nature of the targets selected, and a ground prospecting program, including overburden sampling, is scheduled for later this year.
The Superior Geologic Province contains the world's largest 'archon' or very old, stable, thick, crustal block. Archons are the host areas for most of the world's commercial kimberlite diamond deposits. Archons are also generally composite in nature, and within them, various areas have differing potentials to host primary diamond occurrences.
The area covered by the agreement represents a part of the Superior Province archon, identified in a research program by the parties as favourable for the occurrence of kimberlite-hosted primary diamond deposits.
Elsewhere in the Superior Province of Ontario, a number of senior diamond exploration companies, including subsidiaries of the De Beers organization, are very active in grass roots and advanced (bulk sampling ) level exploration and evaluation programs for several diamond bearing kimberlite occurrences .
This agreement provides Sparton with the opportunity to participate in a diamond exploration project, in a very favourable area, operated by an experienced exploration organization with a proven track record of kimberlite discoveries in Canada, and internationally.
The initial work program will focus on evaluating the existing diamond targets, and generating new ones within the area of interest.
Within the area of interest there are also a number of potential platinum group metal (PGM) targets requiring evaluation. These will be explored during the course of the ongoing program by Sparton and Freewest.
TEL: 416-366-6083 Edward G. Thompson, President
TEL: 514-878-3551 Mackenzie I. Watson, Director
TEL: 416-716-5762 A. Lee Barker, Director
Regards |
