TORONTO, Aug. 29 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today
announced the completion of an NI 43-101 compliant technical report (the
"Report") on the Mantaro Phosphate Project (the "Mantaro Project").
"As supply continues to be tight, we expect the global demand for
phosphate to remain strong. We believe the Mantaro Project is well positioned
to capitalize on this strength," said Kevin Bambrough, President and CEO of
Sprott Resource Corp.
The Report identified an Inferred Mineral Resource of 45.17 million
tonnes grading 15.4% P(2)O(5). The Report also concludes that the project has
an exposed mineralized area that extends beyond the Philip concession, which
is the portion of the property on which the inferred resource estimate is
based. There appears to be good exploration potential for development of
additional mineral resources on the property. The property has been the
subject of extensive historical studies. There appears to be good correlation
between the exploration and sampling results obtained by previous workers on
Key recommendations in the Report include additional trench sampling and
drilling to more fully establish the extent and quality of mineralization and
develop a more definitive resource estimate. In addition, the Report
recommended community consultations and agreements to obtain the exploration
permits necessary to explore the property further.
The Mantaro Project is owned by Stonegate Agricom Ltd. ("Stonegate"), a
78.95% held subsidiary of SRC. Stonegate is planning an Initial Public
Offering later this year. Stonegate is well financed and has appointed a
strong management team to advance the Mantaro Project.
"Stonegate plans to develop the Mantaro Project, while at the same time
searching out other development and producing mining opportunities in the
fertilizer sector," said Mark Ashcroft, P.Eng, President & CEO of Stonegate.
The technical information in this press release has been reviewed by Don
Hains, P. Geo., the author of the Report and a qualified person as defined by
the requirements of NI 43-101. Mr. Hains is an independent consultant who has
been retained by SRC.
We note that Inferred Mineral Resources are not Mineral Reserves, as
Inferred Mineral Resources do not have demonstrated economic viability. The
Report, entitled "Technical Report on the Mantaro Phosphate Deposit Junin
District, Peru" was filed on SEDAR today and will be available at
About Stonegate Agricom Ltd.
Stonegate Agricom Ltd. is a private, Toronto based mineral development
company focused on the fertilizer sector. The primary asset of Stonegate is
the Mantaro Phosphate Project located in Peru.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to
invest, directly and indirectly, in natural resources. Through acquisitions,
joint ventures and other investments, SRC seeks to provide its shareholders
with exposure to the natural resource sector for the purposes of capital
appreciation and real wealth preservation. SRC is well positioned to draw upon
the considerable experience and expertise of both its Board of Directors and
Sprott Consulting Limited Partnership (SCLP), of which Sprott Asset Management
Inc. is the sole limited partner. Pursuant to a management services agreement
between SCLP and SRC, SCLP provides day-to-day business management for SRC as
well as other management and administrative services.
Forward Looking Statements
This release contains certain statements that may constitute
forward-looking statements under applicable securities laws. Such forward
looking statements are not historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or "should" occur.
Forward looking statements necessarily involve risk, including without
limitation, risks associated with mineral exploration projects, such as
commodity prices, exploration success and the ability to achieve financing and
risks associated with an initial public offering or going public transaction
by Stonegate, which is subject to general market conditions and regulatory
approvals and therefore cannot be guaranteed to occur on time or at all.
Actual results or achievements could differ materially from those expressed
in, or implied by, the forward-looking statements. No assurance can be given
that any events anticipated by the forward-looking statements will occur.
These forward-looking statements, which are based on management's current
expectations, are made as at the date of this news release. SRC does not
undertake any obligation to publicly update or revise any of these
forward-looking statements, except as required by applicable securities laws.
For further information:
For further information: Kevin Bambrough, President and CEO, Tel: (416)
977-7333, Fax: (416) 977-9555