Sprott Resource Corp. Announces Intention to Develop 43-101 Resource at Mantaro Phosphate Deposit


    TORONTO, Nov. 22 /CNW/ - Sprott Resource Corp. ("SRC") today provided
further details regarding its development plans for the Mantaro Phosphate
project, located in Peru. Recently SRC announced that it had signed an
exploration and option agreement with Lara Exploration Ltd. ("Lara" LRA.V) and
other members of the Mantaro Group, under which SRC has the option to acquire
a 100% interest in the project (see press release November 16, 2007).
    "We are proposing to undertake additional exploration work, beneficiation
studies and market analysis to develop sufficient data for preparation of an
NI 43-101 compliant resource estimate, and to complete a prefeasibility study
for development of the property," said Kevin Bambrough, President and CEO
Sprott Resource Corp. "Our team believes the Mantaro phosphate deposit
provides an excellent opportunity to participate in the expanding global
market for phosphate-based fertilizers for production of food and biofuels."
    SRC believes that the Mantaro deposit is ideally located in Sincos, Junin
Department, approximately 30 km west from Huancayo, a significant regional
city with a population of 300,000, and approximately 200 km east of Lima.
Infrastructure in the area is excellent, with paved highway access from Lima
and railway access from Huancayo to Lima and the port of Calloa. High tension
and local distribution electrical power lines cross the property. Sulphuric
acid for conversion of phosphate concentrate to fertilizer is available from
Doe Run Corporation at La Oroya, approximately 75 km from Sincos, and at
chemical production facilities in Lima. Peru is an attractive mining
jurisdiction with a modern, organized mining code, favourable provisions for
foreign investment and a well-trained and highly qualified pool of geologists
and mining and mineral process engineers.
    The Mantaro phosphate deposit was originally discovered and claimed by
the Peruvian company Minera Mantaro S.A. and later acquired and explored in
the 1960s by Cerro de Pasco Corporation. Exploration work by Cerro de Pasco
through the early 1970s outlined a mineralized zone extending more than 12 km
along the Mancaspico syncline. Trench and drill samples returned an average of
approximately 15% P(2)O(5) over an average deposit thickness of 24 metres. The
deposit dips at approximately 45 degrees and is open pittable. In the late
1990s, Zublin Mining of Chile and Doe Run (Peru) Corporation conducted
additional exploration work. This work encompassed additional trenching and
mineral characterization studies, bulk sampling and mineral beneficiation
testing. In addition, in 2001 Bateman Phosphate Technologies completed a
scoping study.
    Total phosphate resources in the central portion of the property have
been estimated by Cerro de Pasco in the 1960s to be in the range of 300 MM to
750 MM tonnes. Based on surface trenching and drilling conducted by Zublin,
Doe Run and Cerro de Pasco, the Bateman study determined an "inferred
resource" estimate of 61 MM tonnes. Beneficiation test work conducted by
Bateman concluded it was possible to produce a concentrate grading in excess
of 32% P(2)O(5) and that the concentrate was amenable to production of
phosphate fertilizer.

    Please note that the resource estimate by Cerro de Pasco is an historical
estimate and neither this estimate nor the Bateman estimate of "inferred
resources" conform to the mineral resource and mineral reserve estimation and
reporting requirements as defined in NI 43-101 and should not be relied upon.
The historical estimate is being presented for information purposes only. SRC
is not treating the historical resource estimate as a current mineral resource
or mineral reserve as defined in sections 1.2 and 1.3 of NI 43-101. However,
this historical estimate is considered by SRC to be relevant because it is
based on surface trenching, limited drilling and sample assays covering the
extent of the deposit and appear to be representative of the deposit as a
whole. The potential quantity and grade of the deposit is conceptual in
nature. There has been insufficient exploration to define a mineral resource
and it is uncertain if further exploration will result in the target being
delineated as a mineral resource.
    The technical information in this press release has been reviewed by
Don Hains, P. Geo., a qualified person as defined by the requirements of
NI 43-101. Mr. Hains is an independent consultant who has been retained by

    About Sprott Resource Corp.

    SRC is a Canadian based company whose primary strategy 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 Ltd. (SCL), a wholly-owned subsidiary of Sprott Asset
Management Inc. Pursuant to a management services agreement between SCL and
SRC, SCL provides day-to-day business management for SRC as well as other
management and administrative services.

    Forward Looking Statements

    Certain statements regarding SRC, including management's assessment of
future plans, may constitute forward-looking statements under applicable
securities laws and necessarily involve risk, including without limitation,
risks associated with the mining industry such as future commodity prices,
economic factors, government regulation, environmental risks, capital
expenditures and risks associated with exploration and option agreements.
SRC's 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 Chief Executive
Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail:

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