Sprott Resource Corp. Announces Intention to Develop 43-101 Resource at Mantaro Phosphate Deposit
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ 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 SRC. 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.