Press Release
Sprott Resource Corp. Announces Stonegate Agricom Drill Results
TORONTO, July 30 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today the results of a trenching and drilling program (the "Program") completed by Stonegate Agricom Ltd. ("Stonegate") on Stonegate's Mantaro Phosphate Property in Peru (the "Property"). SRC owns 77.25% of the outstanding shares of Stonegate. The Program included 6 trenches and 22 drill holes (from 7 platforms) on the Philip concession on the Property over a length of approximately 3.2 kilometres. The overall strike length of the mineralized zone on the Property is approximately 27 km. Mineralization on the Property is present as three distinct parallel zones exhibiting similar widths to that seen on the Philip concession. Grades recorded from the 6 trenches were similar to the existing inferred mineral resource noted in the NI 43-101 technical report filed on August 29, 2008 (the "Technical Report"). The Technical Report identified an inferred mineral resource of 45.17 million tonnes grading 15.4% P(2)O(5). A copy of the Technical Report, which includes a description of the Property and the Philip concession, can be found on SEDAR (www.sedar.com) or on SRC's website (www.sprottresource.com). The results obtained from the 6 trenches completed in the Program are summarized in Table 1 below:Table 1: Trenching Results ------------------ Interval Grade ------------------ (metres) P(2)O(5) ------------------------------ Trench A-A' 22.00 16.66% ------------------------------ Trench B-B' 19.00 15.14% ------------------------------ Trench 3 25.00 16.87% ------------------------------ Trench 9 31.00 16.34% ------------------------------ Trench 10 20.00 13.31% ------------------------------ Trench 14 14.00 13.20% ------------------------------The drilling program successfully identified additional mineralization at depth. As expected, the trench samples exhibit some enrichment in phosphate relative to drill core samples as a result of oxidation. Table 2 below summarizes the Program's drilling results.Table 2: Diamond Drilling Results ------------------------------------------------------------------------- Hole Number Inclination Interval From To Grade ------------------------------------------------------------------------- (metres) (metres) (metres) P(2)O(5) ------------------------------------------------------------------------- PM-DDH-01 -45 degrees 22.00 70.00 92.00 13.01% ------------------------------------------------------------------------- PM-DDH-01A -70 degrees 22.00 84.00 106.00 11.42% ------------------------------------------------------------------------- PM-DDH-01B -90 degrees 20.00 124.00 144.00 12.57% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-02 -45 degrees 16.00 60.00 76.00 8.64% ------------------------------------------------------------------------- And -45 degrees 14.00 102.00 116.00 7.42% ------------------------------------------------------------------------- PM-DDH-02A -70 degrees 14.00 66.00 80.00 8.60% ------------------------------------------------------------------------- PM-DDH-02B -90 degrees 20.00 76.00 96.00 8.07% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-06 -45 degrees 14.00 70.00 84.00 10.10% ------------------------------------------------------------------------- PM-DDH-06A -70 degrees 16.00 72.00 88.00 9.31% ------------------------------------------------------------------------- PM-DDH-06B -90 degrees 20.00 96.00 116.00 9.73% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-07 -45 degrees 22.00 76.00 98.00 10.29% ------------------------------------------------------------------------- PM-DDH-07A -70 degrees 24.00 94.00 118.00 10.27% ------------------------------------------------------------------------- PM-DDH-07B -90 degrees 18.00 142.00 160.00 10.37% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-08 -45 degrees 20.00 64.00 84.00 10.36% ------------------------------------------------------------------------- PM-DDH-08A -70 degrees 20.00 74.00 94.00 10.05% ------------------------------------------------------------------------- PM-DDH-08B -90 degrees 20.00 88.00 108.00 10.35% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-12 -45 degrees 18.00 60.00 78.00 10.00% ------------------------------------------------------------------------- PM-DDH-12A -70 degrees 16.00 76.00 92.00 10.28% ------------------------------------------------------------------------- PM-DDH-12B -90 degrees 18.00 98.00 116.00 10.18% ------------------------------------------------------------------------- ------------------------------------------------------------------------- PM-DDH-14 -45 degrees 14.00 86.00 100.00 9.35% ------------------------------------------------------------------------- PM-DDH-14A -70 degrees 16.00 118.00 134.00 11.10% ------------------------------------------------------------------------- PM-DDH-14B -90 degrees 24.00 152.00 176.00 10.87% ------------------------------------------------------------------------- Note: Deposit dip is 45 degrees. Intervals are core widths, not true widths.The results were assayed by CIMM Peru SA ("CIMM Peru") in Lima, Peru. CIMM Peru is an ISO 9001 and ISO/IEC 17025 certified assay laboratory. Check assays are being conducted at SGS Peru SAC ("SGS") in Lima, Peru. SGS is an ISO 9001 and ISO/IEC 17025 certified laboratory. Trench samples were taken every metre. Drill core samples are based on 2 metre composites. All samples were analyzed using Inductively Coupled Plasma-Optical Emission Spectroscopy (ICP-OES) with lithium metaborate fusion and nitric acid digestion (CIMM Peru method IC-VH-26). The detection limit for phosphate (as P(2)O(5)) using this method is 0.01 wt%. Phosphate is also being analyzed using gravimetric methods. These results are expected shortly. Duplicates for both trench and drill core samples represent 10% of total samples. Check samples represent 5% of total samples. Blanks are inserted on a random basis at a rate of 5% of total samples. Standards are inserted on a random basis at a rate of 5% of total samples. Blanks were prepared from certified quartz material. Material for analytical standards was prepared by SGS Peru. Samples were subjected to a round robin analysis at certified laboratories to obtain statistically reliable assay data for samples having low to moderate phosphate content. Additional certified reference material representing a high phosphate assay sourced from Florida was purchased from the Association of Fertilizer and Phosphate Chemists in the United States. CIMM Peru undertakes its own QA/QC program by running duplicate samples and inserting standard certified reference material purchased from the National Institute of Standards in the United States. Data verification shows good correlation between the main and duplicate assay results, and for assays of standards and blanks. As part of the due diligence for QA/QC, independent samples of trench and drill core material will be taken by Don Hains, P. Geo., the qualified person supervising the exploration program. The samples will be assayed in Canada at a certified laboratory. Stonegate intends to conduct additional investigative drilling over the next month, where it will drill down dip, through the center of, and parallel to, the identified phosphate zone to identify how the phosphate mineralization transitions from the higher grade trench intersections to the lower grade drill hole intersections. As well, Stonegate intends to retain a leading process engineering provider to the phosphate industry to conduct a metallurgical study on the phosphate material to determine if the material will upgrade to a +30% P(2)O(5) concentrate, and if so, at what recoveries. Results from the metallurgical studies should be completed by the end of 2009. Don Hains, P. Geo, who is a Qualified Person under National Instrument 43-101, was responsible for the design and conduct of the Program, has verified the data disclosed in this news release and has read and approved the content of this news release. Don Hains is an independent consultant to both SRC and Stonegate. 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 Certain statements contained herein may constitute "forward-looking statements" or "forward-looking information" under applicable securities laws. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "should", "believes", "plans", and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, involve a number of risks and uncertainties. Actual results or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those expressed in, or implied by, these forward-looking statements include, without limitation, risks associated with commodity price fluctuations, regulatory risks, environmental risks, operational risks and other risks associated with a mineral exploration. No assurance can be given that any events anticipated by these forward-looking statements will occur. These forward-looking statements 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.
