Confirms Strategy and Upgrades Efforts to Identify Existing Gold And Silver Resources In Nevada, USA
Sphere Resources Inc and its 51.6% subsidiary Spartan Gold Ltd.("Spartan") (OTCBB:SPAG) collectively (the "Sphere Group") have substantial holdings in some of the most prolific, high-grade gold regions of the world. Spartan has gold exploration and development projects in Nevada, with its most significant assets centered in the Carlin-Rain and Round Mountain-Northumberland Gold Trends in Northeast Nevada while Sphere additionally has interests in property in the gold-rich Red Lake District in Ontario, Canada.
-- Surrounded By Majors. The companies' properties are enveloped by the biggest gold miners in the world that are producing millions of ounces of gold each year, including Barrick Gold, Goldcorp, Kinross and Newmont Mining.
-- High-Grade Gold Potential. The Poker Flats and Ziggurat properties are believed to not only host Carlin-type gold mineralization, but drilling last year at Gold Standard Venture's ("GSV") Railroad Property immediately adjacent and to the west of the Poker Flats property boundary intersected 56.4 meters of 4.26 grams/tonne gold and another intersection 77.8 meters of 1.63 grams/tonne gold.
-- Seasoned Management. Malcolm Stevens sits as Chief Executive Officer of both Spartan and Sphere. Combined with his experience and the other experts in mining and finance that make up the executive teams, there is more than 200 years of highly-relevant knowledge.
-- Innovative Financing. A $10 million financing by Sphere is in the works that is based around corporate bonds, a unique approach that gives the company a competitive edge over other junior miners, while sheltering shareholders from any type of toxic funding.
Importantly, when making an investment decision, mining companies now must consider the paradigm shift toward high-grade gold production. With production costs ever increasing, miners are looking to move away from low-grade gold that requires larger amounts of mining and processing that erodes profits and becoming more focused on lower amounts of digging to yield higher revenues, hence the shift to high-grade projects.
The Sphere Group has substantial holdings in some of the most prolific, high-grade gold regions of the world. Spartan has gold exploration and development projects in Nevada, with its most significant assets centered in the Carlin-Rain and Round Mountain-Northumberland Gold Trends in Northeast Nevada. Sphere also brings to the table its Dome/McManus and Alcourt projects in the gold-rich Red Lake District, positioning the Sphere Group in the two largest gold-bearing regions in North America.
Simply, the best way to find gold is to own property contiguous to producing mines. The company's 3,040-acre Poker Flats project in Nevada is only 1.5 kilometers south of Newmont Mining Corp.'s Emigrant gold mine that is estimated to contain over one million ounces of gold (about $1.6 billion at today's prices). Poker Flats is the next logical progression of mines that follow the Carlin Trend of Nevada and it is literally surrounded by productive projects. To the north of Emigrant are a series of other mines, including Goldstrike, Leeville and Gold Quarry that produce over 3 million ounces annually and host about 140 million ounces of gold, as well as silver and copper.
A National Instrument technical report on Poker Flats shows the initial focus to be on Carlin-type gold mineralization (fine particles of low-grade gold in large amounts). Gold is gold and that plays an important role, but the property holds strong potential to host high-grade mineralization as well. Drilling last year at Gold Standard Venture's Railroad Property immediately adjacent and to the west of the Poker Flats property boundary intersected 56.4 meters of 4.26 grams/tonne gold and another intersection 77.8 meters of 1.63 grams/tonne gold. Considering the new discovery looks to run directly into the large Poker Flats property, the Sphere/Spartan land could be a glut of both low-grade and high-grade gold.
The 420-acre Ziggurat gold property has many of the same characteristics with Carlin-type gold and major miners enveloping the land. The 15-million-ounce Round Mountain and Gold Hill gold mines of Kinross Gold and Barrick Gold as well as Newmont's 3-million-ounce Northumberland gold mine are all in the same vicinity.
In the Red Lake District of Ontario many high-grade intercepts have been made at Red Lake since gold was first discovered in the 1920's, including Goldcorp's mammoth strikes in 2010 of 136.3 grams/tonne gold across 34.7 meters and 1.7 meters of 1,826.3 grams/tonne gold. Now called the Red Lake Mine, Goldcorp produced 622,000 ounces in 2012 at a grade of 23.92 grams/tonne at about $400 per ounce in costs.
The 1,482-acre Dome/McManus property is only 1.5 kilometers from Goldcorp's High Grade Zone area. Historic drilling at Dome has intersected 33 grams/per tonne gold over 2 feet, indicating that the property could host substantial high-grade deposits and supported by geologic maps of the Goldcorp mineralization trends. Drilling in 2011 and 2012 on the Dome/McManus property identified a gold mineralized system stretching 1.3kms long by 400 meters wide.
The Sphere Group, to compliment its existing land interests, will commence negotiations to finalize participation in a gold and silver mineralized project in Nevada in October 2013.
On behalf of Sphere Resources Inc
Malcolm L Stevens,
Executive Chairman and President
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Sphere Resources
Sphere Resources Inc. (OTCMKTS:SPHUF) (NEX – SPH.H) is focused on identifying and appropriating exploration targets and other high quality assets in major global mining camps with a particular emphasis on precious metals. It is currently involved in exploring for gold mineralization in the Red Lake District of Ontario and in Nevada, USA on the Carlin Trend.
Wedgewood Investment Group LLC.
Spartan Gold Ltd