RE: News Now we know the reason for the recent weakness and increased trading volume.
OSISKO OPTION TERMINATION
The Company has received notice that Osisko Hammond Gold has terminated its option agreement to acquire an interest in the West Hammond and Clement Lake claim blocks near Atikokan, Ontario. Osisko completed extensive surface sampling limited geophysical and geochemical programs, and one drill hole on the West Hammond claims during 2011 and early 2012.
This drill hole was located behind three of the Sparton holes reported earlier (see Sparton News Release dated May 10, 2010) on the South Shear zone of the West Hammond Claims. The Osisko hole intersected a number of narrow zones of gold mineralization below the Sparton intersections within a 200 metre wide alteration zone with anomalous gold values. The best intersections were 3.36g/t gold over 1.5 metres and 1.76 g/t gold over 1.5 metres (core lengths).
The Osisko work report indicates that a significant number of induced polarization and geochemical anomalies remain untested, particularly on the West Hammond claims and recommends follow up work on these. Osisko's obligations under the option agreement will terminate once the assessment work filed for the work program is approved by the Ontario Ministry of Mines and Northern Development and this is expected on or before April 30, 2012.
The Company is evaluating the data and planning follow up work on the highest priority remaining targets on the claims this coming season.
Sparton's subsidiary drilling company EDCOR Drilling Services continues to operate two machines under contract to Osisko Hammond Gold. These are doing condemnation and infill drilling on Osisko's Hammond Reef program. The contract work is expected to continue through the 2012 year.