Sprott Resource Holdings Press Releases

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.          

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