Sparton Eyes Uranium in Chinese Coal Ash

Vancouver — Research by Sparton Resources (SRI-V, SPNRF-O) has identified a major source of coal ash in China containing significant amounts of uranium.

The research, conducted jointly with a branch of the China National Nuclear Corp., sampled ash from coal-fired generating plants that burn lignite coals with known elevated uranium content.

Sparton has three power stations in its sights, all located in central Yunnan province and burning coal sourced from the same open-pit operation. Ash analysis completed on one of the stations, Xiaolongtang, returned values from 123-142 ppm (0.012-0.014%) uranium.

Based on historic and current data, the locally sourced coal has high ash content (about 20-30%) and contains 20-315 ppm (0.002-0.031%) uranium, averaging 65 ppm (0.007%). As a result of the elevated uranium content, the coal ash from the power stations is unsuitable for use in cement and is mostly stockpiled onsite.

Sparton estimates about 5 million tonnes of recoverable ash in Xiaolongtang’s accessible stockpiles.

All three power stations — Dalongtang and Kaiyuan in addition to Xiaolongtang — are expected to produce an aggregate of 1.2 million tonnes of ash annually over the next couple of years. Based on an average 125 ppm (0.0125%) uranium content, annual ash output would contain about 150 tonnes (330,900 lbs.) of U3O8.

Sparton has started a leach testing program to ascertain recoverability of the uranium contained in the ash.

The “non-conventional” uranium program ignited investor interest, with Sparton shares gaining 78% on the news to close up 14.5 to 33 apiece on strong trading volume of almost 4 million.

The company also recently reached an agreement to sell a partial interest in its Luxi gold project, also located in Yunnan province, to the British Virgin Islands-registered company Starry for about $2.81 million. Starry will acquire 41% in Sparton’s 80%-owned subsidiary Yunnan Sparton Minerals (YSM) which holds the exploration licences to the project.

Sparton will retain 39% and Chinese partner Yunnan Nuclear Exploration Team 201 will hold a carried 10% after selling 10% of YSM to Starry, which will control YSM with a 51% interest.

Luxi hosts “Carlin-style” gold mineralization occurring in the contact zone of carbonate and clastic sediments. Since 1989, local miners have produced about 200,000 oz. gold from oxide deposits in the area.