Sparton Resources has confirmed that Zhaojin Mining Industry has assumed management and operational responsibility for Yunnan Sparton Minerals Company (YSM) and the Luxi Gold Project in Yunnan Province, China, and has started a new exploration program.

Zhaojin, through its Hong Kong subsidiary Sparky International Trade Company, has acquired all of the 51% share interest in YSM which was held by Starry Limited.

Zhaojin is China's largest integrated gold producer and refiner and listed on the Hong Kong Stock Exchange in December 2006 after an IPO which raised more thanr US$240 million. The YSM transaction is the first new acquisition made by Zhaojin since its IPO.

As an international gold producer Zhaojin plans to expand into other exploration areas outside China, including other parts of Asia and North America.

The new YSM management team is planning a new exploration program including 3000 metres of drilling to accelerate the identification of primary and oxide gold resources in the Luxi area with the objective of early production.