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Melchett Lake VMS Project, Thunder Bay Mining District, Ontario

The Melchett Lake belt contains several occurrences of polymetallic Zn- Pb-Cu-Ag-Au VMS style mineralization similar in character to ore deposits exploited at Mattabi, Winston Lake, Geco, Brunswick, Rouyn-Noranda and Uchi Lake.

The Ontario Geological Survey Exploration Highlights in 2016-2017 reported "The potential of discovery of economic zinc-lead-silver-gold-bearing VMS deposits in the Melchett Lake greenstone belt is high."

The multi-kilometre strike length of the known areas of mineralization, depth potential indicated by the Maxwell modelling, broad intervals of mineralization, intense alteration profile similar to well-known polymetallic deposits, and presence of high grade values of both precious metals and base metals clearly provide Silver Spruce Resources Inc. with an opportunity to grow with the strong gold, silver and zinc markets.

Furthermore, our Director, Greg Davison, MSc, PGeo, has first-hand experience on the Melchett Lake area, having worked the area as Project Manager and VP Exploration for Kerr Addison Mines (1983-1984) and Tribute Minerals (1999-2002), respectively."

Letter of Intent

Silver Spruce Resources Inc. has signed a binding Letter of Intent ("LOI") with three parties (the "Vendors") to acquire 100% of the Melchett Lake Zn-Au-Ag volcanogenic massive sulphide ("VMS") project, an advanced precious and base metal project in the Thunder Bay Mining District, northern Ontario, Canada.

The principal terms to purchase 100% interest in the Property include CAD$150,000 in cash payments and CAD$250,000 in Silver Spruce common shares, payable on signing and annual payments spread over three years. Minimum work expenditures total CAD$1,000,000, with CAD$100,000 during the first year, CAD$200,000 in the second year and CAD$700,000 prior to the third anniversary. The Vendors will retain a two percent Net Smelter Return royalty of which 1% can be purchased by the Company for $1,000,000 and the remaining 1% at market price. Silver Spruce has a 90-day window after signing the LOI to carry out its due diligence and prepare a Definitive Agreement ("DA") for the Property acquisition.

Property Claims

The 2,124 hectare project is located within an active exploration and mining region north of Geraldton including Copper Lake's Marshall Lake VMS project, Premier Gold's Hardrock-Greenstone Au project and past-producing Anaconda-Dofasco iron mine and the Skibi Lake and Stewart Lake iron prospects, and along one of the access routes proposed northward from Nakina to the Ring of Fire Ni-Cr-Cu-PGE exploration projects. Recent map staking by Silver Spruce of the extensions of the favourable mineralized horizons has doubled the size of the Property to the current 3,996 hectares.

The Melchett Lake Property currently consists of 190 single cell mineral claims and two multi-cell mineral claims located in Thunder Bay Mining District of northwestern Ontario, Canada. The Property lies 110 km north of Geraldton and 60 km north of Nakina at 5045' north latitude and 8659' west longitude.


The Property is accessible via ski or float equipped aircraft from Nakina or Jellicoe to Kapikotongwa Lake, Melchett Lake or Relf Lake. Road access is available from Geraldton and Nakina to the northwest on paved and unpaved roads along the past principal route to the Anaconda/Dofasco iron mine and near the proposed all-season road northeast to Marten Falls, to boat launch points and helicopter staging areas on the south end of Melchett Lake, within five to eight kilometres of the Property.


The Melchett Lake property is located within the English River Sub-province of the Archean-age Superior Province as part of the east to west-trending Melchett metasedimentary-metavolcanic belt. The metavolcanics are comprised of mafic to felsic pyroclastics, tuffs and flows with metasediments including cherts and Fe-lean to Fe-rich iron formation all of which have been metamorphosed to amphibolite grade. The general bimodal mafic-felsic sequence includes basalts overlain by felsic metavolcanics and associated clastic and chemical metasediments showing a near-vertical dip, steep ENE lineation in a folded sequence of schists and gneisses. Recent airborne magnetic surveys in 2002 and 2010 have identified significant tight to isoclinal folding, indicating multiple top directions and repetition of sequences with the thick felsic to intermediate metavolcanics. Metamorphism and deformation have overprinted much of the primary textural information though volcaniclastic breccias of felsic clasts in mafic matrix are observed, and may represent vent-proximal units.


The Melchett Lake belt contains several occurrences of polymetallic Zn- Pb-Cu-Ag-Au VMS style mineralization similar in character to ore deposits exploited at Mattabi, Winston Lake, Geco, Brunswick, Rouyn-Noranda and Uchi Lake. Base metal mineralization consisting of pyrite, sphalerite, chalcopyrite and galena occurs within the felsic metavolcanic sequences of the Property. There are locally high-grade lenses of Zn & Ag with variable Cu, Au and Pb, and historical gold grades to 28.8 g/t Au, silver grades to 560 g/t Ag and zinc grades to 19.1%.

The mineralization is interpreted to occur as paleo-topographic accumulations related to fumarolic activity forming polymetallic deposits overprinted by a later stage gold-rich event. The extensive quartz-sericite-pyrite alteration is consistent with shallow water (< 2km), basinal smoker-style to sub-surface replacement mineralization.

Highlights of the prospective geology, alteration and mineralization are as follows:

  • Three known centres of coincident alteration and metal mineralization
  • Multiple stratigraphic horizons
  • Distal and stacked proximal sulphides
  • High Zn/Cu, Zn/Pb, Ag/Au
  • Extensive remobilization of major and trace elements
  • Sericite-quartz-cordierite-chlorite alteration zone
  • Broad phyllic-pyrite zones
  • Intense Na depletion with elevated Zn
  • Ca and Sr depletion with elevated Zn
  • Fe, Mg, Co, Cr, Cd enrichment within and below mineralization
  • Continuity of alteration and anomalous Zn over large intervals in core drilling
  • Extensive alteration haloes analogous to world class zinc deposits

Historical Precious and Base Metal Assays

Selected grab samples taken from the Relf Zone by Shawmin averaged 13.0% zinc (Zn), 1.2% lead (Pb), 0.26% copper (Cu) and 325g/t silver (Ag); best results received were 19.1% Zn, 2.2% Pb, 0.40% Cu, 565g/t Ag and 1.72g/t gold (Au).

A selection of Relf Zone samples collected in 1997 by Redbird Gold is shown below.

Sample No.

Zinc %

Lead %

Copper %

Silver g/t































At the Nakina l Zone, Nakina Mines reported, in separate samples, 14.85% Zn and 28.8g/t Au from a pyritized felsic volcanic unit. Rock sampling of a pyritized felsic volcanic unit in the Nakina 2 Zone by Kerr Addison returned a value of 15.08 g/t Au.

All of the above metal values were reported by past operators in the Melchett Lake area, from grab samples which may not be representative of the metal grades, and are historical in nature.

Ongoing Due Diligence and Exploration

Field work for the due diligence was initiated in October 2019 and an update to the NI 43-101 technical reporting by the independent Qualified Person ("QP") is planned over the next two months and will coordinate ground truthing of geochemical and geophysical targets, geological sampling and data verification on known occurrences, GPS location surveys of the historical drill collars, and preservation and sampling of the diamond drill core stored on the Property.

Director, Greg Davison, MSc, PGeo, who worked the Melchett Lake area as Project Manager and VP Exploration for Kerr Addison Mines (1983-1984) and Tribute Minerals (1999-2002), respectively, led the management visit to the Property. Project geologist Luc LePage, MSc, PGeo is the manager of the on-site activities for the field program. Luc has extensive international experience including field work at the nearby Marshall Lake VMS project.

The advanced condition of the Melchett Lake project compels Silver Spruce to focus resources on updating and compiling the geochemical and geological survey data and diamond drilling logs, and acquiring and analysing historical airborne and downhole digital geophysical data to compile our GIS database and identify high priority drilling targets on the Property.


Ontario Ministry of Energy, Northern Development and Mines work permits are in place for geological sampling work, stripping, trenching and diamond drilling (> 20 pads).

Exploration History

Base metals were first reported in 1959 by the Kerr-Lund and Little Long Lac Gold Mines who completed geophysics, trenching and diamond drilling in the Kerr-Lund (Relf) Zone. Between 1964 and 1989, the area was held by Shawmin, Nakina Mines, Chimo Gold Mines, Falconbridge, Cominco, Kerr Addison Mines, Minnova and Inmet. Work programs included regional geological mapping, rock geochemical surveys, trenching, ground and airborne geophysical surveys and limited drilling of the Relf Zone, Nakina l Zone and Nakina 2 Zone. In 1996, Redbird Gold conducted ground magnetometer and MaxMin II EM surveys of the eastern and western extensions of the mineralized horizon.

Tribute staked a large claim group in December 1999 and during 2001-2002 completed a 217 line-kilometre DIGHEMv airborne magnetic and electromagnetic geophysical survey using a 100metre separation (Davison, 2002 assessment report). The property was transferred to a syndicate of investors in 2003 and later optioned by Stratabound Minerals who in 2007 and 2008 completed two drill holes and downhole geophysics with Maxwell modelling. The property was staked by the current Vendors in 2017.

In addition, Fugro carried out a regional airborne magnetic gradiometer survey for the Ontario Geological Survey from 2009-2010 which comprised over 75,000 line-kilometres of data acquisition, flown in a north-to-south direction with 200 m flight line spacing and roughly centred over the Melchett Lake Property.

Qualified Person

Greg Davison, MSc, PGeo and Silver Spruce Director, is the Company's internal Qualified Person for the Melchett Lake Project and is responsible for the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines. Mr. Davison worked the Melchett Lake area as Project manager and VP Exploration for Kerr Addison Mines (1983 and 1984) and Tribute Minerals (1999 to 2002), respectively.

Pino de Plata

Epithermal silver/base metal/gold project located in the prolific Sierra Madre Occidental region of Western Chihuahua State in Mexico. The property consists of 397 ha concession containing a number of historic artisanal mine workings dating back to the Spanish Colonial era. The Company has completed a maiden 43-101 exploration assessment on the property and based on high silver values in surface channel samples (>500 opt Ag) is pursuing a targeted exploration program which will include geophysics, geochemistry and a drilling program on three identified targets.