|January 06, 2006|
Silver Spruce Resources Inc. (the "Corporation") (SSE-TSX-V) announces that it has reached an agreement with a Newfoundland prospector, Alex Turpin, to acquire his 168 claim (4200 ha) "Motherlode Gold Property" in south eastern Newfoundland.
The property represents a new gold target area in an untested portion of the southern Burin Peninsula in eastern Newfoundland. Host rocks are ophiolitic units of the Burin Group which include mafic volcanics and gabbros, both which provide good chemical and physical hosts for gold mineralization. Iron formation has also been noted in the area. A lake bottom survey has given values from 2 to 18 ppb Au (background < 2 ppb) within the claims. Gold values varying from anomalous (2-300 ppb) to 10.1 g/t over 1.5 m in chip samples, from anomalous to 25.5 g/t in the iron formation in grab samples and from anomalous to 11.65 g/t in the sheared, altered volcanics in grab samples, have been located by the vendor and during due diligence sampling by Silver Spruce. The property has never been evaluated for gold, except for the limited prospecting and lake bottom geochemistry, over the past two years and follow up trenching this past fall by the vendor. This is the first discovery of gold in this part of the Burin Group. Gold mineralization has been found to the north in the Burin area, where Braithwaite Minerals have reported values from their Kitchen showing which include: grab samples to 19.4 g/t, channel samples to 4.85 g/t over 4 m and drill core samples from anomalous to 35.2 g/t over 2.85 m.
The company can earn a 100 % interest in the property subject to a 2 % Net Smelter Return (NSR), which may be completed earlier at the option of Silver Spruce, by making total payments of $55,000 cash and 200,000 shares and spending $800,000 on exploration on the property over a three year period. This agreement is subject to Board and TSX Venture Exchange approval.
Exploration will begin immediately and is planned to include geochemistry, gridding, geological mapping and prospecting and geophysics followed by trenching and diamond drilling.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, who is a QP under the definition of NI 43-101.
On behalf of the Board of the Corporation, Gordon Barnhill (Director & CFO) Telephone: (902) 527-5700, Fax: (902) 527-5711.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. The Company seeks Safe Harbour.
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