|April 01, 2008|
Significant Metal Values at CNL property
- significant values in gold and base metals from rock and basal till and HMC samples
- lithogeochemical results show excellent VMS base metal characteristics
- stratigraphic drilling begun to test anomalous conductive zones
- termination of Mother Lode property option agreement
April 1, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce the results of the 2007/2008 exploration program and the commencement of drill follow up on the CNL property in central Newfoundland. The property is 100% owned by Silver Spruce subject to an NSR payable to ASK Prospecting and Guiding. The exploration has consisted of basal till sampling over VLF-EM conductive targets in the winter, trenching in the late fall of 2007, and lithogeochemical analysis of rock samples in the early winter of 2008.
Results indicate that the area is very prospective for volcanogenic massive sulphide (VMS) deposits, with extensive alteration related to mineralization in the felsic volcanics, the usual hosts for VMS deposits. Gold potential is also noted in both the till samples and the panned concentrates from the trenches. The drilling will test VLF-EM conductors and the stratigraphy of the area, which has limited outcrop, over a 15-20 km strike length. It will also provide samples for further lithogeochemical analyses which will allow better discrimination of the target areas for the Phase 2 exploration program.
The area has been explored by regional geochemical and airborne magnetometer, EM and VLF-EM surveys and ground follow up, including limited diamond drilling, carried out by companies such as Noranda, Fortune Bay Minerals, Asarco, Amoco and others. This work noted altered felsic volcanics and located copper mineralization in felsic units such as Clipper Brook, base metal mineralization (copper, lead, zinc) in the Crippleback Lake Monzonite and molybdenum mineralization associated with intrusives in the Coronation Lake area.
In the Silver Spruce work, the basal till sampling program was carried out using a Pionjar drill and a "flow through" sampler, under contract by ASK in the winter of 2007. A total of 223 samples tested VLF-EM anomalies, associated with altered (sericitized / chloritized / silicified) felsic volcanics. Depths varied from one to 10 m. Samples were submitted to Overburden Drilling Management in Nepean, Ontario for analysis for Au by tabling with a split of the sample sent to Actlabs in Ancaster, ON for analysis by an ICP method. The heavy mineral concentrate totaled approximately 50 g in each sample. Tabling of the samples gave only weak Au values with a maximum of 2 grains found in four samples and 3 calculated values > 500 ppb Au with a high of 763 ppb. The ICP analyses gave values as follows: Cu generally < 100 ppm with a high of 2,810; Pb - generally < 40 ppm with a high of 1,260; Zn - generally < 50 ppm with a high of > 10,000 ppm (1 %); Cd - generally <1 ppm with a high of 110 ppm; Ag generally < 0.3 ppm with a high of 13.1 ppm; and Ni generally < 40 ppm with a high of 734 ppm. The highest Cu, Pb, Zn, Cd and Ag values were located in the same area in the vicinity of a VLF-EM conductor.
In the late fall of 2007, eight excavator trenches tested the stronger basal till anomalies. Overburden varied from 1 to > 5 m with not all trenches reaching bedrock. Samples from bedrock and angular float and 13 large basal till samples, were taken from the deepest portion of the trenches where possible. The tills were concentrated by panning by Allan Keats of ASK, and the heavy mineral concentrate (HMC) analyzed for Au (fire assay) and an ICP technique. Trench 1 was dug over the highly anomalous base metal values located in the till sampling. Rock samples from bedrock or angular float were acquired from trenches 1, 4 and 8. These rocks were altered (sericitized) rhyolites carrying pyrite and base metals (Pb/Zn) in trenches 1 and 4 and an altered gabbro carrying pyrite and pyrrhotite, in trench 8.
In the rock samples, anomalous values in Zn (to 1,870 ppm, background < 100 ppm) with minor Pb (to 197 ppm, background 30 ppm) were noted in Trench 1, while weak Cu values in the 60-99 ppm range were noted in trench 8. Trench 4 gave only background values. The HMC samples showed extensive pyrite and magnetite in most samples with some visible gold noted as small flakes in trenches 3, 6 and possibly 7. Analysis of the HMC samples gave two significant anomalous values in gold - 3,954 ppb from trench 3 and 1677 ppb from trench 6. All other gold values were background (5 ppb). No significant base metal values were noted in the HMC results although As was elevated (> 100 ppm) in five of the 13 samples.
Rock samples from outcrop, bedrock and angular float in the trenches, were analyzed by standard whole rock lithogeochemical techniques. Dr. Stephen Piercey, a professor at Laurentian University in Sudbury, an independent consultant and a recognized expert in volcanogenic massive sulphide (VMS) deposits and lithogeochemistry, was contracted to interpret the results of the survey. His conclusions were: "Samples from the CNL project range from mafic to felsic volcanics with numerous samples exhibiting lithogeochemical signatures indicative of VMS-style alteration (e.g., chlorite, sericite) coincident with anomalous base and volatile metal contents. These types of lithogeochemical signatures are similar to those found in rocks from discordant alteration zones (e.g., alteration pipes/upflow zones) in VMS systems."
The basal till samples were sent to Overburden Drilling Management in Nepean, ON. for tabling and gold grain counting with a split of the sample sent for analysis by an ICP method to Activation Laboratories in Ancaster, ON. Rock and HMC (panned) samples were analysed at the Eastern Analytical Laboratory in Springdale, a recognized local laboratory used by most exploration companies active in Newfoundland. The lithogeochemical analyses were performed using the 4Litho technique at Activation Laboratories Ltd. (Actlabs) in Ancaster Ontario.
MOTHER LODE GOLD PROPERTY
The company would also like to inform investors that it has terminated the option on the Mother Lode gold property, on the Burin Peninsula of eastern Newfoundland. The drill program carried out in 2007 located wide zones (up to 10 m) of weak mineralization in the 0.3 to 1 g/t Au range, related to shearing and alteration in the primarily mafic volcanic units. Prioritization of projects indicated that the company should emphasize work on its other uranium and precious / base metal properties.
ABOUT THE CNL PROPERTY
The CNL property consists of 511 claims (12,775 ha, approx. 128 km2) on NTS areas 2 D/13 and 12 A/16, in central Newfoundland, to the southwest of Grand Falls - Windsor. The claims were staked in early 2007, on a recommendation by ASK Prospecting and Guiding, using information gained from over 20 years of work in the area. One of the ASK principals, Allan Keats, is a co-recipient of the 2007 Prospector of the Year award from the Prospectors and Developers Association of Canada. Under the terms of the agreement, a 2% NSR, with a 1% buyback for $1 million, is payable to ASK on any production from the property. ASK will also get 100,000 shares if Silver Spruce elects to retain any of the properties for the second year. Silver Spruce can elect to terminate the agreement and transfer the claims to ASK at any time.
ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With interests in 11,882 claims totaling approximately 2,970 square kilometers in Labrador - 60% of them 100%-owned - Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. A large property position and strong financial backing make Silver Spruce a leading uranium explorer in Newfoundland, and Labrador and in Canada.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
SILVER SPRUCE RESOURCES
Gordon Barnhill, CFO & Director
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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