|June 05, 2008|
Silver Spruce Reports Altered / Mineralized Felsic Volcanics - CNL Property
- Widely spaced stratigraphic drilling intersects altered felsic volcanic units
- Weak, disseminated, base and precious metal mineralization associated with VMS style alteration
June 5, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce the results of the winter drill program 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.
A total of seven BTW holes, totaling 830.1 m, were drilled. The drill holes tested a 15 km NE/SW trend in a sequence of felsic to intermediate-mafic volcanics. The holes, designed to test the stratigraphy (for rock types), and coincident VLF-EM conductors and basal till anomalies, were spaced 2-4 kilometres apart along the regional strike. Holes were mainly drilled at -45º, along a southeast orientation of 150º to 170º azimuth, with the exception of CNL-08-3 which was drilled at an angle of -60º and CNL-08-7 which was drilled at an azimuth of 210º. Core angles of deformation fabrics/lithological contacts indicate a vertical to steep westward-dipping stratigraphy.
The predominant lithology intersected was felsic volcanic flows and tuffs with lesser interlayered intermediate and mafic volcanics (flows and tuffs), the exceptions being drill holes CNL-08-1 and CNL-08-6 (the most southwestern and northeastern drill holes respectively), where intermediate to mafic volcanics predominate. Interesting values in base metals and silver were noted in drill holes CNL-08-4 to 6, mainly in the felsic volcanic units. These included:
• CNL-08-4 - 27.1 g/t Ag over one meter from 10 to11 meters in a clay gouge zone in the felsic volcanics;
• CNL-08-5 - two values > 2000 ppm Zn over 1.5 meters (42 to 43.5 meters and 48 to 49.5 meters) within a 70 meter zone (40 to 110 meters), which gives anomalous zinc values in the 100 to 200 ppm range with elevated Pb values (up to 823 ppm) associated with the higher Zn values in altered (sericitized / silicified) felsic volcanics;
• Scattered copper values, in the 100 to 200 ppm range with a high value of 586 ppm in CNL-08-5 in altered (sericitized / silicified) felsic volcanic;
• CNL-08-6 - A zone of elevated Zn in the 200 to 400 ppm range from 34.5 to 45 meters in altered (sericitized / silicified) felsic volcanics;
• Gold values were generally background (< 5 ppb); however scattered values from 30 to 200 ppb were located, with a zone of elevated values averaging 20 to 30 ppb, with a high of 200 ppb, found in CNL-08-3 at the top of the hole from 11.8 to 34.8 meters (24 meters) associated with strong pyrite mineralization in a brecciated and altered felsic unit. No coincidence was noted between precious and base metal mineralization.
The volcanics show extensive alteration and pyritization (up to 10-20% in places) mainly in the felsic to mafic volcanics which is characterized by a moderate to strong foliation fabric and brittle deformation features, including shear and breccia zones. Alteration consists of moderate to strong silicification, clay alteration, hematite and ubiquitous pyrite. Moderate to strong chloritization, bleaching and weak Fe-carbonate alteration characterize the mafic units. Pyrite content varies from 1 to 8 %, with 15-25% pyrite found in 5-30 cm zones, including massive bands up to 10 cm wide. Trace to minor sphalerite, chalcopyrite and galena is associated with the felsic and mafic volcanics particularly in CNL-08-5. Trace fluorite and molybdenite are also noted. Minor, pink, potassic alteration was noted in CNL-08-4.
Results indicate that the area is prospective for volcanogenic massive sulphide (VMS) and shear hosted epigenetic deposits, with extensive alteration related to mineralization in the felsic volcanics, the usual hosts for VMS deposits. Gold potential is noted in the till samples, the panned concentrates from the trenches and in scattered values through the altered volcanics, particularly in CNL-08-3, associated with structural controls such as brecciation and strong pyrite mineralization.
The area has been previously 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, and Amoco. 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. Exploration by Silver Spruce has consisted of basal till sampling over VLF-EM conductive targets, trenching, lithogeochemical analysis of rock samples and diamond drilling.
Rock samples from outcrop, bedrock and angular float in the trenches, were analyzed in early 2008, by standard whole rock lithogeochemical techniques. Dr. Stephen Piercey, a professor at Laurentian University in Sudbury, and an independent consultant, 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."
A total of 67 core samples have been taken for lithogeochemical analyses which, with the surface samples taken in 2007, will allow better discrimination of the target areas for a Phase 2 exploration program. These results are pending and will be reported when received.
A total of 172 basal till samples were taken over VLF-EM conductive zones not tested by earlier sampling. Results indicate values up to 752 ppm Zn (background 40-50 ppm), 292 ppm Cu (background 30-50), and 176 ppb Au (background < 5 ppb) with background Ag values. The anomalous values will be followed up in 2008.
The company would also like to announce that, in light of the success of the Phase 1 drilling program, it will exercise its option on the property by the payment to ASK Prospecting and Guiding of 100,000 shares of Silver Spruce. The shares will carry the regular hold period of four months.
Core and basal till samples were analysed for Au by fire assay using a half assay tonne sample plus an ICP-11 technique for other elements including base metals and silver, at the Eastern Analytical Laboratory in Springdale, a recognized local laboratory used by most exploration companies active in Newfoundland. The lithogeochemical samples have been sent to Activation Laboratories Ltd. (Actlabs) in Ancaster Ontario, where they will be analyzed using the 4Litho technique.
Maps showing the property, with basal till, trench, rock, HMC results, plus the drill hole locations are shown on the Silver Spruce website at www.silverspruceresources.com
ABOUT THE CNL PROPERTY
The CNL property consists of 511 claims (12,775 ha, approx. 128 km2) 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. Allan Keats, an ASK principal, is a co-recipient of the 2007 Prospector of the Year award from the Prospectors and Developers Association of Canada (PDAC). 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. Silver Spruce can elect to terminate the agreement and transfer the claims to ASK at any time.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company mainly focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 11,882 claims totaling more than 2,970 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to base and precious metals in central Newfoundland and gold/silver opportunities in Mexico, gives the corporation diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.
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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