December 09, 2008 Significant Gold / Silver Intersections at Centauro Project
December 9, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide further drilling results from the Centauro, Mexico, gold-silver (Au/Ag) project. Results for holes CEN-08-6 to CEN-08-10 are reported here with results for holes CEN-08-1 to CEN-08-5 reported on October 7, 2008.
From April to October, a total of 3,960 metres in 14 holes (CEN-08-1 to 14) tested the three kilometre strike length of the zone. Core logging and sampling has been completed and all remaining samples for holes 11 to 14 inclusive have been received by Actlabs and are being analyzed. Further results will be released once all have been received.
The highlight of the drilling to date is a gold and silver intersection of 7.5 m at 1.93 g/t Au and 64 g/t Ag at the top of hole CEN-08-10. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. The closest hole to hole 10 is located 500 metres to the southeast (CEN-08-11). No drill holes have tested the area to the north along strike. The two widest anomalous gold intersections were located in holes 10 and 7. Hole 10 gave 92.1 metres of 237 ppb Au and 8.4 g/t Ag from 3 to 95.1 m including the higher grade intersection noted above and hole 7 gave 50 metres of 284 ppb Au and 2.4 ppm Ag, from 9.0 to 59.0 metres including 4.34 g/t Au and 13.4 g/t Ag over 2 metres from 55.2 to 57.2. All of the widely-spaced drill holes, except CEN-08-8, have intersected elevated gold and silver values over appreciable widths indicating that the system has good potential to host a significant gold/silver deposit. Trace element chemistry, especially mercury, indicates that drilling may be hitting the top of the system with the best potential lying at depth. The most significant intersections are shown in the table following:
Anomalous gold/silver values DDH's CEN-08-1 to 10
Dr. Greg Arehart, a professor at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property as a consultant to Silver Spruce. His comments on the drill results are: "In most cases, not all of the trace metal patterns are well-expressed, but the general epithermal trend is Hg, As, Sb, Tl, Ba, Ag near the paleosurface, precious metals (Au, Ag) and As below, grading to Ag-base metal deeper zones. The observations outlined above, in conjunction with the silicification and other geologic features, lead me to believe that we are still at the top of the system."
As noted previously (see news release dated October 7, 2008), check sampling was carried out on the sample carrying the high grade silver value in DDH CEN-08-4 with the samples immediately above and below the anomalous sample also checked. Three separate labs gave inconsistent results for silver in these intervals. Given these results and noting that there were drill bit fragments in the core box, rejects, or where rejects were not available, the remaining core, were sent to Overburden Drilling Management (ODM) in Nepean, Ontario. Reject samples for anomalous samples from the bottom of Hole 1 (silver only) and the top of hole 10 (gold and silver) were also sent. The samples were processed by micropanning followed by scanning electron microscope (SEM) work on the fragments and/or grains in order to ascertain their provenance.
This work indicated that the anomalous silver values, up to 1,140 g/t, from hole 5 and the anomalous silver values at the bottom of hole 1 (averaging 63 g/t) (see news release dated October 7, 2008) are related to drill sludge contaminated with silver solder in pieces of drill bits and therefore most likely are not related to mineralization. The two anomalous values in question were 919 ppm Ag (average) over 1.5 metres in drill hole CEN-08-4, and 0.65 metres with values of 59, 67 and 107 g/t Ag in three different pulps, in the last sample at the bottom of hole CEN-08-1. Both of these intersections were located in areas where drilling problems were encountered and the drill bit was either destroyed or damaged, shedding pieces into the drill hole with the drill sludge, which appeared to be fault gouge, where it was analyzed with the core. It is also assumed that drill sludge contaminated with drill bit filings may make wide, low grade, silver intersections questionable unless gold values are also elevated in these intersections. It should be noted that copper, tungsten and nickel, related to the drill bit composition, are generally elevated where drill bit contamination is seen. This information is a good indication of the problem areas. Drilling performance improved greatly after the first five holes were completed.
Both acanthite (a silver bearing mineral - approximately 5,000 grains) and native gold (1,000 grains) were noted and confirmed by the ODM SEM work in sample 7815, the first sample (from 3.0 to 6.1 m) in hole 10, which ran 2.49 g/t Au and 104.0 g/t Ag. Both minerals are fine-grained, varying from 0.025 to 0.5 mm in size. This validates the gold-silver intersection noted at the start of this news release. ODM indicates that a gold / silver association should indicate uncontaminated samples since there is no gold in the drill bit solder.
Results for indicator elements (arsenic, mercury antimony and barium) show all holes to be anomalous, with holes CEN-08-01 and CEN-08-02, the most northerly ones, strongly anomalous in arsenic, mercury, and antimony; and holes CEN-08-03, CEN-08-04,and CEN-08-05, in the central and south part of the mesa on the west side, dominated by anomalous barium. Good gold/silver association was found for arsenic in holes CEN-08-06, CEM-08-09 and CEN-08-10 and for mercury in holes CEN-08-06, CEN-08-07 and CEN-08-10 except the higher mercury values were not associated with the highest gold values in hole CEN-08-10, rather the lower grade, perhaps more peripheral or leakage type mineralization. Weak to moderate association with gold/silver was noted with antimony, barium and thallium through most of the holes.
Values were up to > 10,000 ppm As with background 30-40 ppm; 2,750 ppm antimony with background <50 ppm; 15,000 ppm barium, with background <1,000 ppm; 1900 ppm mercury with background <1 ppm and 643 ppm thallium with background < 10 ppm. The presence of strongly anomalous mercury indicates that the drilling is still testing high in the system with the significant potential remaining untested at depth.
Mineralized/altered zones -- mainly pyrite/kaolin with some silicification associated with faults and shears have been intersected in all holes. Rock units encountered include sedimentary units -- limestone conglomerates to sandstones, mafic volcanics and mafic intrusives -- that are weakly to intensely altered throughout. Alteration consists of propylitization, decarbonatization, argillitization (kaolinite) and silicification.
Once all data have been received they will be compiled to allow planning for a follow-up drill program in 2009.
About the Centauro Property
The Centauro property is a block of six claims (1,420 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of the Durango State boundary and lies approximately 25 kilometres to the west of Highway 45, Mexico's main north-south highway. The property is subject to an option agreement with a Mexican geologist, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. Maps showing the drilling locations on the Centauro property, plus the ODM letter report and the QA / QC protocols can be viewed on the company website www.silverspruceresources.com.
All analyses are carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario. The core samples were sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core was sampled, mainly at one to three meter intervals, and sent to Minerales Laboratory S.A. de C.V. in Mazatlan for sample preparation, as approved by Actlabs. Pulps were forwarded to Actlabs in Ancaster for analysis. The samples were analyzed either by fire assay (one assay tonne) or neutron activation techniques for gold plus an ICP technique for other elements. Every twenty-fifth sample was also analyzed by fire assay (one assay tonne) for gold and an atomic absorption technique for silver at the Minerales Laboratory in Mazatlan for quality assurance/quality control (QA/QC) purposes. A QA/QC program is in place to increase confidence in the results generated.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 12,000 claims totaling more than 3,000 square kilometres in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador gives the company 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 HEAD OFFICE
Gordon Barnhill, CFO & Director