|January 13, 2009|
Silver Spruce Options Gold Prospect - Central Newfoundland
- Recently discovered high sulphidation alteration / mineralization
- Altered / mineralized zone, minimum 100 m wide, is untested by trenching or drilling
- Grab sample values to 4.4 g/t Au
January 13, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to report that it has optioned a property hosting strong, high sulphidation style, alteration / mineralization in central Newfoundland, near the town of Glovertown. The Calvin's Landing property as optioned, totals 30 claims (750 ha) and was optioned from two Newfoundland prospectors, Walter and Ron Sweetapple.
Terms of the option to earn a 100 % interest subject to a 2.0 % NSR with a 1.0 % buyback for $1 M are:
Cash Shares Work Commitment
On signing: $ 4,000 40,000
1st anniversary $10,000 60,000
2nd Anniversary $20,000 100,000
3rd Anniversary $40,000 150,000 $300,000
Totals $74,000 350,000 $300,000
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $15,000 per year, is payable for 10 years from the 5th anniversary. Fifty percent (50 %) of cash payments can be substituted by shares at their value at the time of exercise at the company's option.
The property is located in east-central Newfoundland, approximately 10 kilometres from the town of Glovertown. It is road accessible via the Northwest Pond Resource Road, with the zone exposed along the road which cuts the zone obliquely The vendors have received grab sample results from 22 float samples taken along the road, with values from a high of 4.4 g/t Au to a low of non detected (< 5 ppb), with five samples > 100 ppb and 11 of the 22 samples anomalous (> 20 ppb). Elevated values in Mo to 71 ppm (background < 10), Ba to > 550 ppm.(background < 50), and Ag to > 6 ppm (background < 0.5 ppm) were also located.
The host felsic volcanic units are highly altered with sericite, pyrophyllite and clay minerals and carry extensive disseminated pyrite. Quartz veining carrying pyrite and specular hematite, which is sometimes brecciated, is present throughout the zone. PIMA analysis by Newfoundland government geologists indicates that alunite is present in the alteration system.
Four selected grab samples taken from outcrop and float / subcrop derived from the underlying bedrock (2 samples each) during the property evaluation gave values of 503 and 882 ppb Au from the float / subcrop samples of quartz / hematite veining in the central part of the zone and non detected (< 5 ppb) from the outcrop samples of pyritic sericite schist from the eastern and western margins of the zone.
The property was staked by the optionees after they observed the alteration / mineralization along the road in October, 2008. The only work carried out has been limited prospecting and sampling of mineralized float derived from outcrop along the road, exposed during the course of the road building. The mineralized outcrops have not been tested by trenching or drilling and no work has been carried out along strike to either the north or the south.
The property lies along the Dover fault, a major suture dividing the Avalon terrane, to the east, from the Dunnage terrane, to the west, on the northern extension of the Love Cove Group volcanics which host extensive high sulphidation alteration / mineralization, such as at Hickey's Pond and the Stewart Option, on the Burin Peninsula and is similar in geological setting to the past producing, 11 million tonne, Hope Brook Gold Deposit located on the south coast of Newfoundland. High sulphidation gold mineralization is extensive in the Carolina Slate Belt in the southern Appalachians, where past producers included the Ridgeway and Haile Mines.
The company has acquired by staking, a total of 91 claims in three licences to protect the on strike extensions of the altered / mineralized zone to both the north and south. These claims will be part of the option deal, making the total property position 121 claims. Exploration will begin in the spring / summer of 2009, once road conditions allow access, and will consist of geochemistry and prospecting followed by trenching / diamond drilling as required.
Analyses were carried out at Eastern Analytical in Springdale, NL, a recognized local laboratory. Samples were analysed for gold by fire assay using an atomic absorption finish plus either an ICP- 11 or ICP 30 technique for other elements. A compilation map of the Calvin's Landing property, with the location of the due diligence samples shown, can be viewed on the company website www.silverspruceresources.com.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With interests in more than 12,000 claims totaling more than 3,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. In addition the company has a gold/silver project in Mexico, base metal projects in central and western Newfoundland and now a gold project in central Newfoundland. 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. The company seeks Safe Harbour.
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