|May 26, 2009|
Silver Spruce Begins Exploration on the 20th Brook Lead/Zinc Property Western Newfoundland
- Soil geochemistry, prospecting and mapping completed on grid over mineralized area
- Grades - to 42% Pb, 15% Zn, 17 g/t Ag in grab samples from two showings 300 m apart
- Mineralized zone untested by trenching or drilling
May 26, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has begun exploration on the 20th Brook property located in western Newfoundland, approximately 25 kilometers from the town and port of Stephenville. The property totals 146 claims (3,650 ha) and was optioned from a group of Newfoundland based prospectors in December 2008. The company can earn a 100% interest, subject to a 2.5% NSR with a 1.5% buyback for $1.5 M, by paying $84,650 cash, issuing 435,000 shares and expending $300,000 in exploration over a 3 year period. The property is also subject to a yearly advance royalty payment, deducted from future NSR payments, of $18,000 per year, payable for 10 years from the 5th anniversary onward. 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 road accessible to within a few hundred metres of the Southwest (SW) showing. Results for three selected grab samples taken from the two showings, which both extend over an area of more than 30 m, are: SW zone - TB1A -- 34% Pb, 15% Zn, 17.1 g/t Ag, and TB1B -- 0.43% Pb, 7.1% Zn, 5.6 g/t Ag; Northeast zone (TH) - TBTH1 -- 42.4% Pb, 7.4% Zn and 17.5 g/t Ag (see news release dated December 4, 2008). All three samples gave values of > 7% zinc, with variable lead and silver.
Exploration work includes: gridding the lead-zinc mineralized area (NE and SW showings) followed by prospecting, a soil geochemical survey, and geological mapping on the grid plus regional work, stream sediment sampling, prospecting and geological mapping, over the remainder of the property. To date the detailed grid work has been completed, with the acquisition of 221 soil samples and 7 mineralized rock samples, both outcrop and float, and geological mapping/prospecting on the grid. Lead/zinc mineralization was located between the two showings and to the west and north of the Northeast showing. A total of 75, closely spaced, 25 m interval, soil samples were also taken off the SSE grid over unexplained Xstrata soil anomaly A, where values of up to 5,700 ppm Zn and 386 ppm Pb, and a wide area giving values of > 100 ppm lead, were located in widely spaced (100 m) samples. The anomaly is located approximately 1 km to the southwest and on strike of the SSE grid area. It was not adequately explained by two Xstrata drill holes testing the general area of the anomaly, which intersected only fault related, weak lead-zinc mineralization in the basement granitoid units.
The property was optioned to Falconbridge/Xstrata over a three year period until 2007. Their exploration, which targeted Irish type Pb/Zn deposits, is described in the SSE news release dated December 14, 2008. Their work was regional in nature using widely spaced gridding, geophysics and geochemical sampling followed by a 12 hole, 1815 m, diamond drilling program. The mineralized outcrops were not tested by trenching or drilling and the main mineralized trend on the SSE grid remains untested.
Rock and soil samples have been submitted to Eastern Analytical in Springdale, NL, a recognized local laboratory, for analysis by an ICP-11 technique followed by atomic absorption for values over the detection limit of the ICP, for base metals and silver. All results are pending and will be reported when received. Further work including trenching and drilling is contingent upon results.
A compilation map of the 20th Brook property, with the location of the 2008 samples and the grid over the mineralized area 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) and elsewhere in Labrador, Canada. With interests in more than 9,000 claims totaling more than 2,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland making 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
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