|June 16, 2009|
Silver Spruce Completes First Pass Exploration on the Calvin's Landing Gold Property - Central Newfoundland
- high sulphidation style alteration / mineralization with grab sample values to 4.4 g/t Au
- Altered / mineralized zone, minimum 100 m wide, untested by trenching or drilling
- Gridding, soil and stream geochemistry, mapping and prospecting completed
June 16, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to report that it has completed the first pass exploration program on the Calvin's Landing gold property located near the town of Glovertown in east-central Newfoundland. The property hosts strong, high sulphidation style, alteration / mineralization which has given values up to 4.4 g/t from grab samples of a quartz rich hematite breccia associated with strongly altered, sericitized and pyrophyllitized, felsic volcanics.
The property, which consists of 121 claims (3,025 ha) was optioned from two Newfoundland prospectors in January (see News release dated January 13, 2009). The company can earn a 100% interest in the property by paying $74,000 in cash, issuing 350,000 shares and spending $300,000 on exploration over a 3 year period. The property is also subject to a 2.0% NSR with a 1.0% buyback for $1M and a yearly advance royalty payment, deducted from the NSR payments, of $15,000 per year, is payable for 10 years from the 5th anniversary.
The property is located in east-central Newfoundland, approximately 10 kilometres from the town of Glovertown. It is road accessible via the Northwest Arm Resource Road, with the mineralized zone exposed along the road. Results from 22 grab samples taken by the vendors from float along the road, gave 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). The felsic volcanic units are highly altered with sericite, pyrophyllite and clay minerals and carry extensive disseminated pyrite. Quartz veining carrying pyrite and specular hematite, sometimes brecciated, is present. PIMA analysis by Newfoundland government geologists indicates that alunite, typical of high sulphidation systems, is present. The mineralized zone has not been tested by trenching or drilling and no exploration has been carried out along strike to either the north or the south.
Exploration by SSE consisted of gridding, soil and stream sediment geochemistry, geology and prospecting. A small cut grid, with lines at 100 m intervals, was established over the mineralized zone on the road and the grid was soil sampled, mapped and prospected, over a 500 m strike extension. Three recce lines at 300 m intervals were placed both to the north and south along trend, to cover the possible extension of the zone. Three recce lines were also placed in the northern portion of the property, to the north of Northwest Arm, with two over an area of altered felsic volcanics and a third in an area where government lake sediment sampling had given an elevated gold value. All lines were covered by soil geochemistry at 25 m intervals,geology and prospecting. The geological mapping was inconclusive as there is little outcrop and the mineralized zone is only exposed along the road.
A total of 21 rock, 16 stream sediment and 297 soil samples were taken. All samples were submitted to the Accurassay preparation laboratory in Gambo, NL, where they will be prepped and then sent to the Accurassay laboratory in Thunder Bay for analyses by fire assay for gold and an ICP- 31 technique for other elements. All results remain pending and will be reported when received and compiled. A compilation map of the Calvin's Landing property, showing the location of the cut grid, the mineralized zone with the due diligence samples taken in December 2008, and the soil and stream sediment sample locations, can be viewed on the company website at 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 is diversified with gold/silver projects in Mexico and on the island of Newfoundland, and base metal projects in central and western Newfoundland.
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 Corporation seeks Safe Harbour.
You can view the Next News item: Thu Jun 25, 2009, Silver Spruce Reports on Geochemical Results 20th Brook Lead/Zinc Property - Western Newfoundland
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