|June 25, 2009|
Silver Spruce Reports on Geochemical Results 20th Brook Lead/Zinc Property - Western Newfoundland
- Soil geochemical values to 1.56% Pb, 0.61% Zn on grid
- Mineralized zone -- soil geochemical values to 0.22% Pb and 0.21% Zn
- untested by trenching or drilling
- Anomaly A area - soil geochemical values to 1.22% Pb, 0.39% Zn
June 25, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has received the soil / stream / rock geochemistry results for the 1st phase exploration on the road accessible 20th Brook property, located in western Newfoundland, approximately 25 kilometers from the town and port of Stephenville (see News releases dated May 26, 2009 and Dec. 4, 2008). The property totals 146 claims (3,650 ha) and was optioned 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.
Three due diligence grab samples taken in 2008 from the SSE grid area (SW and NE showings) gave values as follows: 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. All samples gave values > 7% zinc, with variable lead and silver.
A total of 221, B horizon, soil samples were taken at 25 m intervals on the grid over the mineralized area and 75 were taken, also at 25 m intervals, over unexplained Xstrata soil anomaly A. On the SSE grid, twenty six (26) samples gave Pb values > 100 ppm, with 4 samples > 1,000 ppm (0.1%) and a high of 2,200 ppm (0.22%) near the SW showing, while a total of 74 samples gave Zn > 100 ppm with 4 samples > 1,000 ppm and a high of 2,090 (0.21%) near the SW showing. Background values are considered to be < 40 ppm Pb and < 100 ppm Zn. The highest values in both lead and zinc, 15,600 ppm Pb (1.56%) and 6100 ppm Zn (0.61%) were coincident, located to the north of the known mineralized trend in the north central part of the grid within an area of anomalous Pb and Zn values over a 200 m plus strike length. On the mineralized area, the soil geochemistry shows good continuity with the mineralization (SW and NE showings) over a strike length of more than 500 m. The zone is delineated by soil values in Pb > 40 ppm with a high of 2,200 ppm (0.22%) just north of the SW showing and Zn > 100 ppm, with a high of 2,090 (0.21%) approximately 75 m to the east of the SW showing, on the mineralized trend. The mineralized outcrops were not tested by trenching or drilling by Xstrata.
Prospecting in 2009 located lead/zinc mineralization between the two showings and to the west and north of the NE showing, generally coincident with the northern soil anomaly. Eight grab samples gave values from 43 to 38,000 ppm (3.8%) Pb and 11 to 4,400 ppm (0.44%) Zn.
Soil anomaly A, located by Xstrata approximately 1 km to the southwest, on strike of the main mineralized zone, had given soil geochemical values of up to 5,700 ppm Zn and 386 ppm Pb, over a wide area with values of >100 ppm lead, in widely spaced (100 m) samples. The anomaly was not explained by three Xstrata drill holes which tested the general area and were targeted on geophysics (HLEM and IP). These drill holes intersected only weak, fault related, lead-zinc mineralization in the basement granitoid units.
Eight recce lines covered the Anomaly A area. Background values were considered to be, as in the main mineralized area, < 40 ppm Pb and 100 ppm Zn. A strong anomalous zone in both Pb and Zn was defined over a 500 m plus strike length. The results gave 23 samples > 100 ppm Pb, with 6 > 1,000 ppm Pb and a high of 12,200 ppm (1.22%) and 48 > 100 ppm Zn with 9 > 1,000 ppm Zn, with a high of 3,900 ppm (0.39%). Good coincidence was noted between Pb and Zn. The only Xstrata hole (TB-06-9) that tested the area of the high values didn't intersect any mineralization in the overlying carbonate units but intersected 3.7 m of 0.31% Zn and insignificant Pb from 174.5 to 178.2 m in brecciated granitoid below the fault contact. The anomalously high geochemistry remains unexplained.
Silver values in the soils were generally backround (< 0.5 ppm) with three samples 1 ppm or better noted, generally associated with Pb/Zn values > 1000 ppm. Copper was weakly anomalous in samples with high Pb/Zn values.
Stream sediment samples were taken on a stream that hosts a Pb/Zn showing located by Xstrata, in the southwestern portion of the claim group. Grab sample values from 187 to 35,000 ppm (3.5%) Pb and 710 to 13,500 ppm (1.35% Zn) were located at the showing. Stream sediment values below the showing are anomalous in zinc, with two values > 200 ppm and the rest (6 samples) > 100 ppm. Two samples taken above the showing give background values (< 100 ppm).
Rock and soil samples were 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 if required.
A Phase 2 exploration program consisting of detailed prospecting and soil geochemistry in the Anomaly A area and excavator trenching of the soil anomalies will begin in the next week. Diamond drilling is planned, contingent on the results of the follow up surveys. Silver Spruce would like to acknowledge the financial support received from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in the exploration of the 20th Brook property. A compilation map of the property, the geochemical results for the rock and soil samples 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 8,000 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 Corporation seeks Safe Harbour.
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