|July 29, 2010|
Silver Spruce Updates Exploration Activities: Big Easy, Lobstick, Rambler South Projects, NL
- Trenching program underway on the Big Easy gold/silver property
- highly silicified sedimentary units carrying disseminated pyrite located
- Prospecting/soil geochemistry on the Rambler South (RS) gold/base metal property
- Values up to 25.3 g/T Au with visible gold in rock samples from the Krissy trend (RS)
- Airborne radiometric / magnetic survey completed on Lobstick uranium property
July 29, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide an update on exploration activities for the summer of 2010. Projects being worked include the Big Easy gold/silver and the Rambler South gold/base metal properties, both on the island of Newfoundland and the Lobstick uranium property in Labrador. All of these projects are road accessible thereby making exploration cost efficient.
Big Easy Gold/Silver Property
The 121 claim (30 km2) property, located near Thorburn Lake in east-central Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5M, is a total of $110,000 plus 1.6 M shares over 3 years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is also payable from the 4th anniversary on.
Trenching began on July 12 and was completed on July 20. The trenching targeted an area where prospecting had located an extensive area of Au/Ag anomalous angular boulders of silicified conglomerate. Seven (7) trenches, ranging from 20 to 60 meters in length, were excavated along a 700 meter strike length. Overburden varies from less than 1 meter to greater than 6 meters. The first two trenches, both 45 to 60 meters long, failed to reach bedrock due to an extensive till cover. Five trenches (3 to 7), all 10 to 50 meters in length, exposed a zone 700 x 75 meters of epithermal style alteration consisting of intense silicification and pyritization, with some clay alteration (kaolinite ?). Bedrock in trenches 3, 4, 6 and 7 consists of intensely sheared to brecciated, silicified and pyritized conglomerate/sandstone, cut by banded quartz veins which range from a few millimeters to 20 centimeters. Pyrite is ubiquitous through the zone occurring as disseminated grains, blebs and micro stringers, ranging from 2% to 25% and averaging 5%. Bedrock exposed in Trench 5 is a band of white to grey, cherty to chalcedonic quartz vein material, over a width of 4 meters which carries minor disseminated pyrite. The trenches are being washed in preparation for geological mapping and channel sampling.
Prospecting has also located highly altered (silicified) conglomerate units 150 meters to the south of trench 6 (the southernmost trench) however the boggy terrain makes trenching impossible in this area. Large angular, altered (silicified) boulders, similar to bedrock uncovered in the trenching program, have been located up to 1 kilometer to the north of the trenched area. Additional follow up is planned for this area. The mapping and channel sampling of the trenches should be completed in early August. Results will be reported as received.
Rambler South Gold / Base Metal Property
The Rambler South property, located on the Baie Verte peninsula of north central Newfoundland, totals 101 claims (2,525 ha), and was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). Terms of the option to earn a 100% interest, subject to a 2.5% NSR with a 1.0% buyback for $1.5 M, over 3 years are: payments totalling $95,000; issuance of 1.05 M shares; a work commitment of $500,000 by the end of the second year; and a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, payable from the 4th anniversary on.
Exploration this summer has included: line cutting in the eastern and western parts of the Krissy trend grid, soil geochemistry in the same area and along the Krissy trend between the 2010 line cut areas, prospecting and geological mapping along the Krissy trend and limited prospecting / geological mapping on the Brass Buckle zone. This work is primarily testing VLF-EM anomalies, defined by Fraser filter values, which appear to define the Krissy shear zone and possible associated shear systems on the Krissy grid. Results for initial rock sampling along the Krissy trend have been positive with visible gold and values to 25.3 g/T Au from two separate sub outcrop samples from the L 24 E area, where the shear zone is at least 10 m wide, and a new boulder with visible gold, which gave an assay value of 1.68 g/T Au, located approximately 25 m to the north of the Krissy boulder, on L 17 E. Recrystallized quartz veins in mafic volcanics, giving values of up to 259 ppb Au with elevated copper values in the 300-500 ppm range, were located in the line 17 E area to the north of the Krissy boulder and behind the only drill hole which tested the area in 1995. Results from the first 16 rock samples, primarily of recrystallized quartz veins and associated sericite schists, along the Krissy trend, gave values from 5 ppb (non detect) to 25.3 g/T with 6 samples giving values > 1 g/T and 9 giving values > 100 ppb Au.
Gold mineralization, including visible gold, at the Krissy zone is associated with sulphide (pyrite) rich recrystallized quartz veins emplaced along a shear zone, up to 10 m wide, with related linear quartz porphyry bodies. Significant previous values from the zone include: 12.5 g/T / 1.5 m in a channel sample in the trench 2 area near L 22 E, and 9.96 g/T over 0.51 m in an intersection of 4.23 g/t over 1.4 m in drill hole KT-09-1 also near L 22 E. The Krissy boulder, an approximate 500 lb boulder of recrystallized quartz with pyrite and visible gold in an altered/sheared sericitic volcanic or porphyry unit, located on L 17 E, and the recently discovered boulder of similar structure carrying visible gold located 25 m to the north of the Krissy boulder, are both approximately 500 m to the west of the Trench 2 area and across the ice direction, remain unsourced.
Lobstick Uranium Property, Labrador
The 1,062 claim (265 km2) property was acquired by option and staking in October, 2009 after uranium mineralization was discovered by Innu prospectors Jean Pierre Ashini and Raphael Riche in the felsic volcanics / tuffs, during prospecting surveys supported by the company. The option agreement, to earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M, totals $40,000 and 600,000 shares over 2 years. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on (see news release dated Oct. 29/09 for details). The property covers all of the significant felsic volcanic units of the Blueberry Hill Group and anomalous uranium in lake sediment anomalies in the area. The claims were acquired to cover uranium prospective areas based on values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8, located by the Innu prospectors allied with the company in October 2009 (News release Oct. 29, 2009). The geological setting is also considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt (CMB) of Labrador, in that it is uranium mineralization in a foliated felsic volcanic or tuff unit associated with shearing.
A combined radiometric/magnetic survey has been completed under contract by Tundra Airborne Surveys. Flight line spacing was 100 m at a mean terrain clearance of approximately 75 m. A total of approximately 3,800 line kilometers was flown. Results will be released as they are received. Ground follow up will evaluate radiometric and lake sediment anomalies in the late summer/early fall.
Most rock samples and all soil samples from the Rambler South property are analyzed at Eastern Analytical Laboratories in Springdale, NL for Au by fire assay (1/2 assay tonne) plus ICP-11 for other elements. A number of rock samples were also submitted to Accurassay Laboratories in Thunder Bay, ON. Data on the Rambler South property including compilation maps, a plan map of the 2009 drilling, and pictures from the area, and compilation maps for both the Big Easy and Lobstick areas, are shown on the Silver Spruce website at silverspruceresources.com.
The company would like to acknowledge the contribution of the Newfoundland Department of Natural Resources, under the Newfoundland Junior Exploration Assistance Program (JEAP), of up to $150,000 of matching funding for the Lobstick property.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company with advanced gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland. The company was originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada and with continued interests in more than 7,000 claims totaling more than 1,750 square kilometers in Labrador, Silver Spruce remains the second largest landholder in one of the world's premier emerging uranium districts. This diversity makes Silver Spruce a leading explorer in Canada and Mexico.
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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