|October 21, 2010|
Silver Spruce Reports Results Of Channel Sampling; Krissy Trend - Rambler South Property, Nl
- channel samples w/ significant gold values up to 7.3 g/T over 3.1 m and 10.3 g/T over 2 m
- visible gold (VG) noted in the eastern trench (trench 10-1)
- Krissy shear zone located over an 800 m strike length - open along strike to east and west
October 21, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has received the results for channel samples taken in trenches on the Krissy Trend on the road accessible, Rambler South gold property in northeastern Newfoundland (news releases Oct. 14 and July 29, 2010).
The property totals 101 claims (2,250 ha) and was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). Terms to earn a 100% interest, subject to a 2.5% NSR with a 1.0% buyback for $1.5 M, are: total payments of $95,000, issuance of 1.05M shares and a work commitment of $500,000 by the end of the second year. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.
Five trenches (RS10-1 to 5) tested the Krissy shear zone, as defined by a VLF-EM fraser filter anomaly, over an 800 m strike length from 16+50 to 24+30 E from trench 1 in the east in the L 24 E area to Trench 5 in the west at 16+50 E. Channel cuts, taken at approximate 5 m intervals, using a Quikcut diamond saw, varied from 0.35 to 6.8 m in length with individual samples from 0.1 to 1.6 m in length.
The shear zone was exposed in all trenches as sericite schist and foliated / sheared mafic volcanics, in contact with quartz porphyry, carrying variable amounts of recrystallized quartz veins with associated pyrite, copper (chalcopyrite, chalcocite, bornite) and lead (galena) mineralization. Quartz porphyry content diminishes to the west where the foliated units are mostly chlorite schists with minor, narrow, recrystallized quartz veins with minor scattered sulphides, pyrite and chalcopyrite, and magnetite and the northern contact of the shear zone is a massive gabbro unit. The shear system is boudinaged throughout with "pinch and swell" structures along the trend, giving "pods" of more intensive alteration, quartz veining and mineralization separated by areas with little alteration, veining or mineralization.
Significant gold values, with visible gold noted, were located in the eastern area from 23+43 to 24+30 E in trenches 1 to 3, over a strike length of 90 m, although the shear system continues to both the east and west. Previous work located significant gold mineralization in the L 22 E area with values up to 12.5 g/T over 1.5 m in channels and 9.96 g/T over 0.5 m in drilling. A gold-in-soil value of 193 ppb on L 25 E indicates that the system continues to the east. Trenching here did not expose bedrock since overburden was too deep (> 3 m) and water inflows were heavy. The zone dips to the north at approximately 70-80 degrees and minor fold structures, in trench 1, indicate a vertical plunge for the "pods" of mineralization. Significant gold values are summarized in the table following.
In the western area, 600-700 m to the west, trenches 4 and 5 exposed the shear zone on 17 E and 16+50 E respectively. The shear zone has a width of approximately 4-5 m, carrying narrow recrystallized quartz veins mainly on the north side (hanging wall) adjacent to the massive gabbro. Only weakly anomalous gold values were encountered with the highest values in trench 4 - 91 ppb Au over 0.2 m in a quartz vein and 72 ppb Au over 1 m in mixed chlorite schist and quartz veining. Dips is to the north at approximately 70-80 degrees and small fold structures indicate a steep plunge of 70-80 degrees to the east. These trenches lie up ice of the Krissy and AD boulders, both of which carry VG associated with sulphides in recrystallized quartz veins and host sericite schists. The source for these boulders, which would be expected to lie along this shear zone given the results to the east, remains unknown.
Samples were analyzed at the Eastern Analytical laboratory in Springdale, NL. a recognized local laboratory, for gold (1/2 assay tonne) by fire assay and an ICP-11 technique for other elements. Duplicates were taken from the pulps every 20th sample with check and metallics assays planned for selected samples. Results will be reported when received.
Significant Assay Values - Krissy Trend Channel samples
Note: ND - non detect; NSV - no significant values; Ag - 0.5 g/t is detection limit;
|T1 ||24+25 E ||0.3 ||8.94 ||2.1 ||210 ||341
|T1 ||24+20 E ||0.6 ||17.12 ||21.2 ||14303 ||2313
|incl. || ||0.25 ||38.49 ||29.1 ||19900 ||2964
|T1 ||24+14 E ||0.7 ||5.73 ||0.5 ||85 ||134
|incl. || ||0.5 ||7.51 ||0.5 ||86 ||141
|T1 ||24+10 E ||3.9 ||5.73 ||1.66 ||263 ||227
|incl. ||" ||3.1 ||7.3 ||1.95 ||330 ||335
|incl. || ||1.9 ||9.88 ||1.62 ||301 ||149
|T1 ||24+05 E ||2.5 ||4.41 ||3.16 ||227 ||416
|incl. || ||0.5 ||14.44 ||8.05 ||612 ||409
|T1 ||24 E ||4.6 ||5.2 ||1.6 ||45 ||522
|incl. || ||2.0 ||10.29 ||3.15 ||37 ||942
|incl. || ||1.1 ||15.81 ||4.5 ||44 ||1176
|T1 ||23+94 E ||2.9 ||3.5 ||3.48 ||193 ||160
|incl. || ||2.1 ||4.5 ||4.44 ||258 ||157
|incl. || ||0.4 ||5.47 ||17.3 ||1276 ||418
|and incl. || ||1.1 ||6.59 ||1.92 ||20 ||99
|incl. || ||0.5 ||12.86 ||3.5 ||27 ||113
|T1 ||23+89 E ||3.2 ||2.98 ||1.69 ||27 ||236
|incl. || ||1.8 ||4.73 ||2.73 ||15 ||186
|incl. || ||0.9 ||7.66 ||4.8 ||9 ||228
|T1 ||23+84 E ||0.5 ||3.69 ||2.14 ||53 ||585
|T1 ||23+80 E ||0.3 ||5.59 ||12.8 ||753 ||1082
|incl. || ||0.1 ||8.55 ||31.8 ||365 ||1477
|T2 ||23+55 E ||0.3 ||11.55 ||10.7 ||372 ||245
|T3 ||23+43 E ||0.5 ||2.94 ||0.5 ||14 ||66
lengths reported are approximately 80-90 % true widths
Maps showing the location of the property plus plan maps for the trenching and drilling 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 7,000 claims totaling more than 1750 km2 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 making Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Guy Mac Gillivray, Senior Geologist for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
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.
You can view the Next News item: Thu Oct 28, 2010, Silver Spruce Reports on Results for REE analysis at the Pope's Hill Property and Results of Exploration on the Lobstick Property
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