|November 03, 2010|
Silver Spruce Reports on IP Results and Geological Interpretation Big Easy Gold Silver Property, NL
- IP geophysics over highly silicified sedimentary units carrying disseminated pyrite with gold/silver values shows anomalies extending through the grid
- Epithermal, sinter type, banded quartz veins noted in mapping
- Drilling planned for early 2011
November 3, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide the results of an induced polarization (IP) geophysical survey and geological interpretation on the road accessible, Big Easy gold/silver property on the island of Newfoundland. 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 three years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is payable from the 4th anniversary on.
The time domain IP survey, contracted to Eastern Geophysics Ltd, was carried out in early October and covered 7 lines (173 to 189 N) spaced mostly 200 m apart for a total of 8.9 line kilometers using a dipole-dipole array and an electrode spacing of 75 m to n=6. It covered the altered (silicified) / mineralized area, defined by prospecting and trenching surveys carried out in the summer (see News Releases dated October 14, August 6 and July 29, 2010), which extends in a north-northwesterly direction, over an area of > 1 km by 300 to 500 m wide, narrowing to the north and south. Ponds in the central portion of the grid made it impossible to survey in these areas.
The results were interpreted by Gerard Lambert, a geophysical consultant with excellent knowledge of IP surveying, who is based in Quebec. His conclusions are: 1) Results indicate nine shallow (i.e., 25 m depth or so) anomalous IP features, all of which are of the "non-conductive" type, indicating disseminated to stringer sulphides, which extend through the altered / mineralized area, in a north to north-northeast direction and 2) The IP anomalies appear to be grouped to form two linear trends, one of which falls along the corridor of silicification in the central portion of the grid which appear to show potential for outlining a significant pyritized zone.
Further geological evaluation of the altered / mineralized zone indicates that the epithermal style, banded quartz veins that crosscut the bedding are found in the central and northern part while the more sinter-like banded zones, which appear to parallel bedding, occur exclusively in the southern portion of the zone. Some quartz breccias, where the banded, sinter-like veins are broken up, occur in the southernmost portion of the zone.
Dr. Greg Arehart, the Head of the Department of Geological Sciences and Engineering at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, visited the property in October in company with the VP Exploration. He has also been provided with data from the exploration to date. He comments: "Given the limitations of the exposure, the geology is clearly permissive of an epithermal system of significant size (>700 m of known strike length), and the geochemical signature is also consistent with epithermal mineralization. Some of the exposures appear to be near-surface sinter deposits, suggesting that we are seeing the top of the system. Additional geologic, geochemical, and geophysical work is needed to more clearly outline and understand this system".
Plan maps for the IP chargeability and resistivity plus a compilation map for the property are shown on the Silver Spruce website at silverspruceresources.com.
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 originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 7,500 claims totaling more than 1,750 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 rare earth element (REE) properties in Labrador, making 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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