|March 24, 2011|
Silver Spruce Reports on Start of Diamond Drilling Road accessible, Big Easy Gold Silver Property, Eastern Newfoundland
- 1,400 m in six holes planned to test IP targets and epithermal, sinter type, banded quartz veins
March 24, 2011 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that a contract for 2,000 m of diamond drilling has been given to Cabo Drilling of Springdale, NL. for drilling on the Big Easy, gold/silver property in eastern Newfoundland and the Rambler South Gold property in the Baie Verte area in the north-eastern part of the province.
The drill is being mobilized to the Big Easy property where approximately 1,400 m in six drill holes is planned. Drilling should begin by the weekend. The drilling will test Induced Polarization (IP) targets in an altered (silicified) / mineralized area, which extends in a north-northwesterly direction, over an area of > 1 km by 300 m to 500 m wide, narrowing to the north and south. Gerard Lambert, a geophysical consultant who evaluated the IP results, concluded: 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 (see news release dated November 13, 2010).
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 who has visited the property, comments: "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."
The 121 claim (30 km2) property, located near Thorburn Lake in eastern 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.
Plan maps for the proposed drill holes, the IP chargeability and resistivity and 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 4,000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and REE districts. The company has rare earth element (REE) properties in Labrador - Pope's Hill, RWM and the Straits and gold/silver projects on the island of Newfoundland.
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: 1.866.68.4743 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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