August 6, 2009
Highlights
- 1,500-2000 m of drilling in 5 to 6 drill holes starts the week of August 3
- 2008 drilling intersected 1.93 g/t Au and 64 g/t Ag over 7.5 m in CEN-08-10 in wide zones (up to 92 m) of strongly anomalous gold/silver values
August 6, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that the 2nd Phase drill program on the Centauro, Mexico, gold-silver (Au/Ag) project is beginning this week. A contract for 1500 m of drilling, with up to 2000 m planned, has been given to B.D. Drilling of Mexico, S.A. de C.V, San Agustin, Jalisco, MX. The program consists of 5 to 6 holes testing two areas, to the north of Centauro mesa and CEN-08-1, the northern most drill hole in the 2008 drill program. The 2009 program will test the Line 5 and 6 area, where strong veining carrying arsenic and antimony mineralization is noted and to the north and east, on the east side of the mesa, where the most extensive silica breccias zones are found and where the gold/silver values in CEN-08-10 were located.
Results of the 2008 drilling (3,960 metres in 14 holes CEN-08-1 to 14) which tested the alteration zone over a 2.3 kilometre strike length and 1 kilometre width were reported in late 2008 and early 2009 (see news releases - Oct. 7 and Dec. 9, 2008 and Jan. 20, 2009). The highlight was a gold/silver intersection of 7.5 m at 1.93 g/t Au and 64 g/t Ag at the top of hole CEN-08-10, in a 92.1 metre zone, from 3 to 95.1 m, which assayed 237 ppb Au and 8.4 g/t Ag. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. Acanthite, a silver-bearing mineral, and native gold were identified (see news release Dec. 9, 2008). The closest drill hole CEN-08-11, which gave gold / silver values of 104 ppb Au and 2.0 g/t Ag over 20.5 m and 52 ppb Au and 2.9 g/t Ag over 23.5 m, is located 550 metres to the southeast and no drilling has tested the area to the north along strike. The gold / silver values are associated with the strong silicification in the silica breccia defined in by the 2009 field work. The mineralization / alteration appears to be dipping to the east / northeast, basinward.
Work in 2009 has consisted of relogging the 2008 core, geological mapping and field checking and geological compilation. This has resulted in a better understanding of the geological setting of the alteration package and mineralized zones and has defined areas requiring further diamond drilling (see news release July 7, 2009).
All of the 2008, widely-spaced, drill holes, except CEN-08-8 and 12, intersected elevated gold and silver values over appreciable widths indicating that the system has good potential to host a significant gold/silver deposit. Trace element chemistry, especially mercury, indicates that drilling has most likely been testing the top of the system with the best potential lying at depth. The regional structural style is indicative of classic Mexican, Basin and Range geometry, and it is reasonable to assume that extensional features, favorable loci for intrusions and conduits for hydrothermal fluids, trending approximately North‐South, exist between topographic highs. It is likely that one of these extensional features exists to the east of the Centauro mesa.
Dr. Greg Arehart, the Head of the Geological Sciences and Engineering Department at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property as a consultant to Silver Spruce, most recently since the 2009 exploration work. He comments: "The general epithermal trend is Hg, As, Sb, Tl, Ba, Ag near the paleosurface, precious metals (Au, Ag) and As below, grading to Ag-base metal deeper zones. The trace element geochemistry, the intense silicification and other geologic features of the project, lead me to believe that we are still at the top of the system. Clearly the alteration package is more complex than originally thought and the additional information obtained in the 2009 work, requires changes in the model, but overall the model remains robust with two major untested target areas".
About the Centauro Property
The Centauro property is a block of six claims (1,420 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of the Durango State boundary and lies approximately 25 kilometres to the west of Highway 45, Mexico's main north-south highway. The property is subject to an option agreement with a Mexican geologist, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. Compilation maps showing the drill locations, and geology plus pictures and the QA / QC protocols can be viewed on the company website www.silverspruceresources.com.
All analyses were carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario. The drill core samples were sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core was sampled, mainly at one to three meter intervals, and sent to Minerales Laboratory S.A. de C.V. in Mazatlan for sample preparation, as approved by Actlabs. Pulps were forwarded to Actlabs in Ancaster for analysis. The samples were analyzed either by fire assay (one assay tonne) or neutron activation techniques for gold plus an ICP technique for other elements. Every twenty-fifth sample was also analyzed by fire assay (one assay tonne) for gold and an atomic absorption technique for silver at the Minerales Laboratory in Mazatlan for quality assurance/quality control (QA/QC) purposes. A QA/QC program is in place to increase confidence in the results generated.
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
HEAD OFFICE
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@silverspruceresources.com
Web: www.silverspruceresources.com
INVESTOR RELATIONS
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
E-mail: hugh@ascentacapital.com
Web: www.ascentacapital.com
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.
- 1,500-2000 m of drilling in 5 to 6 drill holes starts the week of August 3
- 2008 drilling intersected 1.93 g/t Au and 64 g/t Ag over 7.5 m in CEN-08-10 in wide zones (up to 92 m) of strongly anomalous gold/silver values
August 6, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that the 2nd Phase drill program on the Centauro, Mexico, gold-silver (Au/Ag) project is beginning this week. A contract for 1500 m of drilling, with up to 2000 m planned, has been given to B.D. Drilling of Mexico, S.A. de C.V, San Agustin, Jalisco, MX. The program consists of 5 to 6 holes testing two areas, to the north of Centauro mesa and CEN-08-1, the northern most drill hole in the 2008 drill program. The 2009 program will test the Line 5 and 6 area, where strong veining carrying arsenic and antimony mineralization is noted and to the north and east, on the east side of the mesa, where the most extensive silica breccias zones are found and where the gold/silver values in CEN-08-10 were located.
Results of the 2008 drilling (3,960 metres in 14 holes CEN-08-1 to 14) which tested the alteration zone over a 2.3 kilometre strike length and 1 kilometre width were reported in late 2008 and early 2009 (see news releases - Oct. 7 and Dec. 9, 2008 and Jan. 20, 2009). The highlight was a gold/silver intersection of 7.5 m at 1.93 g/t Au and 64 g/t Ag at the top of hole CEN-08-10, in a 92.1 metre zone, from 3 to 95.1 m, which assayed 237 ppb Au and 8.4 g/t Ag. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. Acanthite, a silver-bearing mineral, and native gold were identified (see news release Dec. 9, 2008). The closest drill hole CEN-08-11, which gave gold / silver values of 104 ppb Au and 2.0 g/t Ag over 20.5 m and 52 ppb Au and 2.9 g/t Ag over 23.5 m, is located 550 metres to the southeast and no drilling has tested the area to the north along strike. The gold / silver values are associated with the strong silicification in the silica breccia defined in by the 2009 field work. The mineralization / alteration appears to be dipping to the east / northeast, basinward.
Work in 2009 has consisted of relogging the 2008 core, geological mapping and field checking and geological compilation. This has resulted in a better understanding of the geological setting of the alteration package and mineralized zones and has defined areas requiring further diamond drilling (see news release July 7, 2009).
All of the 2008, widely-spaced, drill holes, except CEN-08-8 and 12, intersected elevated gold and silver values over appreciable widths indicating that the system has good potential to host a significant gold/silver deposit. Trace element chemistry, especially mercury, indicates that drilling has most likely been testing the top of the system with the best potential lying at depth. The regional structural style is indicative of classic Mexican, Basin and Range geometry, and it is reasonable to assume that extensional features, favorable loci for intrusions and conduits for hydrothermal fluids, trending approximately North‐South, exist between topographic highs. It is likely that one of these extensional features exists to the east of the Centauro mesa.
Dr. Greg Arehart, the Head of the Geological Sciences and Engineering Department at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property as a consultant to Silver Spruce, most recently since the 2009 exploration work. He comments: "The general epithermal trend is Hg, As, Sb, Tl, Ba, Ag near the paleosurface, precious metals (Au, Ag) and As below, grading to Ag-base metal deeper zones. The trace element geochemistry, the intense silicification and other geologic features of the project, lead me to believe that we are still at the top of the system. Clearly the alteration package is more complex than originally thought and the additional information obtained in the 2009 work, requires changes in the model, but overall the model remains robust with two major untested target areas".
About the Centauro Property
The Centauro property is a block of six claims (1,420 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of the Durango State boundary and lies approximately 25 kilometres to the west of Highway 45, Mexico's main north-south highway. The property is subject to an option agreement with a Mexican geologist, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. Compilation maps showing the drill locations, and geology plus pictures and the QA / QC protocols can be viewed on the company website www.silverspruceresources.com.
All analyses were carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario. The drill core samples were sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core was sampled, mainly at one to three meter intervals, and sent to Minerales Laboratory S.A. de C.V. in Mazatlan for sample preparation, as approved by Actlabs. Pulps were forwarded to Actlabs in Ancaster for analysis. The samples were analyzed either by fire assay (one assay tonne) or neutron activation techniques for gold plus an ICP technique for other elements. Every twenty-fifth sample was also analyzed by fire assay (one assay tonne) for gold and an atomic absorption technique for silver at the Minerales Laboratory in Mazatlan for quality assurance/quality control (QA/QC) purposes. A QA/QC program is in place to increase confidence in the results generated.
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
HEAD OFFICE
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@silverspruceresources.com
Web: www.silverspruceresources.com
INVESTOR RELATIONS
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
E-mail: hugh@ascentacapital.com
Web: www.ascentacapital.com
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.