February 27, 2008
Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that the 2007 exploration program on the Centauro Property in the Sierra Madre Occidental of Chihuahua State, Mexico, has resulted in the definition of significant soil anomalies in gold, silver, mercury, barium and the "toxic" metals (arsenic, antimony) associated with the silicified mesa "cap". The Centauro Property is under option to Silver Spruce, which can earn a 100% interest in the property as previously announced.
The area was previously explored in the early to mid 1990s by Jaba Inc., Excellon Minerals, Blue Ribbon Resources and Cascabel Resources who carried out rock chip sampling, structural studies and a six-hole, reverse circulation (RC) drilling program that tested the silicified zone on the eastern side. Weakly anomalous gold and silver values in the 100 ppb gold and 3 ppm silver range, were located in a couple of the holes. No follow up was carried out.
In the Silver Spruce work, four lines, each approximately 2 kilometers long, at approximate 500-meter intervals, were cut through the underbrush over the mesa to cover an approximate 1.5-kilometer strike of the silicified zone. Soil samples were taken from the surface soil at 10 meter intervals along each of the lines extending into the colluvium both to the east and west of the silicified mesa. Samples were taken at 50 meter intervals over the colluvium to give a regional background.
Soil geochemical results are as follows:
Mercury (Hg) is strongly anomalous (values >1000 ppb throughout, with values up to 28,700 ppb) along the eastern portion of the zone, to the east of the old Excellon RC holes, with weak anomalies in the central portion, near the Excellon holes, and stronger but narrower zones to the northwest;
Gold (Au) values (>25 ppb, with a high of 72 ppb) are strongest on the west side of the mesa, associated with an inferred fault structure, weakly anomalous in the central portion and sporadic in the eastern portion of the zone;
Silver (Ag) values (>1 ppm, up to 2.5 ppm) are strongly anomalous on the west side of the zone associated with the higher Au values and the inferred fault structure, with a weak anomaly associated with the area tested by Excellon RC Hole # 6;
Antimony (Sb) values (>80 ppm with a high of 428 ppm) are located mainly on the west side of the mesa and are highest to the northwest where outcrops containing realgar, orpiment and stibnite, in a black silicified conglomerate, are located. Weaker anomalies are also noted in the central part;
Arsenic (As) values (>400 ppm, with values to 4,020 ppm) are noted throughout the silicified zone but are strongest to the east and west of the Excellon RC holes although weak anomalies are associated with the area drilled by Excellon;
Barium (Ba) values (>1200 ppm) are strongest on the west side of the zone, especially the southwestern part, associated with the inferred fault. Base metal values are low to non-anomalous throughout, generally < 50 ppm. The highly anomalous Hg values, coupled with the anomalous Au, Ag and toxic metal suite and the low base metal values indicate that the system should be above the "boiling zone", and therefore the zone of deposition for epithermal "bonanza gold" veins.
Three rock samples (AG-1 to 3), taken from epithermal style quartz vein float and outcrop in old undocumented prospect pits in the northwestern portion of the property, gave values from 129 to 17,900 ppm (1.79%) Sb, < 5 to 13 ppb Au, 1.6 to 2.4 ppm Ag, 192 to 482 ppm As and 2,630 to 6,490 ppb Hg.
Dr. Greg Arehart, a professor at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property twice, with the most recent visit following the receipt of the soil geochemistry results. He comments, "The Centauro prospect is one of very few essentially untested epithermal prospects in the epithermal province of the Sierra Madre Occidental. This system has clearly seen voluminous and extensive fluid flow, as evidenced by the intense and widespread silicification. Metals in rock chip and soil samples are anomalous over a significant area, indicating potential for a large (multi-million ounce) metal endowment. Two target types are present: a near surface, low-grade, large tonnage potentially Carlin-Type resource, as well as a deeper, focused, bonanza-type system."
Two more soil lines, 5 and 6, were sampled in January-February 2008. Sampling was carried out as before, at 10 and 50 meter intervals, with a total of 122 samples taken. In addition, seven rock samples were also taken. Results are pending and will be reported when received. A diamond drilling program of approximately 3,000 meters, in approximately 10 drill holes, is planned to test the anomalous silicified zone in the first/second quarter of 2008. Road building to support this work is underway.
All samples were transported to the Activation Laboratories Ltd. (Actlabs) preparation laboratory in Hermosillo, Mexico, and then sent to the Actlabs laboratory facility in Ancaster Ontario, for analysis for gold by fire assay (1A2), 37 elements by Aqua Regia ICP (1E3) and Mercury by cold vapour FIMS (1G). The soil geochemical plans, with values for the various elements, and the location of the new soil lines (Lines 5 and 6), plus the rock sample locations, are shown on the Silver Spruce website.
About the Centauro Property
The Centauro Property is a contiguous block of six claims (1,420 hectares), located in the southern part of Chihuahua State, just to the north of Durango State, approximately 25 km to the west of Highway 45, the main north-south highway in Mexico. The property is subject to an option agreement with a Mexican geologist, Jesus Ayax Alba Pascoe, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. The property agreements have been registered with the General Bureau of Mining of the Exploration Agreement in Mexico and the option is subject to payment by Silver Spruce of US$375,000 and 1,325,000 common shares of Silver Spruce over four years, subject to a 3% NSR with a 2% buyback for US$2 million. Advance royalties of US$50,000 per year, starting on the fifth anniversary, and a "finders fee" totaling C$9,600 plus 165,470 shares or cash equivalent over four years are also payable by Silver Spruce to maintain the property in good standing.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 11,000 claims totaling more then 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador, gives the corporation diversification without losing its uranium focus. Strong financial backing makes 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
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
The area was previously explored in the early to mid 1990s by Jaba Inc., Excellon Minerals, Blue Ribbon Resources and Cascabel Resources who carried out rock chip sampling, structural studies and a six-hole, reverse circulation (RC) drilling program that tested the silicified zone on the eastern side. Weakly anomalous gold and silver values in the 100 ppb gold and 3 ppm silver range, were located in a couple of the holes. No follow up was carried out.
In the Silver Spruce work, four lines, each approximately 2 kilometers long, at approximate 500-meter intervals, were cut through the underbrush over the mesa to cover an approximate 1.5-kilometer strike of the silicified zone. Soil samples were taken from the surface soil at 10 meter intervals along each of the lines extending into the colluvium both to the east and west of the silicified mesa. Samples were taken at 50 meter intervals over the colluvium to give a regional background.
Soil geochemical results are as follows:
Mercury (Hg) is strongly anomalous (values >1000 ppb throughout, with values up to 28,700 ppb) along the eastern portion of the zone, to the east of the old Excellon RC holes, with weak anomalies in the central portion, near the Excellon holes, and stronger but narrower zones to the northwest;
Gold (Au) values (>25 ppb, with a high of 72 ppb) are strongest on the west side of the mesa, associated with an inferred fault structure, weakly anomalous in the central portion and sporadic in the eastern portion of the zone;
Silver (Ag) values (>1 ppm, up to 2.5 ppm) are strongly anomalous on the west side of the zone associated with the higher Au values and the inferred fault structure, with a weak anomaly associated with the area tested by Excellon RC Hole # 6;
Antimony (Sb) values (>80 ppm with a high of 428 ppm) are located mainly on the west side of the mesa and are highest to the northwest where outcrops containing realgar, orpiment and stibnite, in a black silicified conglomerate, are located. Weaker anomalies are also noted in the central part;
Arsenic (As) values (>400 ppm, with values to 4,020 ppm) are noted throughout the silicified zone but are strongest to the east and west of the Excellon RC holes although weak anomalies are associated with the area drilled by Excellon;
Barium (Ba) values (>1200 ppm) are strongest on the west side of the zone, especially the southwestern part, associated with the inferred fault. Base metal values are low to non-anomalous throughout, generally < 50 ppm. The highly anomalous Hg values, coupled with the anomalous Au, Ag and toxic metal suite and the low base metal values indicate that the system should be above the "boiling zone", and therefore the zone of deposition for epithermal "bonanza gold" veins.
Three rock samples (AG-1 to 3), taken from epithermal style quartz vein float and outcrop in old undocumented prospect pits in the northwestern portion of the property, gave values from 129 to 17,900 ppm (1.79%) Sb, < 5 to 13 ppb Au, 1.6 to 2.4 ppm Ag, 192 to 482 ppm As and 2,630 to 6,490 ppb Hg.
Dr. Greg Arehart, a professor at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property twice, with the most recent visit following the receipt of the soil geochemistry results. He comments, "The Centauro prospect is one of very few essentially untested epithermal prospects in the epithermal province of the Sierra Madre Occidental. This system has clearly seen voluminous and extensive fluid flow, as evidenced by the intense and widespread silicification. Metals in rock chip and soil samples are anomalous over a significant area, indicating potential for a large (multi-million ounce) metal endowment. Two target types are present: a near surface, low-grade, large tonnage potentially Carlin-Type resource, as well as a deeper, focused, bonanza-type system."
Two more soil lines, 5 and 6, were sampled in January-February 2008. Sampling was carried out as before, at 10 and 50 meter intervals, with a total of 122 samples taken. In addition, seven rock samples were also taken. Results are pending and will be reported when received. A diamond drilling program of approximately 3,000 meters, in approximately 10 drill holes, is planned to test the anomalous silicified zone in the first/second quarter of 2008. Road building to support this work is underway.
All samples were transported to the Activation Laboratories Ltd. (Actlabs) preparation laboratory in Hermosillo, Mexico, and then sent to the Actlabs laboratory facility in Ancaster Ontario, for analysis for gold by fire assay (1A2), 37 elements by Aqua Regia ICP (1E3) and Mercury by cold vapour FIMS (1G). The soil geochemical plans, with values for the various elements, and the location of the new soil lines (Lines 5 and 6), plus the rock sample locations, are shown on the Silver Spruce website.
About the Centauro Property
The Centauro Property is a contiguous block of six claims (1,420 hectares), located in the southern part of Chihuahua State, just to the north of Durango State, approximately 25 km to the west of Highway 45, the main north-south highway in Mexico. The property is subject to an option agreement with a Mexican geologist, Jesus Ayax Alba Pascoe, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. The property agreements have been registered with the General Bureau of Mining of the Exploration Agreement in Mexico and the option is subject to payment by Silver Spruce of US$375,000 and 1,325,000 common shares of Silver Spruce over four years, subject to a 3% NSR with a 2% buyback for US$2 million. Advance royalties of US$50,000 per year, starting on the fifth anniversary, and a "finders fee" totaling C$9,600 plus 165,470 shares or cash equivalent over four years are also payable by Silver Spruce to maintain the property in good standing.
 Click to enlarge |
 Click to enlarge |
 Click to enlarge |
 Click to enlarge |
 Click to enlarge |
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 11,000 claims totaling more then 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador, gives the corporation diversification without losing its uranium focus. Strong financial backing makes 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
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.