January 20, 2009
- Highlights
1.93 g/t Au and 64 g/t Ag over 7.5 m intersected at the top of Hole CEN-08-10
- 4.34 g/t Au and 13.4 g/t Ag over 2 m intersected in CEN-08-7
- Wide zones (up to 92 m) of strongly anomalous gold/silver values intersected
January 20, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide the final drilling results from the Centauro, Mexico, gold-silver (Au/Ag) project. Results for holes CEN-08-11 to 14 are reported here. Results for holes CEN-08-1 to 5 and 6 to 10 were reported on October 7, 2008 and December 9, 2008, respectively.
A total of 3,960 metres in 14 holes (CEN-08-1 to 14) tested the Centauro alteration zone over a 2.3 kilometre strike length and 1 kilometre across the zone, from April to October, 2008.
The highlight from the drilling is 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 mineralization is associated with strong silicification. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. The closest drill hole to hole 10, CEN-08-11, is located 500 metres to the southeast. It gave wide but weak gold and silver intersections with 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 in a strongly silicified zone. No drilling has tested the area to the north along strike. Due diligence work by Overburden Drilling Management (ODM) of Nepean, Ontario using a Scanning Electron Microscope (SEM), noted acanthite, a silver bearing mineral, (approximately 5,000 grains) and native gold (1,000 grains) in sample 7815, the first sample (from 3.0 to 6.1 m) in hole 10, which assayed 2.49 g/t Au and 104.0 g/t Ag. Both minerals are fine-grained, varying from 0.025 to 0.5 mm in size.
The two widest anomalous gold intersections were located in holes 10 and 7. Hole 10 gave 92.1 metres of 237 ppb Au and 8.4 g/t Ag from 3 to 95.1 m including the higher grade intersection noted above and hole 7 gave 50 metres of 284 ppb Au and 2.4 ppm Ag, from 9.0 to 59.0 metres including 4.34 g/t Au and 13.4 g/t Ag over 2 metres from 55.2 to 57.2.
All of the 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 may be testing the top of the system with the best potential lying at depth.
Results for indicator elements (arsenic, mercury antimony, thallium and barium) show all holes to be anomalous, with holes CEN-08-1 and 2, the most northerly ones, strongly anomalous in arsenic, mercury, and antimony; and holes CEN-08-3, 4 and 5, in the central and south part of the mesa on the west side, dominated by anomalous barium. Good gold/silver association was found for arsenic in holes CEN-08-6, 9, 10 and 11 and for mercury in holes CEN-08-6, 7, 10 and 11, except the higher mercury values were not associated with the highest gold values in hole CEN-08-10, rather the lower grade, perhaps more peripheral or leakage type mineralization. Weak to moderate association with gold/silver was noted with antimony, barium and thallium through most of the holes. Values were up to > 10,000 ppm As with background 30-40 ppm; 2,750 ppm antimony with background <50 ppm; 15,000 ppm barium, with background <1,000 ppm; 1900 ppm mercury with background <1 ppm and 643 ppm thallium with background < 10 ppm. The presence of strongly anomalous mercury indicates that the drilling is still testing high in the system with the most significant potential remaining untested at depth.
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 as a consultant to Silver Spruce. His comments on the drill results are: "In most cases, not all of the trace metal patterns are well-expressed, but 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 observations outlined above, in conjunction with the silicification and other geologic features, lead me to believe that we are still at the top of the system."
Mineralized/altered zones -- mainly pyrite/kaolin with some silicification associated with faults and shears have been intersected in all holes. Rock units encountered include sedimentary units -- limestone conglomerates to sandstones, mafic volcanics and mafic intrusives -- that are weakly to intensely altered throughout. Alteration consists of propylitization, decarbonatization, argillitization (kaolinite) and silicification.
A phase 2, follow up drill program is planned for 2009. Significant gold / silver intersections are listed below.
Anomalous gold / silver values
DDH's CEN-08-1 to 14
Hole #
From (m)
To (m)
Length (m)
Au (ppb)
Ag (ppm)
CEN-08-01
13.3
67.5
54.2
43
4.8
CEN-08-02
75.5
122.5
47.0
57
2.1
incl.
116.5
122.5
6.0
102
3.9
CEN-08-03
58.5
80.5
22.0
120
1.6
CEN-08-04
278.5
305.8
27.3
46
1.6
CEN-08-05
12.0
18.0
6.0
59
5.8
CEN-08-6
71.8
79.5
7.7
109
9.0
incl.
74.6
75.5
0.9
471
47.5
CEN-08-7
9.0
59.0
50.0
284
2.4
incl.
55.2
57.2
2.0
4340
13.4
CEN-08-8
Weak gold
silver values
n/a
to 55
to 19.6
CEN-08-9
3.0
93.7
90.7
89
4.8
incl.
9.1
20.0
10.9
186
8.3
incl.
59.6
67.5
7.9
144
7.3
CEN-08-10
3.0
95.1
92.1
237
8.4
incl.
3.0
10.5
7.5
1928
64.0
incl.
3.0
6.1
3.1
2490
104.0
Incl.
9.7
10.5
0.8
4550
96.1
CEN-08-11
4.8
25.2
20.4
104
2.0
Incl.
4.8
6.5
1.7
398
2.5
and
69.7
93.2
23.5
52
2.9
CEN-08-12
Weak gold
silver values
n/a
to 48
to 4.2
CEN-08-13
14.6
15.9
1.3
74
12.7
CEN-08-14
25.0
30.5
5.5
52
4.5
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. Maps showing the drilling locations on the Centauro property, plus the ODM letter report 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 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 with precious and base metal projects such as the Centauro gold/silver project in Mexico, the Calvin's Landing gold project in central Newfoundland and two base metal projects in central and western Newfoundland. Originally focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada, SSE's interest in more than 12,000 claims totaling more than 3,000 square kilometers, makes the company the second largest landholder in one of the world's premier emerging uranium districts where it is well positioned to take advantage of a resurgence in uranium prices. 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
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.
