Silver Spruce Reports Discovery of Gold Zone - Rambler South Property

September 29, 2009
- gold intersection of 5.9 g/t Au over 0.8 m in first hole of drilling program
- visible gold noted in Krissy zone drilling
- drill program completed, remainder of results pending

September 29, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce a new gold discovery on its Rambler South property, located on the Baie Verte peninsula of north central Newfoundland.

The company received approval from the TSX Venture Exchange for the option agreement on the property on September 2 and a drill program started on September 9 (News releases dated July 16 and Sept. 10, 2009). The drill program was designed to test the strong gold in till anomaly in the South Brook area and the Krissy, shear hosted, gold zone. The drill program ended September 23, with a total of 542 m in 7 holes (RS-09-1 to 5 and KT-09-1, 2) completed.

The property totals 56 claims (1400 ha) and was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). Terms of the option to earn a 100% interest subject to a 2.5% NSR, with a 1.0% buyback for $1.5 M, are payment of a total of $95,000 cash, issuance of 1.05 M shares and a work commitment of $500,000 by the end of the second year. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.

Five drill holes (RS-09-1 to 5), totaling 457 m, were drilled to test the presumed source area for the South Brook gold in till anomaly with four holes drilled at approximate 50 m intervals for a total of 150 m strike length and 1 hole, # 5, under Hole # 1. All holes intersected variably chloritized, pillowed to hyaloclastic, mafic volcanics of the Pacquet Harbour Group (PHG) along the contact with the Burlington Granodiorite (BG). Shearing is variable however the contact zone between the PHG and the BG is strongly sheared with some gouge noted. Shearing (foliation) extends a maximum of a metre into the BG. A gold intersection of 5.9 g/t over 0.8 metres was located in the first hole (RS-09-1) hosted by a quartz breccia, with recrystallized quartz fragments, cemented by fine grained chlorite which carries disseminated pyrite, and chalcopyrite. Overburden Drilling Management work indicates that the gold in the South Brook till anomaly is very fine (generally 20-30 micron) free gold with a strong chlorite association. Weak gold values from 100 to 400 ppb over up to 1.5 m were also noted in the chloritized volcanics in two areas, one in close proximity to the quartz breccia. No significant gold values were noted in the BG. Similar quartz breccia has been noted in some of the other holes however results for these holes remain pending. They will be reported when received.

The South Brook till anomaly is related to shearing along the southern contact of the northeasterly trending "tongue" of BG that cuts the PHG to the northeast of Gull Pond. Four till exploration programs carried out from 1989 to 2007, with all samples processed by Overburden Drilling Management of Nepean, ON. defined a gold in till anomaly, with gold grain counts up to 200 grains and background values < 10 grains with many at 0 grains, 3.5 km long and up to 1.5 km wide to the southeast of the "tongue". The assumed source area, defined in 2007 by ODM using close spaced (50 m) sampling, with gold grain counts up to 1,360 grains with 96% pristine, associated with chlorite, lies along the south side of the "tongue" and appears to be a chlorite altered shear zone in the mafic volcanic units of the PHG.

Gold mineralization, including visible gold, at the Krissy zone, is associated with sulphide rich quartz veins emplaced along a shear zone, up to 5 m in width, related to the intrusion of linear quartz porphyry bodies. Values vary from background (100 ppb or less) to 12.5 g/t / 1.5 m in a channel sample in the trench 2 area near L 22 E. The Krissy boulder, an approximate 500 lb boulder composed of recrystallized quartz veins with pyrite and visible gold in an altered/sheared sericitic volcanic or porphyry unit, located on L 17 E, 500 m to the west of the Trench 2 area and across the ice direction, remains unsourced.

Two short holes (KT-08-1,2), approximately 20 m apart, totaling 85 m, tested the Krissy zone in the vicinity of Trench 2 on L 22 E. Both intersected the shear zone in foliated / sheared quartz porphyry and hornfelsed mafic volcanics of the PHG. Both carry recrystallized quartz veining with associated pyrite, chalcopyrite and minor galena over widths of a few metres. One speck of visible gold, approximately 1 mm in size, was noted in Hole KT-09-1, associated with the quartz veining and strong pyrite mineralization.

A detailed soil geochemical survey targeting the Krissy shear and parallel structures defined by VLF-EM, to define the gold rich areas, has begun with Lines 17-20 and 25 partially completed. The survey will be completed with results reported when all have been received.

The drill core is sawed in half using a diamond saw, by SSE personnel, with one half of the core retained and the other half sent to Eastern Analytical Laboratories in Springdale, NL. to be analyzed for Au by fire assay (1/2 assay tonne) plus ICP-11 for other elements. Standard QA/QC techniques as described on the SSE website are carried out. Data on the Rambler South property, including compilation maps, a plan map of the 2009 drilling, a picture of the visible gold in the drill core from the Krissy shear, plus pictures of the area, are provided on the Silver Spruce website at

Silver Spruce is a junior exploration company with advanced gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland. The company was originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada and with continued interests in more than 6,000 claims totaling more than 1,500 square kilometers in Labrador, Silver Spruce remains the second largest landholder in one of the world's premier emerging uranium districts. This diversity makes Silver Spruce a leading explorer in Canada and Mexico.

This release has been approved by Guy Mac Gillivray, P.Geo., Senior Geologist for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.

For Further Information Contact:

Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711

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 Corporation seeks Safe Harbour.

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Maps - Click to enlarge