Highlights
- ET mineralized zone extended north and south to approximately 400 m strike length - remains open
- ET Zone located 3.5 km along strike, to the south of Big Easy
- Altered/sheared/mineralized felsic volcanic units located to the east of the BE-ET trend
December 11, 2012 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to report on recent prospecting discoveries on the road-accessible, Big Easy gold/silver prospect in eastern Newfoundland at the northern end of the Burin Peninsula High Sulphidation Belt (BPHSB). The Big Easy (BE) prospect is an extensive, altered (silicified) system covering an area of approximately 1.7 km by up to 300 m wide which was drilled in 2011 and 2012, giving significant gold (Au) and silver (Ag) values in several holes (news releases August 16, 2012 and June 7, 2011) defining a low sulphidation epithermal gold/silver system. The ET Zone, 3.5 km to the south of the Big Easy, was discovered in June 2011 by prospecting, over a 50 m strike length, in a brook in the south central part of the property.
ET Zone Extension
The ET zone was extended to the north and south of the discovery outcrop on the brook over a strike length of 400 m and a minimum width of 75 m, remaining open along and across strike. The rock units, altered (silicified/ sericitized) Musgravetown Group sandstones and conglomerates, are similar to the host units at the Big Easy zone located 3.5 km to the north along strike. The silicification is intense and as at BE, is chalcedonic in part, typical of the upper parts of low sulphidation gold/silver systems. Pyrite is found throughout the zone as disseminations and fracture fillings, again similar in style to the BE zone. Results give similar values as in the early sampling at the BE zone -- anomalous values in Au up to 53 ppb [background (bg) -- 5 ppb], arsenic (As) up to 159 ppm (bg - <30 ppm) and lead (Pb) to 231 ppm (bg -- 5 ppm), with weakly anomalous molybdenum (Mo), Ag, zinc (Zn) and copper (Cu).
“The significance of these exploration results is that the BE-ET trend continues to show its potential, becoming more defined as we prospect along this strong, extensive, mineralized alteration trend,” says Peter Dimmell, President and CEO of Silver Spruce Resources Inc. “The Big Easy and ET zones are intensely altered with strong silicification and the strength of the system, coupled with the results from the early stage drilling at Big Easy, indicates that we have the potential for a large deposit that could be of interest to a major gold/silver producer.”
Sheared/foliated felsic volcanic units (probably Love Cove Group or equivalent which hosts most of the mineralization on the BPHSB) carrying significant pyrite and minor base metal mineralization were found both to the north and south of Shoal Harbour Pond in the southernmost and eastern portion of the claims. These units lie to the east of the altered/mineralized zone along the Big Easy -- ET trend. Minor base metal values up to 0.1% Zn, 0.05% Pb and 0.05% Cu were noted to the south of Shoal Harbour Pond. The units are intensely deformed, probably indicating that they lie near the major bounding fault between the Love Cove Group (to the east) and the Musgravetown sedimentary units (to the west).
Prospecting / Stream Sediments
Prospecting/stream sediment geochemistry was carried out in the southern part of the Big Easy property by contract employees of ASK Prospecting and Guiding. Streams flowing into Shoal Harbour and Andrews Ponds were targeted to evaluate this part of the claim group. A total of 30 rock and 26 stream sediment samples were taken in the south-central and southern parts of the property, including 18 rock samples on the ET Zone and its extension. The stream sediments gave generally non-anomalous values in most elements except iron (Fe) and manganese (Mn), due to the boggy nature of the area. Gold (Au) gave one value of 11 ppb (bg <5ppb) on a stream flowing into Andrews Pond, which crosses the BE-ET trend, with all others at the detection limit. Anomalous values, usually associated with highly anomalous Fe/Mn included As -- 236 ppm (bg - <20), Zn -- 310 ppm (bg - <50 ppm) and Mo -- 16 ppm (bg - <2 ppm).
Airborne Survey Update
The final maps and data for the airborne, high resolution, magnetic/VLF-EM survey have been received. The data will be incorporated in the database for the area to plan for further exploration in 2013.
Plan maps showing the location and results of the prospecting and stream sediment surveys, plan maps and a summary of the drilling; compilation maps of the property; and pictures showing the drilling, drill core and other exploration on the property are shown on the Silver Spruce website at www.silverspruceresources.com .
This release has been approved by Peter M. Dimmell, P.Geo., President & CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON as defined in National Instrument 43-101.
About the Big Easy Property
The road accessible, 294 claim (73.5 square km) property, located near Thorburn Lake in eastern Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The agreement, to earn 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5 M, is for 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 fourth anniversary on.
About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of gold/silver (Big Easy), uranium (Snegamook, A7 (Fishawk Lake), Double Mer, Mount Benedict, CMBJV) and rare earth (Pope’s Hill, Pope’s Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits) projects in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts.
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For further information:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
Phone: 902.527.5700
Fax: 902.527.5711
For investor and media relations:
Paul Snow
Pilot Communications Inc.
Phone: 709.753.0794 ext 31
Fax: 709.753.0795