Silver Spruce Reports Gold Intersections in Drilling on Rambler South Property

October 22, 2009
- gold intersection of 1.3 g/t Au over 17.5 m including 9.99 g/t over 0.7 m - SB zone
- new SB gold zone traced for 100 m in three drill holes - remains open to NE
- gold intersection of 6.6 g/t over 0.6 m - Krissy zone with visible gold noted

October 22, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce the results of continued diamond drilling on its Rambler South property, located on the Baie Verte peninsula of north central Newfoundland.

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 completed (RS-09-1 to 5 and KT-09-1, 2) (News releases dated July 16, Sept. 10 and Sept. 30, 2009).

The property totals 56 claims (1,400 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 a total payment of $95,000, issuance of 1.05M 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 (SB) 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. Gold intersections of 5.9 g/t over 0.8 metres in RS-09-1 and 1.3 g/t over 17.5 m in RS-09-3 are hosted in a quartz breccia, with recrystallized quartz fragments, cemented by fine grained chlorite which carries disseminated pyrite and minor 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. A gold intersection of 2.3 g/t over 1.85 m in RS-09-4, associated with the chloritized mafic volcanic units, is thought to be an on strike extension of the quartz breccia mineralization.

Weak gold values in the 100 to 200 ppb range over up to 1.5 m were also noted in the chloritized volcanics in other areas. No significant gold values were noted in the BG.

Copper/silver mineralization was also located in a quartz vein in RS-09-2 which ran 23 g/t Ag and 1.15% copper over 0.5 m from 11 to 11.5 m, with 60 ppb Au and insignificant zinc. This intersection is considered to be a separate zone from the SB gold zone.

Significant Assay values
SB Zone - DDHs RS-09-1 to 5

Hole # From (m) To (m) Length (m) Au (g/t) Ag (g/t)

Cu (%)

Zn (%)
RS-09-1 52.4 53.2 0.8 5.87 0.5 nsv nsv
RS-09-2 75.2 76.0 0.8 0.43 0.5 nsv nsv
RS-09-3 64.5 82.0 17.5 1.4 0.5 nsv nsv
incl. 80.6 81.3 0.7 9.99 0.5 nsv nsv
RS-09-4 22.0 23.0 1.0 ND 0.5 0.09 0.35
and 68.45 70.3 1.85 2.53 0.5 nsv nsv
and 80 84.5 4.5 0.14 0.5 nsv nsv
RS-09-5 91.46 92.5 1.04 0.35 0.5 nsv nsv
Note: ND - non detect; NSV - no significant values; Ag - 0.5 g/t is detection limit;

The SB gold zone has been traced over a minimum 100 m strike length in drill holes RS-09-1, 3 and 4 and remains open to the northeast. The zone has to extend to surface since it is most likely the source area for the SB till anomaly which 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". The till anomaly is also not cut off to the northeast and may continue along the BG contact. Further work is required along this trend.

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 of recrystallized quartz 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 Krissy shear 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), was noted in Hole KT-09-1, associated with the quartz veining and strong pyrite mineralization. Gold mineralization was intersected in both holes.

Significant Assay values
Krissy Zone - DDHs KT-09-1,2

Hole # From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) Zn (%)
KT-09-1 7.45 9.1 1.65 2.75 3.3 0.2 nsv
incl. 8.37 8.88 0.51 6.85 8.0 0.47 nsv
KT-09-2 10.75 13.95 3.2 0.45 0.6 0.05 nsv
incl. 10.75 11.0 0.25 1.99 0.7 0.04 nsv
and 23.76 24.9 1.14 0.39 0.5 0.03 nsv
incl 24.4 24.68 0.28 1.03 0.5 0.02 nsv
Note: ND - non detect; NSV - no significant values; Ag - 0.5 g/t is detection limit;

A total of 45 claims have been staked by the management of Silver Spruce to protect the "on strike" extension to the northeast of the SB gold zone and areas underlain by Pacquet Harbour group units associated with structures to the west and northwest of the Krissy trend claims.

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

The drill core was 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 company seeks Safe Harbour.