February 23, 2010
Highlights
Results of the 2008 drilling (3,960 meters in 14 holes - CEN-08-1 to 14) which tested the alteration zone over a 2.3 kilometer strike length and 1 kilometer width were reported in late 2008 and early 2009 (news releases - Oct. 7 and Dec. 9, 2008 and Jan. 20, 2009). The highlight was 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 meter zone, from 3 to 95.1 m, which assayed 237 ppb Au and 8.4 g/t Ag. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. Acanthite, a silver-bearing mineral, and native gold were identified with the gold / silver values associated with strong silicification in the silicified breccia which appears to be dipping to the east / northeast, basinward.
A total of 1,864.5 meters were drilled in the 2009 program, 705 in six drill holes (CEN-09-15,16,16A,17,18,19) in the north on Line 6 and 1,159.5 in nine holes (CEN-09-20,21,22,23,24,25,26,26A,27) in the northeast area.
Northeast Area
Holes CEN-09-20, 21, and 24 were drilled at 500 m intervals to the east of the auriferous zone in CEN-08-10 to test the eastern extension of the large alteration zone in the alluvium-covered valley. Holes 20 and 21 intersected wide sections (100 to 150 meters) of intense silicification, argillic alteration and decalcification with associated high indicator element (Sb, As, Hg) geochemistry. Hole 24 showed similar alteration but without the decalcification. Drill holes CEN-09-22 and 23, drilled 250 and 500 meters respectively, to the north of drill hole CEN-08-10, intersected 30 to 50 meter sections of intense silicification, argillic alteration and decalcification before passing into unaltered polymictic conglomerate. Analytical results show narrow intervals of anomalous gold and silver and wide sections anomalous in Sb-As-Hg. The width of alteration noted in holes 22 and 23 is significantly narrower than that intersected in hole 10, indicating the probable existence of a fault or feeder between the holes. CEN-09-25 tested a separate silicified breccia zone located 3 km to the east of the main mesa, outcropping from the alluvium, near the Diana ranch. This hole cut 22 meters of intense alteration (silicification, argillic alteration, decarbonatization) before passing into unaltered red sandstone. The silicified breccia locally contains anomalous arsenic and antimony. Drill holes CEN-09-26, 26A and 27 were collared less than 100 meters from CEN-08-10. Holes 26 and 26A were lost at 57.5 and 48 meters respectively, however both intersected intensely silicified breccias with lesser pervasive argillic alteration. Analytical results show narrow 3 meter intervals anomalous in gold and silver within wide intervals anomalous in arsenic, antimony and mercury. Hole CEN-09-27 cut 98.2 meters of alteration before passing into unaltered polymictic conglomerate. Analytical results gave 34.4 m at 231 ppb gold, 5.7 ppm silver, 22,700 ppb mercury, 1130 ppm arsenic and 272 ppm antimony. The highest gold value in this section is 1.2 m of 1,050 ppb gold and 15.2 ppm silver.
Although the 2009 drilling to the northeast of the mesa failed to intersect significant gold mineralization, thick intervals of intense epithermal style alteration continues eastward into the valley to the northeast. The alteration is highly anomalous in As-Sb-Hg, most likely sourced from the area to the north or northeast of the drilled area. The highly anomalous indicator element geochemistry, especially mercury (Hg) continues to show that we are still above the probable source area of the epithermal alteration.
The table below gives the significant analytical results for the drilling in the northeast area.
North Area
Results for the north area were described in a news release on December 8, 2009. These holes targeted a wide (600 x 200 m) area anomalous in gold-silver-mercury-arsenic-antimony on surface, to the north of the Centauro mesa. Sulphides, pyrite and arsenopyrite, averaging 5 to 7%, are disseminated throughout the zone and local silicified zones are vuggy with botryoidal quartz carrying realgar, an arsenic mineral. Analytical results from all holes gave wide zones of anomalous gold/silver/mercury/arsenic/antimony associated with alteration including decalcification and silicification associated with shearing, which is sometimes gossanized. The strong, pervasive mercury geochemical signature encountered in all holes suggests that the drilling, which tested to a maximum of 100 m vertical, is too high in the system for "bonanza style" gold-silver epithermal veins and deeper holes are required to properly test the system.
Results from the 2009 drilling are being combined with the 2008 drill results to create a more accurate geological picture of the area in order to vector in on the source of the strong epithermal fluid flow. A summary of analytical results for the 2009 holes which tested the north area, are provided in the Table below.
Using minimum grade of 25 ppb Au; background values Au < 5 ppb, Ag < 0.3 ppm; Hg < 150 ppb; As < 50 ppm; Sb < 10 ppm; Ba < 50 ppm;
Dr. Greg Arehart, the Head of the Department of Geological Sciences and Engineering at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property and, as a consultant to Silver Spruce, has been provided with all data from the exploration. He comments: "The drill results are encouraging, considering the difficulty of testing such a large area with abundant alluvial cover. Additional geochemical and geophysical data will allow refinement of the exploration model in this highly prospective geological setting. The anomalous trace element values in the drilling coupled with the elevated precious metals is a good indication that the system is large and robust. Indications are that we are above the main precious metal zone, due to the very high Hg values with somewhat lower As, Sb and precious metals. This pattern suggests that minimal erosion has occurred since metal deposition and that the precious metal horizon is likely to be several hundred meters below the paleo-water table and the present day surface."
About the Centauro Property
The Centauro property is a block of eight claims (2,094 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of the Durango State boundary and lies approximately 25 kilometers 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. Compilation maps showing the drill locations, and geology plus pictures 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 drill core samples were sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core was sampled, mostly 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 by fire assay (one assay tonne) for gold plus a 30 element ICP technique for other elements and cold vapour FIMS for Hg. 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 originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 7,000 claims totaling more than 1,750 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, making 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
- wide zone (> 30 m) of anomalous gold (> 200 ppb) and silver (> 5 ppm) values with associated highly anomalous mercury, arsenic and antimony
- silicification, argillic alteration and decalcification of the rock units
- mercury values indicate upper part of epithermal system with potential bonanza type mineralization at depth
Results of the 2008 drilling (3,960 meters in 14 holes - CEN-08-1 to 14) which tested the alteration zone over a 2.3 kilometer strike length and 1 kilometer width were reported in late 2008 and early 2009 (news releases - Oct. 7 and Dec. 9, 2008 and Jan. 20, 2009). The highlight was 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 meter zone, from 3 to 95.1 m, which assayed 237 ppb Au and 8.4 g/t Ag. The hole collared in mineralization so the full width of the intersection remains unknown as does its orientation and true width. Acanthite, a silver-bearing mineral, and native gold were identified with the gold / silver values associated with strong silicification in the silicified breccia which appears to be dipping to the east / northeast, basinward.
A total of 1,864.5 meters were drilled in the 2009 program, 705 in six drill holes (CEN-09-15,16,16A,17,18,19) in the north on Line 6 and 1,159.5 in nine holes (CEN-09-20,21,22,23,24,25,26,26A,27) in the northeast area.
Northeast Area
Holes CEN-09-20, 21, and 24 were drilled at 500 m intervals to the east of the auriferous zone in CEN-08-10 to test the eastern extension of the large alteration zone in the alluvium-covered valley. Holes 20 and 21 intersected wide sections (100 to 150 meters) of intense silicification, argillic alteration and decalcification with associated high indicator element (Sb, As, Hg) geochemistry. Hole 24 showed similar alteration but without the decalcification. Drill holes CEN-09-22 and 23, drilled 250 and 500 meters respectively, to the north of drill hole CEN-08-10, intersected 30 to 50 meter sections of intense silicification, argillic alteration and decalcification before passing into unaltered polymictic conglomerate. Analytical results show narrow intervals of anomalous gold and silver and wide sections anomalous in Sb-As-Hg. The width of alteration noted in holes 22 and 23 is significantly narrower than that intersected in hole 10, indicating the probable existence of a fault or feeder between the holes. CEN-09-25 tested a separate silicified breccia zone located 3 km to the east of the main mesa, outcropping from the alluvium, near the Diana ranch. This hole cut 22 meters of intense alteration (silicification, argillic alteration, decarbonatization) before passing into unaltered red sandstone. The silicified breccia locally contains anomalous arsenic and antimony. Drill holes CEN-09-26, 26A and 27 were collared less than 100 meters from CEN-08-10. Holes 26 and 26A were lost at 57.5 and 48 meters respectively, however both intersected intensely silicified breccias with lesser pervasive argillic alteration. Analytical results show narrow 3 meter intervals anomalous in gold and silver within wide intervals anomalous in arsenic, antimony and mercury. Hole CEN-09-27 cut 98.2 meters of alteration before passing into unaltered polymictic conglomerate. Analytical results gave 34.4 m at 231 ppb gold, 5.7 ppm silver, 22,700 ppb mercury, 1130 ppm arsenic and 272 ppm antimony. The highest gold value in this section is 1.2 m of 1,050 ppb gold and 15.2 ppm silver.
Although the 2009 drilling to the northeast of the mesa failed to intersect significant gold mineralization, thick intervals of intense epithermal style alteration continues eastward into the valley to the northeast. The alteration is highly anomalous in As-Sb-Hg, most likely sourced from the area to the north or northeast of the drilled area. The highly anomalous indicator element geochemistry, especially mercury (Hg) continues to show that we are still above the probable source area of the epithermal alteration.
The table below gives the significant analytical results for the drilling in the northeast area.
Summary of Significant Analytical Results -- 2009 Drilling -- Northeast Area
Hole No. |
From |
To |
Width (m) |
Au_ppb |
Ag_ppm |
Hg_ppb |
As_ppm |
Sb_ppm |
CEN-09-20 |
57 |
63 |
6.0 |
60 |
2.9 |
1,207 |
1,405 |
143 |
CEN-09-22 |
3 |
8.7 |
5.7 |
143 |
8.3 |
8,687 |
1,055 |
539 |
CEN-09-23 |
9 |
10.5 |
1.5 |
67 |
0.4 |
20,300 |
169 |
142 |
CEN-09-26 |
33 |
52.1 |
19.1 |
73 |
1.3 |
10,451 |
1,003 |
335 |
CEN-09-26A |
33 |
36 |
3.0 |
57 |
0.5 |
100,000 |
1,550 |
121 |
CEN-09-26A |
39 |
42 |
3.0 |
107 |
1.5 |
7,960 |
1,540 |
713 |
CEN-09-27 |
9 |
43.4 |
34.4 |
232 |
5.7 |
22,672 |
1,126 |
272 |
CEN-09-27 |
82.8 |
84.4 |
1.6 |
118 |
4.4 |
9,010 |
455 |
37 |
CEN-09-27 |
90 |
92 |
2.0 |
52 |
1.9 |
97 |
196 |
22 |
CEN-09-27 |
96 |
98.2 |
2.2 |
102 |
3.1 |
3,840 |
614 |
27 |
Using minimum grade of 50 ppb gold |
||||||||
North Area
Results for the north area were described in a news release on December 8, 2009. These holes targeted a wide (600 x 200 m) area anomalous in gold-silver-mercury-arsenic-antimony on surface, to the north of the Centauro mesa. Sulphides, pyrite and arsenopyrite, averaging 5 to 7%, are disseminated throughout the zone and local silicified zones are vuggy with botryoidal quartz carrying realgar, an arsenic mineral. Analytical results from all holes gave wide zones of anomalous gold/silver/mercury/arsenic/antimony associated with alteration including decalcification and silicification associated with shearing, which is sometimes gossanized. The strong, pervasive mercury geochemical signature encountered in all holes suggests that the drilling, which tested to a maximum of 100 m vertical, is too high in the system for "bonanza style" gold-silver epithermal veins and deeper holes are required to properly test the system.
Results from the 2009 drilling are being combined with the 2008 drill results to create a more accurate geological picture of the area in order to vector in on the source of the strong epithermal fluid flow. A summary of analytical results for the 2009 holes which tested the north area, are provided in the Table below.
Summary of Significant Analytical Results - 2009 Drilling -- North Area |
|||||||||
Hole |
From |
To |
Length (m) |
Au (ppb) |
Ag (ppm) |
Hg (ppb) |
As (ppm) |
Sb (ppm) |
Ba (ppm) |
CEN-09-15 |
12 |
82.9 |
70.9 |
145 |
6.5 |
21,853 |
1,098 |
202 |
695 |
CEN-09-16A |
36 |
148.4 |
112.4 |
125 |
7.5 |
20,008 |
968 |
124 |
2,911 |
CEN-09-17 |
27 |
37.5 |
10.5 |
50 |
4.7 |
9,374 |
907 |
70 |
559 |
" |
104 |
114 |
10 |
42 |
2.7 |
7,193 |
395 |
44 |
1,856 |
CEN-09-18 |
6 |
84 |
78 |
71 |
5.3 |
13,167 |
2,241 |
95 |
735 |
CEN-09-19 |
6 |
90 |
84 |
51 |
5.9 |
8,123 |
1,216 |
147 |
1,092 |
" |
96 |
129 |
33 |
67 |
5.9 |
14,323 |
1,439 |
104 |
640 |
Using minimum grade of 25 ppb Au; background values Au < 5 ppb, Ag < 0.3 ppm; Hg < 150 ppb; As < 50 ppm; Sb < 10 ppm; Ba < 50 ppm;
Dr. Greg Arehart, the Head of the Department of Geological Sciences and Engineering at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property and, as a consultant to Silver Spruce, has been provided with all data from the exploration. He comments: "The drill results are encouraging, considering the difficulty of testing such a large area with abundant alluvial cover. Additional geochemical and geophysical data will allow refinement of the exploration model in this highly prospective geological setting. The anomalous trace element values in the drilling coupled with the elevated precious metals is a good indication that the system is large and robust. Indications are that we are above the main precious metal zone, due to the very high Hg values with somewhat lower As, Sb and precious metals. This pattern suggests that minimal erosion has occurred since metal deposition and that the precious metal horizon is likely to be several hundred meters below the paleo-water table and the present day surface."
About the Centauro Property
The Centauro property is a block of eight claims (2,094 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of the Durango State boundary and lies approximately 25 kilometers 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. Compilation maps showing the drill locations, and geology plus pictures 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 drill core samples were sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core was sampled, mostly 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 by fire assay (one assay tonne) for gold plus a 30 element ICP technique for other elements and cold vapour FIMS for Hg. 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 originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 7,000 claims totaling more than 1,750 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, making 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
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.
The Corporation seeks Safe Harbour.