Silver Spruce selects Layne de Mexico to drill El Mezquite Au Project, Sonora, Mexico

April 22, 2021

April 22, 2021 - Bedford, NS - (TSXV:SSE) - Silver Spruce Resources Inc. ("Silver Spruce" or the "Company") is pleased to award the drilling contract to Layne de Mexico for the exploration program at El Mezquite.  Mobilization of the reverse circulation (RC) rig and geological team to the Property is scheduled by mid-May.  The environmental permit, required to drill the Property, was received from SEMARNAT (see Press Release April 20, 2021) and granted to the concession holder, Yaque Minerals S.A. de C.V. (“Yaque”) by the Mexican Secretariat of Environment and Natural Resources (SEMARNAT) for El Mezquite, a drill-ready precious metal project located 10 km northwest of the town of Tepoca, and 170 km southeast of the capital city of Hermosillo, eastern Sonora, Mexico (see Figure 1).

“We are delighted to select Layne de Mexico to drill the Phase 1 RC program at El Mezquite.  Layne has a reputation for excellent service to their clients and we look forward to a successful first-ever drilling campaign for El Mezquite,” stated Greg Davison, Silver Spruce Vice-President Exploration and Director.  “The Company has set out the the Phase 1 2,000 metre drill program and looks forward to testing the targets defined by Au-Ag assays from rock sampling, mineral alteration, 3D IP chargeability anomalies and intersecting structural elements.”

Figure 1. Looking north to principal gossan and alteration zones and El Mezquite Phase 1 drill targets; easy access to ranch trails from Highway #16 crossing E-W in background.

About Layne de Mexico

Layne Mineral Services, a Granite Company, is one of the largest providers of drilling services in the Americas, and its Mexican subsidiary, Layne de Mexico, has its equipment and technical team based in Hermosillo, Sonora, Mexico.  Layne’s website noted, “As the original reverse circulation service provider to operate in North America, our Mineral Services team has nearly half a century of experience with this technique.  We provide responsible infrastructure solutions for water and minerals, while offering innovative, sustainable services with an enduring commitment to safety, operational excellence, and client satisfaction.  Our clients trust us to find, define and extract their mineral resources safely with the lowest possible environmental impact.”


The Company undertook an exploration program which was recommended in part by an independent 43-101 report, including the requisite environmental permitting for drilling, geological mapping of geologic structures and lineaments identified in part from the recent ortho-mosaic photography, rock geochemical and hyperspectral analysis, data compilation and GIS modeling, and a LiDAR survey.  Ground truthing of the Au-Ag system with geological mapping and rock sampling was completed in three campaigns between July 2020 and March 2021.  All aspects of the exploration program are conducted with strict adherence to COVID-19 protocols for personal safety.  All current samples were submitted to ALS Global for gold, multi-element and hyperspectral analysis.  Historical samples (>400) from the 2010-2019 programs also were submitted to provide complementary multi-element and hyperspectral data over the Property database.  Several batches of assay results remain pending and will be provided upon receipt and interpretation.

RC Drill Program

The permit allows for fourteen (14) drill pads over the targets in the northern area of the concession as tabulated below in Table 1 and Figure 2.  The first-ever drilling program at El Mezquite should be completed in June with samples submitted to ALS Global in Hermosillo on a weekly basis.

Table 1. Proposed and permitted pads and collars for Phase 1 El Mezquite exploration drill program

Figure 2. Location Map of the proposed El Mezquite Phase 1 Drill Collars

Project Background

The 180-hectare Property is easily accessible from Mexican Highway #16 via a southerly-trending unpaved road which traverses through the centre of the known gold mineralization (see Figure 2). High voltage power lines are positioned along Highway #16.

The El Mezquite Project is located within the west-central portion of the Sierra Madre Occidental Volcanic Complex within the prominent northwest-trending “Sonora Gold Belt” of northern Mexico and parallel to the well-known, precious metals-rich Mojave-Sonora Megashear (see Figure 3).

The Property is very well situated in terms of logistics for exploration and is located only twelve kilometres northwest of the Nicho deposit currently under mine development by Minera Alamos.

Figure 3. Location Map of El Mezquite Property and Mines of the Sierra Madre Occidental

Qualified Person

Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company’s internal Qualified Person for the El Mezquite Project and is responsible for approval of the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.

About Silver Spruce Resources Inc.

Silver Spruce Resources Inc. is a Canadian junior exploration company which has signed Definitive Agreements to acquire 100% of the Melchett Lake Zn-Au-Ag project in northern Ontario, and with Colibri Resource Corp. in Sonora, Mexico, to acquire 50% interest in Yaque Minerales S.A de C.V. holding the El Mezquite Au project, a drill-ready precious metal project, and 50% interest in Colibri’s early stage Jackie Au project, with both properties located only 12 and 6 kilometres west from Minera Alamos’s Nicho deposit, respectively.  The Company also is pursuing exploration of the drill-ready and fully permitted Pino de Plata Ag project, located 15 kilometres west of Coeur Mining’s Palmarejo Mine, in western Chihuahua, Mexico.  Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.


Silver Spruce Resources Inc.
Greg Davison, PGeo, Vice-President Exploration and Director
(250) 521-0444

Michael Kinley, CEO
(902) 826-1579

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Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, statements regarding the private placement.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.