Highlights
- Native silver / electrum tentatively identified in drill core
- Boiling textures, typical of upper part of an epithermal gold/silver system, noted in drill core
September 18, 2012 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to update exploration and research activities on the road-accessible, Big Easy gold/silver prospect in eastern Newfoundland. The prospect is associated with a large, altered (silicified) system that covers an area of approximately 1.7 kilometres by up to 300 metres wide. The prospect was drilled in 2011 and 2012, yielding significant gold (Au) and silver (Ag) values in several holes (news releases dated August 16, 2012 and June 7, 2011).
Independent Research Study
Silver Spruce is participating in a collaborative study of epithermal and porphyry-style gold mineralization along the Burin Peninsula high sulphidation belt, which hosts the Big Easy mineralization. Involving Memorial University of Newfoundland (MUN), the NL Geological Survey (NLGS) and mineral industry stakeholders, the study is funded by the NL Research and Development Council Geo EXPLORE (2011-13) program. The study will take a regional approach to enhancing the understanding of gold mineralization along this highly anomalous belt, with a view to accelerating the exploration and discovery cycle. The work will involve geological mapping and sampling of select transects through mineralized occurrences, combined with the geochemical geochronology assessment of host rock and the mineralized systems aided by technology at MUN.
Review of 2012 Drill Core
As part of this research, an evaluation of the drill core from Silver Spruce's 2012 diamond drilling program was carried out by Dr. Graham Layne of MUN and Peter Dimmell of SSE. During this examination, native Ag or electrum (native Au with more than 10 per cent Ag) was tentatively identified and boiling textures were noted which were both typical of epithermal systems. Molybdenite as fracture fillings was also noted. A number of samples have been taken for polished section mineralogical analysis and age dating. This work continues and results will be released as received. Commenting on the recent core examination, Dr. Graham Layne, an Associate Professor of Earth Sciences at Memorial University states, "We are beginning a petrographic and mineralogical examination of specific features noted in the higher grade gold/silver intersections from the 2012 drilling program -- in particular, the overall deportment of what has been tentatively identified as native silver or electrum. We are also interested in the detailed mineralogy of narrow, crenulate, black, pyrite-rich bands that have been observed with crustiform quartz-adularia in three of the five holes drilled in 2012."
Check Sample Assays
A total of 51 reject samples of core from the 2012 diamond drilling have been shipped to Activation Laboratories in Ancaster, ON for check analysis. They will be analyzed for gold by fire assay, as well as an ICP technique that gives good detection limits for epithermal mineralization-related elements such as Ag, arsenic (As) and mercury (Hg). Results will be announced when received.
Airborne Survey Update
As part of its 2012 exploration program, Silver Spruce has commissioned an airborne, high resolution magnetic and VLF-EM survey to improve structural interpretation and determine if the ET zone located along strike, approximately 3.5 km to the south of the Big Easy zone, are associated. Planned for mid-summer, the survey has been delayed due to aircraft availability and repairs that have taken longer than expected. It is expected that the survey will be completed within the next two weeks and results will be released once the final maps are received.
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 kilometre) 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.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.
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