October 14, 2010
Highlights
- IP geophysics on the Big Easy gold/silver property over highly silicified sedimentary units carrying disseminated pyrite with gold/silver values in preparation for drilling
- Trenching program locates VG on the Rambler South (RS) gold/base metal property - Krissy trend
- Follow up exploration completed on Lobstick uranium/REE property
October 14, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide an update on exploration activities for the early fall of 2010. Projects being explored include the Big Easy gold/silver and the Rambler South gold/base metal properties, both on the island of Newfoundland and the Lobstick uranium and Popes Hill rare earth element (REE) properties in Labrador. All of these projects are road accessible thereby making exploration cost efficient.
Big Easy Gold/Silver Property
The 121 claim (30 km2) property, located near Thorburn Lake in east-central Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5M, is a total of $110,000 plus 1.6 M shares over 3 years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is payable from the 4th anniversary on.
An Induced Polarization (IP) survey, contracted to Eastern Geophysics, is underway covering the altered (silicified) / mineralized area as defined by the prospecting and trenching surveys carried out in the summer (see News Releases dated July 29, 2010 and August 6, 2009). A dipole--dipole array, using a dipole spread of 50 m, is being used to define the margins of the assumed fault bounded zone and to define mineralized (i.e. highly chargeable) or strongly silicified (ie highly resistive) zones within the large alteration/mineralized zone which extends in a north-northwesterly direction, over an area of 1.7 km by 300 to 500 m wide, narrowing to the north and south. Results will be interpreted by a geophysical consultant with recommendations for drill testing of anomalies, later this fall or over winter, made in the report. The results will be released when received.
Rambler South Gold/Base Metal Property
The Rambler South property, located on the Baie Verte peninsula of north central Newfoundland, totals 101 claims (2,525 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 $1.5M, over 3 years are: payments totalling $95,000; issuance of 1.05M shares; a work commitment of $500,000 by the end of the second year; and a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, payable from the 4th anniversary on. The second year stock payment has been made, however the terms of the option have been amended to allow payment of the cash portion of the second year option payment to be made by December 31, 2010.
Exploration by Silver Spruce since the option has included: line cutting, soil geochemistry and prospecting on the Krissy trend grid, prospecting and sampling on the Brass Buckle zone and diamond drilling on the Krissy -- trench 2 area (L22 E) and on the SB grid.
The work on the Krissy trend has evaluated VLF-EM anomalies (Fraser filter), which define the shear system and possible associated shears on the Krissy grid. Prospecting in the Line 24 E area located visible gold (VG) in two locations (where no analysis was done) and in addition a chip sample over 0.7 m at approximately 23+80 E gave 12 g/t Au and values to 25.3 g/t Au were found in a grab sample on L 24 E. Exploration in the Line 16 to 17 E area located the shear system which carries recrystallized quartz veins, similar to the Krissy and AD boulders to the north (up ice) of the VG bearing boulders (see news release dated July 29, 2010).
A trenching program was carried out in the L 24 E area with Trench 1 extending from 23+75 E to 24+30 E, and trench 2 at 23+50 E, and in the L 16/17 E area, Trench 4 on Line 17 E and trench 5 on 16+50 E, a strike length of approximately 800 m with the shear zone remaining open to both the east and west along strike. All four trenches exposed the Krissy shear which averages 4 to 5 m wide, carrying variable recrystallized quartz veining comprising 5% to 20% of the zone. Host rocks are mafic volcanics intruded by quartz porphyries, both of which are highly sheared. The porphyry unit(s) become less prominent to the west, where the shear zone is bounded to the north by a massive gabbro unit. Trenches were also attempted on 19, 20 and 25 E however boggy ground and deep overburden prevented the exposure of outcrop.
Visible gold was noted in the eastern most portion of Trench 1, further to the east from where found in the prospecting. A total of 107 channel samples, varying from 0.2 m to 1.2 m in length, were taken across the shear zone and associated quartz veining, using a Quikcut diamond saw. Samples have been submitted to Eastern Analytical for analysis. Results will be released when received.
Gold mineralization including visible gold, at the Krissy zone is associated with sulphide (pyrite) rich, recrystallized quartz veins emplaced along a shear zone with related linear quartz porphyry bodies. Significant values from the zone include: 12.5 g/T / 1.5 m in a channel sample in the trench 95-2 area near L 22 E, and 9.96 g/T over 0.51 m in drill hole KT-09-1 also near L 22 E. The Krissy boulder, an approximate 200 kg boulder of recrystallized quartz with pyrite and visible gold in an altered/sheared sericitic volcanic or porphyry unit, located on L 17 E, and the recently discovered AD boulder carrying visible gold located 25 m to the north of the Krissy boulder, are approximately 500 m to the west of the Trench 2 area and across the ice direction. Two drill holes on L 17 E, drilled in the 1990s, are located to the south of the recently defined Krissy shear and the shear zone has not been tested by drilling up ice of the VG bearing boulders.
Popes Hill REE Property
Follow-up ground work that evaluated the REE showings found by prospecting in 2006 was carried out over a three day period by a four man crew. REE values appear to be associated with thorium rich phases of magnetite bearing intrusive rocks. Thirty-two (32) samples, from bedrock and angular float boulders, show high radioactivity levels giving scintillometer readings from 1,000 to 7,500 cps. Samples were shipped to Actlabs in September. Results will be released when received.
Lobstick Uranium Property, Labrador
The 1,062 claim (265 km2) property was acquired by option and staking in October of 2009 after uranium mineralization (values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8) was discovered by Innu prospectors Jean Pierre Ashini and Raphael Riche in the felsic volcanics/tuffs, during prospecting surveys supported by the company. The option agreement, to earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M, totals $40,000 and 600,000 shares over two years. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on (see news release dated October 29, 2009). The property covers all of the significant felsic volcanic units of the Blueberry Hill Group and anomalous uranium in lake sediment anomalies in the area. The geological setting is considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt (CMB) of Labrador, uranium mineralization in a foliated felsic volcanic or tuff unit associated with shearing. Lake sediment sampling, carried out in the early winter of 2010 gave anomalous values in uranium (U) and REE associated elements (La, Be,Th) (see news releases dated April 27, 2010 and September 14, 2010). A combined radiometric/magnetic survey, totaling 3800 line kilometers, was carried out by Tundra Airborne Surveys in the summer of 2010 (see news release dated September 14, 2010).
Ground follow up with a four man prospecting party, including one geologist, was carried out from mid September to early October to evaluate the radiometric and lake sediment anomalies. Access was mainly by road and on foot although a helicopter was utilized near the end of the program to evaluate anomalies in the southern part of the property including an area of possible REE mineralization based on La, Be and Th lake sediment anomalies. Conditions were poor with cold weather, till and other glacial cover and snow, towards the end of the program, making the location of outcrops difficult. Areas of airborne radiometric anomalies were found to be coincident with boulder fields composed of intrusive rocks carrying 2 to 3 times background values in counts per second (cps). A total of 87 rock samples were taken and have been submitted to the laboratory. Results will be released when received.
Trench samples from the Rambler South property are analyzed at Eastern Analytical Laboratories in Springdale, NL for Au by fire assay (1/2 assay tonne) plus ICP-11 for other elements. Rock samples from the Lobstick amd Popes Hill properties are analyzed at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at their facility in Goose Bay. Lobstick samples are analyzed using the Ultratrace 4 package which gives good results for uranium and thorium plus indications of REE's in lanthanum and other elements and the Pope's Hill samples are analyzed using the Code 8 REE package which uses a lithium borate fusion and then analysis by either ICP or ICP-MS .
Data on the Rambler South property including compilation maps, a plan map of the 2009 drilling, and pictures from the area, and compilation maps for the Big Easy, Popes Hill and Lobstick areas, are shown on the Silver Spruce website at silverspruceresources.com.
The company acknowledges the contribution of the Newfoundland Department of Natural Resources, under the Newfoundland Junior Exploration Assistance Program (JEAP), of up to $150,000 of matching funding for the Lobstick property.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
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 7,000 claims totaling more than 1,750 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.
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.
- IP geophysics on the Big Easy gold/silver property over highly silicified sedimentary units carrying disseminated pyrite with gold/silver values in preparation for drilling
- Trenching program locates VG on the Rambler South (RS) gold/base metal property - Krissy trend
- Follow up exploration completed on Lobstick uranium/REE property
October 14, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide an update on exploration activities for the early fall of 2010. Projects being explored include the Big Easy gold/silver and the Rambler South gold/base metal properties, both on the island of Newfoundland and the Lobstick uranium and Popes Hill rare earth element (REE) properties in Labrador. All of these projects are road accessible thereby making exploration cost efficient.
Big Easy Gold/Silver Property
The 121 claim (30 km2) property, located near Thorburn Lake in east-central Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5M, is a total of $110,000 plus 1.6 M shares over 3 years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is payable from the 4th anniversary on.
An Induced Polarization (IP) survey, contracted to Eastern Geophysics, is underway covering the altered (silicified) / mineralized area as defined by the prospecting and trenching surveys carried out in the summer (see News Releases dated July 29, 2010 and August 6, 2009). A dipole--dipole array, using a dipole spread of 50 m, is being used to define the margins of the assumed fault bounded zone and to define mineralized (i.e. highly chargeable) or strongly silicified (ie highly resistive) zones within the large alteration/mineralized zone which extends in a north-northwesterly direction, over an area of 1.7 km by 300 to 500 m wide, narrowing to the north and south. Results will be interpreted by a geophysical consultant with recommendations for drill testing of anomalies, later this fall or over winter, made in the report. The results will be released when received.
Rambler South Gold/Base Metal Property
The Rambler South property, located on the Baie Verte peninsula of north central Newfoundland, totals 101 claims (2,525 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 $1.5M, over 3 years are: payments totalling $95,000; issuance of 1.05M shares; a work commitment of $500,000 by the end of the second year; and a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, payable from the 4th anniversary on. The second year stock payment has been made, however the terms of the option have been amended to allow payment of the cash portion of the second year option payment to be made by December 31, 2010.
Exploration by Silver Spruce since the option has included: line cutting, soil geochemistry and prospecting on the Krissy trend grid, prospecting and sampling on the Brass Buckle zone and diamond drilling on the Krissy -- trench 2 area (L22 E) and on the SB grid.
The work on the Krissy trend has evaluated VLF-EM anomalies (Fraser filter), which define the shear system and possible associated shears on the Krissy grid. Prospecting in the Line 24 E area located visible gold (VG) in two locations (where no analysis was done) and in addition a chip sample over 0.7 m at approximately 23+80 E gave 12 g/t Au and values to 25.3 g/t Au were found in a grab sample on L 24 E. Exploration in the Line 16 to 17 E area located the shear system which carries recrystallized quartz veins, similar to the Krissy and AD boulders to the north (up ice) of the VG bearing boulders (see news release dated July 29, 2010).
A trenching program was carried out in the L 24 E area with Trench 1 extending from 23+75 E to 24+30 E, and trench 2 at 23+50 E, and in the L 16/17 E area, Trench 4 on Line 17 E and trench 5 on 16+50 E, a strike length of approximately 800 m with the shear zone remaining open to both the east and west along strike. All four trenches exposed the Krissy shear which averages 4 to 5 m wide, carrying variable recrystallized quartz veining comprising 5% to 20% of the zone. Host rocks are mafic volcanics intruded by quartz porphyries, both of which are highly sheared. The porphyry unit(s) become less prominent to the west, where the shear zone is bounded to the north by a massive gabbro unit. Trenches were also attempted on 19, 20 and 25 E however boggy ground and deep overburden prevented the exposure of outcrop.
Visible gold was noted in the eastern most portion of Trench 1, further to the east from where found in the prospecting. A total of 107 channel samples, varying from 0.2 m to 1.2 m in length, were taken across the shear zone and associated quartz veining, using a Quikcut diamond saw. Samples have been submitted to Eastern Analytical for analysis. Results will be released when received.
Gold mineralization including visible gold, at the Krissy zone is associated with sulphide (pyrite) rich, recrystallized quartz veins emplaced along a shear zone with related linear quartz porphyry bodies. Significant values from the zone include: 12.5 g/T / 1.5 m in a channel sample in the trench 95-2 area near L 22 E, and 9.96 g/T over 0.51 m in drill hole KT-09-1 also near L 22 E. The Krissy boulder, an approximate 200 kg boulder of recrystallized quartz with pyrite and visible gold in an altered/sheared sericitic volcanic or porphyry unit, located on L 17 E, and the recently discovered AD boulder carrying visible gold located 25 m to the north of the Krissy boulder, are approximately 500 m to the west of the Trench 2 area and across the ice direction. Two drill holes on L 17 E, drilled in the 1990s, are located to the south of the recently defined Krissy shear and the shear zone has not been tested by drilling up ice of the VG bearing boulders.
Popes Hill REE Property
Follow-up ground work that evaluated the REE showings found by prospecting in 2006 was carried out over a three day period by a four man crew. REE values appear to be associated with thorium rich phases of magnetite bearing intrusive rocks. Thirty-two (32) samples, from bedrock and angular float boulders, show high radioactivity levels giving scintillometer readings from 1,000 to 7,500 cps. Samples were shipped to Actlabs in September. Results will be released when received.
Lobstick Uranium Property, Labrador
The 1,062 claim (265 km2) property was acquired by option and staking in October of 2009 after uranium mineralization (values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8) was discovered by Innu prospectors Jean Pierre Ashini and Raphael Riche in the felsic volcanics/tuffs, during prospecting surveys supported by the company. The option agreement, to earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M, totals $40,000 and 600,000 shares over two years. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on (see news release dated October 29, 2009). The property covers all of the significant felsic volcanic units of the Blueberry Hill Group and anomalous uranium in lake sediment anomalies in the area. The geological setting is considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt (CMB) of Labrador, uranium mineralization in a foliated felsic volcanic or tuff unit associated with shearing. Lake sediment sampling, carried out in the early winter of 2010 gave anomalous values in uranium (U) and REE associated elements (La, Be,Th) (see news releases dated April 27, 2010 and September 14, 2010). A combined radiometric/magnetic survey, totaling 3800 line kilometers, was carried out by Tundra Airborne Surveys in the summer of 2010 (see news release dated September 14, 2010).
Ground follow up with a four man prospecting party, including one geologist, was carried out from mid September to early October to evaluate the radiometric and lake sediment anomalies. Access was mainly by road and on foot although a helicopter was utilized near the end of the program to evaluate anomalies in the southern part of the property including an area of possible REE mineralization based on La, Be and Th lake sediment anomalies. Conditions were poor with cold weather, till and other glacial cover and snow, towards the end of the program, making the location of outcrops difficult. Areas of airborne radiometric anomalies were found to be coincident with boulder fields composed of intrusive rocks carrying 2 to 3 times background values in counts per second (cps). A total of 87 rock samples were taken and have been submitted to the laboratory. Results will be released when received.
Trench samples from the Rambler South property are analyzed at Eastern Analytical Laboratories in Springdale, NL for Au by fire assay (1/2 assay tonne) plus ICP-11 for other elements. Rock samples from the Lobstick amd Popes Hill properties are analyzed at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at their facility in Goose Bay. Lobstick samples are analyzed using the Ultratrace 4 package which gives good results for uranium and thorium plus indications of REE's in lanthanum and other elements and the Pope's Hill samples are analyzed using the Code 8 REE package which uses a lithium borate fusion and then analysis by either ICP or ICP-MS .
Data on the Rambler South property including compilation maps, a plan map of the 2009 drilling, and pictures from the area, and compilation maps for the Big Easy, Popes Hill and Lobstick areas, are shown on the Silver Spruce website at silverspruceresources.com.
The company acknowledges the contribution of the Newfoundland Department of Natural Resources, under the Newfoundland Junior Exploration Assistance Program (JEAP), of up to $150,000 of matching funding for the Lobstick property.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
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 7,000 claims totaling more than 1,750 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.
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.