Silver Spruce Resources, Inc. signed a Definitive Agreement with Colibri Resource Corp. to acquire 50% interest in the Jackie Gold project, an early-stage precious metal project located 5 km south-southwest of the towns of Tepoca and Carrizal, and 175 km east-southeast of the capital city of Hermosillo, eastern Sonora, Mexico.
The Jackie 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. The 1,130-hectare Property is easily accessible from Hermosillo and heading south from Mexican Highway #16, and from Ciudad Obregón travelling north on Hwy. #117 with vehicles and pack teams along unpaved roads and trails. The Property is situated approximately six kilometres northwest of the Nicho deposit currently under mine development by Minera Alamos. Other nearby large operating mines include Alamos Gold’s Los Mulatos gold mine and Agnico Eagle’s La India gold mine located 50-60 km to the northeast, Agnico Eagle’s Pinos Altos Mine, 95 km southeast and Argonaut’s La Colorada Mine, 100 km to the west. Exploration is very active with adjacent and nearby properties reported to be held by Minera Alamos, Newmont, Garibaldi, Evrim, Kootenay Silver and Peñoles.
Terms of Agreement
Upon acceptance of the Definitive Agreement by the Toronto Stock Exchange (TSX), Silver Spruce agrees to pay to Colibri USD$25,000 and CAD$25,000 in common shares as the first property payment within 7 days of TSX approval.
In order to earn 50% interest in the Property, Silver Spruce agrees to provide USD$100,000 in exploration and drilling expenses with a minimum of USD$50,000 within 12 months of TSX approval, and to pay to Colibri a second property payment of USD$25,000 and CAD$25,000 in common shares also within 12 months of TSX approval.
Silver Spruce also agrees to pay 50% of the requisite property taxes and surface rights agreements due subsequent to TSX approval of the Definitive Agreement.
Upon completion of these terms, Silver Spruce will hold a 50% interest in the Property and a Joint Venture will be formed to direct all exploration and drilling expenses and thereafter will be shared 50% by Silver Spruce and 50% by Colibri, and subject to standard dilution terms to be defined within the Definitive Agreement.
There are no underlying royalties on the Property.
Jackie has seen very little, if any, structured exploration to date. All baseline information is based upon regional geology, geophysics and ASTER imagery largely available using the GeoInfoMex website, adjacent property exploration successes and related corporate filings.
The Company has plans to complete geological mapping, soil and rock geochemistry with hyperspectral analysis, QA/QC program development, ASTER imagery analysis, LiDAR and aerial photography and data compilation, and as warranted by the Phase 1 results, partnering with Colibri to undertake environmental permitting for drilling access and pads, and a first exploration drill campaign. In parallel, the Company has retained GeoDigital Imaging de Mexico S.A. de C.V. (“GeoDigital”) to carry out GIS data compilation and preparation of digital base maps for geographical, geological, geochemical and geophysical information.
The Company, with a four-person team (two senior geologists and two samplers) and all necessary logistical support, currently is undertaking a first pass exploration program, including prospecting, rock, soil and stream silt/sand sampling, initial geological mapping of areas exhibiting significant alteration or mineralization and collection of structural data. The team is focused on identifying and sampling readily accessible areas of interest, confirming areas for future detailed mapping and providing a geochemical baseline map for vectoring toward potential Phase 2 targets. Phase 1 had a planned duration of three weeks after which the team continued the mapping program at El Mezquite. Final analytical results and GIS compilation are expected in early May 2021.
All aspects of the exploration program will be conducted with strict adherence to COVID-19 protocols for personal safety.
Rock samples were delivered to the ALS sample preparation facility in Hermosillo, Sonora, Mexico. ALS Global in North Vancouver, British Columbia, Canada, is a facility certified as ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.
The samples were crushed to 70% passing 2mm (PREP-31) and a split of up to 250 grams pulverized to 85% passing 75 micrometres (-200 mesh). The sample pulps and crushed splits were transferred internally to ALS Global's North Vancouver analytical facility for gold and multi-element analysis. Pulps (50gram split) were submitted for Au analysis by Fire Assay with Atomic Absorption finish (Au-AA24). The retained pulps also were analysed by Four Acid Digestion followed by Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) multi-element analyses (ME-ICP61m) with Hg by Aqua Regia and ICP-MS (Hg-MS42). Over-limit Au and Ag samples were analyzed by Fire Assay with Gravimetric Finish Ore Grade (Au-GRA21 or Au-GRA22, Ag-GRA21). Overlimit base metals were analyzed by Four Acid Digestion followed by Ore Grade Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) for Cu, Pb and Zn (Cu-OG62, Pb-OG62, Zn-OG62).
Splits of crushed rejects were sent to ALS in Reno, NV for hyperspectral analysis (HYP-PKG) using the Terraspec 4 and aiSIRIS identification of the principal silicate, sulphate, carbonate and hydrous oxide species, namely the alteration minerals and their relative intensity.
In-house quality control samples (blanks, standards, preparation duplicates) were inserted into the sample set. ALS Global also conducts its own internal QA/QC program of blanks, standards and duplicates, and the results were provided with the Company sample certificates. The results of the ALS control samples were reviewed by the Company's QP and evaluated for acceptable tolerances. All sample and pulp rejects will be stored at ALS Global pending full review of the analytical data, and future selection of pulps for independent third-party check analyses, as requisite.
All of the metal values disclosed herein by Silver Spruce are reported from grab and channel samples which may not be representative of the metal grades, and those from previous exploration efforts must be considered as historical in nature. The Company has reviewed the certificates and believes the analytical protocols and data will withstand scrutiny for inclusion.
Greg Davison, MSc, PGeo, VP Exploration and Silver Spruce Director, is the Company’s internal Qualified Person for the Jackie Project and is responsible for approval of the technical content within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.