The Melchett Lake property is located within the English River Sub-province of the Archean-age Superior Province as part of the east to west-trending Melchett metasedimentary-metavolcanic belt. The Property contains several occurrences of polymetallic Zn- Pb-Cu-Ag-Au VMS style mineralization similar in character to ore deposits exploited at Mattabi, Winston Lake, Geco, Brunswick and Rouyn-Noranda. The multi-kilometre strike length of the known areas of mineralization, depth potential indicated by the Maxwell modelling, broad intervals of mineralization, intense alteration profile similar to well-known polymetallic deposits, and presence of high-grade values of both precious metals and base metals clearly provide Silver Spruce Resources Inc. with an opportunity to grow with the strong gold, silver and zinc markets.
The Ontario Geological Survey Exploration Highlights in 2016-2017 reported “The potential of discovery of economic zinc-lead-silver-gold-bearing VMS deposits in the Melchett Lake greenstone belt is high.” Furthermore, our Director, Greg Davison, MSc, PGeo, has first-hand experience on the Melchett Lake area, having worked the area as Project Manager and VP Exploration for Kerr Addison Mines (1983-1984) and Tribute Minerals (1999-2002), respectively.”
Silver Spruce has increased the size of the Property from 4,320 hectares to the current 4,698 hectares by adding eighteen (21) single cell 18-hectare mineral claims (shown in yellow). The Melchett Lake Property consists of 229 single cell mineral claims and two multi-cell mineral claims located in Thunder Bay Mining District of northwestern Ontario, Canada. The Property lies 110 km north of Geraldton and 60 km north of Nakina at 50°45' north latitude and 86°59' west longitude.
The Property is accessible via ski or float equipped aircraft from Nakina or Jellicoe to Kapikotongwa Lake, Melchett Lake or Relf Lake. Road access is available from Geraldton and Nakina to the northwest on paved and unpaved roads along the past principal route to the Anaconda/Dofasco iron mine and near the proposed all-season road northeast to Marten Falls, to boat launch points and helicopter staging areas on the south end of Melchett Lake, within five to eight kilometres of the Property.
In recent news, Aroland First Nation and Silver Spruce Resources Inc. entered into an exploration agreement by which Aroland in exercising its inherent jurisdiction, has issued its permit and approval to Silver Spruce to undertake mineral exploration in part of Aroland’s territory known as Melchett Lake, in northwestern Ontario.
Terms of Agreement
Silver Spruce Resources Inc. signed a binding Letter of Intent (“LOI”) on September 9, 2019 to acquire 100% of the Property. Silver Spruce had a 90-day window to December 6, 2019 to carry out its due diligence and execute a DA.
The principal terms of the DA, as per the LOI, to purchase 100% interest in the Property include CAD$150,000 in cash payments and five million Silver Spruce common shares, spread over three years. The initial payment to the Vendor of CAD$25,000 and 500,000 shares is due upon signing and TSX Exchange approval.
Minimum work expenditures total CAD$1,000,000, with CAD$100,000 during the first year, CAD$200,000 in the second year and CAD$700,000 prior to the third anniversary, with all periods based from TSX Exchange approval of the DA. The Vendor will retain a two percent Net Smelter Return royalty of which 1% can be purchased by the Company for CAD$1,000,000 and the remaining 1% at market price.
The additional claims are subject to the Area of Interest terms in the Definitive Agreement.
Base metals were first reported in 1959 by the Kerr-Lund and Little Long Lac Gold Mines who completed geophysics, trenching and diamond drilling in the Kerr-Lund (Relf) Zone. Between 1964 and 1989, the area was held by Shawmin, Nakina Mines, Chimo Gold Mines, Falconbridge, Cominco, Kerr Addison Mines, Minnova and Inmet. Work programs included regional geological mapping, rock geochemical surveys, trenching, ground and airborne geophysical surveys and limited drilling of the Relf Zone, Nakina l Zone and Nakina 2 Zone. In 1996, Redbird Gold conducted ground magnetometer and MaxMin II EM surveys of the eastern and western extensions of the mineralized horizon.
Tribute staked a large claim group in December 1999 and during 2001-2002 completed a 217 line-kilometre DIGHEMv airborne magnetic and electromagnetic geophysical survey using a 100metre separation (Davison, 2002 assessment report). The property was transferred to a syndicate of investors in 2003 and later optioned by Stratabound Minerals who in 2007 and 2008 completed two drill holes and downhole geophysics with Maxwell modelling. The recently acquired Property of 2,124 hectares was staked by the current Vendors in 2017. The Melchett Lake Property size was increased to 3,996 hectares by the Company in November 2019.
In addition, Fugro carried out a regional airborne magnetic gradiometer survey for the Ontario Geological Survey from 2009-2010 which comprised over 75,000 line-kilometres of data acquisition, flown in a north-to-south direction with 200m flight line spacing and roughly centred over the Melchett Lake Property.
The metavolcanics are comprised of mafic to felsic pyroclastics, tuffs and flows with metasediments including cherts and Fe-lean to Fe-rich iron formation all of which have been metamorphosed to amphibolite grade. The general bimodal mafic-felsic sequence includes basalts overlain by felsic metavolcanics and associated clastic and chemical metasediments showing a near-vertical dip, steep ENE lineation in a folded sequence of schists and gneisses. Recent airborne magnetic surveys in 2002 and 2010 have identified significant tight to isoclinal folding, indicating multiple top directions and repetition of sequences with the thick felsic to intermediate metavolcanics. Metamorphism and deformation have overprinted much of the primary textural information though volcaniclastic breccias of felsic clasts in mafic matrix are observed, and may represent vent-proximal units.
Highlights of the exploration targets include multiple folded or stacked horizons of coincident alteration and metal mineralization, high Zn/Cu, Zn/Pb and Ag/Au ratios, extensive remobilization of major and trace elements with defined enrichment (Fe, Mg, Co, Cr, Cd) and depletion (Na, Sr, Ca) zones, and continuity, increased alteration and anomalous metal values over large intervals with a strong electromagnetic off-hole response. The mineralization is interpreted to occur as paleo-topographic accumulations related to fumarolic activity forming polymetallic deposits overprinted by a later stage gold-rich event.
Base metal mineralization consisting of pyrite, sphalerite, chalcopyrite and galena occurs within the felsic metavolcanic sequences of the Property. There are locally high-grade lenses of Zn & Ag with variable Cu, Au and Pb, and historical gold grades to 28.8 g/t Au, silver grades to 560 g/t Ag and zinc grades to 19.1%.
The mineralization is interpreted to occur as paleo-topographic accumulations related to fumarolic activity forming polymetallic deposits overprinted by a later stage gold-rich event. The extensive quartz-sericite-pyrite alteration is consistent with shallow water (<2km), basinal smoker-style to sub-surface replacement mineralization.
Several of the key elements of the prospective alteration and mineralization are as follows:
- Three known centres of coincident alteration and metal mineralization
- Multiple stratigraphic horizons
- Distal and stacked proximal sulphides
- High Zn/Cu, Zn/Pb, Ag/Au
- Extensive remobilization of major and trace elements
- Sericite-quartz-cordierite-chlorite alteration zone
- Broad phyllic-pyrite zones
- Intense Na depletion with elevated Zn
- Ca and Sr depletion with elevated Zn
- Fe, Mg, Co, Cr, Cd enrichment within and below mineralization
- Continuity of alteration and anomalous Zn over large intervals in core drilling
- Extensive alteration haloes analogous to world class zinc deposits
Selected grab samples taken from the Relf Zone by Shawmin averaged 13.0% zinc (Zn), 1.2% lead (Pb), 0.26% copper (Cu) and 325g/t silver (Ag); best results received were 19.1% Zn, 2.2% Pb, 0.40% Cu, 565g/t Ag and 1.72g/t gold (Au).
A selection of Relf and Nakina Zone samples collected in 1983 and 1984 by Kerr Addison geologist and current Silver Spruce director G. Davison is shown below.
ZINC PPM LEAD PPM COPPER PPM SILVER PPM GOLD PPB ZINC % SILVER G/T A-244 >10000 5400 1900 >100 78 7.03 120.7 A-245 >10000 5600 3500 >100 900 8.65 133.7 A-246 >10000 >10000 2600 >100 110 7.97 181 A-247 >10000 5500 7000 >100 1700 6.19 160.2 A-248 >10000 3700 3200 >100 250 8.65 133.7 A-249 >10000 1900 2100 64 97 10.3 A-250 >10000 1500 620 11 34 4.23 A-253 >10000 300 610 7 84 5.13 A-923 >10000 2480 1420 62 70 NR A-925 >10000 645 2120 29 57 NR A-926 >10000 420 2500 23.2 15 NR SAMPLE NO.
ZINC PPM LEAD PPM COPPER PPM SILVER PPM GOLD PPB ZINC % SILVER G/T A-215 >10000 300 46 NR 720 2.89 A-437 >10000 2500 420 14.2 270 NR A-439 >10000 2600 89 17.4 560 NR A-441 >10000 210 1950 10.6 1000 NR A-505 >10000 >10000 660 6.8 230 NR A-512 >10000 1900 39 3.8 42 NR
A selection of Relf Zone samples collected in 1996 and 1997 by Redbird Gold is shown below.
At the Nakina 1 Zone, Nakina Mines reported, in separate samples, 14.85% Zn and 28.8g/t Au from a pyritized felsic volcanic unit. Rock sampling of a pyritized felsic volcanic unit in the Nakina 2 Zone by Kerr Addison returned a value of 15.08 g/t Au.
Field work for the due diligence was initiated in October 2019. The 2019 ground exploration was performed to verify the multi-kilometre strike length of the known areas of mineralization, broad intervals of mineralization, intense alteration profile similar to well-known polymetallic deposits, and presence of high-grade values of both precious metals and base metals reported from the historical exploration. The work included coordination of ground truthing of geochemical and geophysical targets, geological sampling and data verification on known occurrences, GPS location surveys of the historical drill collars, and preservation and sampling of the diamond drill core stored on the Property.
The team examined the principal showings and trenches, and drill core at the Relf and Nakina targets along the principal mineralized trend. A total of seventy-two (72) rock and core samples were collected, sixty (60) of which were submitted for multi-element geochemical analysis.
Silver Spruce reported precious and base metal assay data from samples collected from the Nakina and Relf Zones. Zinc values range up to 14.7%, lead to 0.96%, copper to 0.52%, silver to 301 g/t, and gold to 0.737 g/t and clearly represent the polymetallic nature of the mineralization from both targets, particularly the Relf Zone. The samples exhibit low alkali content, favourable pathfinder ratios, e.g., Zn/Na, and elevated values of heavy metals, including Te, Bi, Se, Sb, Hg, Cd and In, associated with sphalerite, galena, chalcopyrite and pyrite observed in the rock samples.
A selection of the Silver Spruce 2019 precious and base metal assay data is tabulated below.
ZINC PPM LEAD PPM COPPER PPM SILVER PPM GOLD PPM ZINC % SILVER G/T 108101 20 10.6 16.5 1.1 0.031 108102 2 0.4 0.7 0.02 0.002 108103 3310 892 58.6 1.6 0.088 108104 >10000 6690 399 4.06 0.383 3.24 108105 108 63.8 11.8 0.31 0.022 108106 230 22.5 52 1.04 0.012 RELF 108201 203 12.4 51.7 1.02 0.012 108204 >10000 622 1465 27 0.053 3.98 108205 >10000 634 1470 27.5 0.03 1.08 108207 >10000 1185 2250 52.7 0.034 4.42 108210 >10000 2740 5180 >100 0.737 9.12 131 108211 >10000 863 2050 39.1 0.054 4.89 108217 >10000 9650 1600 >100 0.119 14.7 301
Ontario Ministry of Energy, Northern Development and Mines work permits for the 2021 campaign are being updated for prescribed activities which include line-cutting, Spartan Magnetotelluric (MT) survey and diamond drilling. The permits are expected in June 2021. Camp construction is underway.
“We are excited to move forward with Quantec to perform a deep penetrating ground geophysical survey over the Relf Lake target area of the Property,” said Greg Davison, Vice-President Exploration and Director of Silver Spruce. “The target area, shown below, has extensive soil and rock geochemical anomalies, known VMS mineralization from surface to >500 metres depth, highly favorable core alteration style and intensity, increasing Cu to Zn with depth, and deep Maxwell modelled plates off-hole from two downhole EM surveys. With personal and successful experience using Quantec’s IP and MT surveys to identify, and confirm by drilling, high grade polymetallic deposits in Ontario, I am confident that the new deep 2D and 3D data inversions will provide high quality resistivity mapping and reinforce our vectoring to VMS targets.”
The full MT survey will include a total of 150-180 deep search geophysical soundings on 3.5 kilometre north-south lines with 250 metre spacing along and between lines over the area shown on the Property map and Survey Grid image. The survey specification is focused on data gathered from surface to 1500 metres depth.
All aspects of the exploration program are conducted with strict adherence to COVID-19 protocols for personal safety.
Samples were collected by the Company's QPs, packaged in plastic bags with Tyvek tags and shipped by contract air services to Nakina and, using the QPs’ private vehicles, delivered directly to the ALS Global sample preparation facilities in Thunder Bay, Ontario. Photographs of the individual rock and core samples were collected from each sample prior to shipment and selected images are shown herein.
Samples were weighed on receipt (WEI-21) and logged into the global tracking system (LOG-22). The samples were crushed to 70% passing 2mm (PREP-31) and a split of up to 250 grams was pulverized to 85% passing 75 micrometres (-200 mesh). The sample pulps were transferred internally to ALS Global's North Vancouver analytical facility for analysis. 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.
Pulps (25gram split) were submitted for analysis by Aqua Regia Digestion followed by Inductively Coupled Plasma Mass Spectrometry (ICP-MS) multi-element analyses (ALS Code AuME-TL43, 51 elements). All precious and base metal analyses that reached the over-limits of AuME-TL43 were re-analyzed with an Ore Grade method. Over-limit Zn (>1%) and Ag (>100ppm) samples were analyzed by Ore Grade Aqua Regia Digestion followed by Ore Grade Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) for Ag (ALS Code Ag-OG46) and Zn (ALS Code Zn-OG46).
No independent or in-house quality control samples (blanks, standards, duplicates) were inserted into the sample sets. ALS Global conducts its own internal QA/QC program of blanks, standards and duplicates, and the results are 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. Samples currently are archived by the Company.
All of the metal values disclosed herein by past operators and Silver Spruce are reported principally 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 and Silver Spruce Director, is the Company's internal Qualified Person (QP) for the Melchett Lake Project and is responsible for 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. Mr. Davison worked the Melchett Lake area as Project manager and VP Exploration for Kerr Addison Mines (1983 and 1984) and Tribute Minerals (1999 to 2002), respectively.
May 19, 2021Assessment Report Melchett Lake Oct 23 2020
December 9, 2020VMS Deposits Canada Review
November 25, 2020Assessment Report
January 31, 2017OGS Recommendations for Exploration