Silver Spruce Completes Phase Two Diamond Drilling Program on Big Easy Gold/Silver Property, Eastern Newfoundland
BRIDGEWATER, NOVA SCOTIA -- (Marketwire) -- 07/17/12 -- Silver Spruce Resources Inc. (TSX VENTURE: SSE)
Highlights
-- Banded quartz-adularia/ chalcedony veins, typical of epithermal hot
spring systems, up to 1 m wide were noted
-- 821 core samples of alteration / veining, totalling 859.8m, were taken;
results are pending
-- 1,080 m in 5 holes tested the extensive altered/ mineralized zone over a
200 m strike length
Silver Spruce Resources Inc. (TSX VENTURE: SSE) is pleased to announce the Phase Two drilling program on the road-accessible, Big Easy gold/silver mineralized alteration zone in eastern Newfoundland, concluded on July 11 with a total of 1080 m in five drill holes completed. The drilling tested epithermal-style mineralization over a 200 m strike length associated with an altered (silicified) zone that covers an area of approximately 1.7 km by up to 300 m wide. A total of 821 samples totalling 859.8 m of altered / mineralized drill core were sampled and sent for analysis, with all samples now in the laboratory. Results are pending and will be released as they become available and can be put into context in the overall system.
Extensive banded quartz-adularia veins and areas of chalcedonic (opaline) quartz up to 1 m wide, but generally from 1 to 30 cm wide, as well as areas of brecciation with associated veining and silicification, were noted in the core. Orientations of the veins varied, but were generally better than the 2011 drilling, where almost all the veins ran along the core axis indicating possible down-dip drilling. Orientations of the veins in 2012, with the drill holes drilled 270 degrees (to the west) instead of 90 degrees (to the east) as in 2011, varied from 20 to 90 degrees to the core axis, averaging 40 to 50 degrees. Adularia (potassium feldspar), sinter (hot spring silica deposits) and boiling textures were again noted in the 2012 drill core, indicating that the zone lies near the paleosurface where higher grade, "bonanza style" gold/silver veins could be found.
The Phase Two, follow-up drilling program was based on the results of our 2011 drilling, a detailed structural interpretation of the mineralized zones by a consultant from Caracle Creek International Consulting, and a clearer understanding of the extensive epithermal system through the support of academic (Memorial University) and provincial government (Department of Natural Resources) studies. It was targeted to test the area of the wide Au/Ag intersection in DDH BE-11-3.
The 2012 drill program followed a seven drill hole, 1577 m, Phase One program in 2011, the first drilling that ever tested the area. All 2011 drill holes intersected gold/silver mineralization over a 1.2 km strike length (news releases dated May 31 and June 7, 2011). The best intersection, in BE-11-3 gave 0.87 g/t gold (Au), 33.5 g/T silver (Ag) / 30.5 m (228 to 258.5 m), including 6.05 g/t Au, 174 g/T Ag / 1.5 m (240.5 to 242 m) and 6.04 g/T Au, 114 g/T Ag / 1 m (245 to 246 m); and a banded, "bonanza style" 0.3 m vein in BE-11-7, the northernmost drill hole, which gave 335 g/T (greater than 10 oz/T) Ag and 2.57 g/T Au (231.3 to 231.6 m). Drill hole BE-11-7 is located approximately 700 m to the north of the area drilled in 2012 indicating the significant strike potential of the zone.
Prospective, altered/mineralized drill core has been sawed in half, with one half delivered to the Accurassay Preparation Laboratory in Gambo, NL, where it was prepped and then sent to their laboratory in Thunder Bay, ON for analysis for Au by fire assay (ALFA1 - 30 g sample) and an ICP technique (ICPAR) for other elements, including Ag. Duplicates are taken every tenth sample for quality assurance.
The 121 claim (30 km2) original 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 4th anniversary on. Another 173 claims were added in 2011 after discovery of the ET zone, 3.5 km to the south, to bring the property to 294 claims (73.5 km2).
Plan maps and a summary of the drilling; compilation maps of the property; and pictures showing the drilling and other exploration activities, 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 Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of gold/silver (Big Easy), rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits) and uranium (CMBJV, Snegamook, Double Mer, Mount Benedict) 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.
For additional information, please visit the company's website - www.silverspruceresources.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 company seeks Safe Harbour.
Contacts:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
902.527.5700
902.527.5711 (FAX)
gbarnhill@silverspruceresources.com
For investor and media relations:
Paul Snow
Pilot Communications Inc.
709.753.0794 ext. 31
709.753.0795 (FAX)
psnow@pilotcom.ca