Silver Spruce Reports on Ongoing Diamond Drilling Program, Big Easy Gold/Silver Property, Eastern Newfoundland
08 April 2011 - 11:00PM
Marketwired
Silver Spruce Resources Inc. (TSX VENTURE: SSE)(FRANKFURT: S6Q) -
Highlights
-- Three holes totaling 507 m completed to date, all holes have intersected
wide zones of mineralized (pyritic), silicified sedimentary units with
strongly brecciated zones.
-- Widest intersection - 245.6 m of altered (silicified) / mineralized
conglomerate in DDH BE-11-3.
Silver Spruce Resources Inc. is pleased to announce that diamond
drilling at the Big Easy property in eastern Newfoundland is
ongoing with three of six planned holes, totaling 507 m, completed
to date. A contract for 2,000 m of diamond drilling was given to
Cabo Drilling of Springdale, NL for drilling on the Big Easy
property and the Rambler South Gold property in the Baie Verte area
(see news release dated March 24, 2011).
All three holes, at the south end of the alteration zone, at -50
degree dip and approximately 100 m apart, the first ever drilled on
the property, collared in, and intersected, wide zones of strongly
altered (silicified) sedimentary units, generally pebble
conglomerates, with some narrow coarse sandstone interbeds, which
carry variable pyrite mineralization. Overburden ranges from 3 m to
5 m. Two of the holes (1 and 3) intersected unaltered, post
mineralization, mafic dikes over widths in the 15 m to 20 m range
near the top of the holes. Drill holes 1 and 2 were stopped in
unaltered, unmineralized, red conglomerate while hole 3 was stopped
in an unaltered, unmineralized, fine grained, green mudstone. The
total lengths of the holes and the combined widths of
mineralized/silicified units intersected, (with dikes and
overburden removed), are: BE-11-1 - 107 m / 54 m; BE-11-2 - 98 m /
83.8 m; BE-11-3 - 302 m / 245.6 m. Brecciation is variable
throughout the mineralized zone but is more extensive in BE-11-3
especially in a section from 245 m to 272 m (27 m) with pyrite
ranging from trace to 10% over narrow intervals, averaging 3% to
5%. Similar brecciation was not noted in the surface trench mapping
or sampling. The orientation of the mineralized / altered zone,
which is thought to be fault bounded, remains unknown. Bedding dips
at approximately 30 to 40 degrees, based on surface mapping of the
trenches. Gouge zones, thought to represent fault structures, were
noted in drill hole 3, including at the bottom of the 27 m
brecciated section.
Trench channel samples indicate that the altered zone is
anomalous in precious metals (see news release dated August 26,
2010) with gold (Au) values ranging from 30 ppb to 2,083 ppb with a
mean of 71.7 ppb. Silver (Ag) values range from 1.9 ppm to 13.4 ppm
with a mean of 3.55 ppm. The highest gold value, 2083 ppb over 0.7
m, was in silicified sediments cut by a 1.5 m wide quartz vein in
Trench 5. Drill holes BE-11-2 and 3 were drilled along Line 7700 N,
undercutting Trench 5. Core samples from the first two holes and
the upper part (first 78 m) of hole BE-11-3 have been submitted to
the laboratory. Cutting of the samples is continuing and samples
will be submitted every few days. Results will be reported as
received.
The drilling is testing Induced Polarization (IP) targets in an
altered (silicified) / mineralized area, which extends in a
north-northwesterly direction, over an area of greater than 1 km by
300 m to 500 m wide, narrowing to the north and south. Gerard
Lambert, a geophysical consultant who evaluated the IP results,
concluded: 1) Results indicate nine shallow (i.e., 25 m depth or
so) anomalous IP features, all of which are of the "non-conductive"
type, indicating disseminated to stringer sulphides, which extend
through the altered / mineralized area, in a north to
north-northeast direction, and 2) The IP anomalies appear to be
grouped to form two linear trends, one of which falls along the
corridor of silicification in the central portion of the grid which
appear to show potential for outlining a significant pyritized zone
(see news release dated November 13, 2010).
The 121 claim (30 km(2)) property, located near Thorburn Lake in
eastern 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 three years. A yearly advance
royalty payment of $20,000 per year, deducted from future NSR
payments, is payable from the 4th anniversary on.
Drill core was cut in half using a diamond core saw, with one
half sent for analysis and the other half retained. Samples were
submitted to the Acccurassay Preparation laboratory in Gambo, NL
where they were prepped and then sent to their laboratory in
Thunder Bay, ON for analysis for gold by fire assay with an AA
finish and an ICP-30 technique for other elements. Some samples may
also be analyzed for Hg using the ALHg1 technique. Values are
checked by internal standards and check sampling will also be
carried out.
Hand samples of the drill core plus pictures showing the core
and drill locations will be displayed at the Silver Spruce AGM,
which is being held at the Akerley Room, Park Place Hotel, 240
Brownlow Ave., Dartmouth, NS at 11:00 AM on Monday, April 11, 2011.
All shareholders are invited to attend and hear an update on the
company's exploration activities. Plan maps for the proposed drill
holes, the IP chargeability and resistivity and a compilation map
for the property, plus pictures showing the drilling and the drill
core, are also available on the Silver Spruce website at
silverspruceresources.com.
This release has been approved by Peter M. Dimmell, P.Geo., VP
Exploration for Silver Spruce Resources Inc., who is a Qualified
Person (QP) in NL and ON as defined in National Instrument
43-101.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company originally focused
on uranium in the Central Mineral Belt (CMB) and elsewhere in
Labrador, Canada. With interests in more than 4,000 claims totaling
more than 1,000 square kilometers in Labrador, Silver Spruce is one
of the largest landholders in one of the world's premier emerging
uranium and REE districts. The company has rare earth element (REE)
properties in Labrador - Pope's Hill, RWM and the Straits and
gold/silver projects on the island of Newfoundland.
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.
Contacts: Silver Spruce Resources Inc. - Head Office Gordon
Barnhill CFO & Director 902.527.5700 902.527.5711 (FAX)
gbarnhill@silverspruceresources.com www.silverspruceresources.com
Ascenta Capital Partners Inc. Hugh Oswald Investor Relations
604.684.4743 ext. 243 or Toll Free: 1.866.684.4743 ext. 243
hugh@ascentacapital.com www.ascentacapital.com
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