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Silver Spruce Options Gold Prospect - Baie Verte Peninsula
North Central Newfoundland
Highlights
- Strong untested gold in till anomaly with values up to 1,360 gold grains, 95% pristine
- Values to 12.5 g/t over 1.5 m in channel samples - Krissy Trend
- Values to 65 g/t over 1 m (including 280 g/t / 0.25 m) in drilling - Brass Buckle zone
July 16, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has optioned the Rambler South gold property located on the Baie Verte peninsula in north central Newfoundland. The property hosts three areas of structurally related gold mineralization - the SB gold in till anomaly, and the Krissy and Brass Buckle gold trends. The property totals 56 claims (1,400 ha) and was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). PMD is an insider, as a director and the VP Exploration of Silver Spruce. Krinor Resources is a company owned by PMD and his wife and, as such, the option agreement is subject to TSX-V acceptance.
Terms of the option to earn a 100% interest, subject to a 2.5% NSR with a 1.0 % buyback for $1.5 M, are:
|
Cash |
Shares |
Work Commitment |
| On signing: |
$15,000 |
300,000 |
$100,000 |
| 1st Anniversary |
$30,000 |
350,000 |
$150,000 |
| 2nd Anniversary |
$50,000 |
400,000 |
$250,000 |
| Totals: |
$95,000 |
1,050,000 |
$500,000 |
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.
The property is located on the Baie Verte peninsula in north-central Newfoundland, approximately 20 kilometres from the town of Baie Verte. It is road accessible via the Gull Pond Resource Road which cuts the northern portion of the property and extends to the southern part of the property along the Brass Buckle trend.
The host rocks are the Pacquet Harbour Group (PHG), mainly mafic volcanic units, the host for the gold rich Rambler deposits located to the north, which are cut by intrusive units - the Burlington Granodiorite to the west and a number of quartz porphyry dikes thought to be related to the Cape Brule Porphyry, to the east. All gold mineralized zones, from north to south - the Krissy, SB and Brass Buckle, are structurally related. Gold mineralization at the Krissy and Brass Buckle zones, both of which have visible gold, is associated with sulphide rich quartz veins emplaced along shear zones and related to the intrusion of linear quartz porphyry bodies. Values vary from background (100 ppb or less) to 12.5 g/t / 1.5 m - Krissy channel and 65 g/t over 1 m (including 280 g/t over 0.25 m) - Brass Buckle - DDH. The South Brook till anomaly appears to be related to shearing along the southern contact of the northeasterly trending "tongue" of Burlington Granodiorite that cuts the PHG to the northeast of Gull Pond. Four till exploration programs, carried out from 1989 to 2007, defined a gold in till anomaly, 3.5 km long and up to 1.5 km wide to the south of the "tongue" which gave gold grain counts up to 200 grains and background values < 10 grains with many at 0 grains, with all samples processed by Overburden Drilling Management of Nepean, ON. The assumed source area, defined in 2007 by close spaced (50 m) sampling, gave gold grain counts up to 1,360 grains with 95% being pristine, lies along the south side of the "tongue" and is believed to be a chlorite altered shear zone in the mafic volcanics of the PHG.
The Brass Buckle and SB zones were discovered by Corona Corporation in the late 1980s / early 1990s. PMD first acquired the property by staking the Krissy Trend after the discovery of visible gold in the Krissy boulder during prospecting in 1992. The property has been optioned to five different companies over the past 17 years and exploration by these companies and PMD/Krinor/NE Exploration has enhanced the property potential with each exploration phase. Only limited drilling has tested the Brass Buckle (13 holes) and Krissy (6 holes) trends, with significant but narrow gold intersections noted in both cases - Krissy - 6.9 g/t over 0.3 m; Brass Buckle - 65 g/t over 1 m (incl. 280 g/t / 0.25 m). No trenching or drilling has tested the probable source area of the SB gold in till anomaly.
Five due diligence samples taken by the QP, Guy Mac Gillivray gave Au values from 15 to 13,563 ppb with the high value taken from the Krissy trend in the same area as the high channel sample value. Exploration, to begin immediately will consist of compilation, rehabilitation of the Krissy grid along the Krissy Trend, soil geochemistry and prospecting followed by trenching / Diamond drilling on the Krissy Trend and linecutting followed by Diamond drilling on the SB gold in till anomaly. No work is planned on the Brass Buckle trend this year.
Analyses in 2009, were carried out at Accurassay Laboratories in Thunder Bay, ON after sample preparation at the Gambo, NL preparation facility. Samples were analyzed for gold by fire assay using an atomic absorption finish plus an ICP-31 technique for other elements. A compilation map of the property can be viewed on the company website www.silverspruceresources.com.
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 8,000 claims totaling more than 2,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland making Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Guy Mac Gillivray, P.Geo., Senior Geologist of Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information, Contact:
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.
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