Highlights
- Grades of up to 42 % Pb, 15 % Zn, 17 g/t Ag in grab samples
- Two similar showings 300 m apart in a limestone (carbonate) host
- Mineralized zone is untested by trenching or drilling
December 4, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to report that it has optioned a property carrying carbonate hosted lead/zinc (Pb/Zn) mineralization in western Newfoundland, near the town of Stephenville. The 20th Brook property totals 146 claims (3650 ha) and was optioned from a group of Newfoundland, west coast based, prospectors, Derek White, Joan Benoit and Vance Green.
The terms of the option to earn a 100% interest, subject to a 2.5% NSR with a 1.5% buyback for $1.5 M, are as follows:
Cash Shares Work Commitment
On signing: $ 4,500 45,000
1st anniversary $12,000 90,000
2nd Anniversary $24,000 150,000
3rd Anniversary $45,000 150,000 $300,000
Totals $84,650 435,000 $300,000
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $18,000 per year, is payable for 10 years from the 5th anniversary. Fifty percent (50 %) of cash payments can be substituted by shares at their value at the time of exercise at the company's option.
The 20th Brook property is located in western Newfoundland, approximately 25 kilometres from the town and port of Stephenville. It is road accessible to within a few hundred metres of the Southwest (SW) showing. Results for three selected grab samples taken from the two showings, which both extend over an area of more than 30 m, are as follows: SW zone - TB1A -- 34% Pb, 15% Zn, 17.1 g/t Ag, and TB1B -- 0.43% Pb, 7.1% Zn, 5.6 g/t Ag; Northeast zone (TH) - TBTH1 -- 42.4% Pb, 7.4% Zn and 17.5 g/t Ag. All three samples gave values of 7% zinc, with variable lead and silver. Scattered mineralized boulders and minor outcrop exist between the two showings and to the north of the TH showing.
The property was optioned to Falconbridge/Xstrata until 2007. These companies carried out exploration, targeting Irish type Pb/Zn deposits, over a three year period from 2004 to 2007 consisting of prospecting, geological mapping, gridding -- 200 m lines, widely spaced (100 m centre) soil geochemistry, induced polarization (IP), and horizontal Loop EM (HLEM) surveys followed by 12 drill holes (TB-06-1 to 12) totaling 1,815 m. XStrata's work concentrated mainly on IP and HLEM targets with or without soil geochemical backup. The mineralized outcrops were not tested by trenching or drilling (see compilation map) and the mineralized trend remains untested.
All analyses were carried out at Eastern Analytical in Springdale, NL, a recognized local laboratory. Samples were analysed by an ICP- 11 technique followed by an atomic absorption assay technique for those values over the detection limit of the ICP, Pb, Zn and Ag.
A compilation map of the 20th Brook property, with the location of the due diligence samples shown, can be viewed on the company website
www.silverspruceresources.com.
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 12,000 claims totaling more than 3,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador gives the company diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.