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Silver Spruce Updates Fall Exploration:
Big Easy, Rambler South, Popes Hill, Lobstick Projects, NL
Highlights
- IP geophysics on the Big Easy
gold/silver property over highly silicified sedimentary units carrying
disseminated pyrite with gold/silver values in preparation for
drilling
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Trenching
program locates VG on the Rambler South (RS) gold/base metal property -
Krissy trend
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Follow
up exploration completed on Lobstick uranium/REE property
October
14, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV:
SSE)is pleased to provide an update on exploration activities for the
early fall of 2010. Projects being explored include the Big Easy
gold/silver and the Rambler South gold/base metal properties, both on the
island of Newfoundland and the Lobstick uranium and Popes Hill rare earth
element (REE) properties in Labrador. All of these projects are road
accessible thereby making exploration cost efficient.
Big Easy Gold/Silver Property
The 121 claim (30 km2) property, located near Thorburn Lake in
east-central 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 3 years. A yearly advance royalty payment of $20,000 per
year, deducted from future NSR payments, is payable from the 4th
anniversary on.
An Induced Polarization (IP) survey, contracted to Eastern
Geophysics, is underway covering the altered (silicified) / mineralized
area as defined by the prospecting and trenching surveys carried out in
the summer (see News Releases dated July 29, 2010 and August 6, 2009). A
dipole-dipole array, using a dipole spread of 50 m, is being used to
define the margins of the assumed fault bounded zone and to define
mineralized (i.e. highly chargeable) or strongly silicified (ie highly
resistive) zones within the large alteration/mineralized zone which
extends in a north-northwesterly direction, over an area of 1.7 km by 300
to 500 m wide, narrowing to the north and south. Results will be
interpreted by a geophysical consultant with recommendations for drill
testing of anomalies, later this fall or over winter, made in the report.
The results will be released when received.
Rambler South Gold/Base Metal Property
The Rambler South property, located on the Baie Verte peninsula of
north central Newfoundland, totals 101 claims (2,525 ha), and was
optioned from Northeast Exploration Services, Krinor Resources Inc. and
Peter Dimmell (PMD). Terms of the option to earn a 100% interest, subject
to a 2.5% NSR with a 1.0% buyback for $1.5M, over 3 years are: payments
totalling $95,000; issuance of 1.05M shares; a work commitment of
$500,000 by the end of the second year; and a yearly advance royalty
payment, deducted from future NSR payments, of $10,000 per year, payable
from the 4th anniversary on. The second year stock payment has been made,
however the terms of the option have been amended to allow payment of the
cash portion of the second year option payment to be made by December 31,
2010.
Exploration by Silver Spruce since the option has included: line
cutting, soil geochemistry and prospecting on the Krissy trend grid,
prospecting and sampling on the Brass Buckle zone and diamond drilling on
the Krissy - trench 2 area (L22 E) and on the SB grid.
The work on the Krissy trend
has evaluated VLF-EM anomalies (Fraser filter), which define the shear
system and possible associated shears on the Krissy grid. Prospecting in
the Line 24 E area located visible gold (VG) in two locations (where no
analysis was done) and in addition a chip sample over 0.7 m at
approximately 23+80 E gave 12 g/t Au and values to 25.3 g/t Au were found
in a grab sample on L 24 E. Exploration in the Line 16 to 17 E
area located the shear system which carries recrystallized quartz veins,
similar to the Krissy and AD boulders to the north (up ice) of the
VG bearing boulders (see news release dated July 29, 2010).
A trenching program was carried out in the L 24 E area with Trench
1 extending from 23+75 E to 24+30 E, and trench 2 at 23+50 E, and in the
L 16/17 E area, Trench 4 on Line 17 E and trench 5 on 16+50 E, a strike
length of approximately 800 m with the shear zone remaining open to both
the east and west along strike. All four trenches exposed the
Krissy shear which averages 4 to 5 m wide, carrying variable
recrystallized quartz veining comprising 5% to 20% of the zone. Host
rocks are mafic volcanics intruded by quartz porphyries, both of which
are highly sheared. The porphyry unit(s) become less prominent to the
west, where the shear zone is bounded to the north by a massive gabbro
unit. Trenches were also attempted on 19, 20 and 25 E however boggy
ground and deep overburden prevented the exposure of outcrop.
Visible gold was noted in the eastern most portion of Trench 1,
further to the east from where found in the prospecting. A total of
107 channel samples, varying from 0.2 m to 1.2 m in length, were taken
across the shear zone and associated quartz veining, using a Quikcut
diamond saw. Samples have been submitted to Eastern Analytical for
analysis. Results will be released when received.
Gold mineralization including visible gold, at the Krissy zone is
associated with sulphide (pyrite) rich, recrystallized quartz veins
emplaced along a shear zone with related linear quartz porphyry bodies. Significant
values from the zone include: 12.5 g/T / 1.5 m in a channel sample in the
trench 95-2 area near L 22 E, and 9.96 g/T over 0.51 m in drill hole
KT-09-1 also near L 22 E. The Krissy boulder, an approximate 200 kg
boulder of recrystallized quartz with pyrite and visible gold in an
altered/sheared sericitic volcanic or porphyry unit, located on L 17 E,
and the recently discovered AD boulder carrying visible gold located 25 m
to the north of the Krissy boulder, are approximately 500 m to the west
of the Trench 2 area and across the ice direction. Two drill holes on L
17 E, drilled in the 1990s, are located to the south of the recently
defined Krissy shear and the shear zone has not been tested by drilling
up ice of the VG bearing boulders.
Popes Hill REE Property
Follow-up ground work that evaluated the REE showings found by
prospecting in 2006 was carried out over a three day period by a four man
crew. REE values appear to be associated with thorium rich phases of
magnetite bearing intrusive rocks. Thirty-two (32) samples, from bedrock
and angular float boulders, show high radioactivity levels giving
scintillometer readings from 1,000 to 7,500 cps. Samples were shipped to
Actlabs in September. Results will be released when received.
Lobstick Uranium Property, Labrador
The 1,062 claim (265 km2) property was acquired by option and
staking in October of 2009 after uranium mineralization (values of 1,120
ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8) was discovered by
Innu prospectors Jean Pierre Ashini and Raphael Riche in the felsic
volcanics/tuffs, during prospecting surveys supported by the company. The
option agreement, to earn a 100% interest subject to a 2.0% NSR with a
1.0% buyback for $1.0M, totals $40,000 and 600,000 shares over two years.
In addition, a yearly advance royalty payment, deducted from future NSR
payments, of $10,000 per year, is payable from the 4th anniversary on
(see news release dated October 29, 2009). The property covers all of the
significant felsic volcanic units of the Blueberry Hill Group and
anomalous uranium in lake sediment anomalies in the area. The geological
setting is considered to be similar to that of the Michelin deposit of
Fronteer Development in the Central Mineral Belt (CMB) of Labrador,
uranium mineralization in a foliated felsic volcanic or tuff unit
associated with shearing. Lake sediment sampling, carried out in the
early winter of 2010 gave anomalous values in uranium (U) and REE
associated elements (La, Be,Th) (see news releases dated April 27, 2010
and September 14, 2010). A combined radiometric/magnetic survey, totaling
3800 line kilometers, was carried out by Tundra Airborne Surveys in the
summer of 2010 (see news release dated September 14, 2010).
Ground follow up with a four man prospecting party, including one
geologist, was carried out from mid September to early October to
evaluate the radiometric and lake sediment anomalies. Access was mainly
by road and on foot although a helicopter was utilized near the end of
the program to evaluate anomalies in the southern part of the property
including an area of possible REE mineralization based on La, Be and Th
lake sediment anomalies. Conditions were poor with cold weather, till and
other glacial cover and snow, towards the end of the program, making the
location of outcrops difficult. Areas of airborne radiometric anomalies
were found to be coincident with boulder fields composed of intrusive
rocks carrying 2 to 3 times background values in counts per second (cps).
A total of 87 rock samples were taken and have been submitted to the
laboratory. Results will be released when received.
Trench samples from the Rambler South property are analyzed at
Eastern Analytical Laboratories in Springdale, NL for Au by fire assay
(1/2 assay tonne) plus ICP-11 for other elements. Rock samples from the
Lobstick amd Popes Hill properties are analyzed at the Activation
Laboratories (Actlabs) facility in Ancaster, Ontario after sample
preparation at their facility in Goose Bay. Lobstick samples are analyzed
using the Ultratrace 4 package which gives good results for uranium and
thorium plus indications of REE's in lanthanum and other elements and the
Pope's Hill samples are analyzed using the Code 8 REE package which uses
a lithium borate fusion and then analysis by either ICP or ICP-MS.
Data on the Rambler South
property including compilation maps, a plan map of the 2009 drilling, and
pictures from the area, and compilation maps for the Big Easy, Popes Hill
and Lobstick areas, are shown on the Silver Spruce website at
silverspruceresources.com.
The company acknowledges the
contribution of the Newfoundland Department of Natural Resources, under
the Newfoundland Junior Exploration Assistance Program (JEAP), of up to
$150,000 of matching funding for the Lobstick property.
This release has been approved by Peter M. Dimmell, P.Geo., VP
Exploration for Silver Spruce Resources Inc., who is a Qualified Person
(QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company with advanced
gold/silver projects in Mexico and the island of Newfoundland, and base
metal projects in central and western Newfoundland. The company was
originally focused on uranium in the Central Mineral Belt (CMB) and
elsewhere in Labrador, Canada and with continued interests in more than
7,000 claims totaling more than 1,750 square kilometers in Labrador,
Silver Spruce remains the second largest landholder in one of the world's
premier emerging uranium districts. This diversity makes Silver Spruce a
leading explorer in Canada and Mexico.
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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