Highlights
- 1,500 m drill contract in 5 to 6 drill
holes to start late July / early August
- 2008 drilling intersected 1.93 g/t Au and
64 g/t Ag over 7.5 m in CEN-08-10 in wide zones (up to 92 m) of
strongly anomalous gold/silver values
- Relogging / geological compilation has
defined areas for Phase 2 drilling
July 7, 2009 - Bridgewater, NS - Silver Spruce Resources Inc.
(TSXV: SSE) is pleased to update ongoing exploration on the Centauro,
Mexico, gold-silver (Au/Ag) project. Results of 2008 drilling which
drilled 3,960 metres in 14 holes (CEN-08-1 to 14) and tested the
alteration zone over a 2.3 kilometre strike length and 1 kilometre width
were reported in late 2008 and early 2009 (see news releases - Oct. 7 and
Dec. 9, 2008 and Jan. 20, 2009).
The
highlight from the 2008 drilling was a gold/silver intersection of 7.5 m
at 1.93 g/t Au and 64 g/t Ag at the top of hole CEN-08-10, in a 92.1
metre zone, from 3 to 95.1 m, which assayed 237 ppb Au and 8.4 g/t Ag.
The hole collared in mineralization so the full width of the intersection
remains unknown as does its orientation and true width. Acanthite, a
silver-bearing mineral, and native gold were identified (see news release
Dec. 9, 2008). The closest drill hole CEN-08-11, which gave gold / silver
values of 104 ppb Au and 2.0 g/t Ag over 20.5 m and 52 ppb Au and 2.9 g/t
Ag over 23.5 m, is located 550 metres to the southeast and no drilling
has tested the area to the north along strike. The gold / silver values
are associated with the strong silicification in the silica breccia
defined in the 2009 work. The mineralization / alteration appears to be
dipping to the east / northeast, basinward and this is a prime area for
further drill testing.
Work
for 2009 to date consisted of relogging the 2008 core, geological mapping
and field checking and geological compilation. This work has resulted in
a better understanding of the geological setting of the alteration
package and mineralized zones and has defined areas requiring further
diamond drilling, which will be targeted in the 2009, 2nd phase program.
The
Centauro property is dominated by a thick sequence of conglomerates with
a calcareous mud to sand matrix, interbedded with calcareous siltstones
and sandstones which dip moderately to the west (Figure
1 ). On Centauro hill, the silicified Mesa, the
conglomerates are locally decalcified, silicified and brecciated. Based
on field mapping and the 2008 drilling program, the alteration system is
separated into three distinct packages: a) unaltered, basal calcareous
conglomerate and associated calcareous sediments which outcrop to the
west and north of the Centauro Mesa, and which, with the altered units
following, comprised the original sedimentary sequence in the area. All
2008 drill holes intersect these units at depth suggesting the feeder for
the alteration/silicification is not located directly beneath the Mesa;
b) decalcified / weakly silicified, polymictic conglomerate altered
through hydrothermal activity but containing clasts which are coherent
and have similar lithologies and size as the calcareous conglomerates.
These units are cut by kaolin veins (as secondary injection of kaolin)
and show moderate argillic alteration. The contact between the basement
conglomerates and the decalcified conglomerates is relatively sharp; and
c) silicified breccias characterized by extreme silicification and
brecciation of the original conglomerate. This unit is extremely
resistant to erosion and outcrops along the top of the Centauro Mesa and
to the east and northeast of the mesa. All units are crosscut by
hornblende-bearing porphyritic diorites and andesitic subvolcanic units.
The diorites are fresh to intensely altered and are crosscut by fresh
andesites (displaying a defined chilled margin) which outcrop to the west
of the Mesa. This suggests several episodes of igneous activity, both
before and after epithermal / hydrothermal activity.
The
plumbing system for the alteration on the Centauro Mesa appears to not be
directly below the mesa, but may be located to the northeast for the
following reasons: 1) poorly to unaltered calcareous conglomerate
(basement) was intersected in all drill holes at depth; 2) silicification
and alteration appear to dip shallowly to the northeast; 3) strong
silicification is also exposed further to the east (E silica zone); 4)
silica breccia fabrics dip consistently to the northeast; and 5) argillic
alteration intensifies to the northeast.
The
regional structural style is indicative of classic Mexican, Basin and
Range geometry, and it is reasonable to assume that extensional features,
favorable loci for intrusions and conduits for hydrothermal fluids,
trending approximately North-South, exist between topographic highs. It
is likely that one of these extensional features exists to the east of the
Centauro mesa and this is a target for further drilling.
Field mapping has also defined
the area to the north of the mesa and to the east of CEN-08-1, the
northernmost drill hole in the 2008 program as another area of prime
interest. Strongly silicified zones in the calcareous siltstones and
limestone conglomerates in this area carry breccia veins with antimony
(stibnite), and disseminated arsenic (realgar and orpiment)
mineralization over an area at least 400 m wide across strike. DDH
CEN-08-1 was located further to the west and did not test this area. Gold
in soil geochemical anomalies were strongest on Line 6 in the area and
the highly anomalous mercury values in both the soils and rock samples
indicate that we are still very high in the system, most likely above any
bonanza vein system.
Skarn mineralization as calc-silicates, with garnet, epidote, hematite
and minor copper mineralization, indicating that buried porphyries exist
to the north of Centauro, has been noted to the west of El Pozo, to the
south of Juan Pablo, the two hills just to the north of Centauro mesa.
This area has never been tested by drilling.
All of the 2008, widely-spaced, drill holes, except CEN-08-8 and 12,
intersected elevated gold and silver values over appreciable widths indicating
that the system has good potential to host a significant gold/silver
deposit. Trace element chemistry, especially mercury, indicates that
drilling has most likely been testing the top of the system with the best
potential lying at depth.
Dr. Greg Arehart, a professor at the University of Nevada in Reno, and a
recognized expert in epithermal and Carlin-type gold deposits, has
visited the Centauro Property as a consultant to Silver Spruce, most
recently since the 2009 exploration work. He comments: "The general
epithermal trend is Hg, As, Sb, Tl, Ba, Ag near the paleosurface,
precious metals (Au, Ag) and As below, grading to Ag-base metal deeper
zones. The trace element geochemistry, the intense silicification and
other geologic features of the project, lead me to believe that we are
still at the top of the system. Clearly the alteration package is more
complex than originally thought and the additional information obtained
in the 2009 work, requires changes in the model, but overall the model
remains robust with two major untested target areas"
The phase 2, drill program, to test the two areas of highest potential,
is planned to begin in late July or early August 2009, once the contract
has been awarded.
About the Centauro Property
The Centauro property is a block of six claims (1,420 hectares), located
in the southern part of Chihuahua State, Mexico. It is just north of the
Durango State boundary and lies approximately 25 kilometres to the west
of Highway 45, Mexico's main north-south highway. The property is subject
to an option agreement with a Mexican geologist, whereby Silver Spruce
can earn a 100% interest in the property subject to a 3% NSR with a 2%
buyback for US$2 million. Compilation maps showing the drill locations,
and geology plus pictures and the QA / QC protocols can be viewed on the
company website www.silverspruceresources.com.
All analyses were carried out at the Activation Laboratories (Actlabs)
facility in Ancaster, Ontario. The drill core samples were sawed, under
company supervision, at the field office in Jiminez, Chihuahua State. One
half of the core was sampled, mainly at one to three meter intervals, and
sent to Minerales Laboratory S.A. de C.V. in Mazatlan for sample
preparation, as approved by Actlabs. Pulps were forwarded to Actlabs in
Ancaster for analysis. The samples were analyzed either by fire assay
(one assay tonne) or neutron activation techniques for gold plus an ICP
technique for other elements. Every twenty-fifth sample was also analyzed
by fire assay (one assay tonne) for gold and an atomic absorption
technique for silver at the Minerales Laboratory in Mazatlan for quality
assurance/quality control (QA/QC) purposes. A QA/QC program is in place
to increase confidence in the results generated.
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 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.
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