Silver Spruce Reports Discovery of New Mineralized Alteration Zone 3.5 km to South of Big Easy Gold/Silver Zone, Eastern Newfoun
June 23 2011 - 9:00AM
Marketwired
Silver Spruce Resources Inc. (TSX VENTURE: SSE)(FRANKFURT: S6Q) -
Highlights
-- Mineralized alteration zone, the ET showing, located on strike, 3.5 km
to south of Big Easy zone
-- similar to Big Easy zone - silicified / sericitized sedimentary units
with disseminated pyrite
-- Limited sampling (3 rocks) gives anomalous values to 125 ppb Au, 3.5 ppm
Ag
-- acquisition of 173 claims to protect southern extension of zone
Silver Spruce Resources Inc. is pleased to announce that a new
mineralized alteration zone, similar to the Big Easy mineralized
system, near Thorburn Lake in eastern Newfoundland, has been
discovered approximately 3.5 km to the south of the Big Easy
zone.
Limited exploration on the southern extension of the Big Easy
trend resulted in the discovery on a brook of similar
alteration/mineralization, mainly silicification, carrying
disseminated pyrite in brecciated sedimentary units with quartz
veining - the ET zone. Three grab samples gave values of 39, 28 and
125 ppb Au and less than 0.5, less than 0.5 and 3.5 ppm Ag,
respectively. The highest value was a composite grab sample. These
results are similar to those originally found in outcrop and float
on the Big Easy zone.
Arsenic was also elevated with a high value of 152 ppm with the
higher gold value. The mineralization occurs over a 50 m area on
the brook however it disappears under overburden to the north,
south and west. Trend of the zone is approximately 150-160 degrees
making the true width of the exposed portion of the zone at least
30 m, open to the west. Seven rock samples were also taken from
altered (sericitized, minor silicification) sedimentary units
(sandstones to conglomerates) with variable white quartz veining,
located 1 to 2 km to the east of the ET showing and 9 stream
sediment and 15 soil samples were taken along a northeasterly
trending brook, where the ET showing is located, which cuts across
the southern claim block and in the area of the sericitized
sedimentary units to the east. One soil sample from along the
brook, associated with a weakly anomalous As value of 38 ppm
(background 5 ppm), gave 15 ppb Au (background less than 5 ppb). No
anomalous gold values were found in the stream sediments however As
values from 8 to 62 ppm (background 5 ppm) were found in the lower
part of the brook. Anomalous Zn (up to 202 ppm) and Co (up to 256
ppm) were found associated with elevated manganese (Mn) values
(greater than 2000 ppm) and are considered to be related to Mn
scavenging. The bog ponds and brooks are not ideal for stream or
soil samples with most giving high Mn and iron (Fe) values related
to the boggy terrain which the brook traverses.
The Big Easy mineralized zone is a new gold/silver discovery in
an area not previously known to host significant gold
mineralization. The zone lies in the Avalon Zone along the northern
extension of the Burin Peninsula high sulphidation belt where
extensive precious metal exploration is being carried out.
Seven drill holes totaling 1,577 m, the first drilling on the
property, tested the Big Easy mineralized zone over an approximate
1 km strike length in May, intersecting strongly altered
(silicified/sericitized/chloritized) and mineralized sedimentary
units (see news releases dated March 24, April 8, May 3, June 1 and
June 7, 2011). The best gold/silver intersection was in DDH BE-11-3
(News Release May 3, 2011), 0.41 g/t Au and 15.4 g/T Ag over 89.2 m
from 183 m to 272.2m, including 0.87 g/t Au and 33.5 g/T Ag over
30.5 m from 228 m to 258.5 m, including 2.5 g/t Au and 74.1 g/T Ag
over 7 m from 239 m to 246 m, including 6.05 g/t Au and 174 g/T Ag
over 1.5 m from 240.5 m to 242 m and 6.04 g/T Au and 114 g/T Ag
over 1 m from 245 m to 246 m.
It is not known if the alteration and mineralization extends
consistently from the Big Easy zone in the north to the newly
discovered ET zone in the south, over a 4.5 km strike length, open
to the north and south. Some structural control, as shears, faults
and related foliation is noted in both showings, however extensive
bog cover with almost nonexistent outcrop exposure makes tracing
the alteration/mineralization very difficult.
The company has staked another 173 claims tied on to the
southern and eastern boundary of the original Big Easy property to
protect the new alteration zone and any possible extensions. The
property now consists of 294 claims (73 km2). Regional exploration
will be carried out on the new claims in the late summer or fall.
All drill data for the Big Easy zone is being compiled to a 3D
database to allow modeling of the system for a Phase 2 drilling
program to be carried out later in the summer or in the early
fall.
The original 121 claim (30 km2) 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 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. The second
option payment, which was due on April 21, 2011, has been paid. A 2
km area of influence is part of the agreement.
Samples were submitted to the Eastern Analytical laboratory in
Springdale, NL. a recognized local laboratory, for analysis by fire
assay for Au and an ICP-11 technique for pathfinder elements
including As and Sb, base metals and Ag. Values greater than 6 ppm
Ag, the upper detection limit for Ag using the ICP method, are
reanalyzed if required, by a wet chemical method and an AA finish
to give accurate assay values for Ag.
Plan maps of the recent staking and the present land position,
the diamond drilling, the IP chargeability and resistivity and a
compilation map, plus pictures showing the ET showing, the drilling
and drill core from Big Easy, are available on the Silver Spruce
website at silverspruceresources.com.
This release has been approved by Peter M. Dimmell, P.Geo.
President and CEO of 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.
The company seeks Safe Harbour.
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. 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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