Silver Sprute

Silver Sprute

May 03, 2011 09:53 ET

Silver Spruce Discovers Significant Gold/Silver Mineralization, Big Easy Property, Eastern Newfoundland

Highlights:

  • Discovery of gold/silver zone at 0.87 g/T Au and 33.5 g/T Ag over 30.5 m, including 2.5 g/T Au and 74.1 g/T Ag over 7 m including 6.05 g/T Au and 174 g/T Ag over 1.5 m in DDH BE-11-3
  • mineralization is associated with strong brecciation in the silicified/mineralized zone
  • all holes intersected wide zones of mineralized (pyritic), silicified sedimentary units
  • strike length of alteration / mineralization - 1 km - remains open along strike
  • no previous drilling on property - a new gold/silver discovery

BRIDGEWATER, NS, May 3, 2011 - Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) is pleased to provide an update on the Phase 1 diamond drilling progam at the Big Easy property in eastern Newfoundland. A total of seven holes (BE-11-1 to 7), totaling 1,577 m, were completed. The drilling has tested the zone over an approximate 1 km strike length from L 7560 N (BE-11-1) to L 8600 N (BE-11-7) over widths of up to 500 m. All holes, the first ever drilled on the property, intersected strongly altered (silicified /sericitized/chloritized) and mineralized sedimentary units (see news releases dated March 24, 2011 and April 8, 2011). The drilling is testing Induced Polarization (IP) targets and an altered (silicified) / mineralized area, which extends over an area of > 1 km by 500 m wide, narrowing to the north and south.

A significant gold/silver zone was located in DDH BE-11-3, drilled under BE-11-2, at a vertical depth of 170 to 210 m. The zone gave 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 to246 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. The highest grades are associated with the brecciated zone located between 228 and 272 m. Pyrite as disseminations and veins/veinlets averaging 2%-3% and an unknown, minor fine grained grey black metallic mineral, is noted in this section. An unidentified silvery metallic mineral tentatively identified as metallic carbon is noted on fracture surfaces in parts of the mineralized zone.

DDH BE-11-4, located approximately 190 m to the north of BE-11-3, but testing the zone further to the west and at shallower depths, gave a narrow anomalous zone of 0.41 g/t Au over 7 m from 95 m to 102 m, including 0.91 g/t Au over 3 m from 95 m to 98 m, including 1.09 g/t Au over 1 m from 97 m to 98 m. Other values in the 100 ppb (0.1 g/t) Au range over narrow widths up to 1.5 m were also noted. Ag results as part of the ICP analyses remain pending. Au/Ag results for hole 1, located approximately 110 m to the south of BE-11-3 and hole 2, approximately 100 m ahead of BE-11-3, both of which tested the zone at shallower depths, gave generally anomalous values of 30-60 ppb Au (0.03 to 0.06 g/T) with some scattered values in the 100 ppb (0.1 g/T) range over narrow widths of up to 1.5 m. Ag values are generally background with some values up to 3 ppm (g/T). The lower detection limit for Ag is 1 ppm in the ICP method used and most values are at the 1 ppm limit.

Holes 1, 2, 4 and 5 tested the altered / mineralized zone to a maximum vertical depth of 170 m, with most shallower, while Hole 3 tested the zone to a vertical depth of 230 m, with the Au/Ag zone located below 170 m vertical depth. Holes 6 and 7, located 500 m and 700 m to the north of holes 4 and 5, tested the zone to vertical depths beyond 200 m. True widths are not known, due to variable dips of the units, but are believed to be close to drill intersections.

Gouge zones, thought to represent fault or shear zones, are noted in all the drill holes, especially along the east and west contact areas, indicating that the system has been faulted either contemporaneously or post mineralization. The structural control on the mineralization is not yet known.

Core samples from holes 1 to 6 and the upper part of hole 7, have been submitted to the laboratory with complete analytical results received for holes 1 to 3 and Au values for all of hole 4. All other results are pending. Cutting of the remainder of the samples from hole 7 is continuing with samples submitted every few days. The rest of the results will be reported as received.

The 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 M 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, due on April 21, 2011, has been made.

Drill core is cut in half using a diamond core saw, with one half sent for analysis and the other half retained for study. Samples are submitted to the Acccurassay Preparation laboratory in Gambo, NL. where they are prepped and then sent to their laboratory in Thunder Bay, ON for analysis for gold by fire assay with an AA finish and an ICP-30 technique for other elements. Some samples may also be analyzed for Hg using the ALHg1 technique. Values are checked by internal standards at the laboratory. Check sampling is also being carried out to check the accuracy of the main laboratory.

Plan maps of the drilling, the IP chargeability and resistivity and a compilation map for the property, plus pictures showing the drilling and the drill core, are also available on the Silver Spruce website at silverspruceresources.com.

This release has been approved by Peter M. Dimmell, P.Geo. VP Exploration for 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.

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 company seeks Safe Harbour.

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