Silver Sprute

Silver Sprute

June 07, 2011 09:50 ET

Silver Spruce Reports on Phase 1 Drilling on Big Easy Gold/Silver Property Eastern Newfoundland

BRIDGEWATER, NS, June 7, 2011 - Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) -

Highlights

  • all holes intersected mineralized (pyritic), silicified sedimentary units carrying gold and silver values
  • strike length of alteration / mineralization - 1 km - remains open along strike
  • no previous drilling on property - a new gold/silver discovery
  • 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

Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) is pleased to provide the final results for the Phase 1 diamond drilling on the road accessible Big Easy gold/silver project located near Thorburn Lake in eastern Newfoundland. A total of seven holes (BE-11-1 to 7), totaling 1,577 m, tested the altered / mineralized zone over an approximate 1 km strike length from L 7560 N (BE-11-1) to L 8600 N (BE-11-7). 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, April 8, May 3, and June 1, 2011), with minor to significant gold / silver intersections.

In results not previously released, gold/silver values were located in drill holes 4,5,6 and 7 located to the north of BE-11-3. Highlights include: 163 ppb Au and 32.3 ppm Ag over 6.5 m (97-103.5m) in BE-11-5; 1358 ppb Au and 2 ppm Ag over 6 m (41-47 m) including 1 m (43-44 m) at 7645 ppb Au and 10 ppm Ag, and 319 ppb Au and 13 ppm Ag over 18.6 m (231.3-249.9 m) including 1067 ppb Au and 64 ppm Ag over 2.4 m (231.3-233.7 m) in BE-11-7. All drill holes gave at least 1 value >100 ppb Au over at least 1 m. Significant results are given in the table following.

As reported in the May 3, 2011 news release, a strong gold/silver zone was located in DDH BE-11-3. 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 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. The highest grades are associated with a brecciated zone located between 228 m 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. Alteration noted is illite, muscovite/sericite and potassium feldspar (Kspar) with strong silicification throughout.

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. The structural control on the mineralization is not yet known although gouge zones representing shears or faults were noted in most holes.

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.

Results were also received for check samples from drill holes BE-11-1 to 3. Samples with background, anomalous and higher values were sent. Results generally corresponded quite well with Accurassay values, on average, 1% higher than the check sample results from Eastern Analytical. The highest variation was an Ag value of 19 ppm which was 58% higher from Accurassay than the check result from Eastern Analytical at 5 ppm. The two 6 g/T Au values from BE-11-3 gave 5.8 g/T and 5.5 g/T respectively in the checks. It is believed that a nugget affect may be causing the variation is some samples. Evaluation of mineralized sections will be carried out by thin section analysis. Check samples from holes 4 to 7 have been submitted to Eastern Analytical for analysis. Results will be reported when received with a full summary of the check sampling.

All data will be compiled is 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 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.

List of Significant Au.Ag values - Big Easy Phase 1 Diamond Drilling

Hole # From To Total Au ppb Ag ppm
BE-11-01 29 30.3 1.3 126 1
BE-11-02 34 35.5 1.5 175 17
BE-11-03 183 272.2 89.2 410 15.4
  incl. 228 258.5 30.5 870 33.5
  incl. 239 246 7 2500 74.1
  incl. 240.5 242 1.5 6052 174
  incl. 245 246 1 6043 114
BE-11-04 95 102 7 410 3.4
  incl. 95 98 3 908 4.7
BE-11-05 86.2 89 2.8 299 9.2
  and 97 103.5 6.5 163 32.3
  incl. 97 98.5 1.5 460 49
BE-11-06 37.7 44 6.3 212 8.2
  incl. 43 44 1 136 36
  and 53 60 7 168 5.5
  and 96 104.7 8.7 156 1.9
  and 180.6 196.8 16.2 163 3.4
  incl. 255 256.5 1.5 541 2
BE-11-07 41 47 6 1358 2
  incl. 43 44 1 7645 10
  and 217.8 222 4.2 480 4.4
  incl. 220 221 1 1549 7
  and 231.3 249.9 18.6 319 13
  incl. 231.3 233.7 2.4 1067 64
  incl. 231.3 231.6 0.3 2569 335

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 were 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 on holes 1 to 3 including the mineralized zone in hole 3 was carried out at Eastern Analytical Laboratories in Springdale NL., a recognized local laboratory, by fire assay (1/2 assay tonne) for Au and an ICP-11 technique for pathfinder elements including As and Sb, base metals and Ag. Values >6 ppm Ag, the upper detection limit using the ICP method, were reanalyzed by a wet chemical method and an AA finish to give accurate assay values for Ag.

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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