Silver Sprute

Silver Sprute

July 14, 2011 07:08 ET

Silver Spruce Reports Results of Diamond Drilling Krissy Trend-Rambler South Property, NL

Highlights

  • 7 of 10 drill holes intersected the Krissy vein system giving values up to 31.9 g/T over 0.5 m
  • Gold mineralization intersected west of the Gull Pond access road, up ice of the Krissy boulder
  • Krissy Trend defined over a strike length of 800 m - remains open

BRIDGEWATER, NS, July 14, 2011 - Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) is pleased to report that it has received the results for the recent diamond drilling on the Krissy Trend on the road accessible, Rambler South gold property in northeastern Newfoundland.

A 10 hole drill program, in holes RSKT-11-1 to 10, totaling 924 m, tested the Krissy gold zone in May 2011 (News release June 1, 2011) over an 850 m strike length from Line 25 E (RSKT-11-1) to 16+50 E (RSKT-11-8). Drill holes RSKT-11-1 to 5 tested the zone in the vicinity of lines 24 and 25 E, where trenching / channel sampling in the fall of 2010 gave results up to 5.2 g/T over 4.6 m including 10.3 g/T over 2 m (news release Oct. 21, 2010). Drill holes RSKT-11-6, 8 and 9 tested shear systems on lines 16+50 to 18+50 E, to the west of the Gull Pond (GP) access road and to the north of the VG bearing Krissy boulder. The other two holes, RSKT-11-7 and RSKT-11-10 tested a VLF-EM trend to the north of the assumed location of the Krissy shear on Line 17 E and the Krissy shear on L 20 E, respectively.

Drill holes RSKT-11-2 to 5 which tested the Krissy zone under the trench in the L 24 E area at 20 m intervals intersected gold values in all holes with two significant intersections of 1.07 g/T over 4.6 m including 3.1 g/T over 1.2 m in RSKT-11-3 and 10.5 g/T over 1.75 m, including 31.9 g/T over 0.5 m in RSKT-11-4. Significant Cu and Ag values are associated with the gold mineralization. Drill hole RSKT-11-8 on Line 16+50E, intersected the Krissy shear to the west of the road, up ice of the Krissy boulder location, giving 2.9 g/T over 0.9 m. This is the first discovery of gold mineralization in place to the west of the road, up ice of the VG bearing Krissy boulder. Earlier drill holes in the 1990s and trenches in 2010 tested areas to the north and south of the gold intersection with negative results. The results indicate that the Krissy gold bearing shear zone extends at least 800 m, from 16+50 E to 24+20E, remaining open to the west and tested only by 1 drill hole to the east on Line 25 E. Significant intersections are shown in the Table following.

The Krissy shear lies along the contact between quartz porphyry (to the north) and mafic volcanics of the Pacquet Harbour Group (to the south) in the Line 22 to 25 E area to the east of the GP road. It is not well defined to the west of the GP road as it has not been exposed by trenching. Mineralization / alteration consists of recrystallized quartz veining carrying variable sulphides, mainly pyrite with variable chalcopyrite and minor bornite, galena and visible gold (VG) in the sericite schists along the contact in both the mafics and quartz porphyry. Trenching in 2010 defined the Krissy shear in the area between 23+43 to 24+30 E in trenches 1 to 3, over a strike length of 90 m and previous work had located significant gold mineralization in the L 22 E area with values up to 12.5 g/T over 1.5 m in channels and 9.96 g/T over 0.5 m in drilling. The zone dips to the north at approximately 70-80 degrees and minor fold structures in trench 1, indicate a vertical plunge for the "pods" of mineralization.

The company also reports the results of prospecting on the Brass Buckle Trend in the southern part of the property. Company personnel spent three days evaluating gold in soil anomalies with values up to 637 ppb. Four grab samples taken from mineralized (pyritic) quartz veins in quartz porphyry (2) and mafic volcanics with minor pyrite and chalcopyrite gave two significant values of 7173 and 6908 ppb Au from the quartz veins in the porphyry. The porphyry units are linear and extend along the Brass Buckle Trend.

The property totals 101 claims (2,250 ha) and was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). Terms to earn a 100% interest, subject to a 2.5% NSR with a 1.0% buyback for $1.5 M, are: total payments of $95,000, issuance of 1.05M shares and a work commitment of $500,000 by the end of the second year. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.

Drill core was sawed in half using a diamond saw by company personnel, with one half retained and the other half sent to the Eastern Analytical laboratory in Springdale, NL. a recognized local laboratory, for analysis for gold (1/2 assay tonne) by fire assay and an ICP-11 technique for other elements.

Significant Assay Values
Krissy TrendDiamond Drilling - May 2011
 
DDH # From To Length Au Ag Pb Cu
      m ppb g/t % %
RSKT-11-1 No significant values        
RSKT-11-2 24.0 26.9 2.9 852 nsv nsv nsv
RSKT-11-3 16.0 20.6 4.6 1069      
incl. 16.0 17.2 1.2 3096      
incl. 16.8 17.2 0.4 5168 3.0 nsv 0.20
RSKT-11-4 8.9 10.65 1.75 10,513      
incl. 9.6 10.1 0.5 31,945 20.3 1.86 0.28
RSKT-11-5 6.3 6.8 0.5 1209 nsv nsv nsv
and 9.2 9.9 0.7 686 " " "
RSKT-11-6 No significant values        
RSKT-11-7 No significant values        
RSKT-11-8 6.8 7.7 0.9 2921 10.74 nsv 0.77
RSKT-11-9 57.6 59.0 1.4 788 nsv nsv nsv
RSKT-11-10 19.8 20.5 0.25 1187 11.1 0.02 1.15
 
Note: ND - non detect; NSV - no significant values; Ag - 0.5 g/t is detection limit;
intersections reported are core lengths - estimated approximately 70-80 % true widths

Maps showing the location of the property plus plan maps for the trenching and drilling can be viewed on the company website at www.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 both 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, Pope's Hill JV (with Great West Minerals Group), MRT, RWM and the Straits and gold/silver projects (Big Easy, Rambler S.) 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.

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