Jun 19 2015
Silver Spruce Resources Inc. ("Silver Spruce" or the "Company") is pleased to announce that it has executed a binding Letter of Agreement ("LOA") to purchase a 100 percent interest in the Pino de Plata project, an epithermal silver/lead/zinc property in Mexico from its current owner, a mining engineer and Mexican national.
The property is located in the well-established Temoris/Guazapares/Palmarejo mineralized region in the heart of the Sierra Madre Occidental of northern Mexico in western Chihuahua State.
The Pino de Plata project consists of four, road accessible mining concessions covering approximately 390 hectares, located 275 km west-southwest from Chihuahua City and 15 km southwest of Palmarejo near the town of Chinipas, where there is a paved airstrip regularly servicing Coeur Mining's silver operation at Palmarejo. Stephan Jedynak, President and CEO of Silver Spruce stated:
The Pino de Plata project has the potential to be a significant producer for Silver Spruce and signals management's strategic goal of repositioning the Company towards projects that can be cash flow positive in the short to medium term. While the Company will be exploring other opportunities in this prolific region, the Company's main focus will be on completing the NI 43-101 compliant technical report on Pino de Plata as soon as possible.
The geological setting is well understood. Diorite and granodiorite intrusives have produced epithermal alteration and mineralization in veins and skarns in host volcanics. Above the altered volcanics, calcareous limestone, sandstones and hornfels formations have been hydrothermally altered and mineralized. Many of these areas have seen historic artisanal production that exploited bonanza grades of silver (Ag), lead (Pb) and Zinc (Zn) and with significant gold (Au) and copper (Cu) values.
Though undrilled, previous owners of Pino de Plata shipped highly silicified mineralized rock as flux to the formerly operating smelter at San Bernardo, Sonora, owned by Peñoles, the second largest Mexican mining company and the largest silver producer in the country. The current owner has sporadically mined the mineralized limestone formations from surface over the last thirty years and stockpiled ore for future production, with the intention of direct shipping high grade ores to third party mills and smelters.
The NI 43-101 compliant mapping and sampling program on the property is underway and samples are currently being assayed at ALS CHEMEX in Vancouver, British Columbia. The Company expects that the NI 43-101 compliant technical report will be completed within 30 to 60 days.
About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a significant portfolio of uranium and rare earth element properties in Newfound and Labrador. Shareholders and other interested parties can view our financial statements on www.sedar.com and on our website.