Silver Spruce Resources Inc. is pleased to report on the final results of the high resolution, magnetic / VLF-EM survey and check sample results for diamond drilling carried out on the road-accessible, Big Easy gold/silver prospect in eastern Newfoundland.
The Big Easy (BE) prospect is an extensive, altered (silicified) system that covers an area of approximately 1.7 km by up to 300 m wide which was drilled in 2011 and 2012, giving significant gold (Au) and silver (Ag) values in several holes (news releases August 16, 2012 and June 7, 2011) defining a low sulphidation epithermal Au/Ag system. The less explored ET zone, 3.5 km to the south of BE, was discovered by prospecting in the south central part of the property in June 2011 and has recently been extended to a minimum 400 m strike length (news release December 11, 2012).
High Resolution Magnetic/VLF-EM Survey
The 349 line km survey covered the entire property at 70 m terrain clearance and nominal 300 m line spacing, with 200 m line spacing over the known mineralization at the BE and ET zones. The results show magnetic lows, most likely representing the alteration coincident with the mineralized zones at both the BE and ET zones. These two established zones are joined by a sinuous magnetic low, which may represent alteration/mineralization linking the two known zones. The overall sinuous nature of the magnetic low is believed to be related to crosscutting faults, which may offset the alteration system as shown by magnetic highs representing mafic dikes emplaced along ENE and NW trending structures. The VLF-EM survey shows the ENE and NW trends as conductive zones, most likely representing water filled shear systems. The airborne data will be incorporated in the database for the area to plan for further exploration in 2013.
"The significance of the probable continuation of the alteration/mineralization over the 5 km plus strike length from the Big Easy to the ET zone is that the trend is becoming more defined as we continue exploration along the strong, extensive, mineralized alteration zone - which has only been tested by 12 drill holes over 1.2 km at the Big Easy itself, in the northern part of the property," says Peter Dimmell, President and CEO of Silver Spruce Resources. "The Big Easy-ET trend is intensely altered with strong silicification and the strength of the system, coupled with the results from the early stage drilling at Big Easy, indicates that we have the potential for a large deposit that could be of interest to a major gold/silver producer."
Diamond Drill Hole Check Analyses
Results have been received for the area of questionable results in Au only, noted in the first check sample analyses received (news release October 18, 2012). This "gold anomalous" area had been flagged in the original results as an outlier, as it gave only low Ag values in comparison to most of the other significant Au/Ag zones which were duplicated, although with "nugget-type" effects in the check sampling. Two check samples from section 101 to 112.25 m in DDH BE-12-10 gave values of 28 and 64 ppb Au, in comparison to the two original samples which gave values >1 g/T and the overall section from 101 to 112.25 m (11.3 m), giving 0.8 g/T Au and 3.8 g/T Ag. Subsequently, the rest of the rejected samples from this section were re-analyzed as check samples at a second laboratory, with similar results as the first set of check samples. The pulps from these re-analyses were then re-assayed at the original laboratory, where they found similar results indicating only background Au values throughout the section in question. None of the high Au values were duplicated and assays generally gave near background values (<70 ppb Au), indicating a problem in the Au analysis at the original laboratory. Interestingly, the highest check sample Au value was 150 ppb Au in the sample from 111.5-112.25 m, which gave 2279 ppb in the original analyses. The Ag values were 7.4 and 8 ppm respectively in this sample interval, the highest Ag values in this section and generally reflective of Au/Ag association throughout the Big Easy core sampling. The originating laboratory is still trying to determine how the spurious results occurred; however, to date no explanation has been brought forward.
Financing
The private placement financing announced on October 22, 2012 and extended on November 30, 2012, expired on December 28, 2012 unfilled. The company's stock was under intense selling pressure during the time that the offering was available and the company was unwilling to reduce the price of the offering, as it believes that its property portfolio deserves a value much higher than the stock price has reflected in November/December. The company will be evaluating all its options in early 2013 including a financing if the share price firms up, joint ventures on some or all of our properties - or a combination of the two.
Plan maps showing the airborne magnetic and VLF-EM survey results, the location and results of the prospecting and stream sediment surveys, as well as a summary of the drilling; compilation maps of the property; and pictures showing the drilling, drill core and other exploration on the property are shown on the Silver Spruce website at www.silverspruceresources.com.
This release has been approved by Peter M. Dimmell, P.Geo., President & CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON as defined in National Instrument 43-101.
About the Big Easy Property (Inclusive of the BE and ET Zones)
The road-accessible, 294 claim (73.5 square km) property, located near Thorburn Lake in eastern Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The agreement, to earn 100 per cent interest subject to a 3 per cent NSR with a 1.5 per cent buyback for $1.5 M, is for 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 fourth anniversary on.