March 2, 2022 – Bedford, NS – (TSXV:SSE) – Silver Spruce Resources Inc. (“Silver Spruce” or the “Company”) announces that the Company has initiated its geological mapping program on the principal drilling target areas of the Diamante 1 and 2 concessions (see Press Release of January 24, 2022). The drill-ready Diamante gold-silver (Au-Ag) property (“Diamante” or the Property”) is located 5 km northwest of the town of Tepoca, and 165 km southeast of the capital city of Hermosillo, eastern Sonora, Mexico (Figure 1).
“The geological mapping and rock sampling is focused on lithological details, structural measurements and verification of sampling coordinates to validate proposed collars, depths and orientations,” stated Greg Davison, Silver Spruce Vice-President Exploration and Director. “Our new high resolution LiDAR maps and historical reports have identified additional evidence of surface workings for examination, some with artisanal mining exhibiting individual adits with or without crosscuts following vein and shear structures.”
Mr. Davison also stated, “The early returns from the vein target mapping program are promising. The Company, along with our partner Colibri Resource Corp., will jointly manage and fund an initial 2,000 metre drilling program upon receipt of the drilling permit, expected in late March 2022, from SEMARNAT, the Mexican government environmental authority.”
Preliminary reports from the field team have verified steeply dipping polymetallic sulphide-rich veins from La Prieta, one of the principal veins targets (Figure 2). The mineralization is hosted within sheared and altered andesites of the Tarahumara Formation which dominates the geological exposure on the Diamante 1 property (Figure 3). The complete geological and analytical results from the current mapping and sampling program will be reported in due course.
The targets under consideration for Phase 1 drilling include La Prieta, Aguaje, El Chon-El Chon Oeste, La Olla, Pillado, Calton, El Cumbro and Mezquite-Raizudo targets. Assays for historical surface and U/G channel samples reported up to 39.8 g/t Au, 3,460 g/t Ag, 18.2% Pb, 33.5% Zn and 1.47% Cu (see Press Releases of April 12, 2021 and January 24, 2022). For example, a 9.10 metre composite channel sample from La Olla underground workings, comprising four sub-samples, contained a weighted 0.58 g/t Au, 98 g/t Ag, 2.58% Pb and 21.95% Zn (Cu not reported).
The significant impact of the base metals to the value proposition is well illustrated using Au-equivalent (AuEq) and Ag-equivalent (AgEq) grade determination as indicated in Table 1 (sorted by AuEq). Metal values (US$) used for AuEq and AgEq calculations are as follows: Au ($1,899/oz), Ag ($23.77/oz), Pb ($1.07/lb), Zn ($1.64/lb) and Cu ($4.55/lb). Table 1 provides geochemical results for select samples (n=11 of 354) sorted by AuEq from seven target areas on both Diamante 1 and 2 concessions.
Project Geology
The Property is located within the west-central portion of the Sierra Madre Occidental Volcanic Complex within the northwest-trending “Sonora Gold Belt” of northern Mexico. Diamante offers strong precious metal tenor with a polymetallic endowment, multiple quality targets, styles of mineralization, limited artisanal mining and small-scale production, of particular significance for our exploration moving forward, no records of drilling.
Geological features of epithermal low to intermediate sulphidation Ag-Au (Pb-Zn), high sulphidation Au-Cu, and potential porphyry style Au-Cu occur as disseminated, stockwork and vein styles accompanied by phyllic, argillic, advanced argillic and propylitic zones, with near-surface overprinting by weathering with iron oxide and oxyhydroxide staining, jarosite and relict vuggy silica. Recent exploration verified pathfinder elements including As, Sb, Hg, Cd and Bi.
Structural lineaments with ENE, NE and NW orientations and branching, oblique vein sets to the N-S direction correspond to known vein systems. These include vein targets at La Prieta, El Cumbro, Mezquite Raizudo, El Chon, La Olla, Calton and Pillado. Disseminated and stockwork mineralization at Anomalía Sur and El Puerto offer bulk low-grade targets.
Mineralization is reported visually as pyrite, arsenopyrite, chalcopyrite, sphalerite, argentiferous galena, argentite, hematite and probable metal oxides, carbonates and sulphates, including copper carbonate (malachite), copper sulphates and plumbojarosite.
Project Background
Silver Spruce can acquire up to 50% interest in four Diamante concessions with a cumulative land position of 1,057 hectares (see Press Release of April 29, 2021). The Property is very well situated in terms of resource and logistics for exploration and is easily accessible from Mexican Highway #16 which transects Diamante 1 and on several ranch trails and dry river beds to Diamante 2.
Mining and exploration in the surrounding area is very active with adjacent and nearby properties held by Alamos Gold, Argonaut, Agnico Eagle, Evrim, Newmont, Garibaldi, Kootenay Silver and Penoles among others.
Geochemical Analysis, Quality Assurance and Quality Control
All metal values disclosed herein by Silver Spruce are reported from historical grab and channel samples which may not be representative of the metal grades. The Company’s Qualified Person believes that the sampling, analytical protocols and data will withstand scrutiny for inclusion.
Qualified Person
Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company’s internal Qualified Person for the Diamante Project and is responsible for approval of the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), under TSX guidelines.
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company which has signed Definitive Agreements to acquire 100% of the Melchett Lake Zn-Au-Ag project in northern Ontario, and with Colibri Resource Corp. in Sonora, Mexico, to acquire 50% interest in Yaque Minerales S.A de C.V. holding the El Mezquite Au project, and up to 50% interest in each of Colibri’s Jackie Au and Diamante Au-Ag projects. The Company is acquiring 100% interest in the Pino de Plata Ag project in western Chihuahua, Mexico. Silver Spruce signed a Definitive Agreement to acquire 100% interest in the Mystery Au project in the Exploits Subzone Gold Belt, Newfoundland and Labrador. Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.
Contact:
Silver Spruce Resources Inc.
Greg Davison, PGeo, Vice-President Exploration and Director
(250) 521-0444
[email protected]
Michael Kinley, CEO
(902) 402-0388
[email protected]
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.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements,” Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, statements regarding the private placement.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
