July 30, 2019 – Bridgewater, NS – (TSXV:SSE) – Silver Spruce Resources Inc. (“Silver Spruce” or the “Company”) is pleased to announce that it has received assays from due diligence samples taken from the Timmins Gold (“Timmins”) (now Alio Gold) reverse circulation (RC) drill program stored at the project and assays from new surface samples taken by the independent Qualified Person preparing the maiden NI 43-101 report on the Cocula project in Jalisco State, Mexico.
The reverse circulation drill samples for due diligence purposes were selected to confirm the grades reported previously by Timmins, focusing both on individual, isolated samples as well as continuous intervals in order to confirm the grades and tenors originally reported. The first set of fifteen samples was selected by ProDeMin crews under the direction and supervision of Dr. Craig Gibson, Ph.D., CPG, Qualified Person. A second set of twelve samples including eight surface exposures and four samples of RC drill cuttings was selected by the independent Qualified Person (“QP”) that is preparing the NI 43-101 report for Silver Spruce. The samples of RC cuttings returned assay results that are generally correlated with the results reported by Timmins.
| Cocula Project Drill Sample Comparisons Samples Selected by ProDeMin | ||||||
|---|---|---|---|---|---|---|
| Drill Sample Assays Reported by Timmins Gold | Re-Assayed Results | |||||
| Hole ID | Sample | Au_ppm | Sample | Wt. kg | Au ppm | |
| RCC-01 | 17001 | 22.51 | 17001 | 1.5 | 23.70 | |
| RCC-02 | 17076 | 1.09 | 17076 | 2.2 | 0.94 | |
| RCC-03 | 17115 | 0.77 | 17115 | 6.6 | 0.3 | |
| RCC-03 | 17116 | 0.28 | 17116 | 4.82 | 0.31 | |
| RCC-03 | 17117 | 0.81 | 17117 | 3.18 | 0.6 | |
| RCC-03 | 17118 | 0.77 | 17118 | 2.84 | 0.93 | |
| RCC-03 | 17119 | 1.86 | 17119 | 3.8 | 1.57 | |
| RCC-03 | 17120 | 0.89 | 17120 | 2.9 | 1 | |
| RCC-03 | 17122 | 1.12 | 17122 | 2.34 | 1.05 | |
| RCC-09 | 17490 | 0.70 | 17490 | 6.44 | 0.42 | |
| RCC-09 | 17491 | 0.47 | 17491 | 6.5 | 0.48 | |
| RCC-09 | 17493 | 3.79 | 17493 | 2.88 | 3.66 | |
| RCC-09 | 17497 | 0.99 | 17497 | 5.6 | 0.61 | |
| RCC-09 | 17498 | 0.52 | 17498 | 3.22 | 0.58 | |
| RCC-17 | 17911 | 6.45 | 17911 | 4.44 | 8.44 | |
| COCULA Technical Report sampling July 2019 Qualified Person Drill Sample Re-Assays | |||
|---|---|---|---|
| Drill Sample | Sample Type | Timmins Au ppm | Re-assayed Au ppm |
| 17532 | RC cuttings | 0.393 | 0.41 |
| 17537 | RC cuttings | 0.153 | 0.19 |
| 17538 | RC cuttings | 0.259 | 0.08 |
| 17540 | RC cuttings | 0.363 | 0.33 |
Eight rock chip channel samples that were taken by the independent QP during his requisite field visit for the NI 43-101 report show the presence of gold mineralization at surface of up to 16.65 grams per tonne (“g/t”) gold (“Au”), or 0.54 ounces per tonne gold.
| COCULA Technical Report sampling July 2019 Qualified Person Channel Samples | ||||
|---|---|---|---|---|
| SAMPLE | TYPE | WIDTH (m) | DESCRIPTION | Au g/t |
| 13359 | CHANNEL | 0.6 | Small dig 3x3x1.7m, east wall, red color breccia, Az 50° -75°. weak to moderate silicified, barite, specularite, iron oxides, minor secondary Cu. | 0.97 |
| 13360 | CHANNEL | 1 | Small dig 3x3x1.7m, west wall, red to light red color, breccia, Az 50° -60°, weak to moderate silicification, barite, specularite, hematite and minor Cu. | 1.42 |
| 13361 | CHANNEL | 0.7 | 0.20m quartz vein taken in 4×1.5×1.7 trench, low angle Az 270° -19°, light color, minor iron stained and hematite, mo sulphides vissible. | 0.10 |
| 13362 | CHANNEL | 1.5 | Sample taken in 10m long main trench, south extreme, breccia, texture well not observed due to alteration, barite, specularite, hematite. | 7.61 |
| 13363 | CHANNEL | 0.7 | Sample taken in the middle portion of main trench, reddish color, breccia, weak to moderate silicified, barite, specularite, sometimes leached apparience, hematite and minor Custained. | 16.65 |
| 13364 | CHANNEL | 2.3 | Sample taken in north portionin main trench, reddish color, brecciated, Az 300, mostly vertical, weak silicified, leached apparience, barite, specularite, iron stained, hematite. | 10.85 |
| 13365 | CHANNEL | 1.5 | Sample taken in 1.7×1.5x8m adit, E-NE strike, fault zone?, strongly fractured, clays, gouge, hematite stained and filling fractures. | 0.35 |
| 13366 | CHANNEL | 1.1 | SE portion of Project, small 1.5×1.7×3.0m adit, breccia, moderate to strong silicified, minor barite and specularite, weak iron stained. | 0.47 |
“We are satisfied with the correlative assay results of check samples from the Timmins drill program. We are also quite encouraged by the high grades of gold that were sampled at surface from a trench across the mineralized breccia target,” stated Karl Boltz, President & CEO of Silver Spruce.
Cocula Mineralization
Channel sampling by Timmins across the outcrop of the Cocula breccia returned 136 m with 2.39 g/t Au, 19 g/t Ag, 1.07% Pb and 0.12% Zn. High grades of up to 25 g/t Au were reported for individual samples.
In 2008, Timmins drilled 27 RC holes (1,974 m) and confirmed the continuity of the Cocula breccia along 800 m of strike, open in all directions. Some example intercepts are:
Drill hole RCC-01 returned 7.5 m of 5.8 g/t Au within a longer interval of 37 m of 1.3 g/t Au, 13 g/t Ag, and 1.1 % Pb from the surface,
Drill hole RCC-09 cut 10.5 m with 1.76 g/t Au and 13.5 m with 1.37 g/t Au within a larger interval of 54 m with 0.72 g/t Au, 8.9 g/t Ag, and 0.96% Pb, and
Drill hole RCC-10 has an intercept of 37.5 m with grades of 1.2 g/t Au; 13 g/t Ag and 1.34 % Pb that includes two narrow intervals of 3.0 m with 6.3 g/t Au and 7.5 m of 3.0 g/t Au.
Surface Agreements Signed
Surface agreements assuring access to the project for exploration and drilling have been signed by representatives with power of attorney for three families that own the ranches at the Cocula project.
The Company has the “green light” to continue its due diligence process and a final purchase decision will be made by the Company, in due course, under its six month Right of First Refusal.
Silver Spruce should have its drill permit approved shortly and is preparing a drilling strategy to evaluate the current mineralization and exploration targets.
Quality Assurance and Quality Control
Samples by Silver Spruce and for the NI 43-101 report were analyzed by ALS Global, a worldwide analytical testing laboratory well-known in the exploration and mining community. Samples submitted to ALS consisted of RC drill cuttings and rock chip-channel samples that were analyzed for gold by the Au-AA26 method, consisting of a 50 g fire assay with an AA finish. No blind control samples were submitted as these are duplicates, but the laboratory uses standards and blanks as part of its routine QA-QC program.
The original sample assays of Timmins were completed by International Plasma Labs (IPL) of Richmond, B.C. Gold assays by IPL were completed by fire assay and AA spectroscopy on a 30 gm sample aliquot. For the IPL samples, those with Au values of 1 g/t or more or Ag values of 100 g/t or more were reanalyzed by fire assay and gravimetric methods.
Qualified Person
Dr. Craig Gibson, Ph.D., CPG, Qualified Person, is responsible for the technical content of this press release.
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company pursuing development of the Pino de Plata project, located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico. The Company has signed a binding Letter of Agreement to acquire 100% of the advanced Cocula gold project in Jalisco State, Mexico. Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.
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.
Contact:
Silver Spruce Resources Inc.
Karl Boltz, President/CEO/Director
(866) 641-3397
[email protected]
www.silverspruceresources.com
