April 30, 2019 – Bridgewater, NS – (TSXV:SSE) — Silver Spruce Resources Inc. (“Silver Spruce” or the “Company”) is pleased to announce that it has received the assays from confirmation samples taken by a third-party, arm’s length company at the two, large potential bulk tonnage targets, El Terrero and the Gossan areas on its Pino de Plata project in western Chihuahua State, Mexico. The Company contracted Prospeccion y Desarrollo Minero del Norte, S.A. de C.V. (“ProDeMin”) to complete detailed geologic mapping, sampling and reconnaissance at the project under the direction and supervision of Qualified Person, Dr. Craig Gibson, Ph.D. The field program is complete, and three assays from seven rock-chip samples taken during the program returned three over-limit values for silver and two over-limit values for lead, which further confirm the presence of high-grade mineralization at the project. Assaying and multi-element analysis was conducted by ALS Global in Vancouver, B.C.
| Sample Table, Pino de Plata Project, April 2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample # | Type | Width (m) | Area | Description | Wt. (kg) | Au g/t | Ag g/t | Cu ppm | Pb ppm | Zn ppm | *AgEq ppm |
| 223201 | chip | 0.2 | La Perla | Strongly oxidized vein, 15-20 cm in width, with white to greenish quartz. Outcrops for about 30m, 80 cm width (46 and 19 g/t Ag with XRF) | 3.17 | 0.24 | 19.5 | 77.2 | 341 | 99 | |
| 223202 | chip | 0.2 | La Perla | Strongly oxidized structure, N80W/85SW, quartz vein 15-20cm, green and white quartz | 1.26 | 0.019 | 16.35 | 92.3 | 400 | 268 | |
| 223203 | chip | 1 | La Perla | Aphantic dike, N80W/85SW with boxwork Py and hematite, >60cm width<1m | 3.68 | 0.012 | 2.32 | 8.1 | 382 | 13 | |
| 223204 | chip | 1.0 | El Terrero | Strongly oxidized, moderately silicified structure, brecciated, dipping at low angle to northwest, gray quartz veins in hangingwall (same outcrop as sample 383889) | 1.53 | 0.193 | 1130 | 716 | 37200 | 400 | 1278 |
| 223205 | chip | 0.5 | El Terrero | Hangingwall portion of previous sample 223204, siliceous layer with boxwork texture (XRF gave 138 g/t Ag, 3.1 % Pb, 0.13 % Cu) | 1.43 | 0.043 | 123 | 802 | 14500 | 548 | 181 |
| 223206 | chip/grab | 0.5 | El Terrero | Breccia zone with strong argillic alteration, yellow color, moderate silicification, low angle structure (XRF gave 30 g/t Ag, 0.65% Pb) | 1.61 | 0.029 | 95 | 56.7 | 3370 | 49 | 108 |
| 223207 | chip | 0.5 x 0.5 | Gossan | Chip sample of large outcrop, possibly not in place, along with nearby fragments, coarse crystalline quartz vein with vugs with iron oxides hosted in gossan (XRF gave 30 and 100 g/t Ag from quartz vein) | 1.36 | 0.029 | 255 | 59.8 | 1520 | 155 | 261 |
*AgEq (Silver Equivalent) calculated using silver and lead values only: Ag price US$15.10/troy ounce and Pb price US$0.875/pound @ 26 April 2019, per www.kitco.com closing bid prices.
Please see geologic map of Pino de Plata project with recent sample locations here: http://www.silverspruceresources.com/i/maps/pdp/pino-de-plata-geology-2019.jpg
“We are very pleased with the results from the recently completed field program at Pino de Plata. In addition to the discovery of new vein targets and the significant expansion of the large target areas of El Terrero and the Gossan, assays of samples taken by ProDeMin verify the tenor of existing mineralization in two large areas that may host significant mineralized tonnage. With the data generated during this program we are now prepared to drill Phase I with greater confidence,”stated Karl Boltz, CEO of Silver Spruce.
ProDeMin Field Program Objectives
The main goals achieved for the completed field program were to:
- Conduct limited confirmation sampling of known mineralized locations at El Terrero and the Gossan areas, and
- Determine the extent of outcropping alteration at the El Terrero and the Gossan areas, and
- Investigate the existence of additional veins and mineralized structures, and
- Utilize a portable XRF (x-ray fluorescence) analyzer and a NIR (near-infrared) spectrometer to obtain immediate indications of mineralization, pathfinder elements and associated alteration that occur at known target areas, and
- Analyze geological, XRF and NIR data to refine drill hole locations and orientations.
The first objective of additional, third-party confirmation of mineralization at El Terrero and the Gossan areas is complete and very successful.
Analysis of XRF and NIR data continues with conclusions and proposed drill hole collars and orientations progressing. Cross sections of planned drill holes are being produced and will be presented shortly. The final report from ProDeMin with results of the field program will be posted on the Company’s website as soon as completed.
El Terrero-La Perla Target
The El Terrero structure is confirmed to be a low angle structural zone in the intrusion and could host significant tonnage. This 800 m x 400 m (32 hectares) zone appears to consist of a wide zone of multiple flat-lying brecciated zones hosted by a zone of strong argillic alteration observed extending from the El Terrero workings to the La Perla and Sierpe veins.
Field reconnaissance, mapping and sampling produced indications that the expanded 800 m x 400 m area of intrusive alteration identified at El Terrero may extend and be continuous with the expanded 600 m x 400 m (24 hectares) area of gossan to the east. A drill hole is now planned to confirm this. It will be oriented to drill under the shallow cover of volcanic rocks to the west of the Santa Clara vein to reach the targeted mineralization below.
The Gossan Area
The Gossan area measures about 24 hectares and provides a second, large scale, potential bulk tonnage target. One recent sample taken from a quartz vein in the eastern Gossan area assayed 255 g/t Ag with anomalous Cu and Pb. Mapping in the Gossan area has further delineated and expanded the contact between intrusive rocks and hornfels. Mapping indicates that the gossan may have formed along north-south and easterly-trending structural zones as seen at the other targets at the project. Drilling is planned to test for massive sulfide replacement bodies along these structures as well as the contact zones with hornfels and limestone at the Santa Elena target where skarn is observed.
Historical Sampling at Pino de Plata
Several reports dated February 1985, October 1998 and May 1989 prepared by the Servicios Geologicos de Mexico (“SGM”), the Mexico equivalent of the USGS, show that the historical workings at El Terrero occur along about 100 metres of the zone and extended for about 50 metres down dip along the relatively flat-lying structure. SGM surface sampling averaged 0.1 g/t Au, 206 g/t Ag, 0.6% Cu, 1.3% Pb, and 0.14% Zn for an average sample width of 1.15 m (10 samples), and 16 samples in the workings averaged 0.04 g/t Au, 206 g/t Ag, 2.5% Cu, 1.7% Pb, and 1.2% Zn over an average sample width of 1.1 m.
Previous sampling by Silver Spruce yielded values up to 553 g/t (17.8 opt) Ag and 1.4% Pb. These samples also returned anomalous values of gold (Au), zinc (Zn) and copper (Cu). Please see table of previous sample assay highlights here: http://www.silverspruceresources.com/i/pdf/reports-and-tables/Selected-Assays-PdP.pdf
Silver Spruce was attracted to the 397 hectare project by the assays originally presented by the previous owner, a private Mexican citizen and professional metallurgist.
The previous owner presented assay certificates from various Mexico laboratories, including ALS Chemex, Comision de Fomento Minero, now part of SGM, and several other labs, that spanned the period between October 1983 and January 2012. The assay values ranged up to 26.4 kilograms per tonne silver, 31% lead, 19.9% zinc, 18.4% copper and 8.2 grams per tonne gold (Please see Company news release of 20 March 2019). Of the approximately 173 sample assays presented by the owner, 80 had values of between 100-1,000 g/t Ag. An additional 38 sample assays were over 1,000 g/t Ag up to 26,400 g/t Ag or as much as 2.64% silver.
These previous owner assay data have not been independently verified and should not be relied upon as representative of the average grades present on the project. The samples were likely selective, hand-sorted and were collected for the purpose of developing a small scale operation to mine high grade material for direct shipping to mills and smelters.
Silver Spruce fieldwork continues to verify the existence and tenor of the mineralization at Pino de Plata.
Potential Opportunity with Coeur Mining, Inc.
The tenor of outcropping mineralization associated within the large areas of intrusive alteration suggest potential to delineate a bulk-tonnage resource at El Terrero and the Gossan areas. The Pino de Plata project is located just 15 straight-line kilometres from the Palmarejo Mine, owned and operated by Coeur Mining, Inc. (NYSE:CDE) (“Coeur”).
Coeur stated during its recent Q4 2018 Earnings Conference Call February 21, 2019, 11:00 AM ET, that the company is “…prioritizing capital to Palmarejo, which continues to prove itself with strong operating cash flow. With excess mill capacity finding supplemental ore sources that can further improve profitability remains a priority.”
Coeur acquired the mining concessions surrounding Pino de Plata via its acquisition of Paramount Gold and Silver Corp. (“Paramount”) (NYSE MKT and TSX: PZG) in an all-stock transaction valued at US$146 million, in 2015.
Quality Assurance/Quality Control
Samples were prepared and analyzed by ALS Global, a certified worldwide analytical services provider at their facilities in Chihuahua and Vancouver, respectively. Analysis was by the AuME-TL43 method, with analysis of all elements by ICP-MS and ICP-AES with aqua regia digestion. Au was determined as part of the package with a 25 gram digestion. Over-limits for Ag and Pb, values of >100g/t and >10,000ppm, respectively, were completed by the OG-46 method by ICP and aqua regia digestion.
Dr. Gibson supervised the data collection and sampling at the project as well as data compilation, drafting and interpretation. The Company uses standard QA/QC procedures, including inserting control samples, standards and blanks, in the sample stream. No quality assurance/quality control issues have been identified to date.
Qualified Person
Dr. Craig Gibson, Ph.D., CPG, is the Company’s external Qualified Person for the Pino de Plata project and is responsible for 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 pursuing development of the Pino De Plata project, located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico. The Company also holds an indirect interest in the Kay Mine project according to terms of the sale agreement with Croesus Gold Corp., which was announced in the Company’s news release on January 30, 2019. 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
