Silver Spruce Resources
(TSX VENTURE: $SSE) Acquires New 8.42 (g/t) Chihuahua #Gold Project
December 1, 2016 (Investorideas.com Newswire) Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) has signed a binding and
exclusive letter of intent to purchase and explore a submittal prospect of over
300 hectares near Chinipas, in far western Chihuahua state, where field crews
sampled 8.42 grams per tonne gold, 8.04 grams per tonne gold and 3.95 grams per
tonne gold in chip channel samples from mineralized outcrop in late September.
The Company will purchase the concession and will
continue to investigate the potential of the surrounding ground for
opportunities to stake additional ground that will be included in the
"Encino De Oro" ("Golden Oak") project land position, if
lying within 2 kilometres of the existing claim boundaries. The terms of the
purchase agreement are as follows:
A Deposit of 10,000 (U$500) pesos was made upon
signing of the LOI
Year One - U$5,000 payment, less the initial
deposit, once the formal Mexico contract is finalized
Year Two - U$10,000
Year Three - U$15,000
Year Four - U$20,000
TOTAL - U$50,000 over four years
Year Two - U$10,000
Year Three - U$15,000
Year Four - U$20,000
TOTAL - U$50,000 over four years
The owner will keep a 3% (three per cent) Gross
Production Royalty (GPR) on the claim and any additional claim(s) staked by the
Company within the two kilometre area of interest.
The Company retains the right to purchase the GPR
for U$1 million for each per cent.
The Company agrees to maintain the claim in good
standing until the purchase payments are completed.
The Company also preserves the unilateral right to
return the project to the owner, with no additional responsibilities, if the
project does not continue to deliver positive results.
"It is remarkable to find a property with high
values of gold in outcrop, within short walking distance from a well travelled
road, that has no workings or evidence of prior exploration activities,"
declared Mr. Leonard J. Karr, professional geologist and a third party
Qualified Person for Silver Spruce.
"The low cost of entry and the good gold
grades in outcrop make this a very reasonable acquisition with considerable
upside potential," stated Karl J. Boltz, President and CEO. "We can devote
the majority of funding to exploration work and look forward to additional
assays before Christmas and to mobilizing field crews in January."
Encino De Oro Property Description
The geology consists of upper sequence rhyolitic
tuffs that are deposited directly on Mesozoic limestones and calcareous shales.
The lower sequence andesite appears to have been mostly removed by erosion and
only thin remnants remain.
An initial property examination in late September
2016 confirmed that an outcrop of strongly silicified rhyolite tuff contains
gold grades ranging from 3.95 g/t to greater than 8 g/t in three samples over 3
m in width. Leonard Karr examined this outcrop on November 17, 2016 and based
on strength of silicification, quartz veining and iron oxides after pyrite
found the values credible. This immediately elevated the Company's confidence
in the vendor's statements concerning other multigram gold assays in the area,
and Silver Spruce immediately began a reconnaissance mapping and sampling
program on the property.
Eleven samples were taken in the first preliminary
visit to the prospect in late September, and an additional 35 samples were
taken during late November, with assays pending.
History of the Chinipas Municipality
The Municipality of Chinipas has a rich history in
the processing of ores from the adjacent Palmarejo Municipality and mine area
since the early 1800's. In the late 1800's, European engineers came to Chinipas
to build and improve three mills that were devoted to the processing of ore
mined at Palmarejo, just east of Chinipas. A narrow gauge railroad was
constructed to haul the ore down from the Palmarejo mine to the Chinipas
valley, where it was milled using hydraulic power to run the stamp mills. A
twelve inch iron waterline paralleled the railroad to bring water down from the
mine area under great pressure, and an aqueduct was built from Agua Caliente to
Chinipas, over 30 kilometres, to bring additional water to the mills in
Chinipas.
The focus of mining activity in the Chinipas region
has been primarily concentrated on the processing of ore, although some
exploration and production from mines in the municipality has occurred. The
region is has seen comparatively less modern exploration activities, as compared
with other Mexico mining districts, although it is well mineralized. Silver
Spruce recognized the potential of the region and has initiated a regional
reconnaissance program to investigate the potential of numerous mineralized
workings and submittals from local residents and miners. The Encino De Oro
project is now the second project for the Company in the Chinipas region with
the potential for a significant precious metals discovery.
Pino De Plata Project Updates
The Company is pleased to inform shareholders that
it has formalized the Mexico purchase contract and executed a modified purchase
contract on the Pino De Plata project whereby the owners have agreed that all
property payments to the owners will be delayed until the Company can access
the project to finish building the drill roads and pads, in preparation for
drilling. The Company anticipates receiving these approvals in due course.
Qualified Person
Mr. Leonard J. Karr, professional geologist and a
Qualified Person, under TSX guidelines, is the author of the Company's NI
43-101 report on the Pino de Plata project, dated 7 July 2015, and is
responsible for the technical content of this press release.
Silver Spruce Resources Inc. is a well-positioned
Canadian junior exploration company pursuing development of the Pino De Plata
epithermal silver/ base metal/ gold project located in the prolific Sierra
Madre Occidental region of western Chihuahua State in Mexico. The company has
recently completed an exploration assessment on the property. Silver Spruce
also retains a portfolio of uranium and rare earth element properties in
Labrador.
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.
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