Spruce Ridge Announces a Significant Nickel, Cobalt, Palladium and Platinum Discovery Near Timmins
Spruce Ridge Resources Ltd.
7735 Leslie Road West, Puslinch, ON N0B 2J0
Telephone (519) 822-5904; Fax (519) 823-5090
Spruce Ridge Announces a Significant Nickel, Cobalt, Palladium
and Platinum Discovery Near Timmins
• Discover Hole (18-01) Intersected 291m assaying 0.293% Ni, 118 ppm Co, .02 g/t Pd and .011 g/t Pt
• Drill Holes 03 and 04 Ended in Mineralization with Increasing Grade
Spruce Ridge Resources Ltd. (TSX -V SHL) - (“Spruce Ridge” or the “Company”) is pleased to announce
the results of its 2018 winter drill program on the Crawford nickel project near Timmins, Ontario. Four holes
totalling 1,818 metres were drilled on the Crawford Ultramafic Complex. Three of the holes intersected
serpentinized dunite with persistent nickel values greater than 0.25% Ni over core lengths of up to 291
metres. Using a lower threshold of 0.20% Ni, long int ervals are present in all four holes, with a maximum
core length of 558 metres. Individual samples of 1.5 metre core intervals reported up to 0.669% Ni.
Potentially significant assays of cobalt, platinum and palladium were also reported. The following t able
summarizes the results averaged over their respective intervals.
CRAWFORD NICKEL PROJECT - 2018 DIAMOND DRILLING RESULTS
DDH ID Hole
dip
Hole
azimuth
From
(m)
To
(m)
Core
Length
Ni (%) Co
(ppm)
Pt
(g/t)
Pd
(g/t)
Au
(g/t)
SUMMARY OF INTERVALS PASSING 0.25% Ni CUTOFF
CR18-01 -60° 035° 234.00 525.00 291.00 0.293 118 0.011 0.020 0.002
includes -60° 035° 238.50 393.00 154.50 0.320 120 0.012 0.029 0.001
includes -60° 035° 238.50 283.50 45.00 0.384 144 0.019 0.061 0.001
CR18-03 -50° 035° 475.50 606.00 eoh 130.50 0.299 140 0.028 0.055 0.006
includes -50° 035° 492.00 547.50 55.50 0.324 139 0.028 0.096 0.005
includes -50° 035° 492.00 516.00 24.00 0.333 140 0.060 0.201 0.011
CR18-04 -50° 035° 205.50 402.00 eoh 196.50 0.332 135 0.010 0.027 0.002
includes -50° 035° 208.50 285.00 76.50 0.358 156 0.017 0.041 0.001
includes -50° 035° 208.50 220.50 12.00 0.532 220 0.030 0.070 0.001
SUMMARY OF INTERVALS PASSING 0.20% Ni CUTOFF
CR18-01 -60° 035° 36.00 eoc 594.00 eoh 558.00 0.261 127 0.010 0.016 0.002
CR18-02 -50° 035° 24.00 eoc 175.50 151.50 0.224 126 0.005 0.005 0.001
CR18-02 -50° 035° 175.50 216.00 eoh 40.50 Dunite less than 0.20% Ni
CR18-03 -50° 035° 51.00 eoc 288.00 237.00 Mafic volcanic and marginal zone
CR18-03 -50° 035° 288.00 606.00 eoh 318.00 0.248 126 0.019 0.028 0.003
CR18-04 -50° 035° 42.00 eoc 72.40 30.40 Mafic volcanic
CR18-04 -50° 035° 72.40 193.50 121.10 Dunite less than 0.20% Ni
CR18-04 -50° 035° 193.50 402.00 eoh 208.50 0.324 135 0.018 0.028 0.003
SELECTED INTERVALS WITH ELEVATED PGEs
CR18-03 -50° 035° 492.00 493.50 1.5 0.285 140 0.219 0.567 0.004
CR18-03 -50° 035° 507.00 511.50 4.50 0.339 140 0.059 0.498 0.048
CR18-04 -50° 035° 165.00 166.50 1.50 0.182 120 0.069 0.570 0.006
Dumont Deposit average grade for comparison 0.27 107 0.009 0.020 n/a
Note: eoc = End of Casing; eoh = End of Hole
Note: the lengths reported are core lengths and not true widths. The Company has insufficient information to determine
the attitude, either of the ultramafic body or of mineralized zones within it. True widths will be less than the core lengths
by unknown factors.
A map showing the location of 2018 diamond drilling can be found at the end of this news release.
PRESS RELEASE 2019-03 March 1, 2019
The 2018 drilling program by Spruce Ridge and its Joint Venture partner, a group of private investors, was
focussed on the Crawford Ultramafic C omplex, a 3.5- kilometre long body of peridotite, dunite and their
serpentinized equivalents. The target was defined by a helicopter -borne magnetic and electromagnetic
survey and an airborne gravity survey, both conducted over of the entire project area of 100 sq. km . An
Artificial Intelligence (A.I.) review of data, provided by Albert Mining Inc. ( TSX-V AIIM), also identified the
area as being prospective for nickel.
Three holes - CR18-01, 18-03 and 18- 04 - of 594, 606 and 402 metres tested the axial part of the main
magnetic anomaly. Holes CR18- 03 and 18- 04 cut through the southwestern contact of the dunite, while
18-01 was entirely within the dunite. Hole CR18- 02 tested a well-defined conductor that was defined by
the Airborne survey. It was explained by a fault and fracture zone in dunite. Levels of nickel and associated
metals were lower in CR18-02.
The type example of the exploration model that the Company used at Crawford is the Dumont Nickel deposit
of Royal Nickel Corporation (“RNC”), 220 kilometres to the east in the Abitibi region of Québec. A 2013
Mineral Resource estimate in a 43-101 technical report addressed to RNC quotes Measured plus Indicated
Mineral Resources of 1.66 billion tonnes grading 0.27% Ni, 107 ppm Co (cobalt), 0.009 g/t Pt (platinum)
and 0.020 g/t Pd (palladium) plus an Inferred Mineral Resource of 0.5 billion tonnes grading 0.26% Ni, 101
ppm Co, 0.006 g/t Pt and 0.012 g/t Pd. While some similarities may exist, mineralization hosted by the
Dumont Deposit is not necessarily indicative of mineralization hosted on the Company’s Crawford Nickel
Project.
The economic potential of the Dumont deposit derives from the fact that the rock is serpentinized; the olivine
which is the dominant mineral in peridotite and dunite is converted to the mineral serpentine. The nickel
which was previously contained in the olivine (and hence not recoverable by conventional technology) has
been liberated and is contained in sulphide or metallic minerals that can be concentrated.
Metallurgical testwork by RNC has yielded concentrates with over 29% Ni and 1% Co. The high concentrate
grade is a function of the very low sulphur content of the rock, so that most of the recoverable nickel is in
low-sulphur minerals like heazlewoodite, or no-sulphur minerals like awaruite (a nickel-iron alloy).
The dunite intersected by the Crawford drilling has been extensively serpentinized and hence is considered
to have the potent ial to contain recoverable nickel. The table given above indicates that the Crawford
drilling yielded long intervals with average grades of nickel, cobalt and platinum -palladium (referred to as
PGEs or Platinum Group Elements) significantly higher than those at the Dumont deposit.
The process of serpentinization involves the introduction of water into the rock, and there is also a very
substantial volume increase. Fresh, unaltered dunite and peridotite typically has a density, or specific
gravity (“SG”) in the range of 3.2 to 3.4. The average SG of the Dumont deposit is 2.55 which makes it
lighter than most other rocks of igneous origin which have typical SG’s of 2.6 to 2.9 depending on
composition. The core from the Crawford drilling had SG measurements made at regular intervals.
Average SG for intervals grading over 0.25% Ni was 2.61, for intervals between 0.20% and 0.25% Ni was
2.62 and for intervals less than 0.20% Ni was 2.63, all comparable to the Dumont deposit and implying a
high level of serpentinization.
The low density of serpentinized dunite and peridotite explains why the target area was chosen, not having
a positive gravity anomaly. Serpentinization releases iron that had been contained in olivine to form
magnetite, so the ideal “Dumont-type” target is a magnetic anomaly without a directly associated gravity
anomaly. In addition to the two 3.5- kilometre long branches of the magnetic anomaly tested by the 2018
drill holes, there are two separate, but possibly related magnetic anomalies just to the north and northeast,
that remain to be tested.
John Ryan, CEO of Spruce Ridge, stated that “These results are very encouraging. They show a similarity to
the Dumont deposit in Québec. The unusually high PGE values in some intervals in our drilling also raise the
possibility that we might encounter a PGE -bearing “reef” somewhere on this exciting project. I would like to
thank DR. K. Sethu Raman for his leadership role in this Nickel discovery.”
The Company plans to have core samples analyzed by scanning electron microscope to determine what
minerals host the nickel, and to roughly estimate their abundance. The second round of drilling will focus
on untested anomalies identified by previous surveys.
Analyses quoted in this news release were performed by Activation Laboratories (ActLabs) at their facilities
in Timmins and Ancaster, Ontario. ActLabs is a Canadian-owned analytical and assay laboratory certified
to ISO/IEC 17025 with CAN -P-1579 (Mineral Analysis). Analyses for precious metals (Pt, Pd, Au) were
done by Fire Assay on 30-gram splits with ICP-OES analysis. Nickel and cobalt were determined by ICP -
OES after sample preparation by sodium peroxide fusion.
QA-QC: The Company relied heavily on internal QA/QC analytical procedures used by ActLabs which
included the use of between 10 and 16 separate standards for different groups of elements in the ICP-OES
peroxide fusion package (of which 3 included nickel and 4 included cobalt). Two standards were used for
the fire assay procedures, one of which was included for every 20 samples in a batch. Duplicate analyses
were performed on every fifth sample, and blanks were inserted after every tenth sample. Additionally, the
company performed independent analysis of a duplicate pulp from approximately every fifth sample (184
out of 975 samples), using a portable X -Ray fluorescence instrument. Results accorded closely to those
from the ActLabs ICP-OES peroxide fusion analyses. Cobalt and precious metal concentrations were too
low to be reliably determined by portable XRF technology.
Sample Preparation and Security: NQ size drill core was delivered in closed boxes by drill crews after every
shift, to the Company’s secure core shack in Timmins. Core was cut using a diamond saw in lengths of 1.5
metres, under the supervision of William MacRae, P.Geo., the project geologist. After every day of core
cutting, Mr. MacRae personally delivered bagged and tagged samples to the Timmins laboratory of
ActLabs.
About Spruce Ridge Resources Ltd.
Spruce Ridge holds a 100% interest in the Great Burnt Copper/Gold Property in Central Newfoundland
which covers a series of copper ± gold rich VMS deposits. In 2015, Spr uce Ridge optioned its
Viking/Kramer gold properties in Western Newfoundland to Anaconda Mining Inc. The Company also has
a 50% joint venture with Americas Silver Corporation on property that contains tailings with low grade gold
and silver from the Druml ummon Mine in Montana. Spruce Ridge and its joint venture partner, a private
investor group, are currently drilling magnetic and EM anomalies in a complex of ultramafic and mafic
intrusive rocks that have been interpreted as prospective for nickel mineralization, on the optioned Crawford
property 45 kilometres north of Timmins, Ontario.
Colin Bowdidge, Ph.D, P.Geo., a "Qualified Person" as defined in National Instrument 43- 101, and a
director of the Company, has prepared and/or reviewed the technical contents of this press release.
For further information please contact:
John Ryan, President and CEO
Spruce Ridge Resources Ltd.
Phone: 519-822-5904
Email: [email protected]
Cautionary Statement
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Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securitie s commission or other
regulatory authority has approved or disapproved the information contained herein.
The foregoing information may contain forward-looking statements relating to the future performance of Spruce Ridge Resources Ltd.
Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and
actual results may differ materially from the Company’s plans and expectations. These plans, expectations, risks and uncertainties
are detailed herein and from time to time in the filings made by the Company with the TSX Venture Exchange and securities regulators.
Spruce Ridge Resources Ltd. does not assume any obligation to update or revise its forward-looking statements, whether as a result
of new information, future events or otherwise.