Silver Spruce and its partner, Colibri Resource, announces completion of earn-in for 50% interest in the Diamante Au-Ag Project, Sonora, Mexico
Silver Spruce and its partner, Colibri Resource, announces completion of earn-in for 50%
interest in the Diamante Au-Ag Project, Sonora, Mexico
February 13, 2023 - Bedford, NS - (TSXV:SSE) - Silver Spruce Resources, Inc. ("Silver Spruce"
or the "Company") is pleased to report that the Company and its partner Silver Spruce Resources
(“Silver Spruce”) have earned a 50% ownership interest in the Diamante Gold & Silver Project
(“Diamante” or “Project”) located in Sonora, Mexico. Vendor Bimsa Minera SA de CV of Mexico
(“Bimsa”), a privately owned Mexico based mineral exploration company, retains 50% ownership
in the Property.
"We are very excited to fulfill, in partnership with Colibri, the Phase 1 exploration drilling program
and technical reporting to earn our combined 50% interest in Diamante. There are numerous
defined drill targets and other prospective areas offering future potential for minera lization of
several genetic styles with precious and base metals,” said Greg Davison, Silver Spruce Vice-
President Exploration and Director. “The initial drilling successfully targeted known artisanal
workings with high grade Zn-Pb-Ag with Cu and Au credits. We are looking forward to ground-
based geological mapping, prospecting and focused geophysics as part of the follow -up program
to prioritize the next phase of drilling.”
Colibri News Release (February 7th, 2023 - Select Excerpts)
“We are extremely pleased to have completed the required exploration to earn an initial 50% of
this large and highly prospective project. Diamante is located in the Sierra Madre volcanic
sequence of Mexico and within a district of epithermal mineralization which hosts many producing
and historic gold, silver and base metal mines. Diamante hosts many showings and the drilling
completed in mid 2022, which returned very encouraging assays, was on just two of eight already-
defined drill targets. We will plan to expand on these results and test the other targets in 2023 in
conjunction with additional field exploration and possibly a geophysics program ,” said Ian
McGavney, Chief Operating Officer of Colibri.
About Diamante
Diamante is located within a belt of epithermal Au-Ag mineralization hosted by the Sierra Madre
Occidental Volcanic Complex. Major gold mining operations in the area of the Diamante property
include Alamos Golds’ Los Mulatos Mine and Agnico Eagles’ El India and Pinos Altos Mines.
The Project is located approximately 12 kilometres (“km”) northwest of Minera Alamos’ Santana
Au development project which is anticipated to commence commercial production within the near
term. The Property is located approximately 170 km southeast of Sonora state capital Hermosillo
and approximately 10 km northwest of the town of Tepoca and is accessed directly from Sonora
state Highway 16.
Media Release
The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture
with Colibri, which covers 1,113 hectares , providing the company with a total of 2,170 hectares
of exploration ground. Diamante hosts a number of historical showings and combined with
mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of
epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential
transition zones within and peripheral to porphyry style Au- Cu defined within the system of
Sillitoe (2010).
Highlights of drilling completed at the first two targets on the Diamante property during 2022 are
summarized in the table below and highlighted by 257.6 g/t Ag Eq over 12.0 metres in DIA22-05
at El Pillado and 312.8 g/t Ag Eq over 9.0 metres in DIA22-16 at La Prieta.
El Pillado Target
Hole ID From To Length Au (g/t) Ag
(g/t)
Zn
(%) Pb (%) Ag Eq (g/t) Au Eq (g/t)
DIA22-
01 27.0 37.5 10.5 0.04 9.87 0.37 0.12 35.46 0.40
DIA22-01 54.0 55.5 1.5 0.06 7.00 1.06 0.19 69.25 0.78
DIA22-01 72.0 73.5 1.5 0.03 13.50 1.52 0.66 110.35 1.24
DIA22-
02 22.5 24.0 1.5 0.04 4.20 0.48 0.03 31.85 0.36
DIA22-02 43.5 54.0 10.5 0.04 6.27 0.78 0.12 51.71 0.58
includes 48.0 49.5 1.5 0.09 13.20 3.89 0.04 210.87 2.37
DIA22-02 64.5 66.0 1.5 0.03 3.60 0.83 0.04 47.84 0.54
DIA22-02 84.0 85.5 1.5 0.13 15.20 0.66 0.98 88.13 0.99
DIA22-02 84.0 85.5 1.5 0.13 15.20 0.66 0.98 88.13 0.99
DIA22-
03 16.5 18.0 1.5 0.20 6.60 0.06 0.01 27.13 0.30
DIA22-
04 0.0 1.5 1.5 0.03 6.00 0.75 0.14 49.54 0.56
DIA22-
05 24.0 36.0 12.0 0.18 145.49 1.35 1.01 257.63 2.89
includes 24.0 30.0 6.0 0.26 184.50 1.08 0.61 278.51 3.13
includes 33.0 36.0 3.0 0.16 209.10 3.15 2.79 461.65 5.19
includes 33.0 34.5 1.5 0.31 397.00 5.87 5.31 871.62 9.79
DIA22-05 43.5 60.0 16.5 0.21 41.75 2.14 0.68 185.13 2.08
includes 45.0 51.0 6.0 0.15 87.64 4.58 1.45 367.54 4.13
includes 46.5 48.0 1.5 0.21 257.00 7.84 5.23 815.53 9.16
Table 1: 2022 Drill Results at Diamante Project
DIA22-05 78.0 81.0 3.0 0.17 26.60 4.19 1.05 276.87 3.11
includes 78.0 79.5 1.5 0.27 35.80 6.91 1.60 443.58 4.98
DIA22-05 99.0 100.5 1.5 0.25 1.90 0.08 0.04 29.35 0.33
DIA22-05 118.5 120.0 1.5 0.04 12.20 0.43 0.34 46.96 0.53
DIA22-
06 6.0 10.5 4.5 0.06 28.73 0.24 0.52 61.39 0.69
includes 6.0 7.5 1.5 0.07 60.40 0.20 1.21 113.45 1.27
DIA22-
08 130.5 132.0 1.5 0.93 2.20 0.03 0.02 87.20 0.98
DIA22-
09 117.0 120.0 3.0 0.11 19.85 0.50 0.09 56.65 0.64
La Prieta Target
Hole ID From To Length Au (g/t) Ag (g/t)
Zn
(%)
Pb
(%) Ag Eq (g/t) Au Eq (g/t)
DIA22-
10 48.0 54.0 6.0 0.46 56.88 1.06 0.53 165.47 1.86
includes 49.5 51.0 1.5 0.87 125.00 2.82 1.45 383.75 4.31
DIA22-
11 54.0 55.5 1.5 0.15 4.50 0.16 0.09 28.25 0.32
DIA22-
12 51.0 52.5 1.5 0.18 4.80 0.22 0.08 33.71 0.38
DIA22-
13 49.5 51.0 1.5 0.31 53.70 1.49 0.39 165.09 1.85
DIA22-
14 52.5 55.5 3.0 0.59 16.50 0.46 0.23 98.14 1.10
DIA22-
15 36.0 37.5 1.5 0.54 0.25 0.01 0.00 48.70 0.55
DIA22-
16 1.5 10.5 9.0 2.48 56.70 0.28 0.71 312.84 3.51
includes 1.5 6.0 4.5 3.87 75.43 0.08 0.97 453.26 5.09
DIA22-16 18.0 19.5 1.5 0.83 18.80 0.68 0.38 136.90 1.54
DIA22-16 36.0 46.5 10.5 0.63 38.49 1.61 0.64 192.52 2.16
includes 37.5 39.0 1.5 1.36 139.00 8.74 2.88 772.12 8.67
DIA22-
17 30.0 43.5 13.5 0.56 38.48 1.76 0.76 196.95 2.21
includes 30.0 34.5 4.5 0.94 103.17 4.96 2.19 494.61 5.56
Table 1 continued: 2022 Drill Results at Diamante Project
DIA22-17 54.0 57.0 3.0 0.45 1.35 0.04 0.00 43.14 0.48
DIA22-17 72.0 75.0 3.0 0.26 18.65 0.15 0.07 51.50 0.58
DIA22-
18 33.0 42.0 9.0 0.55 15.28 0.38 0.16 87.76 0.99
includes 37.5 40.5 3.0 1.07 38.80 0.63 0.35 175.81 1.98
DIA22-18 48.0 51.0 3.0 0.48 11.35 0.08 0.03 59.14 0.66
DIA22-
19 10.5 13.5 3.0 1.36 86.80 1.69 0.91 317.91 3.57
includes 12.0 13.5 1.5 2.11 139.00 2.79 1.24 500.06 5.62
DIA22-19 39.0 45.0 6.0 0.64 11.20 0.31 0.21 89.84 1.01
DIA22-19 48.0 49.5 1.5 0.32 7.60 0.24 0.16 52.76 0.59
*Au and Ag equivalents were calculated using metal prices of US$1660 per ounce Au, US$18.65 per ounce
Ag, US$1.32 per pound Zn, and US$0.83 per pound Pb; Lengths are intersection length. True widths are
not known.
Table 1 continued: 2022 Drill Results at Diamante Project
Terms of Agreement
Colibri, by way of its Mexico subsidiary Yaque Minerales Sa de CV, entered into an earn- in
agreement which was announced February 2021 with Bimsa to purchase up to 100% of Diamante.
The Diamante project was then placed into a new company called BIMCOL Minera SA de CV.
Fifty percent of the shares in BIMCOL were then placed into trust on behalf of Yaque Minerales
(to be released upon completion of the first phase of the agreement).
Silver Spruce completed the execution of its Definitive Agreement and upon a cceptance by the
Toronto Stock Exchange (TSX), to earn its initial 25% interest in the Property, the Company
agreed to pay Colibri an initial cash amount of $75,000 USD directed to the Vendor’s $100,000
USD initial property payment whereupon Silver Spruce and Yaque each will hold a 25% interest
in the Property and manage the Property as equal partners (“Partners”).
Silver Spruce will be the designated operator of the Property during the earn- in period with the
Vendor. The Company will manage the program via a Project Oversight Committee with Colibri.
To earn its initial 50% of the Diamante project, Silver Spruce and Yaque also agree d to design,
permit and drill a minimum of 2,000 metres on the Property within 24 months from the Execution
Date of Yaque’s final agreement with the Vendor; including any requisite exploration leading to
the drill program, submit a final drilling report to meet NI 43 -101 reporting guidelines and pay
approved exploration costs at a ratio of Silver Spruce (75%) and Yaque (25%). The 75% portion
paid by Silver Spruce included field exploration, lab costs for samples, road & pad building and
drilling. The Partners will pay to the Vendor 50% of the bi -annual property taxes and surface
rights payments.
With completion of the initial ear n-in, Silver Spruce and Yaque together will become equal joint
venture partners with the Vendor in BIMCOL Minera (“BIMCOL”), a private Mexico company
holding the concessions, pay to the Vendor 50% of the bi-annual property taxes and surface rights
payments and pay approved pro rata exploration costs at a ratio of Silver Spruce (50%) and Yaque
(50%). Now that Yaque Minerales has earned/purchased fifty percent of the shares of B IMCOL
(the holder of Diamante) the project will be operated by Colibri/Silver Spruce. BIMCOL will have
four Directors, two representatives from Bimsa and two from Colibri/Silver Spruce with the
Chairperson from Colibri holding the ability to break a tie vote.
Yaque will have an exclusive period of six months to purchase the remaining 50% of BIMCOL
by paying the Vendor either of: i) US$2.1 million or ii) US$1.45 million and the grant of a 2% net
smelter royalty (NSR) on the project.
Should Yaque elect to exercise its right to purchase the remaining 50% of BIMCOL, Yaque will
also grant Silver Spruce the option to purchase one-half of its additional ownership for one-half of
the cost for a period not to exceed six (6) months from the date Yaque elects to exercise its right
and Yaque will provide three (3) months notice to Silver Spruce for the purchase due date within
the first three (3) months of the option period.
Going Forward
Silver Spruce, Colibri and its partners currently are reviewing all project data and determining the
next steps to be taken on the project. Plans will be released as they are finalized.
Qualified Person – Colibri Resource
Jamie Lavigne, P. Geo and a Director for Colibri is a Qualified Person as defined in N I 43-101
and has reviewed and approved the technical information in this press release.
Qualified Person – Silver Spruce Resources
Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company’s internal
Qualified Person for the Diamante Project and has reviewed 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, 100% interest in the Mystery Au project near recent discoveries by Sokoman Minerals
Corp. and New Found Gold Corp. among others in the Exploits Subzone Gold Belt, Newfoundland
and Labrador, 100% interest in the Pino de Plata Ag project located 15 kilometres west of Coeur
Mining's Palmarejo Mine in western Chihuahua, Mexico and up to 50% interest in Colibri
Resource’s Diamante Au-Ag project located from 5 kilometres to 15 kilometres northwest from
Minera Alamos's Nicho deposit in Sonora, Mexico. Silver Spruce recently signed a 50:50 joint
venture agreement with Colibri on the nearby Jackie Au project. 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
Michael Kinley, CEO
(902) 402-0388
www.silverspruceresources.com
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 financ ing
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, ther e can
be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.