Silver Spruce Completes Melchett Lake Due Diligence Field Program
Silver Spruce Completes Melchett Lake Due Diligence Field Program
October 31, 2019 - Bridgewater, NS - (TSXV:SSE) – Silver Spruce Resources Inc. ("Silver
Spruce" or the "Company") is pleased to announce the completion of its field due diligence
program on the Melchett Lake Zn -Au-Ag volcanogenic massive sulphide (“VMS”) project, an
advanced precious and base metal project in the Thunder Bay Mining District , northern Ontario,
Canada. Mobilization to the Property by air from Nakina was conducted on October 3 rd, 2019 for
a seven-day field program focusing on the known targets with drill core and surface exposures.
“We are very pleased to report on management site visits to provide oversight on targeted
exploration and data verification on the Melchett Lake VMS -Au Property which will support a
pending decision to earn a 100% interest in the project,” stated Karl Boltz, CEO of Silver Spruce.
“We continue to advance our due diligence pending multi-element geochemical results from rock
and core samples, while building our Leapfrog GIS database with recently revised drill hole co -
ordinates and all available drilling, geophysical and geological information to identify additional
VMS sulphide mineral responses and alteration vectors leading to drill target identification”, stated
Greg Davison, Director of Silver Spruce. “Ontario Ministry of Energy, Northern Development and
Mines work permits currently are in place for our follow -up exploration program including
geological sampling, trenching and diamond drilling.”
Letter of Intent
Silver Spruce Resources Inc. signed a binding Letter of Intent (“LOI”) to acquire 100% of the
Melchett Lake Zn-Au-Ag volcanogenic massive sulphide (“VMS”) project, Thunder Bay Mining
District, northern Ontario, Canada. The LOI was executed on September 9 th, 2019. Silver Spruce
has a 90-day window after signing the LOI to carry out its due diligence and prepare a Definitive
Agreement (“DA”).
Due Diligence and Exploration
The current work was performed to update and verify t he multi-kilometre strike length of the
known areas of mineralization, broad intervals of mineralization, intense alteration profile similar
to well-known polymetallic deposits, and presence of h igh-grade values of both precious metals
and base metals reported from the historical exploration.
Field work for the due diligence program focused on geological sampling and data verification on
known occurrences, GPS location surveys of the historical drill collars to update the 2D and 3D
Leapfrog model, and preservation and sampling of the diamond drill core stored on the Property.
The team examined the principal showings and trenches, and drill core at the Relf and Nakina
targets separated by 5km along the principal mineralized trend . Limited ground truthing of
geochemical and geophysical targets was conducted over a reas peripheral to the known
mineralization.
Web Site Infill Media Release
The Property was accessed via float equipped aircraft from Nakina to fly camps on both Relf Lake
and Kapikotongwa Lake, the latter west of Melchett Lake, and by helicopter to camp sites and
target areas from Nakina Airport.
The team spent four days at the Relf Lake showings and three days at the Nakina showings. Silver
Spruce Director, Greg Davison, who worked the Melchett Lake area for Kerr Addison Mines and
Tribute Minerals, respectively, led the management visit to the Property. Consulting Geologist Luc
Lepage, MSc, PGeo, was the manager of the on -site activities for the field program. Mr. Lepage
has extensive international experience including field work at the nearby Marshall Lake VMS
project.
Drill core from the Stratabound Minerals program of two holes in 2007 and 2008 was stacked at
the Relf Lake collar sites whereas Kerr Addison core from the 1983 -1987 programs were stored
in racks near the Kapikotongwa Lake (“Kap”) camp location, two kilometres west of the Nakina
showings. The former core was well preserved , and all of the remaining core was laid out and
reviewed before cross -stacking, and 10cm whole core samples were collected for metal and
alteration geochemistry. The altered and mineralized intervals previously were sampled in select
sections using whole core (20% of 1metre intervals per 8metres, additional intervals in well
mineralized core) and the abundant gap intervals were marked. The collars for the Relf area holes
and the main trench zone were re-located using GPS.
The core at Kap-Nakina included Kerr Addison holes from both the Nakina and Relf targets. The
core racks were in very poor condition and only a small proportion of the core was readily
accessible for sampling as labels and core integrity were limited. Samples for geochemistry were
selected only where hole identification was verified. The collars for the Nakina area holes, which
exhibited significant variance from the assessment literature, and the trench zones, were re-located
using GPS.
Rock sampling was carried out at both the Nakina and Relf targets at known trench locations. The
Nakina targets are characterized by high silica-pyrite and a well foliated micaceous fabric. The
Relf trenches are intensely altered and well oxidized on surface with extensive gossans with very
friable to siliceous quartz-sericite schists, pervasive discoloration by iron and massive to spongy
ferroan “blackjack” sphalerite in thin stringers to sphalerite-pyrite lenses of several centimetres,
over an exposure of more than forty by twenty metres . The schists exhibited finely disseminated
pyrite within granular quartz-sericite with pinch swell textures and steep dips along an east -west
fabric. Lineations, from limited measurements, in the area are steeply dipping and appear
orthogonal to the principal oblate alignment of the mineralization.
A total of seventy-two (72) rock and core samples were collected, s ixty of which were submitted
for multi-element geochemical analysis and the results are pending.
Maps and site photographs of the core and trench areas are available on the Silver Spruce website
at Melchett Maps and Melchett Photos, and the geological and GIS compilations will be reported
and posted on the Company website in due course.
An update to the NI 43 -101 technical reporting initiated by an independent Qualified Person
(“QP”) is planned during Q1 2020 upon acquisition of the detailed airborne and downhole
geophysical survey data, structural geology analysis, receipt of the due diligence assays,
interpretation of the geochemical vectors and development of the 2020 program proposals.
Project Background
The Property, located within Melchett Lake greenstone belt of the English River Sub-province of
the Archean-age Superior Province , is underlain by a bimodal mafic -felsic sequence of
pyroclastics, tuffs and flows with cherts and Fe-lean to Fe-rich iron formation. Several occurrences
of polymetallic Zn-Pb-Cu-Ag-Au VMS style mineralization are similar in character to ore deposits
exploited at Mattabi, Winston Lake, Geco, Brunswick, Rouyn-Noranda and Uchi Lake. There are
locally high-grade lenses of Zn & Ag with variable Cu, Au and Pb, and historical gold grades to
28.8g/t Au, silver grades to 560g/t Ag and zinc grades to 19.1%.
Highlights of the prospective geology, alteration and mineralization include multiple folded or
stacked horizons of coincident alteration and metal mineralization, high Zn/Cu, Zn/Pb and Ag/Au
ratios, extensive remobilization of major and trace elements with defined enrichment (Fe, Mg, Co,
Cr, Cd) and depletion (Na, Sr, Ca) zones, and continuity, increased alteration and anomalous metal
values over large intervals (up to 245 metres in DDH SB-07-01 from 345-590metres) with a strong
electromagnetic (BHTEM) 20 channel off-hole response.
Selected grab samples taken from the Relf Zone by Shawmin averaged 13.0% zinc (Zn), 1.2% lead
(Pb), 0.26% copper (Cu) and 325g/t silver (Ag); best results received were 19.1% Zn, 2.2% Pb,
0.40% Cu, 565g/t Ag and 1.72g/t gold (Au). A selection of Relf Zone samples collected in 1984
by Kerr Addison geologist and current Silver Spruce director G. Davison is shown below.
Sample No. Zinc % Lead % Copper % Silver g/t
1061 12.90 1.920 0.288 552
1064 11.60 0.866 0.507 278
1065 16.80 2.400 0.075 655
1066 8.26 0.330 0.972 170
1067 11.10 1.300 0.142 394
At the Nakina l Zone, Nakina Mines reported, in separate samples, 14.85% Zn and 28.8g/t Au
from a pyritized felsic volcanic unit. Rock sampling of a pyritized felsic volcanic unit in the Nakina
2 Zone by Kerr Addison returned a value of 15.08g/t Au.
Gold mineralization in the Iron Lake area, which was not examined during the current due
diligence program, is traced for at least 600metres within a sheared, sericite -silica altered felsic
metavolcanic and contains 3 -8% pyrite, with lesser chalcopyrite an d sphalerite. Grab samples
reported 7.7g/t Au, 13.05g/t Au and 13.48g/t Au.
All of the above metal values were reported by past operators in the Melchett Lake area, from grab
samples which may not be representative of the metal grades, and are historical in nature.
Exploration History
Base metals were first reported in 1959 by Kerr-Lund and Little Long Lac Gold Mines in the Kerr-
Lund (Relf) Zone. Between 1964 and 1997, the area was held by Shawmin, Nakina Mines, Chimo
Gold Mines, Falconbridge, Cominco, Kerr Addison Mines, Minnova, Inmet and Redbird. Tribute
staked a large claim group in 1999 and during 2002 completed a 217 line -kilometre DIGHEMv
airborne magnetic and electromagnetic geophysical survey using a 100metre separation .
Stratabound Minerals, during 2007 and 2008, completed two drill holes and downhole geophysics
with Maxwell modelling. The property was staked by the current Vendors in 2017.
In addition, Fugro carried out a regional airborne magnetic gradiometer survey for the Ontario
Geological Survey from 2009 -2010 which comprised over 75,000 line -kilometres of data
acquisition, flown in a north -to-south direction with 200 metre flight line spacing and w ith full
coverage over the Property and the Melchett Lake greenstone belt.
Geochemical Analysis, Quality Assurance and Quality Control
Samples were collected by the Company's QP s, packaged in plastic bags with Tyvek tags and
shipped by contract air services to Nakina and, using the QPs’ private vehicles, delivered directly
to the ALS Global sample preparation facilities in Thunder Bay, Ontario.
Photographs of the individual rock and core samples were collected from each sample prior to
shipment. Several select rock samples from the Nakina and Relf trenches were split as required,
with a representative portion bagged and sealed in packages by the QPs for analysis. These rock
samples selected for display and investor meetings were photographed at th e offices of the QP,
and all images will be made available on the Company web site in due course.
Samples were weighed on receipt (WEI-21) and logged into the global tracking system (LOG-22).
The samples were crushed to 70% passing 2mm (PREP-31) and a split of up to 250 grams was
pulverized to 85% passing 75 micrometres (-200 mesh).
The sample pulps were transferred internally to ALS Global's North Vancouver analytical facility
for analysis. ALS Global in North Vancouver, British Columb ia, Canada, is a facility certified as
ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.
Twenty-four pulps (25gram split) were then submitted for analysis by Aqua Regia Digestion
followed by Inductively Coupled Plasma Mass Spectrometry (ICP -MS) multi-element analyses
(ALS Code AuME-TL43, 51 elements).
Thirty-six pulps were submitted for whole rock oxide , metals and multi -element analysis by
lithium borate fusion and acid digestion followed by Inductively-Coupled Plasma-Atomic
Emission Spectrometry (ICP-AES) (ALS Code ME-ICP06, 13 elements), Loss on Ignition (LOI)
at 1000C by furnace or TGA, Inductively Coupled Plasma Mass Spectrometry (ICP -MS) on the
same fused bead after acid digestion ( ALS Code ME -MS81d, 30 elements) , and measured by
Inductively-Coupled Plasma -Atomic Emission Spectrometry (ICP-AES) after a near -total
digestion in a mixture of HCl, HNO3, HClO4, and HF (ALS Code ME-4ACD81, 12 elements).
All precious and base metal analyses that reach the over -limits of AuME-TL43, ME-MS81d or
ME-4ACD81 will be re-analyzed with an Ore Grade method. Over-limit Cu (>1%), Pb (>1%), Zn
(>1%) and Ag (>100ppm) samples are analyzed by Ore Grade 4 Acid Digestion followed by Ore
Grade Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) for Pb (ALS Code
Pb-OG62) and Ag (ALS Code Ag-OG62), and by Atomic Absorption Spectroscopy (AAS) for Cu
(ALS Code Cu-AA62) and Zn (ALS Code Zn -AA62). Gold w ill be analyzed using 30gram fire
assay with Atomic Absorption Spectroscopy (ALS Code Au-AA23). Over-limit Au (>10ppm) will
be conducted by 30gram fire assay with Gravimetric finish (ALS Code Au-GRA21).
No independent or in-house quality control samples (blanks, standards, duplicates) were inserted
into the sample sets. ALS Global conducts its own internal QA/QC program of blanks, standards
and duplicates, and the results are provided with the Company samp le certificates. The results of
the ALS control samples will be reviewed by the Company's QP and evaluated for acceptable
tolerances. All sample and pulp rejects will be stored at ALS Global pending full review of the
analytical data, and future selection of pulps for independent third -party check analyses, as
requisite.
Qualified Person
Greg Davison, MSc, PGeo and Silver Spruce Director, is the Company’s internal Qualified Person
(QP) for the Melchett Lake 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. Mr. Davison worked the Melchett Lake area as Project
manager and VP Exploration for Kerr Addison Mines (1983 and 1984) and Tribute Minerals (1999
to 2002), respectively. Consulting geologist Luc LePage, MSc, PGeo was the manager of the on-
site activities for the field program and is a QP 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 in western Chihuahua State, Mexico. The Company has signed a binding
Letter of Intent to acquire 100% of the Melchett Lake Zn -Au-Ag project in northern Ontario,
Canada and 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
www.silverspruceresources.com