Silver Spruce Provides Update on Kay Mine Project
Silver Spruce Provides Update on Kay Mine Project
November 7 , 2017 - Bridgewater, NS - (TSXV:SSE)(FRANKFURT:S6Q) – Silver Spruce
Resources Inc. ( “Silver Spruce ” or the “Company”) is pleased to provide an update on field
activities at the Kay Mine volcanogenic massive sul phide ( “VMS”) project (“Kay” or the
“Property”) in Yavapai County, central Arizona, USA.
During site visits in September and October 2017 , two Company representatives, including its
internal Qualified Person (QP), have identified and sampled sulphide mineralization from the
underground development/production dumps , documented global positioning (GPS) data for
geological base maps and historical exploration activity, and conducted tours of the Property
with prospective jo int venture representatives from production -oriented international mining
companies.
The majority of the sulphide -bearing samples were collected from the historic
development/production dumps at Shaft #4. Examination of the mineralized material indicated
disseminated to semi-massive to massive sulphides, consisting of pyrite, chalcopyrite and galena
in banded, lenticular and breccia to replacement textures. Compositional layering from <1mm to
2cm in thickness were comprised of pyrite -dominant and base meta l-bearing units. Coarse -
grained pods and veinlets of chalcopyrite from 1-3cm also infill silicified rhyolite breccias.
“We are impressed by the samples of massive sulphide obtained from the dumps, especially
given the very limited shipments of historical mine development material, and enthusiastic about
the potential to document and expand the historical resource,” stated Karl Boltz, Silver Spruce
President and CEO . “The Kay Mine is a polymetallic production opportunity in a geologic al
trend that launched F reeport predecessor, Phelps Dodge, and which has resurfaced after more
than thirty years of inactivity.”
The Company has developed a two -phase budget to conduct property -scale geophysics to
document the two Kay deposits and to target potential downstrike, stacked and folded sulphide
accumulations, and to drill up to 6,000 metres to verify and infill the historical drill hole pattern.
Rock samples were collected from exposures across the Kay patent lands and BLM claims, and
included altered massive to pillow ed andesite to rhyolite metavolcanics, intercalated with tuffs
and metasediments, hematite oxide and siliceous iron formation, siliceous exhalite and sulphide -
bearing metavolcanics.
Media Release
The metavolcanic and metasedimentary lithologies displayed evidence of moderate to intense
quartz-sericite-chlorite-hematite and possible jarosite alteration and replacement. Sulphides were
associated primarily with rhyolite -dacite which exhibited well developed wavy schistosity and
angular breccia textures accompanied by dark blue-grey silicification and quartz-sericite±chlorite
overprint. Quartz, gypsum and quartz -tourmaline veins transect the above units parallel to and
oblique to the principal shear fabric. The geology was characterized by steeply dipping
orientation w ith tight fold and/or macro -boudinage features, weakly to intensely schistose
fabrics, and intersecting sets of crenulation folds in NNW and WSW trends, all consistent with
past mapping efforts. No evidence of discrete top directions was confirmed due to t he level of
rock deformation.
Selected samples of the mineralized and altered rock types were sawn for microscopic analysis,
photography, and process mineralogy with portions retained for precious metal assays and multi -
element geochemistry for base metals at an accredited commercial laboratory in Vancouver,
Canada. Samples were collected by the Company’s QP, packaged and shipped in sealed pails by
commercial carrier to northern Washington , and delivered by the QP to British Columbia for
sample description and preparation of the assay splits. The samples will be shipped by courier to
the analytical facility during the week of November 7th.
Field reconnaissance confirmed vehicle access routes, shafts and historical drill collar locations,
with exposed casing and caps, with hand held GPS points and tracks, and selectively validated
the outcrop location accuracy of the geological mapping by Exx on Minerals (“Exxon”) and the
Arizona Geological Survey conducted between 1972 and 1984. Access to the four historical
shafts (#1 production, #2 exploration south, #3 exploration north, and #4 production) was
identified. Shaft #4 was not exposed at the cur rent surface level though the concrete footings for
the hoist remain surrounded by an extensive dump comprised of mine development and limited
production material. Shaft #1 was located but not examined during the field visit. The
production shafts are se parated by less than 200 metres, with Shaft #4 vertical and Shaft #1
dipping 65ºW. The exploration/ventilation Shafts #2 and #3, both open with steel covers, were
located 1000 metres apart along strike with the N20E orientation of the principal lithologies.
The Kay VMS deposits were developed for production on eleven levels and accessed via four
shafts prior to 1957, when the pumping station was damaged and the mine was flooded. Records
obtained by Silver Spruce indicate that approximately 1,550 tons of ore grading 5.6% Cu, with
individual bulk samples from 2.95-9.47% Cu, with Pb, Zn, Au and Ag credits, was mined on the
250 foot and 500 foot levels from 1949 to 1953, and shipped to various smelters in Arizona and
Texas. An estimated 15,000 tons of low gra de material was reported on the surface dumps in
1956. The last production of 70 tons grading 5.7% Cu selected from the surface dumps was
shipped by a private owner in 1966.
In 1972, Exxon acquired the project with the goal of commencing production of the known high-
grade Cu-Zn-Pb-Ag-Au ores. Exxon’s internal geologic al reports referred to the mineralization
defined by drilling and historical underground exploration , under the then existing mining
standards, as “proven and probable ore” of 6.4 million tons with a potential of over 20 million
tons. These resource estimates and terminology are to be considered historical and not com pliant
with current NI43-101 guidelines.
The Company b elieves that the previous w ork conducted by Exxon was completed to a high
standard of competency and credibility. Silver Spruce is developing exploration programs to
document the tonnage and grade of the Kay mineralization and develop a resource estimate to
conform to the present National Instrument 43-101 standards.
Silver Spruce has paid the claim fees on its BLM unpatented claims through August 2018 and is
investigating the cost, logistics and permitting requirements to de -water the mine workings for
direct access to the mineralization.
Qualified Person
Mr. Greg Davison, MSc, PGeo, professional geologist and the Company's internal Qualified
Person 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 well -positioned Canadian junior exploration company pursuing
exploration and development of the pa st-producing Kay Mine volcanogenic massive sulfide
(“VMS”) project in Arizona, USA, and the exploration of the Pino De Plata and the Encino De
Oro epithermal silver/ base metal/ gold projects located in the prolific Sierra Madre Occidental
region of western Chihuahua State in Mexico.
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
Toll Free: (866) 641-3397
www.silverspruceresources.com