Silver Spruce signs LOI on 1,057-hectare Diamante Au-Ag Concessions, Sonora, Mexico - historical assays to 39.8 gpt Au and 3,460 gpt Ag
Silver Spruce signs LOI on 1,057-hectare Diamante Au-Ag Concessions, Sonora, Mexico -
historical assays to 39.8 gpt Au and 3,460 gpt Ag
April 12, 2021 - Bedford, NS - (TSXV:SSE) - Silver Spruce Resources, Inc. ("Silver Spruce" or
the "Company") is pleased to announce the signing of a Letter of Intent with Colibri Resource
Corp. (TSXV:CBI) (“Colibri”), and its wholly-owned Mexican subsidiary, Yaque Minerales SA
de CV (“Yaque”), to acquire up to 50% interest in four concessions comprising two properties,
Diamante 1 and Diamante 2, with a cumulative land position of 1,057 hectares.
The Diamante gold-silver (Au-Ag) project (“Diamante” or the Property”) is a drill-ready precious
metal property located 5 km northwest of the town of Tepoca, and 165 km southeast of the capital
city of Hermosillo, eastern Sonora, Mexico. Diamante 1 is situated to the west of Silver Spruce’s
180-ha El Mezquite project. Diamante 2, 700 metres south of Diamante 1, is located 1.6 kilometres
northwest of the Company’s 1,130-ha Jackie project (Figure 1).
"We are excited to acquire an interest in a large property with the outstanding potential of
Diamante adjacent to our prospective El Mezquite and Jackie projects,” said Greg Davison, Silver
Spruce VP Exploration and Director. “At Diamante, historical high-grade Au-Ag and Pb-Zn-Cu
assay data from small-scale workings and dumps, and recent exploration activities, provide an
excellent starting point for discoveries in several diverse geological settings. Diamante offers
strong precious metal tenor with a polymetallic endowment similar to the Company’s Pino de Plata
project, and both contain multiple quality targets, limited artisanal mining with production, and no
record of drilling.”
Diamante has been explored to a modest degree by modern exploration methods and there is
significant evidence of historical hand surface and underground mining, and placer activities in
stream channels and terraces on the project though no records of historical production or drilling
are known.
“We recently conducted our due diligence visit to Diamante and, pending the final report,
anticipate signing a definitive agreement shortly. On execution, we propose to conduct ground
truthing of the Au-Ag systems with geological, spectral and LiDAR mapping, rock sampling and
preparation of an environmental report, and are planning for a first-ever drilling program at
Diamante within a few months. This provides the Company with another exceptional opportunity
to grow with the strong gold and silver markets,” stated Mr. Davison. “The earn-in would require
Silver Spruce to conduct an initial 2,000 metre diamond drill program to test first priority targets
defined by the Phase 1 exploration program.”
The acquisition would nearly double the Company’s land holdings in this prospective area to 2,367
hectares thereby providing exploration and drilling synergies. The adjacent El Mezquite and
Jackie projects are currently subject to option agreements with Colibri wherein SSE can earn 50%
of the gold and silver projects by meeting certain criteria over four years and two years,
Media Release
respectively. El Mezquite and Jackie currently have assays pending from Phase 1 mapping and
prospecting while we await our Informe Preventivo for El Mezquite’s maiden drilling program.
Figure 1. Diamante 1 and 2 Concession Location Map. Note adjacent El Mezquite and Jackie Concessions.
Nicho mine development by Minera Alamos located 12 km SE of Diamante.
Location, Regional Geology, Mining and Exploration
The Property is very well situated in terms of logistics for exploration, adjacent to and west of the
El Mezquite and Jackie properties, and is located twelve to fifteen kilometres west and northwest
of the Nicho deposit currently under mine development by Minera Alamos (Figure 1). The
Property is easily accessible from Mexican Highway #16 which transects Diamante 1 and on ranch
trails and dry river beds to Diamante 2. High voltage power lines are positioned along Highway
#16.
The Property is located within the west-central portion of the Sierra Madre Occidental Volcanic
Complex within the prominent northwest-trending “Sonora Gold Belt” of northern Mexico and
parallel to the well-known, precious metals-rich Mojave-Sonora Megashear (Figure 2).
Several nearby large operating mines include Alamos Gold’s Los Mulatos gold mine and Agnico
Eagle’s La India gold mine located 50 and 58 km to the northeast, respectively, Agnico’s Pinos
Altos Mine, 100 km southeast and Argonaut’s La Colorada Mine, 100 km west. Exploration in
the surrounding area is very active with adjacent and nearby properties held by Evrim, Newmont,
Garibaldi, Kootenay Silver and Penoles.
El Mezquite
Concession
Location
Map
5km
Diamante 1
Diamante 2
El Mezquite
Jackie
The Sonora-Chihuahua area of the belt contains many other epithermal Au-Ag deposits such as
Dolores, Ocampo, Palmarejo and El Sauzal which host more than 20 million ounces of gold -
equivalent. Parallel to this trend, there are Cu-Mo-Au porphyry deposits such as Porphyry 4
Hermanos and Cerro Verde.
Figure 2. Location Map of Diamante, El Mezquite and Jackie Properties and Mines of the Sierra Madre
Occidental
Property Geology and Mineralization
The Diamante Project exhibits 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 at depth.
The known sulphide mineralization includes galena, sphalerite, pyrite and chalcopyrite with
secondary oxidation minerals such as copper carbonate (malachite) and copper sulphates with
jarosite, hematite, goethite and limonite.
The Property hosts a variety of styles of precious and base metal polymetallic mineralization
including disseminated, stockwork and vein hosted accompanied by alteration including
silicification (with quartz veining), and phyllic, argillic, advanced argillic (quartz-alunite-pyrite)
and propylitic (chlorite) zones, with near-surface overprinting by oxidation (goethite-hematite),
jarosite and vuggy silica.
Sampling highlights from the ten known areas of interest on the Diamante concessions, some with
artisanal mining, have reported significant values of precious and base metals (Au, Ag, Pb, Zn) in
El Mezquite,
Jackie and
Diamante
Sierra
Madre
Occidental
individual samples as follows (Tables 1 and 2) and as shown within the enclosed maps (Figures 3
and 4). Table 1 highlights samples collected from historical mine dumps and a small-scale
processing slag. Table 2 illustrates the assays from vein (veta) and stockwork style mineralization.
Diamante 1 includes known occurrences at La Prieta-El Aguaje, El Chon-El Pillado, La Olla, La
Cruz and El Caso. Diamante 2 has targets reported at Mezquite Raizudo, El Puerto, El Cumbro,
Calton and the Southern Anomaly.
Table 1. Selected historical assays on rock chip samples from mine dumps and process slag
Table 2. Selected historical assays on rock chip and channel samples from vein and stockwork settings
Mineralization commonly is coincident with alteration, veining and structural lineaments
identified in the historical exploration. Six known vein systems correspond to ENE, NE and NW
orientations.
Location Au g/t Ag g/t Pb % Zn %
La Prieta Mine Dumps 1.11 211 2.63 3.99
El Chon Mine Dumps 1.17 705 6.70 0.02
El Pillado Mine Dumps 0.20 104 4.53 0.28
El Cumbro Mine Dumps 3.60 1,560 2.30 0.17
El Cumbro Mine Dumps 0.14 46 0.56 0.30
El Cumbro Mine Dumps 6.41 3,460 4.59 0.13
Mezquite Raizudo Mine Dumps 3.87 557 5.43 8.66
South El Cumbro Mine 0.97 144 0.44 0.16
North El Cumbro Mine 6.41 307 0.38 0.05
Terreros de Minas 0.34 207 5.28 0.45
Slag 0.06 188 4.83 2.48
Location Au g/t Ag g/t Pb % Zn %
Veta La Prieta - El Aguaje 5.68 298 3.64 5.64
Veta La Prieta - El Aguaje 6.76 351 0.80 0.06
Veta La Prieta - El Aguaje 2.64 183 0.65 0.03
Veta El Caso - La Olla 0.05 217 7.26 0.55
Veta El Chon - El Pillado 0.20 100 1.37 0.01
Veta La Cruz 2.52 233 0.082 0.474
Veta El Cumbre - Mezquite Raizudo 0.94 236 0.49 0.12
Veta El Cumbre - Mezquite Raizudo 0.88 200 0.36 0.05
Veta El Cumbre - Mezquite Raizudo 5.64 8 0.03 0.09
Veta Calton 1 18.65 62 1.34 0.03
Veta Calton 2 39.8 109 1.91 0.08
Veta Calton 2 0.07 32 0.20 1.90
El Puerto stockwork 3.22 5 0.01 0.00
El Puerto stockwork 2.57 14 0.05 0.03
All of the metal values disclosed herein were reported by past operators in the Diamante area, from
grab, channel and dump samples which may not be representative of the metal grades, and must
be considered as historical in nature.
Key Exploration Targets
Diamante 1
Figure 3 identifies the six principal targets currently known on Diamante 1 with a Phase 1 program
expected to focus on La Prieta/El Aguaje and El Chon/El Pillado.
Figure 3. Diamante 1 with exploration targets noting gold and silver assays
La Prieta/El Aguaje
The vein system consists of a shear and fissure-filling zone exposed in short intervals (< 20 metres)
over a strike length estimated at 2,000 metres. The veins have an ENE orientation and dip from 50
to 60 degrees to the north and northwest, and display widths of 0.40 metres to 1.20 metres with an
average estimated at 1 metre. Sample grade up to 6.76 g/t Au, 351 g/t Ag, and 0.8% Pb over 1.1
metres.
Diamante 2
Calton
The “Calton 1” vein is interpreted to occur intermittently over a strike length of 1,100 metres with
thicknesses or widths ranging from 0.30 metres to 1.5 metres. Mineralization consists of galena,
sphalerite and coarse pyrite hosted with quartz and extensive iron oxides. Samples returned values
up to 18.65 g/t Au and 62 g/t Ag over 1 metre. The Calton 2 vein is exposed in several
discontinuous outcrops over a strike length of 900 metres with widths ranging from 0.30 metres to
1.70 metres. Samples report up to 39.8 g/t Au with 109.5 g/t Ag and 1.91% Pb over 0.42 metres.
La Olla
La Cruz
1.09 g/t Au2.64 g/t Au + 183 g/t Ag
5.68 g/t Au + 298 g/t Ag
6.76 g/t Au + 351 g/t Ag
El Chon
–
El
Pillado
El Caso
La
Prieta
–
El
Aguaje
2.52 g/t Au + 233 g/t Ag
1.17 g/t Au + 705 g/t Ag
(Mine Dump)
2.05 g/t Au
El Mezquite
Diamante 1
Target Areas
1km
Samples -Au
>1.0 g/t
0.50 to 0.99 g/t
0.25 to 0.49 g/t
0.10 to 0.24 g/t
0.051 to 0.09 g/t
0.00 to 0.05 g/t
Figure 4 identifies the five principal targets currently known on Diamante 2 with a Phase 1 program
expected to focus on Calton, El Cumbro and Mezquite/Raizudo.
Figure 4. Diamante 2 with exploration targets noting gold and silver values
El Cumbro/Mezquite Raizudo
The El Cumbro-Mezquite Raizudo veins located in the northern part of Diamante 2 consists of
fissure-filling quartz with sulphide mineralization of galena and sphalerite. The veins follow a
northwesterly structural trend observed over an inferred strike length of 900 metres with widths
reported from several centimetres to 1.5 meters with an average estimated width of approximately
1 metre. Samples report up to 5.68 g/t Au and 298 g/t Ag over 1.0 metre.
Terms of Agreement
Upon execution of a Definitive Agreement and acceptance by the Toronto Stock Exchange (TSX),
to earn its initial 25% interest in the Property, Silver Spruce agrees 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.
To earn its initial 50% of the Diamante project, Silver Spruce and Yaque also agree 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 Partners will
pay to the Vendor 50% of the bi-annual property taxes and surface rights payments.
CaltonArea
Southern
Anomaly
El Cumbro
Stockwork El Puerto
39.8 g/t Au + 109 g/t Ag
18.65 g/t Au + 62 g/t Ag
1.11 g/t Au + 9 g/t Ag
5.64 g/t Au + 8 g/t Ag
2.57 g/t Au
3.22 g/t
6.41 g/t Au + 3460 g/t Ag
(Mine Dump)
3.87 g/t Au + 557 g/t Ag
Mezquite Raizudo
6.41 g/t Au + 307 g/t Ag
0.97 g/t Au + 144 g/t Ag
1.98 g/t Au
1.09 g/t Au + 5 g/t Ag
3.6 g/t Au + 1560 g/t Ag
(Mine Dump)
?
?
?
El Mezquite
Project
1.11 g/t Au
Samples -Au
>1.0 g/t
0.50 to 0.99 g/t
0.25 to 0.49 g/t
0.10 to 0.24 g/t
0.051 to 0.09 g/t
0.00 to 0.05 g/t
Jackie1km
El Mezquite
Diamante 2
Target Areas
Upon completion of the initial earn-in, Silver Spruce and Yaque will become equal joint venture
partners with the Vendor in 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
prorata exploration costs at a ratio of Silver Spruce (50%) and Yaque (50%).
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.
Due Diligence
Last month, Silver Spruce sent a team of two geologists to the Diamante Concessions to verify the
known targets (see Figures 5 and 6), and carry out preliminary sampling at Calton, El Cumbro, El
Cazo-La Olla, La Prieta and El Chon. The assays are pending inclusion into the Property report.
All aspects of the due diligence program were conducted with adherence to COVID-19 protocols
for personal safety.
Figure 5. Large geochemical color anomaly at the El Cumbro target – Diamante 2
Geochemical Analysis, Quality Assurance and Quality Control
Due diligence samples were delivered to the ALS sample preparation facility in Hermosillo,
Sonora, Mexico. ALS Global in North Vancouver, British Columbia, Canada, is a facility certified
as ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.
The samples are crushed to 70% passing 2mm (PREP-31) and a split of up to 250 grams pulverized
to 85% passing 75 micrometres (-200 mesh). The sample pulps and crushed splits are transferred
internally to ALS Global's North Vancouver analytical facility for gold and multi-element analysis
and, if required, to ALS in Reno, NV for hyperspectral analysis using the Terraspec 4 and aiSIRIS
identification of the principal alteration minerals.
Figure 6. Geologist conducts due diligence at El Cazo - La Olla North artisanal workings - Diamante 1.
Pulps (50gram split) are submitted for analysis by Fire Assay with Atomic Absorption finish (ALS
Code Au-AA24). The retained pulps also are analysed by Four Acid Digestion followed by
Inductively Coupled Plasma Mass Spectrometry (ICP-MS) multi-element analyses (ALS Code
ME-ICP61m). All gold and silver analyses that reached the over-limits are re-analyzed with an
Ore Grade method. Over-limit Au and Ag samples are analyzed by Fire Assay with Gravimetric
Finish Ore Grade (Au-GRA21 or Au-GRA22), and Aqua Regia Digestion followed by Ore Grade
Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) for Ag (ALS Code Ag-
OG46).
Given the small number of samples collected, in-house quality control samples (blanks, standards,
preparation duplicates) were not inserted into the sample set. ALS Global conducts its own internal
QA/QC program of blanks, standards and duplicates, and the results ar e provided with the
Company sample certificates. The results of the ALS control samples are 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 analytic al data, and future selection of pulps for
independent third-party check analyses, as requisite.
Qualified Person
Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company’s internal
Qualified Person for the Diamante Project and is responsible for approval of 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.