Silver Spruce Resources Inc. (TSXV:SSE) (OTC:SSEBF) (Frankfort:S6Q1) (“Silver Spruce” or the “Company”) is pleased to announce that it has mobilized field geologists to refine the proposed drill locations and orientations in preparation for the drill program at Pino de Plata project in western Chihuahua State, Mexico.
Silver Spruce Resources Inc. (TSXV:SSE) (OTC:SSEBF) (Frankfort:S6Q1) (“Silver Spruce” or the “Company”) is pleased to announce that it has mobilized field geologists to refine the proposed drill locations and orientations in preparation for the drill program at Pino de Plata project in western Chihuahua State, Mexico. The Company has contracted Prospeccion y Desarrollo Minero del Norte, S.A. de C.V. (ProDeMin) to complete detailed geologic mapping, sampling and reconnaissance at the project under the direction and supervision of Dr. Craig Gibson, Ph.D.
Dr. Gibson has more than 25 years of exploration experience in Mexico, and has a proven track record in exploration having been involved in several major mineral deposit discoveries, including most recently the Ana Paula Gold deposit in Guerrero State. He was also responsible for assembling extensive land packages in several important districts near the Pino de Plata project with excellent exploration potential in Chihuahua State, resulting in several Joint Venture agreements with major international mining companies as well as Canadian junior explorers, and was instrumental in the reactivation of the Moris mine with Hochschild Mining. Dr. Gibson is a Certified Professional Geologist of the American Institute of Professional Geologists and has also published technical articles on a variety of mineral deposits in several journals.
“We are enthusiastic to have Craig leading the geologic team at Pino de Plata,” stated Karl Boltz, CEO of Silver Spruce. “He is a top-notch geologist and has extensive experience running successful exploration programs in remote locations. Dr. Gibson will be on site to determine the best drill collar locations and orientations for the upcoming drill program to maximize the potential success of the program. This is an important and low cost step to prudently prepare for the expensive drilling activities, slated to commence later this spring.”
Pino de Plata Project History
The Company was initially attracted to the project based on historical sample results obtained by the previous owner, a metallurgist and private Mexican citizen, who became involved in a partnership at the area beginning in 1985. He stated that the area had been exploited in the mid to late 1800’s and was subject to an exploration and production joint venture agreement with Industrias Peñoles, S.A.B. de C.V., (“Peñoles”) in 1985. Peñoles is the second largest Mexican mining company, the first Mexican producer of gold, zinc and lead and the world leader in silver production.
At that time, Peñoles operated a smelter complex at nearby San Bernardino, in Sonora State, and sought to develop a nearby source of ore. After closing the smelter shortly thereafter, Peñoles decided to drop the property agreement. After his partnership dissolved, the owner restaked the properties in the mid 1990’s and began sampling, exploring and excavating work on a small scale.
The owner presented assay certificates from various Mexico laboratories, including ALS Chemex, Comision de Fomento Minero, now part of Servicios Geologicos de Mexico (“SGM”), the Mexico equivalent of the USGS, and several other labs, that spanned the period between October 1983 and January 2012. The assay values ranged up to 26.4 kilograms per tonne silver, 31% lead, 19.9% zinc, 18.4% copper and 8.2 grams per tonne gold.
These assay data have not been independently verified and should not be relied upon as representative of the average grades present on the project. The samples were likely selective, hand-sorted and were collected for the purpose of developing a small scale operation to mine high grade material for direct shipping to mills and smelters.
In July, 2015, the Company contracted an independent Qualified Person to produce a National Instrument 43-101 report on the project. Under his direct supervision, field activities were conducted and ninety-two samples were taken from numerous areas of historical workings and other areas of reported or observed mineralization to confirm the presence and tenor of silver, lead, zinc, copper and gold.
The assay highlights from this program were reported in the Company’s news release on August 12, 2015, and are available at: http://www.silverspruceresources.com/i/pdf/reports-and-tables/Selected-Assays-PdP.pdf.
The entire NI 43-101 report is available on the Company’s website at: http://www.silverspruceresources.com/i/pdf/reports-and-tables/Pino-de-Plata-2015-NI-43-101-Report.pdf and at www.sedar.com.
Summaries and Conclusions from the NI 43-101 Report on Pino de Plata
Three general styles of mineralization are present at Pino de Plata: precious metal-bearing epithermal veins hosted by volcanic rocks, polymetallic contact-related skarn and replacement mineralization hosted by limestone and gossans near the contact with intrusive rocks, and silver-rich mineralization associated with a widespread area of strong argillic to advanced argillic alteration in intrusive and volcanic rocks.
El Terrero Target
The first high priority drill target is El Terrero, a 2,000 square metre area of disseminated epithermal mineralization in igneous (intrusive) rock associated with large 15 hectare area of strong argillic to advanced argillic alteration. Historic mining activity is indicated by at least five adit portals with a significant tailings pile that exploited pyrite rich mineralization as well as small mines developed along structures. During the property visit for the NI 43-101 report, surface grab samples were collected and returned values to a maximum of 557 grams per tonne (g/t) silver (Ag) or 17.9 ounces per tonne (opt) Ag. These samples also returned highly anomalous values of gold (Au), lead (Pb), zinc (Zn) and copper (Cu). Six holes are planned with targeted depths to 100 metres.
Theodora Vein Targets
The second high priority drill target is focussed on the veins in the Theodora through El Sierpe I and II areas. Verification samples collected and analysed for the NI 43-101 report returned values up to 553 g/t (17.8 opt) Ag. These samples also returned anomalous values of gold (Au), lead (Pb), zinc (Zn) and copper (Cu). Three holes are proposed with planned depths to 100 metres.
Santa Elena – Gossan Target
The third high priority target is the Santa Elena – Gossan Area which presents a viable target for replacement Ag-Pb-Zn-Cu deposits. Unoxidized replacement mineralization from the Santa Elena Mine assayed up to 349 g/t Ag. The gossans are anomalous in Ag and base metals and indicate the possibility of encountering mineralization in the unweathered marble. This area has the potential for relatively shallow replacement mineralization over 20 square hectares. An enrichment layer may be encountered by drilling below the weathered surface of the outcropping and highly weathered gossan. Three to five drill holes are proposed in this target area with planned depths of up to 100 metres. If any of the above mentioned drill holes reach total target depth and remain in mineralized rock, the Company intends to continue the hole(s) to a maximum depth of up to 300 metres.
The Company intends to initiate a 1,500+ metre diamond drill program to test these targets where high grades of mineralization were sampled at surface. Dr. Gibson stated, “Pino de Plata provides an excellent opportunity to explore a previously undrilled project with multiple large targets within a highly mineralized district that includes Coeur’s Palmarejo mine.”
Recent Statement by Coeur Mining, Inc.
Coeur Mining, Inc. (NYSE:CDE) stated during its recent Q4 2018 Earnings Conference Call February 21, 2019, 11:00 AM ET, that the company is,“…prioritizing capital to Palmarejo, which continues to prove itself with strong operating cash flow. With excess mill capacity finding supplemental ore sources that can further improve profitability remains a priority.”
Coeur acquired the mining concessions surrounding Pino de Plata via its acquisition of Paramount Gold and Silver Corp. (“Paramount”) (NYSE MKT and TSX: PZG) in an all-stock transaction valued at US$146 million, in 2015.
Dr. Craig Gibson, Ph.D., CPG, is the Company’s external Qualified Person for the Pino de Plata 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.
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company pursuing development of the Pino De Plata project, located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico. The Company also holds an indirect interest in the Kay Mine project according to terms of the sale agreement with Croesus Gold Corp., which was announced in the Company’s news release on January 30, 2019. 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.
Silver Spruce Resources Inc.
Karl Boltz, President/CEO/Director