Spruce Ridge Resources (SHL-V) to drill 1,500 m in eight holes at Kramer
Sept 30, 2013 - News Release
Spruce Ridge Resources Ltd. has terminated the option agreement on the Fletcher Junction gold property in Nevada.
The second diamond drill hole at Fletcher Junction (FJ15) gave results very similar to the first hole (FJ14); gravels overlying bedrock contained locally anomalous gold. The bedrock, which (also like FJ14) comprised a sedimentary sequence composed of reworked pyroclastic and epiclastic volcanic rocks, was assayed where there were signs of silica-sulphide mineralization, and these sections yielded only minimal gold values, but did contain anomalous silver, arsenic, mercury, molybdenum and antimony, all pathfinder elements for epithermal gold systems, and all very similar to the concentrations in FJ14. The results do not lead to a simple vector indicating which direction to go towards the gold source; following up these indications would have entailed a multi-hole core drilling program, with each hole approximately 2,000 feet deep.
The Company would require considerable funding to meet its commitments and the dilution to existing shareholders would be significant.
Management has concluded that further drilling on the Kramer-Viking project in Newfoundland would have a better chance of generating economically significant results, for a small fraction of the budget. The Kramer - Viking Project is host to significant intrusion hosted gold mineralization including NI 43-101 compliant resources at Viking of 98,000 ounces gold indicated (0.95 g/t gold average grade) and 45,000 ounces gold inferred (0.66 g/t gold average grade) and features multiple high grade intercepts including 4.8 meters grading 41.4 g/t gold. The deposit remains open for expansion and additional untested targets remain on the property. The adjoining Kramer Property hosts similar and possibly linked mineralization highlighted by drill intercepts of 20.05 meters grading 1.12 g/t gold including 3.25 meters grading 5.42 g/t gold. Locally strong grades including 45.16 g/t gold over a 1.0 meter channel suggest that potentially significant, higher grade shoots, similar to the adjacent Viking Property, also exist on the Kramer Property. The mineralization at Kramer has been intermittently exposed and tested over a minimum 7 kilometer strike length and remains open. A minimum 1500 meter diamond drill (approximately 8 holes) program has been proposed to test the northeast extension of the Kramer zone where sampling in 2012 located additional gold bearing outcrops. A total of 165 grab samples of quartz veining and associated sulphide mineralization were collected; assays of these grab samples gave up to a maximum of 85.36 grams of gold per tonne. Of the 165 grab samples collected for assay, 140 were taken along a 1,000 metre long swath extending northeast from the area of the Kramer and Whisky Jack gold zones which were discovered in 2010 and tested with 14 preliminary diamond drill holes. Forty-four samples gave assays between 0.10 and 0.50 g/t Au, 20 samples gave between 0.50 and 1.00 g/t Au, 16 gave between 1.00 and 10.00 g/t Au, 4 gave from 10.00 to 20.00 g/t Au and five gave assays over 20 g/t Au. This broad swath includes what appear to be four or five new, discrete mineralized trends oriented north to south, northeast to southwest and east-northeast to west-southwest. These trends are similar in orientation to the mineralized trends defined on the Viking property immediately to the west. The drill program is expected to commence shortly after the contract is awarded.
Spruce Ridge would also like to announce that it has received approval from the government of Newfoundland and Labrador under the Junior Exploration Assistance program ("JEA") for a grant of between $60,000 and $99,000 for exploration work conducted on the Company's Kramer/Viking gold project. The Company would like to acknowledge and thank the government of Newfoundland and Labrador. |
