Second Round Of Assays Received From The Kay Mine Development Rock Sampling

 

BRIDGEWATER, NS - Silver Spruce Resources Inc. has received its second batch of assays of mineralized rock samples taken from the development/production dumps at the Kay Mine in Arizona. This second batch consisted of fourteen additional samples taken for data verification purposes to confirm the tenor of mineralization reported by Exxon Minerals Corporation and previous developers of the mine. The samples consisted of volcanogenic massive sulphide (VMS) and sulphide-bearing material. 

"We continue to be impressed with assay values from the dump material that was taken from underground workings when the mine was being developed for production, prior to 1957," stated Karl Boltz, CEO. "Together, with the initial twenty-five samples assayed in December 2017, these positive assay results are part of our ongoing efforts to confirm the resource stated by Exxon Minerals, in 1982, after ten years of advanced exploration, confirmation drilling and resource estimation at the project."

The majority of the sulphide-bearing samples were collected from the historic development/production dumps at Shaft #4. It should be noted that the grab samples are selective by nature and values reported may not be representative of mineralized zones. Examination of the mineralized material indicated disseminated to semi-massive to massive sulphides, consisting of pyrite, sphalerite, chalcopyrite and galena in banded, lenticular and breccia to replacement textures. Compositional layering from less than 1mm to 2cm in thickness were comprised of pyrite-dominant and base metal-bearing units. Coarse-grained pods and veinlets of chalcopyrite and sphalerite from 1-3cm also infill silicified rhyolite breccias.

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 grade 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 geological 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 compliant with current NI 43-101 guidelines.