17:43:49 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Spruce Ridge Resources Ltd
Symbol SHL
Shares Issued 95,708,622
Close 2019-04-18 C$ 0.045
Market Cap C$ 4,306,888
Recent Sedar Documents

Spruce Ridge issues overview of Great Burnt property

2019-04-18 09:34 ET - News Release

Mr. John Ryan reports

GREAT BURNT COPPER-GOLD PROPERTY - A PROJECT UPDATE

Spruce Ridge Resources Ltd. holds a 100-per-cent interest in the Great Burnt property in central Newfoundland. John A. Ryan, chief executive officer, is pleased to present this update of the Great Burnt property and the status of its activities.

Mineral resource estimates

A National Instrument 43-101 technical report addressed to Spruce Ridge Resources, with an effective date of Sept. 4, 2015, by P&E Mining Consultants Inc., estimated mineral resources for the Great Burnt copper deposit, as well as the South Pond A copper-gold zone. The Great Burnt copper deposit is divided into three zones: the Main, Lower and North Stringer zones. The attached table gives the reserve estimates (the South Pond A zone mineral resource estimates were subsequently revised by P&E after additional documentation on copper and gold assays in the 1980s was located).

           GREAT BURNT MINERAL RESOURCE AT 1.00-PER-CENT CU CUT-OFF   
    
Class of resource         Tonnes             Grade Cu (%)    Cu, pounds (Au, oz)

Great Burnt Main zone
Indicated                360,000                2.65% Cu             21,000,000
Inferred                 239,000                2.44% Cu             12,900,000
Great Burnt Lower zone
Indicated                 22,000                3.23% Cu              1,600,000
Inferred                 424,000                2.23% Cu             20,800,000
North Stringer zone
Indicated                 13,000                1.24% Cu                400,000
South Pond "A" deposit
Indicated                 47,000   1.77% Cu, 1.61 g/t Au       1,800,000 (2,400)
Inferred                 191,000   1.51% Cu, 1.06 g/t Au       6,500,000 (6,500)
Totals
Indicated                442,000                2.55% Cu      24,800,000 (2,400)
Inferred                 854,000                2.13% Cu      40,200,000 (6,400)

Great Burnt Main zone

In the 2016 drilling program, four closely spaced holes (GB16-08 to 16-11) were drilled into the Main zone to obtain core samples for a proposed program of metallurgical testwork prior to a contemplated preliminary economic analysis (PEA). Three of the four returned much higher copper grades than expected. The grades of the core samples were therefore not representative of the deposit as a whole, and the metallurgical work and PEA were postponed. Gold values were reported for several sampled intervals, but they did not reproduce well and further work is needed to make any estimate of the overall gold content of the Main zone.

In the 2018 drilling program, six holes were drilled on the Main zone. Four of these holes also returned good grades and widths. Split core from these drill holes was preserved in vacuum-packed bags, and will be added to cores preserved in deep freeze from the 2016 drilling to be used in planned metallurgical testing.

The second attached table lists all the drill intercepts on the Main zone, with true width (TW) calculated or measured from cross-sections, and grade-thickness products (GTP), which are the multiples of true widths and copper grades (Cu times TW). Intercepts with GTP of less than two have been excluded.

Planned work on the Great Burnt Main zone:

  1. Diamond drilling: The longitudinal section on the company's website shows targets for 15 proposed drill holes designed to add new data that will make a revised resource estimate for the Main zone more robust. Eleven of the holes will test the zone within the limits of the conceptualized starter pit. These drill holes comprise approximately 2,500 metres of diamond drilling planned for the summer of 2019. Down-hole electromagnetic surveying is also planned to be performed on the deeper holes to search for downward extensions of the zone.
  2. Metallurgical testing: Preliminary metallurgical testwork is planned using drill core preserved from the 2016 and 2018 drilling programs.
  3. Revised mineral resource and PEA: All the post-2015 drilling data will be incorporated in an updated mineral resource estimate and PEA, which is expected to be based on a starter pit, similar to the one outlined on the longitudinal section, followed by underground mining of the remainder of the Main zone and the Lower zone.

Great Burnt Lower zone

The Great Burnt Lower zone is a relatively flat-lying zone, with a moderate dip to the southeast. It may be a folded continuation of the Main zone, or a physically separate zone. It has been drilled on a wide spacing. A visualization on the company's website illustrates the geometry of the Main and Lower zones. The best historic drill intercept on the Lower zone, in hole GB130, averaged 3.49 per cent copper (Cu) over 11.62 metres (TW approximately 8.34 metres), including 8.54 per cent Cu over 1.98 metres (TW approximately 1.47 metres). There are no drill holes that penetrate the plane of the Lower zone within 75 metres of the GB130 pierce point.

Two of the drill intercepts that had been previously interpreted as being in the Lower zone, GB90 and GB135, appear, on the latest analysis, to align themselves better with the Main zone, and are included in the attached table and shown on the current longitudinal section.

Planned work on the Great Burnt Lower zone

  1. Diamond drilling and down-hole EM surveying: A further 2,500 metres is planned to firm up the resource estimate on the Lower zone, also with down-hole EM surveying to look for extensions of the zone and/or new zones in the vicinity.

South Pond zones

The South Pond A copper-gold zone is open at depth and requires additional drilling to fully delineate it. The South Pond B zone is 1,100 metres long and comprises only gold mineralization; with drill intercepts of up to 4.75 g/t Au over 4.33 metres (true width 3.0 metres) and 1.16 g/t Au over 28 metres (true width approximately 25 metres). It is also open at depth and requires further drilling. If the company is successful in obtaining a permit to cut an access trail from the Great Burnt Main zone to the South Pond B zone, the plan would be to drill a couple of holes to confirm the results from drilling that was done in the early 1980s.

Additional exploration targets

A helicopter-borne EM and magnetic survey of the 15-kilometre-long Great Burnt property was performed in 2007 by Aeroquest International for a previous operator. A reappraisal of the data has indicated several rather subtle EM anomalies with similar characteristics to the Great Burnt Main zone that remain to be tested. Also, prospecting from previous operators located mineralized boulders with up to 2.5 per cent zinc and 13 per cent copper in grab samples, in an area called the End zone, six kilometres north of the Great Burnt Main zone. The company has no immediate plans for this target, or any of a handful of other exploration-level targets on the property; proposing to dedicate its exploration activities on the Great Burnt Main and Great Burnt Lower zones.

                DRILL INTERCEPTS IN THE MAIN ZONE, GREAT BURNT COPPER DEPOSIT   
                                                                                               
Section    Drill hole No.  From (m)   To (m)  Length (m)  Avg. Cu (%)  True width (m)  GTP (Cu * TW)

750              GB16_08     60.00    67.50      7.50 m     9.45% Cu          5.57 m          52.67
420                 GB88    243.23   253.90     10.67 m     6.12% Cu          8.41 m          51.46
630              GB18_05     95.76   114.02     18.26 m     7.01% Cu          5.64 m          39.56
570              GB18_06    104.56   114.53      9.97 m     7.45% Cu          4.53 m          33.72
750              GB16_09     64.70    70.45      5.75 m     6.68% Cu          4.77 m          31.84
720                 GB16     27.89    37.03      9.14 m     4.34% Cu          6.89 m          29.90
420                 GB86    203.61   217.78     14.17 m     2.52% Cu         11.32 m          28.52
345                GB135    360.30   366.15      5.85 m     5.20% Cu          5.21 m          27.08
780                 GB14     45.11    54.86      9.75 m     4.36% Cu          5.31 m          23.15
750              GB16_11     63.50    69.50      6.00 m     4.35% Cu          4.85 m          21.12
780              GB01_04     54.48    69.34     14.86 m     1.90% Cu         10.87 m          20.65
345                 GB89    232.87   235.46      2.59 m     8.76% Cu          2.15 m          18.81
840                 GB19     23.77    46.63     22.86 m     2.29% Cu          8.19 m          18.76
540                 GB79    140.36   144.78      4.42 m     6.22% Cu          3.01 m          18.71
780              GB01&02      0.00     8.99      8.99 m     1.69% Cu         10.14 m          17.10
870                 GB06      5.94    14.78      8.84 m     2.19% Cu          7.41 m          16.24
780                 GB77     48.16    63.70     15.54 m     2.50% Cu          6.32 m          15.80
345                 GB90    290.47   299.01      8.54 m     2.04% Cu          6.91 m          14.09
720                 GB17     49.68    58.52      8.84 m     2.67% Cu          4.81 m          12.86
750              GB16_10     60.50    68.00      7.50 m     2.12% Cu          5.66 m          12.00
870                 GB08     14.63    22.25      7.62 m     1.70% Cu          6.73 m          11.44
750                 GB05      5.18     9.60      4.42 m     3.25% Cu          3.48 m          11.32
660                 GB25     28.04    33.22      5.18 m     2.70% Cu          3.97 m          10.71
690              GB18_04     47.80    51.80      4.00 m     4.42% Cu          2.41 m          10.64
840                 GB18     18.14    23.62      5.48 m     2.48% Cu          4.01 m           9.94
720                 GB07      3.05    15.09     12.04 m     0.93% Cu         10.10 m           9.39
870              GB18_01      5.33    14.54      9.21 m     1.28% Cu          6.51 m           8.34
540                 GB62    119.63   120.70      1.07 m     9.51% Cu          0.78 m           7.44
540                 GB58    108.97   110.95      1.98 m     5.10% Cu          1.44 m           7.35
600                 GB78    124.82   128.02      3.20 m     3.28% Cu          2.14 m           7.02
660                 GB46     87.93   113.69     25.76 m     0.93% Cu          7.53 m           7.00
750                 GB12      6.10     9.14      7.01 m     1.33% Cu          5.13 m           6.82
480                 GB70    135.94   138.99      3.05 m     3.39% Cu          1.84 m           6.22
600                 GB48     69.80    71.78      1.98 m     3.26% Cu          1.69 m           5.50
600                 GB52     91.14    92.96      1.82 m     2.96% Cu          1.45 m           4.30
450              GB04_01    315.28   316.15      0.87 m     5.40% Cu          0.63 m           3.40
660                 GB29     46.63    49.07      2.44 m     2.30% Cu          1.36 m           3.13
450                 GB84    191.87   195.99      4.12 m     1.02% Cu          2.76 m           2.81
600                 GB57    121.62   122.68      1.06 m     4.48% Cu          0.60 m           2.70
285                GB138    431.92   435.17      3.25 m     0.96% Cu          2.60 m           2.49
390                 GB92    331.32   332.54      1.22 m     1.90% Cu          1.06 m           2.01

Drill holes GB1 and GB2 were drilled in opposite directions from the same collar in the middle of 
the mineralized zone. True width of the combined intersection was measured on the cross-section.
Core angle is the angle between the axis of a drill hole and the plane of the Main zone, at the 
pierce point, as measured on cross-sections.

About Spruce Ridge Resources Ltd.

Spruce Ridge holds a 100-per-cent interest in the Great Burnt copper/gold property in central Newfoundland, which covers a series of copper-plus-or-minus-gold-rich volcanogenic massive sulphide deposits. In 2015, Spruce Ridge optioned its Viking/Kramer gold properties in western Newfoundland to Anaconda Mining Inc.

Dr. Colin Bowdidge, PhD, PGeo, a qualified person as defined in National Instrument 43-101 and a director of the company, has prepared and/or reviewed the technical contents of this press release.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.