Silver Spruce to acquire 50% of Jackie from Colibri
2020-10-15 08:08 ET - News Release
See News Release (C-SSE) Silver Spruce Resources Inc (2)
Mr. Brian Penney of Silver Spruce reports
SILVER SPRUCE SIGNS LOI TO ACQUIRE 1,130-HA JACKIE AU-AG PROPERTY, SONORA, MEXICO
Silver Spruce Resources Inc. has signed a letter of intent with Colibri Resource Corp. to acquire a 50-per-cent interest in the Jackie gold project, an early-stage precious metal project located five kilometres south-southwest of the towns of Tepoca and Carrizal, and 175 km east-southeast of the capital city of Hermosillo, eastern Sonora, Mexico.
The Jackie project is located within the western portion of the Sierra Madre occidental volcanic complex within the prominent northwest-trending Sonora gold belt of northern Mexico and parallel to the precious-metals-rich Mojave-Sonora megashear.
The property is situated approximately six kilometres northwest of the Nicho deposit currently under mine development by Minera Alamos. Other nearby large operating mines include Alamos Gold's Los Mulatos gold mine and Agnico Eagle's La India gold mine located 50 to 60 km to the northeast, Agnico Eagle's Pinos Altos mine, 95 km southeast, and Argonaut's La Colorada mine, 100 km to the west. Exploration is very active with adjacent and nearby properties reported to be held by Minera Alamos, Newmont, Garibaldi, Evrim, Kootenay Silver and Penoles.
"Silver Spruce is excited to add another large grassroots exploration property in a very productive, mining-friendly region only two kilometres from our El Mezquite property, adjacent to Minera Alamos's Santana project, and closer to their Nicho deposit currently under construction for gold production. We expect to have the geological teams working on the Jackie property in mid-October," said Greg Davison, Silver Spruce vice-president of exploration. "Jackie has seen very little structured exploration and we look forward to providing the company with another quality opportunity to grow with the strong gold and silver markets."
The 1,130-hectare property is easily accessible from Hermosillo and heading south from Mexican Highway No. 16, and from Ciudad Obregon travelling north on Hwy. No. 17 with vehicles and pack teams along unpaved roads and trails. The southerly road from Hwy. No. 16 traverses through the centre of the known gold mineralization at El Mezquite north of Jackie. High-voltage power lines are positioned along Highway No. 16.
Terms of agreement
Upon execution of a definitive agreement and acceptance by the Toronto Stock Exchange (TSX), Silver Spruce agrees to pay to Colibri $25,000 (U.S.) and $25,000 (Canadian) in common shares as the first property payment within seven days of TSX approval.
In order to earn 50-per-cent interest in the property, Silver Spruce agrees to provide $100,000 (U.S.) in exploration and drilling expenses with a minimum of $50,000 (U.S.) within 12 months of TSX approval, and to pay to Colibri a second property payment of $25,000 (U.S.) and $25,000 (Canadian) in common shares also within 12 months of TSX approval.
Silver Spruce also agrees to pay 50 per cent of the requisite property taxes and surface rights agreements due subsequent to TSX approval of the definitive agreement.
Upon completion of these terms, Silver Spruce will hold a 50-per-cent interest in the property and a joint venture will be formed to direct all exploration and drilling expenses and thereafter will be shared 50 per cent by Silver Spruce and 50 per cent by Colibri, and subject to standard dilution terms to be defined within a definitive agreement.
There are no underlying royalties on the property.
Exploration plan
The company looks forward to undertaking its phase 1 exploration program, including geological mapping, soil and rock geochemistry with hyperspectral analysis, quality assurance/quality control program development, ASTER imagery analysis, ortho-mosaic drone photography, data compilation and Leapfrog modelling, and as warranted by the phase 1 results, partnering with Colibri to undertake environmental permitting for drilling access and pads, and a first exploration drill campaign.
Qualified person
Greg Davison, MSc, PGeo, vice-president of exploration and Silver Spruce director, is the company's internal qualified person for the Jackie 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, under TSX guidelines.
About Silver Spruce Resources Inc.
Silver Spruce Resources is a Canadian junior exploration company that has signed agreements to acquire 100 per cent of the Melchett Lake zinc-gold-silver project in Northern Ontario and with Colibri Resource Corp. to acquire 50-per-cent interest in Yaque Minerales SA de CV holding the El Mezquite gold project, a drill-ready precious metal project in Sonora, Mexico. The company also is pursuing exploration of the drill-ready and permitted Pino De Plata Ag project in western Chihuahua, Mexico. Silver Spruce Resources continues to investigate opportunities that management has identified or that have been presented to the company for consideration.
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