(via Thenewswire.ca)
Norfolk County , Ontario - October 17, 2012 - Spruce Ridge Resources Limited (TSXV: SHL) ("Spruce Ridge") is pleased to report that the Shareholders of Northern Abitibi Mining Corp. ("Northern Abitibi") have approved the sale of their 100% owned Viking Gold Property to Spruce Ridge. The Viking project is surrounded on three sides by Spruce Ridge's Kramer property. We believe that two of the significant gold showings discovered to date on the Kramer property are extensions of mineralized systems on the Viking project. The Viking project is host to the Thor gold deposit which contains a NI 43-101 compliant resource estimate containing 98,000 ounces of gold at a grade of 0.95 grams per tonne in the indicated category and an additional 45,000 ounces of gold at 0.66 g/t in the inferred category. The deposit remains open for expansion, and there are several untested or partially explored targets on the property.
Diamond drilling in 2010 by Spruce Ridge at the Whiskey Jack prospect, 500 meters northeast of the Thor gold deposit, returned up to 20.05 meters grading 1.12 g/t gold including 3.25 meters grading 5.42 g/t gold from rock units strongly resembling the Thor trend. Ongoing trenching and prospecting activities by Spruce Ridge has extended alteration and mineralization similar to the Whiskey Jack an additional 1.5 kilometers to the northeast in a strong structural corridor that remains open along strike. Results from ongoing exploration will be reported once they have been received and compiled.
Spruce Ridge claims to the southwest of the Northern Abitibi lands occupy ground equally as prospective for additional discoveries and numerous soil and rock geochemical anomalies from previous workers are slated for follow up.
A priority for Spruce Ridge will be the merging and interpretation of large datasets from both companies to ensure that all prospective targets are identified and prioritized for follow up prior to commencing the next round of diamond drilling.
Terms of the Deal
To earn a 100% interest in the Viking project Spruce Ridge must pay $200,000 in staged cash payments over 12 months and issue up to 10 million Spruce Ridge shares. Upon regulatory and shareholder approval Spruce Ridge will pay Northern Abitibi $50,000 cash and issue 5 million Spruce Ridge shares. Within 6 months Spruce Ridge must make an additional $50,000 payment, and within 12 months Spruce Ridge must pay another $100,000 (Spruce Ridge can elect to issue up to 50% of the final cash payment by issuing equivalent shares of Spruce Ridge) and issue up to 5 million additional shares. If the share price of Spruce Ridge is between $0.25 and $0.50 cents the 12 month share payment is reduced to 3 million shares and if the share price of Spruce Ridge is above $0.50 cents the 12 month share price payment will be 2 million shares. The Viking project is subject to a 2% to 4% sliding scale net smelter royalty held by Altius Resources.
Technical information in this news release has bee prepared and/or reviewed by Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined in NI 43-101 and a director of the company.
About Spruce Ridge Resources
Spruce Ridge Resources is focused on exploring the Fletcher Junction gold property in Mineral County, Nevada and the Kramer gold property in western Newfoundland. It has two gold properties in the Beardmore-Geraldton greenstone belt of northwestern Ontario and two uranium properties in Newfoundland. Spruce Ridge has a 50% joint venture with US Silver & Gold Inc. The JV Property contains tailings with low grade gold and silver from the Drumlummon Mine in Montana.
For further information please contact:
John Ryan, President & CEO
Spruce Ridge Resources Ltd.
Phone: 519-428-5327
Email: spruceridgeresources@gmail.com
Neither the 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.
CAUTIONARY STATEMENT: Neither the 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
-
Copyright (c) 2012 Thenewswire.ca - All rights reserved.