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Norfolk County , Ontario - October 23, 2012 - Spruce Ridge Resources Limited (TSXV: SHL) ("Spruce Ridge") is pleased to announce that it has staked additional claims to extend the Fletcher Junction gold property in the Walker Lane mining area, Mineral County, Nevada. The property has been expanded from 2,386 acres to 5,023 acres to cover a prospective trend identified by the recent VTEM(R) airborne survey. The Company has signed a contract for a minimum of 5,000 feet of diamond drilling, with an expected start date by the end of October.
The Fletcher Junction claims were originally staked by Nevada Exploration Inc. (TSX-V:NGE), from which Spruce Ridge has optioned the property, with the right to earn up to 85% interest by making a total of $300,000 in payments and funding $2,600,000 in exploration of the property over a 4-year period and completing a feasibility report. Nevada Exploration identified the potential of the property after analysing groundwater samples from natural springs and water wells in the area, that contained highly anomalous gold. Bedrock in the area is covered by gravels, which are in turn covered by basalt lavas from the 250,000 year-old Aurora Crater volcano. Mineralized boulders were found in the gravels beyond the western limit of the lava cover, which yielded assay results up to 90.5 grams per tonne (g/t) of gold and 324 g/t silver, and these boulders have been interpreted as coming from hills that rise above the gravel beds but are still covered by lava. Limited, shallow, reverse-circulation drilling by Nevada Exploration intersected bedrock with alteration similar to that associated with gold-bearing mineralized systems in the surrounding area, with anomalous values in gold, arsenic and other pathfinder elements.
Following its entering into the option agreement on the Fletcher Junction property, Spruce Ridge initiated a VTEM(R) airborne magnetic and electromagnetic survey. Interpretation of the airborne results showed a resistivity low in the bedrock, that may be caused by alteration that is potentially associated with gold mineralization. This resistivity low extends continuously from the north end of the survey area, southwards to the Aurora mining district, which has produced 1.9 million ounces of gold. The dramatic geophysical results suggest that there may be a continuous mineralized system extending from the Aurora mining area, northwards for 11 kilometres to the limit of the Fletcher Junction property. The northern limit of known gold mineralization at Aurora is in fact the southern edge of the lavas from the Aurora volcano. No attempt appears to have been made in the past to follow mineralized trends for any significant distance, northwards under the lava cover.
Detailed interpretation of the airborne geophysics has identified several features that appear to be the "buried hills" whose existence was inferred from the boulder sampling. Additional claims were staked to cover the altered and possibly mineralized trend identified by the airborne survey. The original 117 claims, 2,386 acre property has now expanded to 245 claims covering 5,023 acres, over an 11 kilometre north-south strike length. The Fletcher Junction property now ties on to the complex of claims making up the Aurora mining district.
To view a presentation of the Fletcher Junction property which shows the primary drill target, please copy the following link to your browser:
http://www.nevadaexploration.com/_resources/presentations/FletcherJunctionProjectSummary10-23-2012.pdf
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, two uranium properties in Newfoundland and 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: shiitakejr@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.
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