Spruce Ridge Resources Announces Mineral Resource Update at the Great Burnt Project’s South Pond “A“ Zone

Wellington County - Spruce Ridge Resources Limited (TSXV: SHL) ("Spruce Ridge” or “the Company”) announces an updated mineral resource estimate at the Great Burnt Project’s South Pond “A” Zone that now includes a gold resource and an increased copper resource. The Great Burnt Project is located in Newfoundland, Canada and consists of four prospective copper and gold zones (The Great Burnt Zone, South Pond “A” Zone, South Pond “B” Zone and the End Zone Prospect).

In September, 2015, Spruce Ridge completed a program of re-sampling of archived core from South Pond for gold as well as base metals. The re-sampling focused on the historical assay intervals reported from drill programs by Asarco and BP, with additional sampling of previously un-sampled sulphide rich intervals. Where possible, the same historical intervals were sampled by quartering of the archived core. Spruce Ridge re-sampling included all previously sampled intervals, and also in-filled sections between sampled intervals that were not previously sampled. The program was successful in re-confirming the copper values reported historically as well as copper values reported by P&E during their due diligence sampling of the South Pond core, in addition to confirming significant gold mineralization throughout the South Pond “A” Zone.


Current South Pond “A” Zone Copper/Gold Mineral Resource at 1.0% Cu Cut-Off

Indicated     47,000 t    1.77% Cu    1.8 million lbs Cu    1.61 g/t Au    2,400 oz Au
Inferred     191,000 t    1.55% Cu    6.5 million lbs Cu    1.06 g/t Au    6,500 oz Au

Previous South Pond “A Zone” Copper Mineral Resource at 1.0% Cu Cut-Off

Indicated     46,900 t    1.38% Cu    1.4 million lbs Cu              -              -
Inferred     166,200 t    1.30% Cu    4.8 million lbs Cu              -              -

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although Spruce Ridge is not aware of any such issues.

2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

3. The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines.

4. The 1.0% Cu cut-off grade was derived from the June 30/16 two year trailing average Cu price of US$2.55/lb, two year trailing average US$ exchange rate of $0.80, 92% process recovery, mining C$35/t, processing C$15/t, G&A $5/t and smelting/refining C$10/t.

The Great Burnt Project includes three distinct mineralized zones: (1) the Great Burnt Copper Deposit, with total updated NI 43-101 mineral resources including Indicated Resources of 442,000 tonnes at 2.54% Cu (24.8 million lbs of contained Cu) and Inferred Resources of 854,000 tonnes at 2.14% Cu (40.2 million lbs of contained Cu) at a 1.0% Cu cut-off; (2) the South Pond “A” Zone (subject of this news release) ; and (3) the South Pond “B” gold zone, where diamond drilling by BP Minerals in 1987 reported gold mineralization along a length of 1000 metres, including 1.16 g/t Au over a core length of 28 metres (see Figure 1). The 10-kilometre stretch between the Great Burnt Copper and South Pond “A” and “B” zones contains significant, untested exploration targets.

Spruce Ridge’s plans for the Great Burnt Project include the following:

1. At the Great Burnt Copper Deposit, metallurgical testing of drill core obtained in the winter 2016 drill program with a view to generating a Preliminary Economic Assessment.

2. At the South Pond “A” copper-gold zone, additional diamond drilling to test the zone at depth and potentially increase the mineral resource,

3. At the South Pond “B” gold zone, additional diamond drilling to assess the continuity of the zone and evaluate its economic potential,

4. Exploration of priority targets, including the End Zone, where prospectors working for Celtic Minerals had located mineralized boulders with reported copper contents up to 13% Cu, whose source has not yet been found.


About Spruce Ridge Resources

Spruce Ridge Resources has a 100% interest in the Great Burnt Copper/Gold Property in Central Newfoundland which covers a series of copper ± gold rich VMS deposits.

Spruce Ridge recently optioned its Viking/Kramer gold properties in Western Newfoundland to Anaconda Mining Inc. Spruce Ridge also has a gold property in the Beardmore-Geraldton greenstone belt of northwestern Ontario and a 50% joint venture with Americas Silver Corporation (formerly Scorpio Mining Corporation) on property that contains tailings with low grade gold and silver from the Drumlummon Mine in Montana.

Timothy Froude, P. Geo. and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc., both "Qualified Persons" under National Instrument 43-101 have reviewed and approved the technical contents of this press release.


Neither 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.



For further information please contact:

John A. Ryan, President & CEO
Spruce Ridge Resources Limited
Phone: 519-822-5904
Email: shiitakejr@gmail.com



Figure 1: South Pond “B” Zone Plan View Diamond Drill Intercepts at the Great Burnt Project
http://fscwire.com/sites/default/files/NR/1001/12024_SpruceRidgeIMG.jpg
- Prospective, near-surface gold present at South Pond “B” Zone
- Spruce Intends to drill more holes at South Pond “B” Zone in Fall 2016