Spruce Ridge Resources Ltd. [TSXV-SHL; OTCQB-SRCGF] has closed the acquisition of the Shamrock Nickel Sulphide Property located 20 miles northwest of Medford in southwest Oregon, USA.
Steve Balch, President and CEO, stated, “Spruce is increasing its presence in the U.S. critical minerals market with the acquisition of an interesting nickel sulphide property where the grades of nickel and copper are both over 1.0% and where the mineralization is open along strike and at depth. We do not yet know the extent of the mineralization and there is no record of exploration since the 1950s. We believe there are significant platinum group metals present as well.”
The property consists of 40 unpatented lode claims, accessible by paved road, covering approximately 758 acres.
The area was first prospected in the early 1900s, when a 60 ft-deep inclined shaft was excavated to intersect the main Shamrock showing containing nickel (Ni), copper (Cu), cobalt (Co), and platinum (Pt). Underground development occurred during 1949-50 by the U.S. Bureau of Mines (USBM). USBM completed eleven diamond drillholes totaling 3,419 ft and outlined a lens of nickel-copper sulphide 325 ft long, 200 ft deep and 3-25 ft thick. A 200-lb composite sample was submitted for metallurgy and assayed 1.3% Ni, 1.1% Cu, 0.07% Co and 0.03 oz/t Pt. In 1952-53 USBM removed 101.5 tons of manganese- (Mn) and iron-rich (Fe) material from previously discovered pods for metallurgical sampling with assays returning 23.1-32.3% Mn and 2.06-3.70% Fe.
Nickel-copper mineralization can be traced along strike for 1,500 ft north-south, 500 ft east-west and contains two mineralized lenses. Ultramafic rocks were intersected in drilling and consist predominantly of peridotite and related serpentinite, as well as norite and diorite. The best mineralization is present in a coarse-grained norite. Sulphide mineralization includes pyrrhotite, pentlandite, chalcopyrite and pyrite. A bulk flotation program recovered 92.3% of the Ni, 89.4% of the Cu and 51.3% of the Pt.
Under the terms of the Acquisition, Spruce acquired a 100% interest in the property by making a cash payment of $148,949 to Northwest Nickel Corp.; issuing to Northwest an aggregate of 2,500,000 common shares in the capital of Spruce Ridge; and granting Northwest a 2.0% net smelter returns royalty (NSR) with the option to repurchase 50% of the NSR for consideration of $1,000,000.
The original terms involved transferring to Northwest 100,000 common shares in the capital of Canada Nickel Company Inc. [TSXV-CNC] held by Spruce but was amended to be included in the cash payment of $148,949 included above.
The acquisition is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange and no finder’s fees are payable in connection with the acquisition. The company expects that the acquisition will meet the criteria of an “Expedited Acquisition” under TSXV Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets and remains subject to the TSXV’s final acceptance.
Spruce Ridge is focused on critical metal resources with nickel projects in Oregon and copper projects in Newfoundland, Canada. The company also holds a significant portfolio of mining securities including 3.55 million shares of Canada Nickel Company Inc., 10.0 million shares of Noble Mineral Exploration Inc. [TSXV-NOB], 15.0 million shares of Benton Resources Inc. [TSXV-BEX] and 2.5 million shares of Magna Terra Minerals Inc. [TSXV-MTT].
