Zn-Au-Ag-Cu-Pb VMS Project, Ontario, Canada Cautionary Statement - - PowerPoint PPT Presentation

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Zn-Au-Ag-Cu-Pb VMS Project, Ontario, Canada Cautionary Statement - - PowerPoint PPT Presentation

TSX Venture: SSE Melchett Lake Zn-Au-Ag-Cu-Pb VMS Project, Ontario, Canada Cautionary Statement TSX Venture: SSE Investors are cautioned that, except for statements of historical fact, certain information contained in this document includes


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Melchett Lake Zn-Au-Ag-Cu-Pb VMS Project, Ontario, Canada

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Investors are cautioned that, except for statements of historical fact, certain information contained in this document includes "forward-looking information” with respect to a performance expectation for SSE. Such forward-looking statements are based on current expectations, estimates and projections formulated using assumptions believed to be reasonable and involving a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such factors include, without limitation, fluctuations in foreign exchange markets, the price of commodities in both the cash market and futures market, changes in legislation, taxation, controls and regulations of national and local governments and political and economic developments in Canada and other countries where SSE carries-out or may carry-out business in the future, the availability of future business opportunities and the ability to successfully integrate acquisitions or

  • perational

difficulties related to technical activities of mining and reclamation, the speculative nature of exploration and development of mineral deposits located, including risks in obtaining necessary licences and permits, reducing the quantity or grade of reserves, adverse changes in credit ratings, and the challenge of title. The Company does not undertake an obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Cautionary Statement

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Melchett Lake - Introduction

▪ The Melchett Lake belt contains several occurrences of polymetallic Zn-Pb-Cu-Ag-Au VMS style mineralization similar in character to ore deposits exploited at Mattabi, Winston Lake, Geco, Brunswick, Rouyn-Noranda and Uchi Lake. ▪ The Melchett Lake Property is located in the Thunder Bay Mining District of northwestern Ontario, Canada, north of Geraldton and Nakina. ▪ The 3,996 hectare project is located within an historically active exploration and mining region including Copper Lake’s Marshall Lake VMS project, Premier Gold’s Hardrock-Greenstone Au project and past-producing Anaconda-Dofasco iron mine and the Skibi Lake and Stewart Lake iron prospects.

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Melchett Lake - Geological Overview

▪ Archean-age Melchett Lake greenstone belt, English River SP ▪ Basalt and mafic to intermediate volcaniclastics overlain by intermediate to felsic tuffaceous metavolcanics and associated clastic and chemical metasediments ▪ Near-vertical dip, steep ENE lineation, tightly folded sequence

  • f schists and gneisses

▪ Volcanogenic massive sulphide and gold mineralization ▪ Locally high grade lenses of Zn & Ag ▪ Variable Cu, Au, & Pb ▪ Zinc grades to 19.1% ▪ Silver grades to 560 g/t ▪ Gold grades to 28.8 g/t

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Melchett Lake - The Potential

▪ The Ontario Geological Survey Exploration Highlights in 2016- 2017 reported “The potential of discovery of economic zinc-lead- silver-gold-bearing VMS deposits in the Melchett Lake greenstone belt is high.” ▪ The multi-kilometre strike length of the known areas of mineralization, depth potential indicated by the downhole Maxwell modelling, broad intervals of mineralization, intense alteration profile similar to well-known polymetallic deposits, and presence

  • f high grade values of both precious metals and base metals

provide Silver Spruce Resources Inc. with an opportunity to grow with the strong gold, silver and zinc markets.

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Melchett Lake - The Property

▪ The Melchett Lake Property consists of 190 single cell mineral claims and two multi-cell mineral claims located in Thunder Bay Mining District of northwestern Ontario, Canada. ▪ The Property lies 110 km north of Geraldton, Ontario and 60 km north of Nakina at 50°45' north latitude and 86°59' west longitude.

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Melchett Lake - The Property

Melchett Lake Location Map – Ontario, Canada

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Melchett Lake - The Property

The original Melchett Lake Property consists of 88 single cell mineral claims and two multi-cell mineral claims, 1820 hectares

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Melchett Lake - The Property Update

The expanded Melchett Lake Property consists of 190 single cell mineral claims and two multi-cell mineral claims, 3996 hectares

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Melchett Lake - The Property

Property Location and Logistics ▪ Secondary road access to south end of Melchett Lake, 5km south of the property, branching new access road under development north to Marten Falls and Ring of Fire Cr-Fe projects ▪ Air access by fixed float plane to Melchett, Kapikotongwa and Relf Lakes from Cordingley Lake, 3km north of Nakina ▪ Air access by helicopter from Nakina airport or local staging areas and abandoned airstrip 5-10km for drill equipment ▪ Flight distance to Nakina 65 km (<30 minutes) ▪ CNR Rail main line through Nakina ▪ Major airport and business services in city of Thunder Bay, 300km southwest, 3 hours by highways 17 and 11

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Melchett Lake Project – Property

Melchett Lake Location Map – road access from Thunder Bay airport

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Melchett Lake - The Property

Melchett Lake Location Map – paved road and outbound rail access from Nakina

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Melchett Lake Project - Relf Zone

Leuenberger Air Turbo Otter – SSE director Davison at Cordingley Lake base

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Melchett Lake Project - Property Access

Taken over Esnagami Lake from helicopter enroute to Melchett Lake

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Melchett Lake Project - Property Access

Taken from helicopter over Melchett Lake looking west to Kap Lake

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Melchett Lake Project - Property Access

Taken from helicopter over Relf Lake looking SW to Melchett Lake

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Melchett Lake Project - Relf Zone

2019 overhead drone image of the Relf Zone base camp

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Melchett Lake - Relf Zone

Docking the Leuenberger Air Turbo Otter at base camp on Relf Lake

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Melchett Lake - Geological Overview

▪ Archean-age Melchett Lake greenstone belt, English River SP ▪ Basalt and mafic to intermediate volcaniclastics overlain by intermediate to felsic tuffaceous metavolcanics and associated clastic and chemical metasediments ▪ Near-vertical dip, steep ENE lineation, tightly folded sequence

  • f schists and gneisses

▪ Volcanogenic massive sulphide and gold mineralization ▪ Locally high grade lenses of Zn & Ag ▪ Variable Cu, Au, & Pb ▪ Zinc grades to 19.1% ▪ Silver grades to 560 g/t ▪ Gold grades to 28.8 g/t

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Melchett Lake - Regional Geology

MNDM land administration shows E-W trend and major lithologies of Melchett volcanic belt, and late dykes, all claims in black

Mafic metavolcanics Intermediate to felsic metavolcanics Iron formation Metasediments

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Melchett Lake - Historical Geology Map

Melchett Lake historical claims (red), geology and mineral occurrences

Current property boundary Intermediate to felsic metavolcanics Mineralized metavolcanics Metasediments

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Melchett Lake - Regional Magnetics

2010 regional airborne survey shows E-W trend and complex tight folding

  • f Melchett volcanic belt, major faults and late dykes, all claims in black
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Melchett Lake - Highlights

Prospective geology, alteration and mineralization ▪ Three known centres of coincident alteration and metal mineralization ▪ Multiple stratigraphic horizons ▪ Distal and stacked proximal sulphides ▪ High Zn/Cu, Zn/Pb, Ag/Au ▪ Metamorphosed to garnet amphibolite grade ▪ Extensive remobilization of major and trace elements ▪ Intense Na, Ca and Sr depletion with elevated Zn ▪ Fe, Mg, Co, Cr, Cd enrichment within and below mineralization ▪ Continuity of alteration and anomalous Zn over large intervals in core drilling ▪ Alteration haloes analogous to world class zinc deposits

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Melchett Lake - Mineral Occurrences

Mineral Occurrence Highlights - Ontario Geological Survey

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Melchett Lake - Relf Zone

2019 drone image of the Relf area looking NNE from trenches to camp

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Melchett Lake - Relf Zone

2019 overhead drone image of the main Relf Zone trenching area

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Melchett Lake - Relf Zone

2019 Relf Zone - main trench area looking NNE across structural fabric

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Melchett Lake - Relf Zone

2019 Relf Zone - SSE director Davison with altered QSP-Sphalerite

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Melchett Lake - Relf Zone

2018 Relf Zone - altered sphalerite-pyrite in felsic tuff or exhalite

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Melchett Lake - Relf Zone

2018 Relf Zone - silica-sericite-pyrite in felsic tuff or exhalite

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Melchett Lake - Relf Zone

2019 - heavy gossan in sulphide zone, dark ferroan sphalerite lens

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Melchett Lake – Relf Zone

Relf Zone rock sampling from main trench area - Davison 1983, 1984

Sample Target Zinc ppm Lead ppm Copper ppm Silver ppm Gold ppb Zinc % Silver g/t

A-244 Relf >10000 5400 1900 >100 78 7.03 120.7 A-245 Relf >10000 5600 3500 >100 900 8.65 133.7 A-246 Relf >10000 >10000 2600 >100 110 7.97 181 A-247 Relf >10000 5500 7000 >100 1700 6.19 160.2 A-248 Relf >10000 3700 3200 >100 250 8.65 133.7 A-249 Relf >10000 1900 2100 64 97 10.3 A-250 Relf >10000 1500 620 11 34 4.23 A-253 Relf >10000 300 610 7 84 5.13 A-923 Relf >10000 2480 1420 62 70 NR A-925 Relf >10000 645 2120 29 57 NR A-926 Relf >10000 420 2500 23.2 15 NR

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Melchett Lake – Nakina Zone

Nakina Zone rock sampling from main trench area - Davison 1983, 1984

Sample Target Zinc ppm Lead ppm Copper ppm Silver ppm Gold ppb Zinc % Silver g/t

A-204 Nakina >10000 2400 57 6 200 1.19 A-205 Nakina >10000 600 220 NR 110 2.05 A-207 Nakina >10000 NR 470 NR 250 2.13 A-208 Nakina >10000 1400 810 13.7 110 1.48 A-209 Nakina >10000 200 51 NR 48 1.16 A-213 Nakina >10000 1200 62 NR <2 1.19 A-215 Nakina >10000 300 46 NR 720 2.89 A-437 Nakina >10000 2500 420 14.2 270 NR A-439 Nakina >10000 2600 89 17.4 560 NR A-441 Nakina >10000 210 1950 10.6 1000 NR A-505 Nakina >10000 >10000 660 6.8 230 NR A-512 Nakina >10000 1900 39 3.8 42 NR

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Melchett Lake - Relf Zone

Relf Zone rock sampling from main trench area - Redbird Gold 1997

Sample No. Zinc % Lead % Copper % Silver g/t Gold g/t

1061 12.90 1.920 0.288 552 0.020 1062 2.63 0.870 0.116 254 0.012 1063 2.77 0.356 0.164 157 0.037 1064 11.60 0.866 0.507 278 0.028 1065 16.80 2.400 0.075 655 0.018 1066 8.26 0.330 0.972 170 0.025 1067 11.10 1.300 0.142 394 0.022 1068 9.88 0.558 0.154 179 0.035

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Melchett Lake - Relf Zone

2019 Relf Zone - well preserved 2007/2008 diamond drill core

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Melchett Lake - Relf Zone

2019 Relf Zone - well preserved 2007/2008 diamond drill core

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Melchett Lake - Relf Zone

2019 Relf Zone diamond drill core from 2007 and 2008 exploration

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Melchett Lake - Target Evaluation

Geophysical and Geochemical Anomalies ▪ Magnetic anomalies define structural complexity and potential stacking of mineralization ▪ Resistivity anomalies due to footwall or hangingwall alteration of VMS deposits (chlorite, sericite, silica, etc.) ▪ Chargeability anomalies caused by disseminated sulphide mineralization typically in the order of 1-5% ▪ Conductivity anomalies resulting from lenticular massive to semi-massive sulphide bodies ▪ Zones of depletion typical of hydrothermal systems related to VMS deposits: Calcium, Strontium, Sodium ▪ Zones of enrichment typical of hydrothermal systems related to VMS deposits: Silver, Magnesium, Barium, Alteration Index #

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Melchett Lake - Regional Magnetics

2010 regional airborne survey shows E-W trend and complex tight folding

  • f Melchett volcanic belt, major faults and late dykes, all claims in black
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Melchett Lake - Target Evaluation

Geophysical and Geochemical Anomalies ▪ Magnetic anomalies define structural complexity and potential stacking of mineralization ▪ Resistivity anomalies due to footwall or hangingwall alteration of VMS deposits (chlorite, sericite, silica, etc.) ▪ Chargeability anomalies caused by disseminated sulphide mineralization typically in the order of 1-5% ▪ Conductivity anomalies resulting from lenticular massive to semi-massive sulphide bodies ▪ Zones of depletion typical of hydrothermal systems related to VMS deposits: Calcium, Strontium, Sodium ▪ Zones of enrichment typical of hydrothermal systems related to VMS deposits: Silver, Magnesium, Barium, Alteration Index #

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Melchett Lake - Geophysics

Principal chargeability anomalies east of Relf to west Nakina targets

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Melchett Lake - Nakina Zone

SSE Director Greg Davison and Project Geologist Luc Lepage at Nakina Zone trenching areas

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Melchett Lake - Geophysics

Principal resistivity and conductivity anomalies

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Resistivity high – footwall alteration Conductor - massive sulphide Chargeability high - disseminated sulphide

Melchett Lake - Geophysics

Compiled geophysical anomalies Relf and central zones

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Melchett Lake - Geology Analogues

Mattabi ore deposit stratigraphy and ore type distribution

Adapted from Franklin 2016

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Melchett Lake - Target Evaluation

Geophysical and Geochemical Anomalies ▪ Magnetic anomalies define structural complexity and potential stacking of mineralization ▪ Resistivity anomalies due to footwall or hangingwall alteration of VMS deposits (chlorite, sericite, silica, etc.) ▪ Chargeability anomalies caused by disseminated sulphide mineralization typically in the order of 1-5% ▪ Conductivity anomalies resulting from lenticular massive to semi-massive sulphide bodies ▪ Zones of depletion typical of hydrothermal systems related to VMS deposits: Calcium, Strontium, Sodium ▪ Zones of enrichment typical of hydrothermal systems related to VMS deposits: Silver, Magnesium, Barium, Alteration Index #

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Melchett Lake - Geochemistry

Contoured zinc analyses from grab rock samples

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Melchett Lake - Geochemistry

Contoured silver analyses from grab rock samples

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100 x (K2O + MgO) (K2O + MgO+ Na2O+ CaO)

Melchett Lake - Geochemistry

Principal alkali alteration index # anomalies showing multiple targets

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Melchett Lake - Geochemistry

Principal sodium depletion anomalies from grab rock sampling

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Melchett Lake - Geochemistry

Principal calcium depletion anomalies from grab rock sampling

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Melchett Lake - Geochemistry

Principal strontium depletion anomalies from grab rock sampling

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Melchett Lake - Geochemistry

Principal barium enrichment anomalies from grab rock sampling

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Melchett Lake - Summary

▪ Multi-kilometre strike length of the known areas of mineralization ▪ Broad intervals of mineralization ▪ Intense alteration profile similar to well-known polymetallic deposits ▪ High grade values of both precious metals and base metals ▪ Coincident geological, geochemical and geophysical targets ▪ Surface and downhole anomalies ▪ Depth potential indicated by the downhole Maxwell modelling ▪ Multiple untested targets over 20km strike of favourable horizons ▪ Zinc to 19.1%, Silver to 560 g/t, Gold to 28.8 g/t ▪ Permits in place for drilling ▪ Significant potential for massive sulphide and gold deposits ▪ Opportunity to grow in strong gold, silver and zinc markets

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Melchett Lake VMS Zn-Au-Cu-Ag Project

Thank you.

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TSX Venture: SSE, USA: SSEBF, Frankfurt: S6Q

Suite 802-Sun Tower, 1550 Bedford Highway, Bedford, Nova Scotia, B4A 1E6 Canada 1-902-430-8270 1-866-641-3397 info@silverspruceresources.com www.silverspruceresources.com

Silver Spruce Resources Inc.