|June 29, 2006|
Airborne Radiometric Survey Starts In Central Mineral Belt, Labrador
BRIDGEWATER, NS, CANADA -- June 29, 2006 -- Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that Fugro Airborne Surveys of Toronto, ON, has begun the airborne radiometric / magnetic surveys on the Silver Spruce properties in the Central Mineral Belt and the Seal Lake area in Labrador. The survey totals approximately 10,000 line kilometres.
Compilation work by Silver Spruce has shown that the properties cover anomalous uranium in lake sediment values ranging from 10 to 213 ppm (parts per million). These occur against a background of approximately 5 ppm underlain by units that are favourable as hosts for uranium mineralization. Previous radiometric surveys by Brinex in the 1960s and 1970s showed radiometric anomalies in the northeastern claim block. These surveys were widely spaced with a 422 metre minimum flight line spacing with little documented follow up.
The Silver Spruce properties lie along strike and in proximity to properties held by Aurora Energy Inc., Crosshair Exploration and Mining Corp. and the Santoy--Monster Copper JV. These companies staked known uranium showings and deposits and carried out airborne radiometric/magnetic surveys that resulted in the location of new uranium showings in a number of areas over the past few years.
Silver Spruce's claims are being explored jointly under an agreement with Universal Uranium Ltd. (TSXV: UUL) of Vancouver, BC. Under the terms of the agreement, Universal can earn a 60 percent interest in the properties by spending $2 million on exploration over a three year period. Silver Spruce is the operator during the earn-in period.
The exploration budget for the CMB and Seal Lake exploration is approximately $1 million and consists of data compilation and airborne radiometric/magnetic surveying followed by prospecting and sampling to evaluate targets. Follow up will consist of gridding, trenching and drilling with a budget dependent upon results. Field work will begin once targets have been generated by the airborne radiometric survey, the results of which are expected in late July.
The government of Newfoundland and Labrador, through its Junior Exploration Assistance Program, has provided a total of $150,000 towards the cost of the survey. This assistance is gratefully acknowledged.
About Silver Spruce
Silver Spruce Resources Inc. (TSXV: SSE) is a junior mining exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With over 5,000 claims totaling more than 1,250 square kilometres, Silver Spruce is the second largest land holder in one of the world's premier emerging uranium districts. In the 12 months commencing summer 2006, Silver Spruce is planning a large scale exploration program on its CMB and area properties at a cost of more than $2 million. With experienced development partners and strong financial backing, Silver Spruce is emerging as a leading uranium explorer.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, who is a Qualified Person (QP) as defined in National Instrument 43-101.
On behalf of the Board of Directors, Gordon Barnhill, CFO and Director.
FOR FURTHER INFORMATION, CONTACT:
Gordon Barnhill, CFO & Director
Francis Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 28
Toll Free: 1.866.684.4743 ext. 28
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.
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