|March 16, 2006|
More High Uranium In Lake Bottom Anomalies Staked in Labrador
BRIDGEWATER, NS, CANADA -- March 16, 2006 - Silver Spruce Resources Inc. ("Silver Spruce") (TSXV: SSE) announces that it has acquired 800 claims (20,000 ha or 200 sq. km.), called the Straits property, in four contiguous claim blocks in the Barge Bay - Henley Harbour area of Labrador, approximately 300 km to the south east of Happy Valley - Goose Bay. The claims were staked by Silver Spruce after being identified, researched, and outlined with the assistance of Alex Turpin, an arms length Newfoundland prospector. Pursuant to an agreement dated March 15, 2006 between Mr. Turpin and Silver Spruce, Mr. Turpin shall be paid C$12,000 per year for each the next three years (if the property is retained), and will also retain a 1 % net smelter return (NSR) for production from the claims.
The Straits properties cover uranium in lake sediment anomalies located by the GSC (OF 2790) with anomalous values ranging from 10 to 239 ppm against a background of approximately 5 ppm (97 %tile - 28 ppm) associated with Cu values over 75 ppm (99 %tile) against a background of < 20 ppm, associated with a north-northwest trending fault structure. The anomalies are hosted in quartzofeldspathic rocks, thought to be derived from felsic volcanics, and associated alkali rich granitoids of the Pinware Formation of the Grenville Province in southern Labrador. The Newfoundland government (Gower et al, 1995), has studied the area indicating they see Iron Oxide Copper Gold (IOCG) potential based on coincident anomalous Cu - Mo - U - Ag values in the lake sediments associated with supracrustal units (proterozoic felsic volcanics) localized in late faults or unconformities. No recorded follow up has evaluated these anomalies.
A second property package, called the Mount Benedict property, consisting of four claim blocks totalling 492 claims (12,300 ha / 123 sq. km.) has been acquired by staking in the Benedict Mountains area, 180 km to the northeast of Happy Valley Goose Bay and to the south of the Central Mineral Belt. The properties cover uranium in lake sediment anomalies located by the Newfoundland government with anomalous values ranging from 10 to 87 ppm against a background of < 5 ppm hosted mainly in felsic plutonic rocks of the Benedict Mountains Suite with some felsic supracrustal units. One of the groups covers Brinex Radiometric anomaly 22 (B-22), which is described as being hosted in agglomeritic felsic volcanics associated with pyrite and hematite alteration. Sampling is reported to have given values from 200 to 400 ppm U (MODS 13 J/15/U 001). None of the lake sediment values or the reported Brinex value has been independently verified.
Exploration by Silver Spruce in 2006 for both properties will consist of data compilation, airborne radiometrics and magnetics at probable 100 m spaced lines, followed by prospecting, geological mapping and ground geophysics to evaluate targets located. Trenching and diamond drilling will evaluate mineralized showings located by the ground exploration. The field work, budgeted at approximately C$200,000 for each project, will begin in the spring / summer once the snow cover is gone. Silver Spruce has the funds available to carry out this program.
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. Telephone: (902) 527-5700, Fax: (902) 527-5711.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. The Company seeks Safe Harbour.
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