|August 16, 2006|
Completion of Airborne Radiometric Survey Central Mineral Belt / Seal Lake Areas, Labrador
August 16, 2006 - Silver Spruce Resources Inc. (SSE) is pleased to announce that Fugro Airborne Surveys of Toronto, ON, has completed the helicopter borne radiometric and magnetic survey of the Central Mineral Belt (CMB) and Seal Lake (SL) areas of Labrador. The 4,963 claims, totaling approximately 124,000 hectares or 1240 sq km, are the second largest claim holdings in the CMB and are being explored jointly with Universal Uranium Ltd. (UUL) of Vancouver. Under the terms of the Universal agreement, Universal can earn a 60-percent interest in the properties by spending $2-million on exploration over a three year period with Silver Spruce as the operator during the earn-in period. 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.
Total line kilometers in the survey was approximately 10,500. Claims in the CMB were covered at 100 m line spacing, while the Seal Lake claims were covered at 200 m line spacing. Anomaly prioritization for follow up ground exploration is in progress using contractor Ted Urquhart of GeoExplo, based in Santiago, Chile. The ground, helicopter supported, prospecting follow up is expected to begin within the next week based out of Postville.
The SSE/UUL properties cover anomalous government uranium in lake sediment values ranging from 10 to 213 ppm against a background of approximately 5 ppm underlain by units that are favourable as hosts for uranium mineralization, such as the Bruce River and Sylvia River formations, fluorite bearing granites and Aillik Group units. Targets in the CMB / Seal Lake area include: unconformity style uranium deposits along sedimentary contacts; IOCG type deposits, shear hosted uranium mineralization associated with felsic volcanism, similar to the Michelin deposit of Aurora Energy, and granite hosted deposits. The CMB 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.
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.
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 totalling 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 in central Labrador.
FOR FURTHER INFORMATION, CONTACT:
Gordon Barnhill, CFO & Director
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 31
Toll Free: 1.866.684.4743 ext. 31
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.
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