|February 12, 2008|
Three drills working on Snegamook Property; Camp construction complete on Mount Benedict Property
- 3,000-4,000-meter diamond drill program using three drills in progress on Snegamook Property
- Camp construction completed on Mount Benedict Property
February 12, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to update shareholders on the ongoing 2008 diamond drilling program on the Snegamook Property in the western portion of the Central Mineral Belt of Labrador. Silver Spruce has an option to earn a 100% interest in the Snegamook Property, subject to a 2% Net Smelter Return (NSR).
Diamond drilling is targeting coincident airborne radiometric and strong untested radon gas anomalies, including high-priority targets south and east of the Two Time Zone and to the north of the Near Miss showing. In addition, it is testing uranium mineralization located in the 2007 first pass drilling (1,375 meters in six holes), and other uranium mineralized areas discovered by prospecting.
Four of the holes drilled in 2007 (985 meters) tested the Two Time Trend over a two-kilometer strike length, approximately 1.5 kilometers to the south of the Two Time Zone on the CMBNW property. The drilling intersected intrusive and older gnessic rocks with sections of structurally controlled, brecciated monzodiorite, similar in style to the Two Time Zone mineralization, which carried moderate to strong chlorite, hematite and carbonate alteration and uranium mineralization in holes SN-07-02 and SN-07-03. Values ranged from 50 to 1,034 ppm U308, with the best section averaging 189 ppm U308 (0.378 lbs/ton) over 24 meters. This is similar to values located during the Phase 1 drill program on the Two Time Zone itself.
Two holes (390 meters), SNNM-07-01 and SNNM-0702, spaced 80 meters apart, targeted the Near Miss showing, a uranium-bearing hematite breccia, located by prospecting in 2006. Both holes intersected one-meter intervals of uranium mineralization grading from 235 to 1,534 ppm U308. The mineralization is developed proximal to, or along the contact with, older Archean Gneiss.
Drilling to date in 2008, totaling 1,414 meters, has tested the Near Miss showing with four drill holes -- SNNM-08-3 to 7 for a total of 807 meters and anomalies along the southerly trend of the Two Time zone -- SN-08-5 to 7 for 607 meters. All holes drilled to date have intersected zones of radioactivity as defined by total count scintillometer. Core samples from the holes have been sent for analysis and results are pending.
A third drill, recently mobilized to the property, will test anomalies away from the known mineralized trends.
Mount Benedict Property
A camp has being established on a small lake approximately 50 kilometers to the south of Makkovik on Labrador Inuit Settlement Area (LISA) lands. This camp will support the planned winter drilling program on the T-649 and Super 7 showings and summer exploration on the remainder of the Mount Benedict property. Work in 2007 resulted in the discovery of two significant high-grade uranium prospects, the T-649, where five grab samples averaged 0.5% (10 lbs/ton) U308 and boulders with values over 3% (60 lbs/ton) U308 were found; and the Super 7, with values to over 1.0% (20 lbs/ton) U308.
Both showings are located on Labrador Inuit (LIL) lands and an archeological assessment has been completed and submitted to the Nunatsiavut government. Work permits for the winter drilling on both prospects and the summer exploration, have been submitted to both the Nunatsiavut and Newfoundland and Labrador governments and are currently pending.
About the Snegamook and Mount Benedict Properties
The Snegamook property, consisting of 86 claims (21.5 square kilometers), is surrounded by the CMBNW JV property to the north, west and east and the Santoy "Fishhawk Lake" property to the south. It is subject to an option agreement with a group of Newfoundland-based prospectors. Silver Spruce can earn a 100% interest in the property subject to a 2% NSR. It is located outside of lands owned by the Nunatsiavut government, on lands subject to the Innu Land Claim.
The Mount Benedict Property is a large contiguous block of 3,695 claims (924 square kilometers), located from 30 to 70 kilometers southeast of Makkovik in the eastern portion of the Central Mineral Belt. It is located, in part (15%), on Labrador Inuit Land (LIL), which is controlled by the Nunatsiavut Government. The remaining 85% is on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and the Newfoundland Government. The claims are 100% owned by Silver Spruce, subject to a 2% NSR payable on any production from 532 of the claims.
ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in approximately 11,000 claims totaling more than 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland, gives the company some diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading uranium explorer in Canada.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
SILVER SPRUCE RESOURCES
Gordon Barnhill, CFO & Director
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 236
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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