|June 17, 2008|
Update on Drilling - Mount Benedict Property, Central Mineral Belt, Labrador
- Uranium mineralization intersected in the T-649 showing; values to 207 ppm U308 over 8 meters
- Drilling starts at the Super 7 showing, where values up to 1% U308 were located in bedrock
June 17, 2008, Bridgewater, NS / Vancouver, BC - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that the Phase 1 drilling at the T-649 Zone, located on the Mount Benedict property has defined a zone of low grade uranium mineralization. The Mount Benedict Property is located approximately 50 kilometers south of the community of Makkovik, at the eastern end of the Central Mineral Belt in Labrador.
The drilling, which was carried out this past winter, consisted of 1,262.9 meters in nine drill holes. It was targeted on the T-649 Zone, which was located on a small brook flowing into Stag Bay in the summer of 2007, by prospecting using scintillometers. The 10 meter wide zone, where scintillometer readings were off scale (>10,000 cps) over the entire zone, gave an average of 0.5% (10 lbs/ton) U308 from five bedrock grab samples, with boulders in the brook downstream of the showing giving grab sample values over 3% (60 lbs/ton) U308. A requirement under the Nunatsiavut mineral exploration regulations to maintain a buffer of at least 50 meters from the brook meant that no channel sampling could be carried out and that the drilling had to be targeted at various angles to try to test the zone, which had an unknown strike direction.
Results have been received for all nine drill holes (MBAT-08-1 to 9). Uranium mineralization is located along the contact between a monzonitic unit of the Mount Benedict Intrusive Suite and orthodioritic units of the Tran Labrador Granitoid Belt. The host is a sheared to mylonitic, brecciated and fractured, felsic intrusive, a monzonite to monzodiorite, which carries extensive chlorite and carbonate alteration plus magnetite and hematite with minor pyrite. The zone varies from four to 16 meters in width giving U308 values of up to 598 ppm (1.2 lbs/ton) over one meter. The highest grade intersection, 4.3 meters of 0.025% (0.5 lbs/ton) U308 was located in DDH MBAT-08-2, from 50.6 to 54.9 meters, which tested the zone at a vertical depth of 40 meters. The widest zone of mineralization was found in MBAT-08-6, which gave eight meters of 0.021% (0.41 lbs/ton) U308 from 88 to 96 meters. Drill holes MBAT-08-3 and 8 intersected the contact zone giving only anomalous values. Drill holes MBAT-08-1, 5 and 9 were drilled to the south and/or below the mineralized horizon and did not intersect any mineralization. Drilling has tested the zone, which appears to be shallow dipping to the southeast, along a strike length of 150 meters and to a vertical depth of 75 meters. Drill intersections are approximately 80% to 90% of the true width. The zone remains open along strike and to depth.
Mineralized intervals are summarized in the table following:
|Summary Drill Results - AT649 Zone - Mount Benedict Property-
|Hole Number ID
||Contact zone hosted brecciated to mylonitic intrusive w/
uranophane, pyrite, magnetite, specular hematite
Lloyd Hillier, President and CEO of Silver Spruce states, "Although the drill results are lower than expected, we have located a new uranium mineralized system and this supports the potential for a major uranium deposit on the Mount Benedict property. Attention will be focused on completing ground prospecting, geological, geochemical, geophysical and radon gas surveys along all intrusive contacts including the one hosting the T-649 showing, to identify drill targets. The property has not had any modern exploration and the potential for high grade mineralization is apparent from the limited surface sampling at the T-649 Showing."
Drilling on the Super 7 showing, located 4.8 kilometers to the south-west of the T-649, is planned to start immediately. This drilling will test high grade uranium mineralization in bedrock, with associated radiometric anomalies, discovered during prospecting in the summer of 2007, with values over 1.0% (20 lbs/ton) U308. All permits are in place and the drill is on site.
Results for the 2007 prospecting surveys and maps showing the drilling on the T-649 plus the planned drilling on both the T-649 and the Super 7 are on the company's website: (www.silverspruceresources.com).
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ABOUT THE MOUNT BENEDICT PROPERTY
The Mount Benedict Property is a large contiguous block of 4,057 claims (1,014 square kilometers), located 30 to 70 kilometers southeast of Makkovik. The property covers, in part (10% to 15%), Labrador Inuit Lands (LIL), which are controlled by the Nunatsiavut government. The remaining 85% of the property in on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and Newfoundland governments. The Mount Benedict claims are 100% owned by Silver Spruce, subject to a 1.0% NSR on production from 532 of the original 1,024 claims.
ABOUT SILVER SPRUCE
Silver Spruce 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 more than 11,000 claims totaling more then 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 and Labrador gives the corporation diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.
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. 243
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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