|April 27, 2010|
Silver Spruce Reports Results for Uranium in Lake Sediments Lobstick Property - West Central Labrador
April 27, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has received the results of a lake sediment sampling survey carried out in March over the Lobstick uranium property, in west-central Labrador. The grassroots property covers anomalous government uranium in lake sediment values associated with structurally related uranium mineralization in felsic volcanic and intrusive units. The 1062 claim (265 km2) property was acquired by option and staking in October, 2009 after uranium mineralization was discovered by Innu prospectors Jean Pierre Ashini and Raphael Riche in the felsic volcanics / tuffs, during prospecting surveys supported by the company. The option agreement, to earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M, totals $40,000 and 600,000 shares over 2 years. In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on (see News release dated Oct. 29/09 for details).
- values up to 37 ppm U3O8 hosted in felsic volcanics / tuffs, similar rocks to the Aillik Group, host for the Michelin deposit in the CMB of Labrador
- road accessible with power line crossing property
- acquisition of claims to protect on strike extensions
The property is located in the eastern Smallwood Reservoir area in west central Labrador and is road accessible, even in winter, via the Lobstick Road which cuts across the area and provides access to the various dams associated with the Reservoir. A powerline also extends through the area and a communication tower is located in the area of the showing. The area lies outside of the area subject to the Nunatsiavut Government moratorium on uranium mine development, in lands subject to the Innu of Labrador land claim.
A total of 350 lake sediments, from 470 possible sites, were acquired under contract by Keats Global Exploration in March 2010. Results indicate significant uranium anomalies are associated with the felsic units and in most cases, crosscutting structural features, possible faults, in the northern, central and southern parts of the property. Background values are less than 5 ppm U with 113 values greater than background and highs in the 35-37 ppm range (3 samples). Results for other elements remain pending and will be reported when received.
Two grab samples taken by the prospectors in October, 2009, that showed yellow uranophane staining and gave field scintillometer readings up to 4,500 cps, gave values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8 with elevated lead (379 and 245 ppm), and weakly anomalous silver (1.3 and 0.6 ppm) noted. Uranium /Thorium ratios were in the 9 to 10:1 range. The host units are the Blueberry Lake Group of Helikian age, which are described as felsic volcanic rocks, primarily rhyolite and rhyodacite; basic to intermediate flows and tuffs; felsic crystal and crystal lithic tuffs with minor volcanic breccia; tuffaceous sandstone, siltstone and greywacke, minor phyllite and slate; polymictic conglomerate and latite porphyry. These units are coeval, or just underlie, the Sims Formation, which consists of arkose and orthoquartzite, and which is believed to be related to basin infilling in the Helikian, a similar geological setting to that of the Athabasca Basin of Saskatchewan. The geological setting is also considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt (CMB) of Labrador, in that it is uranium mineralization in a foliated felsic volcanic or tuff unit associated with shearing. Minor disseminated pyrite and a grey metallic, are noted in the mineralized unit.
Lloyd Hillier, President of Silver Spruce comments: "The uranium in lake sediment results indicates that the area is very prospective for uranium deposits associated with structures cutting the felsic units. This area has received little uranium exploration and although it is a grassroots property, we are encouraged by the similarities in geological setting to that of the Michelin deposit in the CMB of Labrador, one of the largest undeveloped uranium deposits in the world, and the fact that the project area is road accessible, thereby making cost efficient exploration and development possible."
Further exploration in 2010 will include a combined radiometric / magnetic survey planned for the spring, once the snow has gone and ground follow up in the late summer / early fall.
The company also reports that it has acquired another 20 claims in the west central part of the property to protect the on-strike extension of a structure which lies just to the north of the showing that appears to be associated with some of the stronger uranium in lake sediment anomalies.
Analyses were carried out at Activation Laboratories in Ancaster, ON after sample preparation at their Goose Bay, NL preparation facility. Samples were analysed for uranium by the Delayed Neutron Counting (Actlabs - 5D) technique which is the same technique as used by the government surveys plus an ICP technique for other elements. Maps showing the lake sediment results for U, the newly acquired claims and a compilation map of the property can be viewed on the company website at www.silverspruceresources.com.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 7,000 claims totaling more than 1750 km2 in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland making Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Guy Mac Gillivray, P.Geo., Senior Geologist for Silver Spruce Resources Inc., 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. 2
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
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