|January 19, 2012|
Silver Spruce Reports on REE / Uranium Exploration Results - Straits Property Southern Labrador
Bridgewater NS, Canada -- January 19, 2012 /CNW - Silver Spruce Resources Inc. (TSXV:SSE) is pleased to announce the prospecting results for rare earth elements (REE) and uranium on the 100% owned Straits (ST), 357 claim (approximately 89 km2) property in southern Labrador. The property, located between Mary's Harbour and Red Bay on the Strait of Belle Isle, lies from five to twenty km from the Trans Labrador Highway. The original property was acquired in 2006 under an agreement with a Newfoundland prospector, who retains a 1% net smelter return.
- values to 4.76 % TREO w/ up to 58 % HREO, five samples with TREO values > 1 % and significant Dy, Nd
- coincident U, Ta, Nb, Zr anomalies, REE appear to be mainly associated with U rather than Th
- other significant, non-coincident U3O8 zones with values up to 6.75 % U3O8
Helicopter supported prospecting, completed in mid-November, evaluated areas of thorium (Th) radioactivity in airborne surveys as identified by a consultant (News Release Sept. 27/11), as well as other areas anomalous in lanthanum (La), Th and REE from previous ground surveys (News releases Nov. 18/11 and May 27, 2010) and favourable geologic units.
Fifty four (54) rock samples were taken, mostly from outcrop, using radioactivity, related to Th and uranium (U) bearing minerals possibly associated with REE mineralization, as a guide. Scintillometer readings in anomalous areas averaged 500 to 9000 counts per second (cps) against a background of 150 cps. In total, 11 samples gave total rare earth oxide (TREO) values > 0.1 % and 13 gave U3O8 values > 100 ppm. The most significant mineralized area was located on Licence 17761M, to the north of Temple Bay, where five outcrop samples of mafic to felsic gneisses cut by pegmatites, associated with a structural lineament, gave TREO > 1% with a high of 4.76%, including 3.42% TREO with 58% heavy rare earth oxides (HREO) and including 0.19% dysprosium oxide (Dy2O3). The average HREO for the five samples was 23.4%, with all having associated U3O8 values ranging from 400 to 1130 ppm, while Th2O3 values are generally low at 40-196 ppm, except for one sample at 1016 ppm. The samples were also anomalous in Zr, Nb and Ta. The samples were taken from narrow veins < 30 cm wide associated with the pegmatites. Scintillometer readings over the mineralization ranged from 1300 to 4200 cps. See table below for listing of the individual samples and selected oxides.
While the mineralization located is narrow, the REO / Uranium association, the HREO content and the apparent structural control in this relatively unexplored area are all positive indications of significant potential for both REE and Uranium in the area. A total of 40 claims were acquired to cover the on strike extensions of the mineralization on Licence 17761M. Follow-up exploration will be carried out in the summer of 2012.
Two significant uranium showings are also present on Lic 16307M to the southwest of Temple Bay. They are the "BB shot" showing, which gives grab sample values to 6.7 % U3O8 in outcrop along the contact of a weakly gneissic, fine-grained granite and a pegmatite with associated magnetite and biotite, as well as the "Bingo" showing approximately 3 km away; also associated with the granite/orthogneiss contact, which gave a high value of 0.59% U3O8. Uranium/thorium ratios averaged 5:1 in samples, giving uranium values >250 ppm. Only limited exploration has been carried out in these areas.
The rock samples were transported to Activation Labs' preparation facility in Goose Bay by SSE personnel, then shipped to its laboratory in Ancaster, ON for analysis using the "8 REE" package. The laboratory uses internal standards to check the analyses and blanks are included in each sample batch. Note that Silver Spruce is now reporting rare earth oxide (REO) values, whereas previous to this (2011 and earlier) all rare earth results were reported as rare earth elements (REE's), which give lower absolute values than REO. Plan maps of the properties showing the sample locations and results, airborne Th radiometric and magnetic data, plus pictures of the area, are all available on the Silver Spruce website at www.silverspruceresources.com.
This release has been approved by Peter M. Dimmell, P.Geo., President and CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON as defined in National Instrument 43-101.
About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term, uranium (CMBJV, Snegamook, Double Mer, Mount Benedict), projects in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For more information go to www.silverspruceresources.com .
The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this release.
The company seeks Safe Harbour.
For further information contact:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
For investor & media relations contact:
Pilot Communications Inc.
Phone: 709.753.0794 ext 31
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