|August 08, 2012|
Silver Spruce Resources Acquires Labrador Uranium Property
- Located in the uranium-rich Central Mineral Belt, contiguous with our Snegamook property
- Significant uranium values in diamond drilling to 0.13% U3O8 / 23.4 m, incl. 0.25% / 9.7 m
- No exploration since 2007
August 8, 2012 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that it has purchased the Anomaly 7 (A7) uranium property in the Central Mineral Belt (CMB) of Labrador from Virginia Energy Resources Inc. (TSXV: VAE). The 446 claim (111.5 km2) property consists of two mineral claim licences in the western part of the Central Mineral Belt in Labrador. The company is acquiring a 100% interest, subject to a 2% Net Smelter Return (NSR) with a 1% buyback for $500,000 to a third party, for a one-time share payment of two million shares. Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange approval.
The property covers a number of significant uranium showings, including the Anomalies 7, 7a and 17 (A7, A7a, A17) showings discovered by Canico in the late 1970s and the Fishhawk Lake North, Central and South (FHLN, C+S), Brook and Whiskey Jack showings/occurrences discovered by Santoy Resources (predecessor to Virginia Energy) in 2006/2007. Santoy carried out exploration consisting of lake sediment sampling, prospecting, geological mapping, an airborne magnetic/radiometric survey and diamond drilling in 2006 and 2007.
A total of 26 drill holes have been drilled on the property since the discovery of uranium (U) mineralization in the late 1970s: eight on A7 by Canico, as well as three on A7, 13 on FHLS and two on FHLN by Santoy. No exploration has been carried out since 2007. Highlights of the drilling include:
- Anomaly 7 -- 0.13% U3O8 / 23.4 m, incl. 0.25% / 9.7 m
- FHLS - 0.063% U3O8 / 27.9 m, incl. 0.18% / 4.5 m and 0.106% / 9.9 m in DDH FHLS-07-3.
Narrow high grade zones in uranium with copper (Cu) and silver (Ag) were also noted in Santoy drilling, as in FHLS-07-9 -- 1.15% U3O8, 0.79 oz/T Ag, 0.5% Cu / 0.94 m. The mineralization is hosted in at least two different geological settings - fractured to brecciated, hematized granodiorite, similar to that in the Two Time and Snegamook zones, as well as unconformity-related mineralization along the contact between a fault-bounded wedge of Moran Lake sedimentary units and Archean basement intrusive units. Zones have been mapped by drilling and by surface outcrop and float, with strike lengths from 250 to in excess of 400 m, and to depths of greater than 100 m.
"Silver Spruce considers this a strategic acquisition for two key reasons," states Peter M. Dimmell President and CEO of Silver Spruce Resources Inc. "The A7 property is contiguous to the south with the Snegamook property, where two significant showings -- Snegamook and Near Miss -- are already known. As well, this strengthens our position in the Central Mineral Belt uranium play at a time when the mid-term outlook for uranium prices is strong."
In addition to these 100%-owned properties, the company also holds a 2% NSR on the CMB Joint Venture with Crosshair Energy. The Two Time uranium deposit discovered by Silver Spruce, which hosts a NI 43-101 indicated resource of 2.33 million lbs (1.82 MT at 0.058% U3O8) and an additional inferred resource of 3.73 million lbs (3.16 MT grading 0.053% U3O8), is contiguous with both the Snegamook and A7 properties (see map for property positions). The CMB Northwest property, which hosts the Two Time deposit, is being drilled by Crosshair in 2012.
All data on the A7 property provided by Virginia Energy, as well as the existing Silver Spruce data on the Snegamook property, will be combined to define the more prospective areas and as uranium demand and prices increase, field work including diamond drilling will follow. A claim map showing the property position and the various showings on the property and in the area is on the Silver Spruce website at www.silverspruceresources.com
This release has been approved by Peter M. Dimmell, P.Geo., President & 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 additional information please visit the company's website - www.silverspruceresources.com.
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.
For further information:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
For investor and media relations:
Pilot Communications Inc.
Phone: 709.753.0794 ext 31