SSE President's Message - January 2012
2011 has been a challenging year for the Junior Resource Sector with global financial problems making investors nervous which affects the more risk sensitive juniors who have to raise money on the equity markets. Silver Spruce Resources has not been exempt from this and financing opportunities have been limited.
In spite of the problems globally, Silver Spruce has been successful in moving our two main projects; Pope's Hill (PH) Trend REE's in southern Labrador, and the Big Easy gold/silver property in eastern Newfoundland further along the exploration path to the drilling stage. Along the Pope's Hill Trend (which is at least 100 km long) we have defined a 2.5 km long zone of REE mineralization on the original Pope's Hill property, and located a 2 km2 area of REE mineralization on the MRT property located 60 km to the east, approximately 35 km from Happy Valley -- Goose Bay. The PH Trend is generally road accessible thereby reducing exploration costs considerably. At the road accessible Big Easy property, located near Clarenville, a first phase drill program of seven holes discovered a significant Gold/Silver zone at depth, which remains open to the north and south along strike and down dip, and similar alteration/mineralization to the Big Easy zone has been discovered 3.5 km to the south along strike.
In mid December, the Nunatsiavut government announced the lifting of the moratorium on Uranium development in Inuit territory. The moratorium has made it impossible to raise money for Uranium exploration in Labrador and hopefully this will change now that the moratorium has been lifted. While Uranium prices remain low in the short term due to the affects of the earthquake and tsunami in Japan and its effects on one of their many nuclear reactors, the long term prognosis for Uranium demand, and therefore prices, is excellent. Aurora Energy is expected to ramp up their main exploration project, the Michelin -- Jacques Lake, in the Central Mineral Belt (CMB) where they have approximately 135 M lbs of Uranium defined, and this should help build infrastructure and interest in the area.
The company has sufficient hard dollars in the treasury to maintain our existing REE, Gold/Silver, and Uranium properties in good standing in 2012. However either a flow through financing or JV's on the properties will be required if we want to carry out exploration on them this year. Management will be diligent in looking at opportunities as they arise for both financing and JV's.
The management and staff of Silver Spruce Resources thank you for your faith in the company over the past few years, which have been difficult for our sector, and we wish you all a happy and prosperous 2012.
In closing, please don't hesitate to contact me directly at (709) 739-5608 if you need more information on the company and our projects.
Peter M. Dimmell, P.Geo. President / CEO
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