August 5, 2008 - Bridgewater, NS - Silver Spruce Resources
Inc. (TSXV: SSE) is pleased to provide an update on exploration
activities on its Labrador and Quebec uranium projects and its Centauro,
Mexico, gold-silver project.
LABRADOR
Mount Benedict Property - Central Mineral Belt (CMB)
The drilling program on the Super 7 zone was concluded in early July with
seven holes totalling 927 meters completed. Scintillometer scans of
drill-core show elevated uranium values which appear to be associated
with a structurally controlled contact. Rock sample values varying from a
few hundred ppm to 1.0% (20 lbs/ton) U308 were located at the Super 7
prospect in limited sampling in 2007.
A summer exploration program consisting of prospecting and stream
sediment sampling - mainly on Labrador Inuit Settlement Area (LISA) lands
- plus magnetometer, soil geochemical and radon gas surveys over known
showings such as the T-649 and Super 7 began in mid-July. A total of
1,025 stream sediment samples have been taken at 300 meter intervals
along the brooks. Limited prospecting has been carried out with seven
grab samples taken, including a felsic metasedimentary, gneissic textured
rock, which gave a hand held spectrometer reading of 1800 ppm uranium.
Radon gas surveys with coincident soil sampling at each survey site are
being carried out over the T-649 showing, using pylon radiation monitors
with Lucas cells. Grid lines are 900 meters in length and stations are
spaced at 25 meters or 12.5 meters, depending on results. Core, rock,
stream and soil samples have been sent for analysis and results will be
reported as they are received.
The Mount Benedict Property is a contiguous block of 4,920 claims (1,230
km2), located 30 to 70 kilometers southeast of Makkovik in the eastern
portion of the CMB. It is
located in part (17%), on Labrador Inuit Land (LIL), which is controlled
by the Nunatsiavut Government. The remaining 83% is on LISA lands, which
are jointly controlled by the Nunatsiavut and the Newfoundland governments.
The claims are 100% owned by Silver Spruce, subject to a 1.0% NSR payable
on production from 532 of the original 1,024 claims.
Makkovik River Property- Central Mineral Belt (CMB)
Detailed follow up work, consisting of prospecting, geochemical (soil,
stream and radon gas), geophysical and geological ground surveys,
followed by trenching and drilling, if warranted, will be carried out in
the summer program on the Makkovik River Property once all permits have
been received. Prospecting surveys carried out in 2007, prior to the
airborne survey, located uranium-bearing boulders along a northeast
trending zone, approximately 1,500 to 2,000 meters in length in the west
central part of the property. Mineralization is hosted in
sheared/hematitized extrusive and intrusive rocks with float samples
giving values from 0.049% to 0.733% U308 and some coincidence with the
airborne target picks has been noted.
The Makkovik River Property consists of 200 claims (50 km2) in the
eastern part of the CMB, 30 km to the east of Postville, on LISA lands.
It was acquired by staking in 2007 and is owned 100% by Silver Spruce.
Straits Property
Helicopter supported exploration began in late June and has consisted of
prospecting and soil sampling on grids over areas of anomalous lake
sediment and rock samples identified in 2007. In the soil survey, two
samples were taken at each location with one sent for analysis and the
other processed for radon gas in a portable "Lucas Cell" radon
detector unit. Soil lines range from two to six kilometers in length with
samples taken on 250 by 100 meter spacing. The work will continue until
all anomalous areas identified in 2007 have been evaluated. A number of
rock and soil samples have been sent for analysis and results are
pending.
The Straits Property consists of 2,346 claims (586.5 km2) located in
southern Labrador, north of the Straits of Belle Isle. It was acquired by
staking in 2006 in an arms length deal with Alex Turpin, a local
prospector, who retains a 1% NSR.
Double Mer Property
An airborne survey in 2006 identified 40 high to moderate priority
targets on the Double Mer Property. Limited follow up later that year,
consisting of prospecting using scintillometers and soil geochemistry,
located the old Northgate/WCC showings and found other areas of
radioactivity in the area. In the area of the mineralization at WCC Zone
A, 10 rock samples with values greater than 100 ppm U308 and a high of
2,640 ppm uranium (0.33% U308) were located. High spectrometer readings
to >10,000 counts per second (cps) were also noted. In the soil/humus
geochemistry, 12 samples giving greater than 50 ppm uranium were located
with high values of 200 ppm for the H horizon and 142 ppm for the B
horizon. The values were in two areas, one generally coincident with the
WCC Zone A area and one area outside the known mineralization. No follow
up has taken place and Silver Spruce will carry out an exploration
program, consisting of prospecting, soil geochemistry and Radon gas
surveys followed by trenching and diamond drilling if warranted, once all
permits have been received.
An option agreement with High Tide Resources for the Double Mer property
that was announced January 31, 2008, has been terminated. Due to market
conditions, High Tide was unable to secure the financing required and
Silver Spruce has agreed to undo the entire agreement, subject to the
retention of High Tide's first option payment of $50,000.
The Double Mer Property consists of 766 claims (190 km2) in the Double
Mer-Lake Melville area of Labrador, approximately 110 kms to the east of
Happy Valley-Goose Bay. It was acquired by staking in 2006 in an arms
length deal with Alex Turpin, a local prospector, who retains a 1% NSR.
QUEBEC
Hudson Bay Property
First-pass prospecting work, which covered all three blocks (A to C) on
the Hudson Bay Property, was carried out in June and July. The work
targeted radiometric and lake sediment "picks", plus visual
sightings, mainly gossan or rusty zones that were located as the area was
flown over.
Rock units encountered included felsic to mafic intrusives, with
pegmatite veins in some areas. A number of radioactive zones were located
using scintillometers, with total count values varying from high
background (3-400 cps) to >10,000 cps. Some uranophane (yellow
staining) was noted. Mafic intrusives carrying weak sulphide
mineralization, pyrite, pyrrhotite and chalcopyrite, were also located
and sampled. A total of 97 rock samples, mainly from outcrop, have been
sent for analysis and results are pending.
The Hudson Bay Property consists of 537 claims (253 km2) in three
separate blocks. The claims blocks are located just to the east of Hudson
Bay and 15 to 40 km north of Umiujaq village and airport. Silver Spruce
can acquire a 50% interest in the property over a five-year period from
Azimut Exploration Inc. and may acquire an additional 15% interest upon
delivery of a bankable feasibility study. Azimut retains a 2% yellowcake
royalty on any production from the property.
MEXICO
Centauro Property
Diamond drilling is continuing at the Centauro Property with
approximately 1,864 meters in six holes completed to date, representing
over half of the contracted meterage of 3,000 meters. The drilling has
been slowed by personnel and equipment issues, water and weather problems
and bad ground containing many faults and shears.
Mineralized/altered zones, mainly pyrite/kaolin with some silicification,
cut by faults and shears have been intersected in all holes. Rock units
encountered include sedimentary units - conglomerates to sandstones,
mafic volcanics and mafic intrusives, which are variably altered from
fresh to intensely altered. The six diamond drill holes completed to date
include: CEN-08-1 - 277.1 meters; CEN-08-02 - 285 meters; CEN-08-03 -
330.8 meters; CEN-08-04 - 352 meters; CEN-08-05 - 352 meters and CEN-08-6
- 327 meters, for a total of 1,863.9 meters. Five of the holes (1
to 5) were drilled to the east from the bottom on the west side of the
mesa. CEN-08-6, the first to be drilled from the top of the mesa, was
drilled to the east, at the north end, on Line 4.
Core sampling has also been slow due to a shortage of manpower. The first
180 meters from CEN-08-1 has been received by Actlabs in Ancaster,
Ontario, and these results are pending. Three other sets of samples, from
the rest of CEN-08-1, CEN-08-2, CEN-08-3 and CEN-08-4, have been sawed
and the samples sent to Minerales Laboratory in Mazatlan for sample
preparation.
The Centauro Property is a block of six claims (1,420 hectares), located
in the southern part of Chihuahua State, just to to the north of Durango
State and approximately 25 km to the west of Highway 45, the main
north-south highway in Mexico. The property is subject to an option
agreement with a Mexican geologist, whereby Silver Spruce can earn a 100%
interest in the property subject to a 3% NSR with a 2% buyback for US$2
million.
ANALYSIS
All analyses are being done at the Activation Laboratories (Actlabs)
facility in Ancaster, Ontario. Uranium samples from Labrador and Quebec
are prepped at the Actlabs prep facility in Goose Bay. The Centauro core
samples are sawed, under company supervision, at the field office in
Jiminez, Chihuahua State; with one half of the core sampled, generally at
1-1.5 m intervals, and sent to Minerales Laboratory S.A.de C.V. in
Mazatlan for sample preparation, as approved by Actlabs; with the pulps
forwarded to Actlabs in Ancaster for analysis. Uranium and other
elements are analyzed by an ICP technique. If this yields results in
excess of 250 ppm uranium, follow up by delayed neutron counting (DNC) is
performed. The Centauro samples are analyzed by fire assay (one
assay tonne) for gold plus an ICP technique for other elements. Every
twenty-fifth sample is also analyzed by fire assay (one assay tonne) for
gold and an atomic absorption technique for silver at the Minerales
Laboratory in Mazatlan for QA/QC purposes. A quality
assurance/quality control (QA/QC) program, described on the Silver Spruce
website, is in place to increase confidence in the results generated.
Maps showing the results for the 2007 prospecting surveys on all the
Labrador properties, the uranium airborne picks on the Makkovik River
property, and the planned drilling on the Mount Benedict and Centauro
properties can be viewed on the company website
www.silverspruceresources.com.
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 10,000 claims totaling more than 2,500 km2 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.