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Silver Spruce Options Double Mer Property to High Tide Resources
January 31, 2008 - Bridgewater, NS -
Silver Spruce Resources Inc. (TSXV: SSE) announces that it has optioned the Double Mer property ("the Property") to High Tide Resources Inc., a private Nova Scotia-based company. The Property consists of 766 claims (approximately 19,000 ha or 190 sq km) in the Double Mer-Lake Melville area of Labrador, Canada, approximately 110 km to the east of Happy Valley-Goose Bay. It was acquired by staking in 2006 in an arm's length deal with Alex Turpin, a local prospector. Mr. Turpin will receive consulting payments of $12,000 per year for three years and a retains 1% net smelter return (NSR) on the Property.
The Double Mer property covers strong uranium in lake sediment anomalies, located by the Newfoundland government (Open File 408) with anomalous values ranging from 10 to 470 ppm against a background of approximately 5 ppm hosted in leucogranites of Helikian age. Four values greater than 100 ppm uranium, including two greater than 400 ppm, were noted in this survey and are covered by the Silver Spruce staking. Newfoundland government work, which included a 1 km spaced lines radiometric survey and ground follow up, also located uranium mineralization in float/outcrop with three values over 0.1% U3O8, including a value of 0.29% U3O8, from eight samples (Open File 408) in 1978. Work by
Northgate/Whim Creek Consolidated in 1979-1980, which included ground scintillometer surveys, trenching and Diamond drilling, located a number of uranium showings with bulk assays in four trenches ranging from 0.44 to 2.09 lbs uranium per short ton. These values have not been independently verified.
Exploration by Silver Spruce in 2006 consisted of data compilation, airborne radiometrics and magnetics at 100 m spaced lines, plus limited prospecting, geological mapping and ground geophysics (scintillometer). The airborne survey identified 40 high to moderate priority targets. Limited follow up in the fall of 2006, 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 giving values greater than 100 ppm U3O8, with a high value of 2,640 ppm uranium (0.33% U3O8) were located. High spectrometer readings to greater than 10
K counts per second (cps) were also noted, especially in the area of the mineralization in the trenches. 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. These 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.
High Tide can earn a 50% interest in the Property for the following consideration:
1)
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On signing: a cash payment of $50,000; and the issuance of 500,000 common shares of High Tide to Silver Spruce Resources Inc. |
2)
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On the first anniversary: a cash payment of $100,000; and the issuance of 750,000 common shares of High Tide to Silver Spruce Resources Inc. |
3)
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On the second anniversary: a cash payment of $100,000; and the issuance of 1,000,000 common shares of High Tide to Silver Spruce Resources Inc. |
In addition, High Tide will carry out a cumulative work commitment of $1.0 million over the earn-in period: $200,000 in the first year of the agreement (2008); $300,000 in the second year of the agreement (2009); and $500,000 in the third year of the agreement (2010). High Tide has also granted Silver Spruce the right to participate in any future financings so it may maintain an ownership interest of up to 10% of High Tide. High Tide has also agreed to assume the responsibility for the final payment due to Alex Turpin.
High Tide has assembled a qualified exploration team and expects to be able to begin follow up the high and moderate priority airborne targets in the late second quarter of 2008, after the spring melt.
About Silver Spruce
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With interests in more than 13,100 claims totaling approximately 3,275 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. Experienced partners and strong financial backing make Silver Spruce a leading uranium explorer in Canada.
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.
For more information on the Company and its projects, please refer to the website, www.silverspruceresources.com.
For Further Information Contact:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company seeks Safe Harbour.
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