Straits Property, Labrador

July 6, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce the results of re-analysis of rock samples for Rare Earth (REEs) and associated elements from the 100% owned Straits (ST) property in southern Labrador.  The samples were taken during the 2007/2008 uranium exploration program and were acquired for their uranium potential as indicated by scintillometer readings.

The Straits property, totaling 505 claims (approximately 126 km2), is located along the Straits of Belle Isle between the communities of Red Bay and Mary's Harbour and to the south of, and within 20 km of, the Trans Labrador Highway.  The original property was acquired in 2006 under an agreement with a Newfoundland prospector, Alex Turpin, who retains a 1% NSR.   The property was reduced to those areas which showed the highest uranium potential in early 2009.  Lake and stream sediment and rock samples were originally analyzed for uranium primarily using an ICP technique which also gives values for other elements including La (lanthanum) and Th (thorium).  No other REE, Y or other indicator elements were analyzed in the original ICP data.  

Twenty-six rock sample rejects returned from the laboratory after the first analyses were performed, and which were anomalous in either La or Th, were analyzed for the full suite of REEs, yttrium (Y) and other indicator elements such as zirconium (Zr) and niobium (Nb).   The samples gave values up to 2.48% total rare earth elements (TREE) plus yttrium, 2.2% zirconium, and 636 ppm niobium.    Thirteen samples gave values > 0.1% TREE + yttrium, including five (5) > 0.4%.  Samples were generally LREEs with percentages in the 85-90% range of LREEs from the samples analyzed.   The minerals carrying the REEs are unknown at this time. Most of the high values were located in outcrop in the north central and north-eastern ends of the property, however, one sample in the southwestern part gave a value of 0.5 % TREE including yttrium.   A summary of the sample results is given in the table following.   No follow up work has been carried out to date.

In the 2007/08 work, lake sediments gave thirty-three samples with values > 200 ppm La including seven > 300 ppm against a background of 65 ppm with the highest value 903 ppm La while Th gave only background values (< 20 ppm).  Stream sediments gave nineteen (19) values > 100 ppm La including four > 200 at 208, 242, 342, and 392 ppm against a background of approximately 50 ppm. Values for Th are low with only one sample giving 50 ppm with a background of 20 ppm.  Rock samples gave three values > 1,000 ppm La with the highest 3,908 ppm against a background of < 30 ppm. Nine samples gave Th values > 1,000 ppm, including four > 2,000 ppm and a high value of 6,810 ppm. Strong correlation in the rock samples is noted between La and Th with the four samples that gave the highest La values also giving some of the highest Th values (see news release dated May 27, 2010).

A geochemical release (OF Lab 1538) by the NL government on June 30, on a high-density lake sediment and water survey in southeastern Labrador showed anomalous values in rare earth elements with TREE values in the 400 to 650 ppm range on the Straits property, some of the highest located in the survey.

Background for this survey is less than 100 ppm TREE, including Y.

The property covers uranium in lake sediment anomalies associated with a north-northwest trending fault structure in Proterozoic, metamorphosed, felsic volcanics, now orthogneiss. Exploration from 2007 to 2009 included lake, stream sediment and soil geochemistry, ground scintillometer surveys, prospecting, and geological mapping. Significant uranium showings were located in the south central part of the property near the coast. The "BB shot" showing gives grab sample values up to 67,439 ppm (6.7 %) U3O8 in outcrop along the contact of a weakly gneissic, fine-grained granite, and a pegmatite with associated magnetite and biotite. The "Bingo" showing, approximately 3 km from the BB shot, and also associated with the contact of the granite and orthogneiss, gave 17 anomalous values (>10 ppm U3O8) with a high value of 5,887 ppm (0.59%) U3O8, associated with uranophane staining. Uranium/thorium ratios averaged 5:1 in samples giving uranium values >250 ppm. Anomalous values in Th (to 6,810 ppm), Cu (to 2,720 ppm) and Pb (>5,000 ppm) were also found with the higher thorium values giving low uranium values.  Since uranium was the target element at the time, the 2008 exploration allowed the company to define areas of higher uranium potential to allow consolidation and downsizing (reduction) of the property to the 423 claims (106 km2) now in the property.

All stream sediment, soil and rock analyses were carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at the Actlabs preparation facility in Goose Bay. In 2007/2008, uranium and other elements, including the REE (La) and Th, were analyzed by an ICP technique (AR ICP) with values in excess of 250 ppm uranium reanalyzed by delayed neutron counting (DNC) for uranium.  The recent (2010) results were analyzed by a rare earth package (Code 8 REE) at Activation Laboratories using either ICP or MS analysis plus analysis for U3O8 and Nb2O5 by XRF.    A compilation map of the properties and the QA/QC criteria for the samples can be viewed on the company website at www.silverspruceresources.com.
 

SILVER SPRUCE RESOURCES HEAD OFFICE Gordon Barnhill, CFO & Director Phone: 902.527.5700 Fax: 902.527.5711 E-mail: gbarnhill@silverspruceresources.com Web: www.silverspruceresources.com

INVESTOR RELATIONS Hugh Oswald, Ascenta Capital Partners Inc. Phone: 604.684.4743 ext. 243 Toll Free: 1.866.684.4743 ext. 243   E-mail: hugh@ascentacapital.com Web: www.ascentacapital.com