Silver Spruce Resources Inc.
TSX VENTURE : SSE

Silver Spruce Resources Inc.

August 05, 2008 09:00 ET

Silver Spruce Updates Exploration on Labrador/Quebec Uranium and Mexico Gold-Silver Projects

BRIDGEWATER, NOVA SCOTIA--(Marketwire - Aug. 5, 2008) - Silver Spruce Resources Inc. (TSX VENTURE:SSE) -

Highlights

- Mount Benedict and Straits uranium projects - Ongoing follow up

- Hudson Bay uranium project - First phase follow up complete

- Centauro gold/silver project - Ongoing drilling

Silver Spruce Resources Inc. 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 greater than 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 greater than 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.

The company seeks Safe Harbour.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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