Silver Sprute

Silver Sprute

December 15, 2011 06:45 ET

Silver Spruce Announces Results from the Central Mineral Belt JV with Crosshair

BRIDGEWATER, NS, Dec. 15, 2011 - Silver Spruce Resources Inc. (TSXV: SSE) - announces the results of diamond drilling on the Two Time Uranium Zone and other prospects on the Central Mineral Belt JV (CMBJV), a joint venture with Crosshair Energy Corporation, with Silver Spruce currently retaining a 37% ownership and Crosshair a 63% ownership of 566 joint venture claims (142 km2) in the Central Mineral Belt of Labrador. The properties are located inland from the Postville-Makkovik area of coastal Labrador, approximately 150 kilometres to the northeast of Happy Valley-Goose Bay.

Crosshair Energy, the joint venture operator, announced on December 15 that it intersected additional uranium mineralization down dip/plunge from the Two Time Uranium Zone discovery made by Silver Spruce in 2006/07.   A total of 2,961 metres of drilling in 2011 has confirmed uranium mineralization to depths of over 500 metres.   Highlights from the program are shown in the table below.  This area is proximal to the Moran Lake, Michelin and other uranium showings under exploration/development by Crosshair and Aurora Energy (Paladin).     

A second component of the 2011 drilling program investigated coincident airborne radiometric geophysical and rock geochemical anomalies on other properties in the CMBJV. Fourteen diamond drill holes, totalling 1,245 metres, tested four prospects. Three holes intersected uranium mineralized zones with the most notable from the Firestone prospect, where DDH FS-11-007 intersected 3.5m at 0.084% U3O8 including a 0.5m of 0.519% U3O8. Drilling at the other three eastern-most prospects; South Brook, Running Man and Big Bear, was preliminary with the program cut short by inclement weather.

Stewart Wallis, President and CEO of Crosshair stated in their December 15 news release: "We are very pleased with the results of this year's drilling, as our data indicate the mineralization at the Two Time Zone has been extended beyond the current resource envelope. Our next task will be to combine these new results with the existing dataset to upgrade the resource." (NR December 15/11 www.crosshairenergy.com)

"Despite the fact that the 2011 exploration is significantly diluting our 37% position in the joint venture, since we are not contributing to the program, the value of the CMBJV properties should increase with these results," said Peter Dimmell, President and CEO of Silver Spruce.  "Given these results, the positive outlook for uranium long term, and the lifting of the uranium development moratorium on Inuit lands in Labrador which will take place in March 2012; we are currently re-evaluating our current "hold" position on uranium exploration activity. We anticipate having more to say on our plans for significant holdings in the Central Mineral Belt of Labrador in the New Year."

Highlights
Crosshair Energy Corporation
2011 CMB - Two Time Drilling Program  
Drill Hole From (metres) To (metres) Length (metres) U3O8%
CMB-11-43 546.5 551 4.5 0.069
CMB-11-44 229 233 4 0.059
including 239.5 241 1.5 0.057
  245.5 246.5 1 0.047
including 245.5 246 0.5 0.063
  281 282.5 1.5 0.055
  298 299.5 1.5 0.069
including 299 299.5 0.5 0.150
CMB-11-45 219 220.5 1.5 0.048
CMB-11-47 144 145 1 0.056
  466.5 473.5 7 0.033
  476.5 477 0.5 0.055
CMB-11-48 280.5 281 0.5 0.079
including 325.5 326 0.5 0.069
  458.5 490 31.5 0.031
including 470.5 472.5 2 0.067
and 483.5 487 3.5 0.051
and 499.5 502.5 3 0.061

Complete assay highlights with drill plan maps and additional information on the CMBJV Uranium Project can be found on both the Silver Spruce (www.silverspruceresources.com and the Crosshair www.crosshairenergy.com/s/CMBJointVenture.asp) websites. Details are also available in the Technical Report on the CMBNW Property-Labrador, Canada prepared for Crosshair and Silver Spruce dated June 22, 2009 and filed on SEDAR at www.sedar.com.

The true width of the mineralized zone is 60% to 90% of the lengths stated above. Uranium analysis was carried out by Activation Labs of Ancaster, ON utilizing the Delayed Neutron Counting (DNC) method, while multi-element analysis was performed using Inductively Coupled Plasma Mass Spectrometry (ICP-MS). Samples exceeding the upper limit for uranium were re-assayed using X-ray Fluorescence (XRF). Standards, blanks, and duplicate assays were included at regular intervals in each sample batch submitted from the field as part of Crosshair's ongoing Quality Assurance/Quality Control program.

This release has been approved by Peter M. Dimmell, P.Geo. President and CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON as defined in National Instrument 43-101.

About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term, uranium (CMBJV, Snegamook, Double Mer, Mount Benedict), projects in Newfoundland and Labrador.   With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For more information go to www.silverspruceresources.com

The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this release.

The company seeks Safe Harbour.


 

Contact Information

  • For further information contact:   
    Gordon Barnhill, CFO  & Director  
    Silver Spruce Resources Inc.  
    Phone: 902.527.5700  
    Fax: 902.527.5711  
    gbarnhill@silverspruceresources.com 
    For investor & media relations contact: 
    Paul Snow
    Pilot Communications Inc.
    Phone:  709.753.0794 ext 31
    Fax: 709.753.0795
    psnow@pilotcom.ca