Silver Spruce Resources Inc.
TSX VENTURE : SSE
FRANKFURT : S6Q

Silver Spruce Resources Inc.

June 23, 2011 09:00 ET

Silver Spruce Reports Discovery of New Mineralized Alteration Zone 3.5 km to South of Big Easy Gold/Silver Zone, Eastern Newfoundland

BRIDGEWATER, NOVA SCOTIA--(Marketwire - June 23, 2011) - Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) -

Highlights

  • Mineralized alteration zone, the ET showing, located on strike, 3.5 km to south of Big Easy zone
  • similar to Big Easy zone – silicified / sericitized sedimentary units with disseminated pyrite
  • Limited sampling (3 rocks) gives anomalous values to 125 ppb Au, 3.5 ppm Ag
  • acquisition of 173 claims to protect southern extension of zone

Silver Spruce Resources Inc. is pleased to announce that a new mineralized alteration zone, similar to the Big Easy mineralized system, near Thorburn Lake in eastern Newfoundland, has been discovered approximately 3.5 km to the south of the Big Easy zone.

Limited exploration on the southern extension of the Big Easy trend resulted in the discovery on a brook of similar alteration/mineralization, mainly silicification, carrying disseminated pyrite in brecciated sedimentary units with quartz veining – the ET zone. Three grab samples gave values of 39, 28 and 125 ppb Au and < 0.5, < 0.5 and 3.5 ppm Ag, respectively. The highest value was a composite grab sample. These results are similar to those originally found in outcrop and float on the Big Easy zone.

Arsenic was also elevated with a high value of 152 ppm with the higher gold value. The mineralization occurs over a 50 m area on the brook however it disappears under overburden to the north, south and west. Trend of the zone is approximately 150-160 degrees making the true width of the exposed portion of the zone at least 30 m, open to the west. Seven rock samples were also taken from altered (sericitized, minor silicification) sedimentary units (sandstones to conglomerates) with variable white quartz veining, located 1 to 2 km to the east of the ET showing and 9 stream sediment and 15 soil samples were taken along a northeasterly trending brook, where the ET showing is located, which cuts across the southern claim block and in the area of the sericitized sedimentary units to the east. One soil sample from along the brook, associated with a weakly anomalous As value of 38 ppm (background 5 ppm), gave 15 ppb Au (background < 5 ppb). No anomalous gold values were found in the stream sediments however As values from 8 to 62 ppm (background 5 ppm) were found in the lower part of the brook. Anomalous Zn (up to 202 ppm) and Co (up to 256 ppm) were found associated with elevated manganese (Mn) values (> 2000 ppm) and are considered to be related to Mn scavenging. The bog ponds and brooks are not ideal for stream or soil samples with most giving high Mn and iron (Fe) values related to the boggy terrain which the brook traverses.

The Big Easy mineralized zone is a new gold / silver discovery in an area not previously known to host significant gold mineralization. The zone lies in the Avalon Zone along the northern extension of the Burin Peninsula high sulphidation belt where extensive precious metal exploration is being carried out.

Seven drill holes totaling 1,577 m, the first drilling on the property, tested the Big Easy mineralized zone over an approximate 1 km strike length in May, intersecting strongly altered (silicified /sericitized /chloritized) and mineralized sedimentary units (see news releases dated March 24, April 8, May 3, June 1 and June 7, 2011). The best gold/silver intersection was in DDH BE-11-3 (News Release May 3, 2011), 0.41 g/t Au and 15.4 g/T Ag over 89.2 m from 183 m to 272.2m, including 0.87 g/t Au and 33.5 g/T Ag over 30.5 m from 228 m to 258.5 m, including 2.5 g/t Au and 74.1 g/T Ag over 7 m from 239 m to 246 m, including 6.05 g/t Au and 174 g/T Ag over 1.5 m from 240.5 m to 242 m and 6.04 g/T Au and 114 g/T Ag over 1 m from 245 m to 246 m.

It is not known if the alteration and mineralization extends consistently from the Big Easy zone in the north to the newly discovered ET zone in the south, over a 4.5 km strike length, open to the north and south. Some structural control, as shears, faults and related foliation is noted in both showings, however extensive bog cover with almost nonexistent outcrop exposure makes tracing the alteration/mineralization very difficult.

The company has staked another 173 claims tied on to the southern and eastern boundary of the original Big Easy property to protect the new alteration zone and any possible extensions. The property now consists of 294 claims (73 km2). Regional exploration will be carried out on the new claims in the late summer or fall. All drill data for the Big Easy zone is being compiled to a 3D database to allow modeling of the system for a Phase 2 drilling program to be carried out later in the summer or in the early fall.

The original 121 claim (30 km2) property, located near Thorburn Lake in eastern Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5M, is a total of $110,000 plus 1.6 shares over three years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is payable from the 4th anniversary on. The second option payment, which was due on April 21, 2011, has been paid. A 2 km area of influence is part of the agreement.

Samples were submitted to the Eastern Analytical laboratory in Springdale, NL. a recognized local laboratory, for analysis by fire assay for Au and an ICP-11 technique for pathfinder elements including As and Sb, base metals and Ag. Values >6 ppm Ag, the upper detection limit for Ag using the ICP method, are reanalyzed if required, by a wet chemical method and an AA finish to give accurate assay values for Ag.

Plan maps of the recent staking and the present land position, the diamond drilling, the IP chargeability and resistivity and a compilation map, plus pictures showing the ET showing, the drilling and drill core from Big Easy, are available on the Silver Spruce website at silverspruceresources.com.

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

Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 4,000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and REE districts. The company has rare earth element (REE) properties in Labrador - Pope's Hill, RWM and the Straits and gold/silver projects on the island of Newfoundland.

The company seeks Safe Harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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