Silver Sprute

Silver Sprute

August 09, 2011 06:18 ET

Silver Spruce Reports More Significant REE Results Pope's Hill Trend, Trans Labrador Highway, NL

Highlights

  • REE bearing zone on original PH property defined over an approximate 2.8 km strike length - open Values up to 25% TREE+Y, averaging 5.3% from outcrop / subcrop grab samples
  • Significant REE values on MRT property, 60 km to the east along trend, Values to 7.0% TREE+Y in outcrop and 10% in float
  • Airborne radiometric survey shows Th anomalies associated with REE mineralization on the original PH and MRT properties and unexplained Th anomalies along the PH trend

BRIDGEWATER, NS, Aug. 9, 2011 - Silver Spruce Resources Inc.(TSX VENTURE:SSE)(FRANKFURT:S6Q) is pleased to announce further results from prospecting and the airborne survey on the road accessible Pope's Hill (PH), MRT, and Pope's Hill JV (PHJV) rare earth element (REE) properties, which lie along the Pope's Hill Trend (PHT), to the north of the Trans Labrador Highway (TLH) from 30 to 100 km to the west of Happy Valley-Goose Bay in Labrador. Results for 68 of 125 samples (MRT - 27, PH - 98) were released on July 21, 2011. A total of 170 samples have been submitted for analyses from both the PH property including regional exploration and the MRT property. Results have been received for 85 samples with the rest pending. All samples were taken within 1.5 km of the TLH.

Prospecting, using scintillometers to locate radioactive mineralization on the original PH property has extended the rare earth element (REE) mineralization in outcrop along the MP trend, over an approximate 2.8 km strike length. The zone appears laterally continuous extending along trend from the MP showing in the pit on the TLH, through the T1 and T2 showings located 800 and 1,100 m, respectively, to the T5 and T6 showings located 2,000 and 2,200 m respectively, to the east of the MP showing in the vicinity of the brook where a boulder running 24% total rare earth element plus yttrium (TREE) was found in 2010 (news release dated October 28, 2010). Outcrops with massive, vein type, red/black mineralization consisting of allanite, titanite, and apatite are located at the MP showing, and in all the "T" showings with other areas of mineralization noted between the showings but not yet fully exposed. The mineralized unit, a syenite to monzonite, a minimum of 10 metres wide, carries green pyroxene crystals as phenocrysts up to 5 cm long, and is open along strike to both the east and west. The host rock unit appears to be generally conformable with the lithology, as it appears the veins are also. The massive veins, up to 30 cm wide, are characterized by pinch and swell structures with two parallel massive veins, separated by 5-6 m of host rock noted in the T2, T5 and T6 exposures, with other parallel zones carrying narrow veins within the host unit. Other massive veins are exposed in hand dug pits up to 30 m across strike and these may also be part of the same system indicating the mineralized unit could be much wider than now exposed.

Most of the samples have been taken from the moderately to highly radioactive, massive veins and adjacent host rock. TREE results range from 0.03 to 25% with the average of 41 outcrop/subcrop grab samples giving 5.3% including 14 samples with values 0.5%. HREE percentages ranged from 1.2 to 47.6%, averaging 11.8%, including 33 values > 10% HREE. Fifteen samples gave P2O5 values > 2% with a high of 11.6% - this is important as preliminary studies have shown that REE mineralization, with higher HREE content, is present in apatite (calcium phosphate) and apatite content should be reflected by P2O5 values. Thorium values for the radioactive, higher REE samples, are generally in the 0.2 to 0.3% range. Results for similar radioactive mineralization, on trend of the zones located, and in other areas on the property, remain pending. The higher grade mineralization, is similar to that located in the September 2010 prospecting survey which gave values averaging 5.73% TREEs, with a high value of 24%, in 31 samples taken over a 7 km strike length extending from 3 km to the west of the MP showing pit to the Pinus River, 4 km to the east of the pit (News release dated Oct. 28, 2010). The exposures will be further exposed by trenching and then channel sampled to determine the grades and widths of the occurrences.

On the MRT property, located approximately 60 km to the east along the PH trend from the original PH property, 3 significant values of 5.65, 5.96 and 10.4% TREE were located in float (2) and outcrop (1) in the southern portion of the property near the powerline where Th values were anomalous with two values > 2,000 ppm. The 5.96% outcrop sample gave a HREE percentage of 16.7% and a P2O5 value of 4.99%. In addition an area approximately 800 m in strike length in the western part of the property gives four significant TREE values ranging from 2.17% to 7.05% in limited sampling. Thorium values for the higher REE sample values are generally in the 0.1 to 0.2% range. Other samples from the area remain pending.

Four uranium values > 500 ppm U (635, 727, 881 and 1,870 ppm) were located in the southern part of the MRT property and appear unrelated to the high REE values. The highest value was float sample while the others were outcrop. Th values in these samples were a maximum of 391 ppm, giving a U/Th ratio of approximately 2-3 to 1.

Preliminary maps for the airborne radiometric, magnetic and VLF-EM survey on the Pope's Hill trend (PHT) including the PH, MRT and the PH JV, a joint venture with the Great West Minerals Group, have been received. The magnetics map the lithologies, giving excellent information on their trends and possible fault structures and the radiometrics are also useful for mapping and, using the Th data, for targeting of the regional follow up. Significant linear Th anomalies are noted in a number of locations along the PHT both between the original PH property and the MRT property and to the southwest of the original PH property. This data will be utilized, in conjunction with the regional geochemical data derived from the summer work, to define areas for follow up exploration.

Regional work has consisted of stream sediment geochemical sampling with limited prospecting carried out concurrently. A total of approximately 200 stream sediment samples have been taken at approximately 300 m intervals on streams draining the prospective areas to the north of the Churchill River and in the Pinus River area. Samples are being submitted in batches as they are taken. All results are pending. A number of radioactive zones have been noted and a number of samples have been taken from these areas. These results also remain pending.

Follow up of prospects located in the detailed and regional work and the airborne surveys will be carried out to allow trenching and drilling of targets in the late fall and early winter.

All samples are transported to the Activation Labs preparation facility in Goose Bay by SSE personnel, then shipped to their laboratory in Ancaster, ON. for analysis using their 8 REE package. Uranium analyses are carried out using ICP MS, with higher values re-run using a DNC technique. The laboratory uses internal standards to check their analyses and blanks are included in each sample batch.

Plan maps of the properties, showing the recent sample results, the airborne Th radiometric and magnetic data plus pictures showing the area, the showings and some of the higher grade samples, are shown on the Silver Spruce website at www.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, Pope's Hill JV (with Great West Minerals Group), MRT, RWM and the Straits and gold/silver projects (Big Easy, Rambler S.) 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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