Silver Spruce Resources Inc.
TSX VENTURE : SSE

Silver Spruce Resources Inc.

August 28, 2012 07:00 ET

Silver Spruce Reports on Central Mineral Belt, Labrador Uranium Holdings

Highlights

- Crosshair Energy reports continuation of Two Time zone, where Silver Spruce retains a 2% NSR, within 50 m of the north boundary of the 100%-owned, Snegamook property

BRIDGEWATER, NOVA SCOTIA--(Marketwire - Aug. 28, 2012) - Silver Spruce Resources Inc. (TSX VENTURE:SSE) is pleased to update shareholders on results recently released by Crosshair Energy Corporation on the former Central Mineral Belt Joint Venture (CMBJV) properties on which Silver Spruce holds a 2% Net Smelter Return (NSR).

Crosshair reported on August 22, 2012 that drilling on the Two Time deposit, on the CMB Northwest (NW) property, intersected mineralization at the expected depth over a significant interval (see results below), indicating the deposit is continuous to the south along strike and down dip. Drill hole CMB-12-49 is a 50m step out to the south from previous holes that were last drilled in 2011, lying approximately 50 m to the north of the north boundary of the Snegamook property, which is owned 100% by Silver Spruce.

Hole ID From
(m)
To
(m)
Interval
(m)
U3O8%
CMB-12-49 492.5 521.0 28.5 0.031
including 494.0 498.0 4.0 0.051
and 513.5 516.5 3.0 0.074

Silver Spruce holds a 2% NSR on the CMBJV properties and the Two Time deposit, discovered by Silver Spruce in 2006/07. It hosts a NI 43-101 indicated resource of 2.33 million lbs (1.82 MT at 0.058% U3O8) and an additional inferred resource of 3.73 million lbs (3.16 MT grading 0.053% U3O8). The CMBNW property is contiguous with both the Snegamook and A7 properties owned 100% by Silver Spruce (see map on website for property positions). The Snegamook property hosts a number of uranium showings, including the Snegamook zone on strike to the south of the Two Time zone, as well as the Near Miss prospect. At the Snegamook zone, 17 drill holes intersected a 20 to 50 m wide section of uranium mineralization in the the same geological setting as the Two Time zone, over a strike length of 300 m and to a vertical depth of 200 m. The Anomaly 7 (A7) uranium property purchased from Virginia Energy Resources Inc. in August 2012 (news release dated August 7, 2012) hosts a number of significant uranium showings, including the Anomaly 7 (A7) and the Fishhawk Lake South (FHLS), with drill intersections of 0.13% U3O8 / 23.4 m, including 0.25% / 9.7 m on the A7 and 0.063% U3O8 / 27.9 m, including 0.18% / 4.5 m and 0.106% / 9.9 m in DDH FHLS-07-3 on the FHLS.

A claim map showing the property position and the various showings on the property and in the area is available on the Silver Spruce website at www.silverspruceresources.com.

This release has been approved by Peter M. Dimmell, P.Geo., President & 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 gold/silver (Big Easy), uranium [Snegamook, A7, Double Mer, Mount Benedict, CMBJV (NSR)] and rare earth [Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits] in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 km2 in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For additional information, please visit the company's website - www.silverspruceresources.com.

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. The company seeks Safe Harbour.

Contact Information

  • For further information:
    Gordon Barnhill, CFO & Director
    Silver Spruce Resources Inc.
    902.527.5700
    902.527.5711 (FAX)
    gbarnhill@silverspruceresources.com

    For investor and media relations:
    Paul Snow
    Pilot Communications Inc.
    709.753.0794 ext. 31
    709.753.0795 (FAX)
    psnow@pilotcom.ca