Silver Spruce Resources Inc.

Silver Spruce Resources Inc.

March 29, 2006 17:10 ET

Silver Spruce Resources Inc.: $1 Million Budget for CMB Properties Contract Given for Airborne Radiometrics/Magnetics

BRIDGEWATER, NOVA SCOTIA--(CCNMatthews - March 29, 2006) - Further to its announcement of January 24th, 2006, Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FWB:S6Q) is pleased to announce that it has given a contract for approximately 10,000 line km of helicopter borne radiometrics and magnetics to Fugro Airborne Surveys of Toronto, ON. The 4,963 claims, totaling approximately 124,000 hectares or 1240 sq km, in the Central Mineral Belt (CMB) of Labrador make Silver Spruce the second largest claim holder in the CMB. The properties are being explored jointly under an agreement with Universal Uranium Ltd. (UUL), of Vancouver. Under the terms of the agreement, Universal can earn a 60-per-cent interest in the properties by spending $2-million on exploration over a three year period. Silver Spruce is the operator during the earn-in period.

The properties cover anomalous government uranium in lake sediment values ranging from 10 to 213 ppm against a background of approximately 5 ppm hosted in geological units which are favourable as hosts for uranium deposits. The sample spacing in the survey is approximately 1 sample per 5 square km.

The properties lie along strike, and in proximity to, properties held by Aurora Energy Inc. (Fronteer/Altius group), Crosshair Exploration and Mining Corp. and the Santoy - Monster Copper JV. These companies staked known uranium showings and deposits, and then carried out airborne radiometric / magnetic surveys, which resulted in the location of new uranium showings in a number of areas (company press releases - November 05 to January 06). As a result of the exploration results and the rise in price of uranium, the CMB has seen extensive claim staking and exploration over the past couple of years making it the second most active area for uranium exploration in Canada. Targets are: unconformity type uranium deposits related to sedimentary contacts; IOCG type deposits and shear hosted uranium mineralization associated with felsic volcanism, similar to the Michelin deposit of Aurora Energy.

An exploration budget of $1 M for the regional exploration has been approved by Universal. This work will consist of data compilation, the airborne radiometric / magnetic survey followed by prospecting, and sampling to evaluate targets located by the survey. Gridding, trenching and drilling will follow once targets have been defined. The field work will begin in the spring once the snow is gone and weather permits.

This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, who is a Qualified Person (QP) as defined in National Instrument 43-101.

On behalf of the Board of Directors, Gordon Barnhill, CFO and Director

The Company seeks Safe Harbour.

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

Contact Information

  • Silver Spruce Resources Inc.
    Gordon Barnhill, CFO and Director
    (902) 527-5700
    (902) 527-5711 (FAX)