April 11, 2007
Highlights
- Wide zone of uranium mineralization intersected -- 147 m of 0.041% (0.82 lbs/ton) U3O8
- Higher grade intersections -- 11 m at 0.11% (2.2 lbs/ton) and 7 m at 0.12% (2.4 lbs/ton) U3O8
April 11, 2007, Bridgewater, NS / Vancouver, BC --- Silver Spruce Resources Inc. (TSXV: SSE; Frankfurt: S6Q) and Universal Uranium Ltd. (TSXV: UUL) are pleased to announce that further drilling at the Two Time Zone has expanded the wide zone of uranium mineralization reported in the March 1, 2007 press release. The second phase of drilling consisted of six holes totaling 2,442 meters and the results indicate that the previously discovered zone is potentially much larger than originally anticipated. A total of 3,254 meters have been drilled since December 2006.
The phase two drill program targeted the Two Time Zone, a radioactive anomaly located on the CMBNW claim block, to the east of Snegamook Lake in central Labrador. Drill hole CMB-07-12, which targeted an area 50 m below the wide mineralized intersection in CMB-07-06 (107 m of 0.052% U3O8), intersected 147 m of 0.041% U3O8 including two intersections grading over 0.1% U3O8 : 0.11% over 11 m and 0.12% over 7 m. These mineralized intersections are the deepest to date and indicate the zone has good continuity to depth. Mineralization is hosted in an altered, brecciated and fractured, felsic intrusive of monzonitic to monzodioritic composition which carries extensive hematite, chlorite, and carbonate. The zone appears similar to large, iron oxide copper gold (IOCG) style, uranium rich, hematite breccia deposits such as the Olympic Dam deposit in Australia, the world's largest uranium deposit.
"We're excited by the wide mineralized intersections," stated Lloyd Hillier, President and CEO of Silver Spruce. "These latest results indicate the likelihood of an extensive, large, uranium deposit in the area."
The Two Time Zone has been traced over a 300 meter plus strike length, by prospecting and near surface drilling, from the cliff (discovery) zone near 2+75 N, through CMB-06-1 at 2+25 N, which gave 15.8 m of 0.033% U3O8, to CMB-06-2 near 1+25 N which gave 71.5 m of 0.015% U3O8 to 0+50 S, where CMB-06-5 gave 59.2 m of 0.024% U3O8. It appears to narrow to the north, based on the results from CMB-06-1 but remains open. Two holes in the second phase drilling, CMB-07-10, located 75 m to the north of CMB-07-06 and 12 near 0+25 N, intersected 35 m of 0.026% U3O8 including a 4 m section of 0.104% U3O8. DDH CMB-07-11, also on 0+25 N, which targeted the zone 50 m below CMB-07-10, intersected a 35 m zone giving 0.034% U3O8, but was terminated at 298 m just prior to intersecting the higher grade, main target zone, due to unfavorable ground conditions.
The zone appears to be near vertical to steeply dipping to the east at 75 to 80 degrees, indicating that drill intersections are probably two thirds true width. Further infill drilling is required to accurately determine the true width of the zone.
Modeling of the drill hole data with Surpac Xplorpac shows the uranium zone has excellent strike and depth continuity and is open along strike and to depth. It also indicates a number of dextral, normal faults that have offset the zone along strike, including to the south where DDH CMB-07-7 did not intersect the mineralized zone although it did encounter uranium values (5 m of 0.061% U3O8) in a fault/shear structure. The mineralization appears to be stronger in the southern part of the zone, where it appears to be offset to the west. Anomalous soil and lake bottom geochemistry indicate the zone may continue to the south under a small pond.
A possible mineralized zone has been located approximately 2.5 km to the east-northeast of the Two Time zone by prospecting. The HF occurrence, an angular boulder giving a value of 0.114% U3O8, was located in a stream just below a pond during the fall prospecting/stream sediment sampling survey. Gridding and ground follow up is planned for this area as soon as field conditions permit.
A detailed lake sediment sampling survey is being carried out on the CMBNW property during the winter. This survey is designed to better localize anomalous areas for ground follow up in the summer program. Results will be released when they are received.
As a result of the positive results from the Phase II drilling on the Two Time zone, the JV partners have called for bids for an 8,000 meter drill contract to further define the Two Time Zone along strike and to depth. The drilling is also planned to allow testing of other areas of mineralization as they are defined, such as the newly discovered HF occurrence to the northeast. The drilling is planned to begin in late April to early May. In addition, line cutting, geochemical, geophysical, geological mapping and prospecting surveys will begin as soon as conditions permit, to aid in the delineation of the Two Time zone and other undiscovered/unevaluated zones in the area.
Selected analytical values for the drilling are shown in the table below. A plan map of the drilling to date, a section through DDHs 5, 6 and 12, and a plan showing proposed work areas on the CMBNW property for the summer of 2007 are shown on Silver Spruce's and Universal Uranium's websites.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. A large-scale exploration program on the company's properties in the summer of 2006 resulted in the first uranium discovery in October from early stage follow up of the airborne surveys. With experienced partners and strong financial backing, Silver Spruce is emerging as a leading uranium explorer in Labrador.
ABOUT UNIVERSAL URANIUM
Universal Uranium Ltd. (TSXV: UUL) is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. The Company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.
For Further Information Contact:
Head Office
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@sse-tsx.com
Web: www.silverspruceresouces.com
Investor Relations
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 231
Toll Free: 1.866.684.4743 ext. 231
E-mail: keir@ascentacapital.com
Web: www.ascentacapital.com
Sean Charland, Longview Capital Partners Inc.
Phone: 604.681.5755 ext. 291
E-mail: scharland@longviewcp.com
Web: www.longviewcp.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. Silver Spruce seeks safe harbour.
All core showing significant scintillometer values was cut and analyzed. Core samples were halved by sawing on site, with one half sent for analysis and the other half retained for further study. Analyses were performed by Activation Laboratories in Ancaster, Ontario, an approved, accredited laboratory, using the delayed neutron activation technique, which gives accurate results for samples carrying up to one percent uranium.
- Wide zone of uranium mineralization intersected -- 147 m of 0.041% (0.82 lbs/ton) U3O8
- Higher grade intersections -- 11 m at 0.11% (2.2 lbs/ton) and 7 m at 0.12% (2.4 lbs/ton) U3O8
April 11, 2007, Bridgewater, NS / Vancouver, BC --- Silver Spruce Resources Inc. (TSXV: SSE; Frankfurt: S6Q) and Universal Uranium Ltd. (TSXV: UUL) are pleased to announce that further drilling at the Two Time Zone has expanded the wide zone of uranium mineralization reported in the March 1, 2007 press release. The second phase of drilling consisted of six holes totaling 2,442 meters and the results indicate that the previously discovered zone is potentially much larger than originally anticipated. A total of 3,254 meters have been drilled since December 2006.
The phase two drill program targeted the Two Time Zone, a radioactive anomaly located on the CMBNW claim block, to the east of Snegamook Lake in central Labrador. Drill hole CMB-07-12, which targeted an area 50 m below the wide mineralized intersection in CMB-07-06 (107 m of 0.052% U3O8), intersected 147 m of 0.041% U3O8 including two intersections grading over 0.1% U3O8 : 0.11% over 11 m and 0.12% over 7 m. These mineralized intersections are the deepest to date and indicate the zone has good continuity to depth. Mineralization is hosted in an altered, brecciated and fractured, felsic intrusive of monzonitic to monzodioritic composition which carries extensive hematite, chlorite, and carbonate. The zone appears similar to large, iron oxide copper gold (IOCG) style, uranium rich, hematite breccia deposits such as the Olympic Dam deposit in Australia, the world's largest uranium deposit.
"We're excited by the wide mineralized intersections," stated Lloyd Hillier, President and CEO of Silver Spruce. "These latest results indicate the likelihood of an extensive, large, uranium deposit in the area."
The Two Time Zone has been traced over a 300 meter plus strike length, by prospecting and near surface drilling, from the cliff (discovery) zone near 2+75 N, through CMB-06-1 at 2+25 N, which gave 15.8 m of 0.033% U3O8, to CMB-06-2 near 1+25 N which gave 71.5 m of 0.015% U3O8 to 0+50 S, where CMB-06-5 gave 59.2 m of 0.024% U3O8. It appears to narrow to the north, based on the results from CMB-06-1 but remains open. Two holes in the second phase drilling, CMB-07-10, located 75 m to the north of CMB-07-06 and 12 near 0+25 N, intersected 35 m of 0.026% U3O8 including a 4 m section of 0.104% U3O8. DDH CMB-07-11, also on 0+25 N, which targeted the zone 50 m below CMB-07-10, intersected a 35 m zone giving 0.034% U3O8, but was terminated at 298 m just prior to intersecting the higher grade, main target zone, due to unfavorable ground conditions.
The zone appears to be near vertical to steeply dipping to the east at 75 to 80 degrees, indicating that drill intersections are probably two thirds true width. Further infill drilling is required to accurately determine the true width of the zone.
Modeling of the drill hole data with Surpac Xplorpac shows the uranium zone has excellent strike and depth continuity and is open along strike and to depth. It also indicates a number of dextral, normal faults that have offset the zone along strike, including to the south where DDH CMB-07-7 did not intersect the mineralized zone although it did encounter uranium values (5 m of 0.061% U3O8) in a fault/shear structure. The mineralization appears to be stronger in the southern part of the zone, where it appears to be offset to the west. Anomalous soil and lake bottom geochemistry indicate the zone may continue to the south under a small pond.
A possible mineralized zone has been located approximately 2.5 km to the east-northeast of the Two Time zone by prospecting. The HF occurrence, an angular boulder giving a value of 0.114% U3O8, was located in a stream just below a pond during the fall prospecting/stream sediment sampling survey. Gridding and ground follow up is planned for this area as soon as field conditions permit.
A detailed lake sediment sampling survey is being carried out on the CMBNW property during the winter. This survey is designed to better localize anomalous areas for ground follow up in the summer program. Results will be released when they are received.
As a result of the positive results from the Phase II drilling on the Two Time zone, the JV partners have called for bids for an 8,000 meter drill contract to further define the Two Time Zone along strike and to depth. The drilling is also planned to allow testing of other areas of mineralization as they are defined, such as the newly discovered HF occurrence to the northeast. The drilling is planned to begin in late April to early May. In addition, line cutting, geochemical, geophysical, geological mapping and prospecting surveys will begin as soon as conditions permit, to aid in the delineation of the Two Time zone and other undiscovered/unevaluated zones in the area.
Selected analytical values for the drilling are shown in the table below. A plan map of the drilling to date, a section through DDHs 5, 6 and 12, and a plan showing proposed work areas on the CMBNW property for the summer of 2007 are shown on Silver Spruce's and Universal Uranium's websites.
This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. A large-scale exploration program on the company's properties in the summer of 2006 resulted in the first uranium discovery in October from early stage follow up of the airborne surveys. With experienced partners and strong financial backing, Silver Spruce is emerging as a leading uranium explorer in Labrador.
ABOUT UNIVERSAL URANIUM
Universal Uranium Ltd. (TSXV: UUL) is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. The Company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.
For Further Information Contact:
Head Office
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@sse-tsx.com
Web: www.silverspruceresouces.com
Investor Relations
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 231
Toll Free: 1.866.684.4743 ext. 231
E-mail: keir@ascentacapital.com
Web: www.ascentacapital.com
Sean Charland, Longview Capital Partners Inc.
Phone: 604.681.5755 ext. 291
E-mail: scharland@longviewcp.com
Web: www.longviewcp.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. Silver Spruce seeks safe harbour.
TABLE 1
SELECTED ANALYTICAL RESULTS
Diamond Drilling - CMBNW Property - Two Time Showing
--------------------------------------------------------------
DDH # From To Length U3O8
CMB-07- m % lbs/ton
--------------------------------------------------------------
07 207.0 212.0 5.0 0.061 1.22
incl. 208.0 211.0 3.0 0.097 1.94
--------------------------------------------------------------
08 - lost in overburden
---------------------------------------------------------------
08A 281.0 300.0 19.0 0.021 0.42
---------------------------------------------------------------
09 123.0 132.0 9.0 0.021 0.42
---------------------------------------------------------------
10 163.0 198.0 35.0 0.026 0.52
incl. 192.0 196.0 4.0 0.104 2.08
---------------------------------------------------------------
11 231.0 266.0 35.0 0.034 0.68
incl. 242.0 257.0 15.0 0.044 0.88
Target zone at 268.5 m intruded by mafic dyke, hole lost at
297.8 m, due to bad ground conditionsTarget zone at 268.5 m
intruded by mafic dyke, hole lost at 297.8 m, due to bad ground
conditions
---------------------------------------------------------------
12 232.0 379.0 147.0 0.04 0.82
incl. 232.0 320.0 88.0 0.05 1.02
incl. 262.0 306.0 44.0 0.07 1.40
incl. 266.0 277.0 11.0 0.11 2.20
incl..299.0 306.0 7.0 0.12 2.40
---------------------------------------------------------------
All core showing significant scintillometer values was cut and analyzed. Core samples were halved by sawing on site, with one half sent for analysis and the other half retained for further study. Analyses were performed by Activation Laboratories in Ancaster, Ontario, an approved, accredited laboratory, using the delayed neutron activation technique, which gives accurate results for samples carrying up to one percent uranium.
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