- Significant REE and U mineralization noted in different areas in limited exploration
- 0.4% TREO/7.8 m, including 4.33% TREO over 0.5 m in Trenching
- Values to 0.83 % U3O8 with five values > 0.12 % U3O8 in outcrop/float grab samples
Bridgewater NS, Canada -- March 15, 2012/Marketwire - Silver Spruce Resources Inc. (TSXV:SSE) is pleased to announce that it is continuing itsoption on the road-accessible MRT, Rare Earth Element (REE) and Uranium (U) property on the Trans-Labrador Highway (TLH) in southern Labrador, located approximately 35 km from Goose Bay. Terms of the agreement to earn a 100% interest subject to a 2.5% NSR with a buyback of 1.5% for $1.5M, are a total of $80,000 cash, 500,000 shares and a work commitment of $250,000 by the end of the second year. The second year option payment of $25,000 and 150,000 shares was made to the vendor in late February.
The company has carried out regional exploration including prospecting, stream sediment geochemistry, soil geochemistry and an airborne radiometric/magnetic/VLF-EM survey since the option in the winter of 2011. Results indicate a significant area of REE mineralization in the southwestern portion of the group and a non-coincident area of Uranium mineralization in the southeastern portion of the property.
“With encouraging results for both REE and Uranium mineralization, based on relatively limited exploration, we are continuing the option on this property” stated Peter Dimmell, President and CEO of Silver Spruce Resources. “We believe the Pope’s Hill REE Trend is a district-scale REE project and the high Uranium values, which do not appear to be associated with the REE mineralization, have provided us with an added incentive to move forward with expanded exploration plans in the area during 2012.”
REE -- Prospecting, stream sediment and soil geochemistry have defined a 2 km2 area in the southwestern portion of the property as being prospective for REE mineralization. TREE values up to 10.4% were located in outcrop and float in this area (NR Aug. 9/11). Trenching tested two REE mineralized areas, approximately 75 m apart, in the southern area of the property, where TREE values up to 6.9% were located in bedrock during prospecting surveys (NR Aug. 9/11). Eighty (80) channel samples were taken in the two trenches over widths varying from 0.2 to 2 m. Anomalous REE zones are associated with allanite mineralization in pyroxene rich pegmatitic units. The most significant value was 4.33% TREO over 0.5 m in Trench #2 in a zone than ran 0.4% TREO over 7.8 m. HREO values were low ranging from 1.4 to 6.4% of TREO. Th values are generally 100-200 ppm with a high value of 1000 ppm (0.1 %) noted. True widths of the zones are estimated to be close to the sampled widths in these near vertically dipping units.
U - Three outcrop samples acquired in areas of higher radioactivity in January 2011, gave values of 0.825% U3O8, 930 ppm Th; 234 ppm U (0.027% U3O8), 72 ppm Th; and 744 ppm U (0.088% U3O8), 288 ppm Th with U/Th ratios varying from 8 to 3 (NR Feb. 17/11). Seven prospecting grab samples, taken during exploration for REE mineralization, in the summer of 2011, gave values > 0.05 % U (0.059 % U3O8) or 1 lb/tonne, including four >0.1% U (0.12 % U3O8) or 2 lbs/tonne (NR Sept. 13/11). All samples were acquired in the southern part of the property over a 2 km long trend, along and to the north of the power line and are not coincident with the high REE values. No follow up has been carried out on the Uranium mineralization as emphasis was placed on the REE. Follow up is planned for 2012 since Uranium prices appear to be poised for a significant price increase and the Uranium mineralization is located less than 1 km from the TLH.
All samples were transported to 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 which includes U and Th, for rock and channel samples and their 1D enhanced package for streams and soils. The laboratory uses internal standards to check the analyses and blanks are included in each sample batch. Plan maps showing a compilation including the trenching and the airborne thorium radiometric and magnetic data, the uranium values and pictures of the area are available 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 Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of rare earth (Pope’s Hill, Pope’s Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term, uranium (CMBJV, Snegamook, Double Mer, Mount Benedict), projects in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For more information go to www.silverspruceresources.com
The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this release.
The company seeks Safe Harbour.
For further information contact:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
For investor & media relations contact:
Pilot Communications Inc.
Phone: 709.753.0794 ext 31