October 29, 2009
Highlights
- Two grab samples with values of 1120 and 513 ppm, (2.23 and 1.03 lbs / ton) U3O8
- host is a sheared felsic volcanic or tuff unit, similar to the Aillik Group, host for the Michelin deposit
- road accessible with power line crossing property
October 29, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has optioned two properties consisting of 60 claims in three licences, located in the Smallwood reservoir area of western Newfoundland from two Innu prospectors, Jean Pierre Ashini and Raphael Riche. The terms of the option agreement are subject to the approval of the TSXV. The grassroots properties cover anomalous uranium in lake sediment values possibly associated with structurally related uranium mineralization in felsic volcanic and intrusive units. Uranium mineralization was discovered by Jean Pierre in the felsic volcanics / tuffs, during prospecting supported by Silver Spruce. The option agreement has the following terms:
To earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M:
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.
The properties are located in the Smallwood Reservoir area in western Labrador. They are road accessible via the Lobstick Road which cuts across the area and provides access to the various dams associated with the Reservoir. A powerline also extends through the area and a communication tower is located in the area of the showing.
The company, with the agreement of the prospectors, has staked 117 claims in three licences over the area of the original discovery and felsic volcanic units associated with structures. These claims form part of the option agreement and are subject to all conditions of the agreement. The claims staked by the prospectors, cover areas of anomalous uranium in lake sediments as shown on government surveys, associated with structures and felsic volcanic / tuffs and/or intrusive units.
The area lies outside of the area subject to the Nunatsiavut Government moratorium on uranium mine development, in lands subject to the Innu of Labrador, land claim.
The host units are the Blueberry Lake Group of Helikian age, which are described as felsic volcanic rocks, primarily rhyolite and rhyodacite; basic to intermediate flows and tuffs; felsic crystal and crystal lithic tuffs with minor volcanic breccia; tuffaceous sandstone, siltstone and greywacke, minor phyllite and slate; polymictic conglomerate and latite porphyry. These units are coeval, or just underlie, the Sims Formation, which consists of arkose and orthoquartzite, and which is believed to be related to basin infilling in the Helikian, a similar geological setting to that of the Athabasca Basin of Saskatchewan.
The geological setting of the showing is considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt of Labrador, in that it is uranium mineralization in foliated felsic volcanic or tuff unit associated with shearing. Minor disseminated pyrite and a grey metallic are noted in the mineralized unit.
Two grab samples taken by the prospectors, that showed yellow uranophane staining and gave field scintillometer readings up to 4,500 cps, were analyzed for uranium using an ICP technique. Values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8 with elevated lead (379 and 245 ppm), and weakly anomalous silver (1.3 and 0.6 ppm) were noted. Uranium /Thorium ratios were in the 9 to 10:1 range. A due diligence evaluation of the showing was carried out in mid October. Snow conditions prevented an extensive evaluation however grab samples, and a 1 m channel sample in the felsic unit, 20 m to the east of the original anomalous grab samples were taken. These have been submitted to the laboratory for analysis with results to be reported when received.
Lloyd Hillier, President of Silver Spruce comments: "This uranium showing is a new discovery in an area which has received little uranium exploration. Although this is a grassroots property, we are encouraged by the similarities of the geological setting to that of the Michelin deposit, one of the largest undeveloped uranium deposits in the world, and the fact that the project area is road accessible, thereby making cost efficient exploration and development possible."
Compilation of data has begun and will continue over the winter months with field exploration to begin once the snow conditions permit. Analyses were carried out at Activation Laboratories in Ancaster, ON after sample preparation at the Goose Bay, NL preparation facility. Samples were analysed by an ICP technique which gives good results for uranium values up to 1000 ppm. Samples with U values > 1000 ppm are re-run using a neutron activation technique (INAA) for more precise results. A compilation map of the property can be viewed on the company website at www.silverspruceresources.com.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company with advanced gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland. The company was originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada and with continued interests in more than 6,000 claims totaling more than 1,500 square kilometers in Labrador, Silver Spruce remains the second largest landholder in one of the world's premier emerging uranium districts. This diversity makes Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
SILVER SPRUCE RESOURCES
HEAD OFFICE
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@silverspruceresources.com
Web: www.silverspruceresources.com
INVESTOR RELATIONS
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
E-mail: hugh@ascentacapital.com
Web: www.ascentacapital.com
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- Two grab samples with values of 1120 and 513 ppm, (2.23 and 1.03 lbs / ton) U3O8
- host is a sheared felsic volcanic or tuff unit, similar to the Aillik Group, host for the Michelin deposit
- road accessible with power line crossing property
October 29, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has optioned two properties consisting of 60 claims in three licences, located in the Smallwood reservoir area of western Newfoundland from two Innu prospectors, Jean Pierre Ashini and Raphael Riche. The terms of the option agreement are subject to the approval of the TSXV. The grassroots properties cover anomalous uranium in lake sediment values possibly associated with structurally related uranium mineralization in felsic volcanic and intrusive units. Uranium mineralization was discovered by Jean Pierre in the felsic volcanics / tuffs, during prospecting supported by Silver Spruce. The option agreement has the following terms:
To earn a 100% interest subject to a 2.0% NSR with a 1.0% buyback for $1.0M:
| Cash | Shares | |
| On signing: | 200,000 | |
| 1st anniversary | $20,000 | 200,000 |
| 2nd Anniversary | $20,000 | 200,000 |
| Totals | $40,000 | 600,000 |
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $10,000 per year, is payable from the 4th anniversary on.
The properties are located in the Smallwood Reservoir area in western Labrador. They are road accessible via the Lobstick Road which cuts across the area and provides access to the various dams associated with the Reservoir. A powerline also extends through the area and a communication tower is located in the area of the showing.
The company, with the agreement of the prospectors, has staked 117 claims in three licences over the area of the original discovery and felsic volcanic units associated with structures. These claims form part of the option agreement and are subject to all conditions of the agreement. The claims staked by the prospectors, cover areas of anomalous uranium in lake sediments as shown on government surveys, associated with structures and felsic volcanic / tuffs and/or intrusive units.
The area lies outside of the area subject to the Nunatsiavut Government moratorium on uranium mine development, in lands subject to the Innu of Labrador, land claim.
The host units are the Blueberry Lake Group of Helikian age, which are described as felsic volcanic rocks, primarily rhyolite and rhyodacite; basic to intermediate flows and tuffs; felsic crystal and crystal lithic tuffs with minor volcanic breccia; tuffaceous sandstone, siltstone and greywacke, minor phyllite and slate; polymictic conglomerate and latite porphyry. These units are coeval, or just underlie, the Sims Formation, which consists of arkose and orthoquartzite, and which is believed to be related to basin infilling in the Helikian, a similar geological setting to that of the Athabasca Basin of Saskatchewan.
The geological setting of the showing is considered to be similar to that of the Michelin deposit of Fronteer Development in the Central Mineral Belt of Labrador, in that it is uranium mineralization in foliated felsic volcanic or tuff unit associated with shearing. Minor disseminated pyrite and a grey metallic are noted in the mineralized unit.
Two grab samples taken by the prospectors, that showed yellow uranophane staining and gave field scintillometer readings up to 4,500 cps, were analyzed for uranium using an ICP technique. Values of 1,120 ppm (2.23 lbs / ton) and 513 ppm (1.03 lbs / ton) U3O8 with elevated lead (379 and 245 ppm), and weakly anomalous silver (1.3 and 0.6 ppm) were noted. Uranium /Thorium ratios were in the 9 to 10:1 range. A due diligence evaluation of the showing was carried out in mid October. Snow conditions prevented an extensive evaluation however grab samples, and a 1 m channel sample in the felsic unit, 20 m to the east of the original anomalous grab samples were taken. These have been submitted to the laboratory for analysis with results to be reported when received.
Lloyd Hillier, President of Silver Spruce comments: "This uranium showing is a new discovery in an area which has received little uranium exploration. Although this is a grassroots property, we are encouraged by the similarities of the geological setting to that of the Michelin deposit, one of the largest undeveloped uranium deposits in the world, and the fact that the project area is road accessible, thereby making cost efficient exploration and development possible."
Compilation of data has begun and will continue over the winter months with field exploration to begin once the snow conditions permit. Analyses were carried out at Activation Laboratories in Ancaster, ON after sample preparation at the Goose Bay, NL preparation facility. Samples were analysed by an ICP technique which gives good results for uranium values up to 1000 ppm. Samples with U values > 1000 ppm are re-run using a neutron activation technique (INAA) for more precise results. A compilation map of the property can be viewed on the company website at www.silverspruceresources.com.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company with advanced gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland. The company was originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada and with continued interests in more than 6,000 claims totaling more than 1,500 square kilometers in Labrador, Silver Spruce remains the second largest landholder in one of the world's premier emerging uranium districts. This diversity makes Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
SILVER SPRUCE RESOURCES
HEAD OFFICE
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@silverspruceresources.com
Web: www.silverspruceresources.com
INVESTOR RELATIONS
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
E-mail: hugh@ascentacapital.com
Web: www.ascentacapital.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.
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