September 9, 2008
Highlights
Drill hole MBS7-08-5 intersected uranium mineralization in a 66 meter wide, northeast trending, mylonite zone. Two separate mineralized zones were noted: 5 to 32 meters (27 meters) at 138 ppm U308 and 44 to 66 meters (22 meters) at 278 ppm U308. The zones are separated by a 12 meter wide, barren, mylonitized felsic unit. The zone is a highly altered (hematite/carbonate/chlorite silicification), mylonitized, sheared to brecciated, hematized felsic intrusive or volcanic unit. An eight meter wide, higher grade section, from 51 to 59 meters graded 444 ppm U308. Orientation and true thickness cannot be determined at this time. Geological mapping indicates a minimum strike length of 300 meters that remains open along strike to the northeast and southwest. Radon gas surveys give strong anomalies over a minimum 750 meter strike length coincident with the trend of the zone. The style of mineralization is similar to the AT-649 prospect, where bedrock and float samples gave U308 values ranging from 0.1 to >3% U308. The mineralization is developed along a major northeast trending structure where uranium mineralization occurs in the highly sheared/brecciated to mylonitic host rocks. This structure trends through and is associated with the AT-649 mineralization.
Hole MBS7-08-4, which targeted specialized granites, intersected a three meter wide, sheared, biotite rich zone, from 14 to 17 meters that gave 520 ppm U308. Hole MBS7-08-3 intersected minor uranium mineralization with a best intersection of one meter of 316 ppm U3O8 from 44 to 45 meters.
Drill hole MBS7-08-6 intersected significant base metal mineralization, collaring in a brecciated to sheared leucogranite with coarse disseminated galena, sphalerite, pyrite and purple fluorite before passing into a more biotite rich phase of granite at 4.5 meters down hole. Base and precious metal assay results are pending; however, preliminary 30 element results indicate a two meter section with >0.5% lead and minor zinc and copper.
No significant uranium mineralization was encountered in holes MBS7-08-1 and 2, which targeted mineralization in specialized granites/leuco-granites; drill hole MBS7-08-6, which tested an outcrop occurrence which had given uranium values up to 0.87% U308; and drill hole MBS7-08-7, which tested a narrow mylonite zone that had given bedrock grab sample values of >1% U3O8. Hole 6 does not appear to have tested the surface showing as it was offset and off angle due to set-up constraints in winter conditions (snow).
Exploration in the AT-649 and T Super 7 area, including prospecting, geological, geochemical, geophysical and radon gas surveys is aimed at identifying drill targets along the intrusive contacts and the major mylonite zones. The property has not had any modern exploration and the potential for high grade mineralization is apparent from the limited surface sampling at the AT-649 Zone where five grab samples gave an average of 0.5% U3O8.
"With the discovery of uranium mineralization on both the AT-649 and the T Super 7 showings, approximately 4.5 kilometres apart, we have confirmed a new uranium mineralized system that supports the potential for a major uranium deposit on the Mount Benedict property," states Mr. Lloyd Hillier, President and CEO of Silver Spruce. "We are confident that with more exploration and drilling we will find high grade zones along this mineralized corridor."
Results for the 2007prospecting and stream sediment surveys and maps showing the drilling on the T Super 7 and AT-649 zones can be viewed on the company's website: www.silverspruceresources.com.
ABOUT THE MOUNT BENEDICT PROPERTY
The Mount Benedict Property is a large contiguous block of 4,057 claims (1,014 square kilometers), located 30 to 70 kilometers southeast of Makkovik. The property covers, in part (10% to 15%), Labrador Inuit Lands (LIL), which are controlled by the Nunatsiavut government. The remaining 85% of the property in on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and Newfoundland governments. The Mount Benedict claims are 100% owned by Silver Spruce, subject to a 1.0% NSR on production from 532 of the original 1,024 claims.
ABOUT SILVER SPRUCE RESOURCES
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 11,000 claims totaling more than 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador gives diversification without losing a uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.
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.
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
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
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- Uranium mineralization intersected in the T Super 7 area; values to 444 ppm U308 over 8 meters
- Three of seven shallow drill holes intersect uranium mineralization associated with structures and/or specialized granites
Drill hole MBS7-08-5 intersected uranium mineralization in a 66 meter wide, northeast trending, mylonite zone. Two separate mineralized zones were noted: 5 to 32 meters (27 meters) at 138 ppm U308 and 44 to 66 meters (22 meters) at 278 ppm U308. The zones are separated by a 12 meter wide, barren, mylonitized felsic unit. The zone is a highly altered (hematite/carbonate/chlorite silicification), mylonitized, sheared to brecciated, hematized felsic intrusive or volcanic unit. An eight meter wide, higher grade section, from 51 to 59 meters graded 444 ppm U308. Orientation and true thickness cannot be determined at this time. Geological mapping indicates a minimum strike length of 300 meters that remains open along strike to the northeast and southwest. Radon gas surveys give strong anomalies over a minimum 750 meter strike length coincident with the trend of the zone. The style of mineralization is similar to the AT-649 prospect, where bedrock and float samples gave U308 values ranging from 0.1 to >3% U308. The mineralization is developed along a major northeast trending structure where uranium mineralization occurs in the highly sheared/brecciated to mylonitic host rocks. This structure trends through and is associated with the AT-649 mineralization.
Hole MBS7-08-4, which targeted specialized granites, intersected a three meter wide, sheared, biotite rich zone, from 14 to 17 meters that gave 520 ppm U308. Hole MBS7-08-3 intersected minor uranium mineralization with a best intersection of one meter of 316 ppm U3O8 from 44 to 45 meters.
Drill hole MBS7-08-6 intersected significant base metal mineralization, collaring in a brecciated to sheared leucogranite with coarse disseminated galena, sphalerite, pyrite and purple fluorite before passing into a more biotite rich phase of granite at 4.5 meters down hole. Base and precious metal assay results are pending; however, preliminary 30 element results indicate a two meter section with >0.5% lead and minor zinc and copper.
No significant uranium mineralization was encountered in holes MBS7-08-1 and 2, which targeted mineralization in specialized granites/leuco-granites; drill hole MBS7-08-6, which tested an outcrop occurrence which had given uranium values up to 0.87% U308; and drill hole MBS7-08-7, which tested a narrow mylonite zone that had given bedrock grab sample values of >1% U3O8. Hole 6 does not appear to have tested the surface showing as it was offset and off angle due to set-up constraints in winter conditions (snow).
Exploration in the AT-649 and T Super 7 area, including prospecting, geological, geochemical, geophysical and radon gas surveys is aimed at identifying drill targets along the intrusive contacts and the major mylonite zones. The property has not had any modern exploration and the potential for high grade mineralization is apparent from the limited surface sampling at the AT-649 Zone where five grab samples gave an average of 0.5% U3O8.
"With the discovery of uranium mineralization on both the AT-649 and the T Super 7 showings, approximately 4.5 kilometres apart, we have confirmed a new uranium mineralized system that supports the potential for a major uranium deposit on the Mount Benedict property," states Mr. Lloyd Hillier, President and CEO of Silver Spruce. "We are confident that with more exploration and drilling we will find high grade zones along this mineralized corridor."
Results for the 2007prospecting and stream sediment surveys and maps showing the drilling on the T Super 7 and AT-649 zones can be viewed on the company's website: www.silverspruceresources.com.
ABOUT THE MOUNT BENEDICT PROPERTY
The Mount Benedict Property is a large contiguous block of 4,057 claims (1,014 square kilometers), located 30 to 70 kilometers southeast of Makkovik. The property covers, in part (10% to 15%), Labrador Inuit Lands (LIL), which are controlled by the Nunatsiavut government. The remaining 85% of the property in on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and Newfoundland governments. The Mount Benedict claims are 100% owned by Silver Spruce, subject to a 1.0% NSR on production from 532 of the original 1,024 claims.
ABOUT SILVER SPRUCE RESOURCES
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 11,000 claims totaling more than 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador gives diversification without losing a uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.
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.
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
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
