Silver Spruce Resources Inc V.SSE

Silver Spruce Reports on REE / U Properties in Lab

[eppes]

September 30, 2010
Silver Spruce Reports on REE / U Properties in Labrador


Highlights
- anomalous values in REEs from both Pope's Hill and RWM properties from due diligence sampling by RA
- airborne radiometric / magnetic survey on RWM by RA shows strong radioactive zones
- thirty nine rock samples taken by SSE on Pope's Hill property - results pending
- follow up exploration started on Lobstick U property
September 30, 2010 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce the results of due diligence exploration carried out by Rare Earth Minerals (TSXV:RA) on the company's Pope's Hill (PH) and RWM rare earth element (REE) properties in Labrador and the start of follow up exploration by SSE personnel on the Pope's Hill and Lobstick properties. The company signed a confidentiality agreement (CA) with RA for due diligence and possible option on the PH and RWM properties in June (News Release June 22, 2010). The RWM property covers the second highest heavy rare earth element (HREE) lake sediment value in Labrador on record. The properties are 100% owned by Silver Spruce (News Release May 6, 2010).
Pope's Hill (PH)
The property consists of 62 claims (1,550 ha) located in the Pope's Hill area along the Trans Labrador Highway (TLH). Rock samples taken in 2006 gave values up to 0.46% zirconium, 0.22% niobium, and 7.9% (TREE + yttrium) with HREEs up to 15% of the total rare-earth component. Three samples gave values > 1% (TREE + yttrium), including two (2) samples > 5%. Samples anomalous in REEs also showed elevated thorium values with the highest thorium and REE values coincident (News Release May 6, 2010). The rock units are granitic gneisses of late Paleoproterozoic age, with some pegmatites.
RA visited in July, checking road cuts and quarry sites as they drove through the property, and taking three grab samples of sheared gneiss (1) and magnetic pegmatite (2) for analysis with two samples taken in the eastern extremity of the claims. The samples were not taken in the areas where the anomalous samples reported earlier were taken in 2006 (New release May 6, 2010). Weak anomalous REE values in some elements were found in all three samples in the following elements: La > 100, high value of 124 ppm; Ce > 170, high value of 201 ppm; in addition other anomalous values in Th > 170, high value of 399 ppm; Zr > 200, high value of 1,287 ppm; Sr > 1,000, high value 1,626 ppm; and Ba >1,900, high value of 2,545 ppm.
RA has informed SSE that they are not going to option the property at this time. A follow up prospecting and sampling program using scintillometers to locate radioactive areas was completed by a four man SSE crew in mid September with a total of 39 samples sent for analysis. Results will be reported when received.
RWM
The property consists of 32 claims (800 ha) and covers the second highest heavy rare earth element value, > 80 ppm HREE (includes europium, terbium, ytterbium and lutetium), in the government database for Labrador. The property lies in the southern Red Wine Mountains, approximately 30 km to the east of a road which provides access to the Churchill Reservoir area. The highly anomalous sample includes 210 ppm cerium, 240 ppm lanthanum, 11 ppm lutetium, 18 ppm rubidium, 48.9 ppm samarium, 12 ppm terbium, 14.5 ppm uranium and 62 ppm ytterbium plus elevated fluorine. Europium is background as are thorium and vanadium. Another lake sediment sample in the same area is also moderately anomalous in rare earth elements. The geological setting is described as late paleoproterozoic granite, quartz monzonite, granodiorite, syenite, and quartz diorite.
RA carried out an airborne survey (radiometric / magnetic) over the property in July as part of the airborne survey over their extensive property holdings, which include historical beryllium, niobium, REE and zirconium showings, located to the north of the RWM property in the Red Wine Mountains. The survey shows coincident U/Th/K anomalies in two areas of the claim group, in the southwest and northeast, underlain by magnetically low units, which are separated by a magnetically high area. A field check, using a helicopter, by RA located only float material in the vicinity of the radiometric anomalies. A total of six grab samples of granite gneiss (2), granite, quartz syenite (2) and mafic volcanic (1) were taken in the area of the radioactive anomalies, three in the southwestern part and three along the north eastern margin of the property. All gave anomalous values in La > 100, high value of 2,510 ppm; Nd > 100, high value of 1,520 ppm; Ce > 200, high value of 4,360 ppm; In addition anomalous values were also found in Th > 200, high value of 3,480 ppm with two values > 2,000 ppm; and Zr > 1,500, high value of 1,625 ppm against a background of 50 ppm. Two anomalous values were also located in Pr > 200, high value of 449 ppm; and 1 anomalous value in Sm, 215 ppm against a background of 30 ppm, were also located. Rb and Y also gave elevated values > 100, high value of 301 ppm Rb and 4 values > 100 ppm Y, high value of 423 ppm. The highest and most coincident anomalous values were found in the mafic volcanic sample from the northeastern portion of the property.
RA has informed SSE that they are not going to option the property at this time due to commitments on other claims in the area. SSE will be compiling all the information gained by the RA 2010 exploration, and the exploration work to date is expected to meet the Company's work commitments on the project for the first year.
SSE has acquired another eight claims (200 ha) tied on to the RWM property on the northeast side to protect a coincident U/Th/K radiometric anomaly which was located by the RA airborne survey but which extends off the former claim group to the northeast.
Lobstick (LS)
A four man field party was mobilized to the LS property in late September. Follow up will be targeted at the easily accessible, coincident U radiometric and lake sediment anomalies, and the high La / Be lake sediment anomalies which are considered to be indicative of REE potential, in the southern part of the property. Results will be reported as they are received.
Compilation maps showing the property locations, plus pictures of the Pope's Hill area can be viewed on the company website www.silverspruceresources.com.
Analyses on the Pope's Hill rock samples in 2006 were carried out at the ACME Laboratories facility in Vancouver, BC after sample preparation at Eastern Analytical in Springdale, NL. They were analyzed by a REE package (Group 4B REE), which consists of a 0.2 g sample treated by a LiBO2 fusion followed by an ICPMS finish. All rock analyses are being carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at their facility in Goose Bay. The analysis is by their Code 8 REE package which uses a lithium borate fusion and then analysis by either ICP or ICP-MS..
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 7,500 claims totaling more than 1,750 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, and rare earth element (REE) properties in Labrador, making 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
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Gordon Barnhill, CFO & Director
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Hugh Oswald, Ascenta Capital Partners Inc.
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