Silver Spruce Options U/ REE property on the Pope’s Hill Trend Trans Labrador Highway, Labrador
Highlights ‐ values to 0.82% U, 8.9% REE+Y in separate outcrop grab samples ‐ Property consists of 59 claims along the TLH which extend 3 km to the north of the highway ‐ Located approximately 50 km to the east of the original Pope’s Hill Property, 35 km from Goose Bay
February 17, 2011 Bridgewater, NS Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that the company has optioned the MRT property, of 59 claims (1,475 ha), from two Innu Prospectors, Jean Pierre (Napes) Ashini and Raphael Dominic Riche. The property is located along and to the north of the Trans Labrador Highway (TLH), 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 as follows:
| Cash | Shares | Work Commitment | |
|---|---|---|---|
| On signing: | $15,000 | 100,000 | |
| 1stanniversary | $25,000 | 150,000 | |
| 2ndAnniversary | $40,000 | 250,000 | $250,000 |
| Total | $80,000 | 500,000 | $250,000 |
In addition, advance royalty payments of $10,000 per year are payable from the 4th anniversary on and there is an area of influence (AOI) of 2 km, from the existing property boundary, whereby any claims staked by either party become part of the agreement. The agreement is subject to the approval of the TSX‐V exchange.
The property was acquired after prospecting by the vendors, located three (of 10) samples carrying significant REE values of 8.95%, 0.26% and 0.28% TREE+Y in an area never before evaluated for REEs. The highest value gives values of 2.79% La, 4.26% Ce, 0.4% Pr, 1.26% Nd and 0.11% Sm with 0.23% Th, 37 ppm U. Uranium values range from 1.1 to 747 ppm, averaging 113 ppm. Other REEs and Y are weakly anomalous. The samples were selected using a scintillometer to locate areas of higher radioactivity.
A due diligence visit by the author in winter conditions in January, 2011 was not successful in duplicating the REE results with a maximum of 0.1 % TREEs +Y located in one sample, however significant U values were found in the three samples taken. The samples were also acquired using a scintillometer to locate areas of higher radioactivity. Values were, respectively, 0.825% U, 930 ppm Th; 234 ppm U, 72 ppm Th; and 744 ppm U, 288 ppm Th with U/Th ratios varying from 8 to 3. The due diligence samples were taken in the same general area as the REE anomalous samples acquired by the prospectors, however the actual sample locations were not duplicated due to snow and ice which covered the outcrops.
The U/REE discovery lies in an area never before evaluated for either REEs or U, 1 km from the TLH, approximately 35 km from Goose Bay. The discovery validates the Pope’s Hill REE trend where SSE has interests in over 2,200 claims (1,700 claims of which are 100% owned) extending over a 100 km strike length, where government La/Ce lake sediments indicate an anomalous REE trend and where no REE / U exploration has ever been carried out. Regional exploration will evaluate this trend in the summer of 2011.
Analyses were carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at their facility in Goose Bay, by their Code 8 REE package which uses a lithium borate fusion and then analysis by either ICP or ICP‐MS.
Information and pictures from the Pope’s Hill REE Project, the MRT property and our other REE projects in Labrador can be found on the Silver Spruce website at: www.silverspruceresources.com.
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 4,000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and REE districts. The company has rare earth element (REE) properties in Labrador ‐ Pope’s Hill, RWM and the Straits and gold/silver projects on the island of Newfoundland.
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 Investor Relations
Head Office Hugh Oswald, Ascenta Capital Partners Inc. Gordon Barnhill, CFO & Director Phone: 604.684.4743 ext. 243 Phone: 902.527.5700 Toll Free: 1.866.68.4743 ext. 243 Fax: 902.527.5711 Email: [email protected] Email: [email protected] Web: www.ascentacapital.com Web: www.silverspruceresources.com
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The Corporation seeks Safe Harbour.