Silver Spruce Resources Inc (SSEBF)

[hopie]

Silver Spruce Reports on Ongoing Diamond Drilling Program, Big Easy Gold/Silver Property, Eastern Newfoundland
08 Apr 2011 09:00 ET

Marketwire
Silver Spruce Resources Inc.
April 8, 2011 - 09:00:00 AM
Silver Spruce Reports on Ongoing Diamond Drilling Program, Big Easy
Gold/Silver Property, Eastern Newfoundland
BRIDGEWATER, NOVA SCOTIA--(Marketwire - April 8, 2011) - Silver Spruce
Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) -
Highlights
-- Three holes totaling 507 m completed to date, all holes have intersected
wide zones of mineralized (pyritic), silicified sedimentary units with
strongly brecciated zones.
-- Widest intersection - 245.6 m of altered (silicified) / mineralized
conglomerate in DDH BE-11-3.
Silver Spruce Resources Inc. is pleased to announce that diamond drilling at
the Big Easy property in eastern Newfoundland is ongoing with three of six
planned holes, totaling 507 m, completed to date. A contract for 2,000 m of
diamond drilling was given to Cabo Drilling of Springdale, NL for drilling on
the Big Easy property and the Rambler South Gold property in the Baie Verte
area (see news release dated March 24, 2011).
All three holes, at the south end of the alteration zone, at -50 degree dip
and approximately 100 m apart, the first ever drilled on the property,
collared in, and intersected, wide zones of strongly altered (silicified)
sedimentary units, generally pebble conglomerates, with some narrow coarse
sandstone interbeds, which carry variable pyrite mineralization. Overburden
ranges from 3 m to 5 m. Two of the holes (1 and 3) intersected unaltered, post
mineralization, mafic dikes over widths in the 15 m to 20 m range near the top
of the holes. Drill holes 1 and 2 were stopped in unaltered, unmineralized,
red conglomerate while hole 3 was stopped in an unaltered, unmineralized, fine
grained, green mudstone. The total lengths of the holes and the combined
widths of mineralized/silicified units intersected, (with dikes and overburden
removed), are: BE-11-1 - 107 m / 54 m; BE-11-2 - 98 m / 83.8 m; BE-11-3 - 302
m / 245.6 m. Brecciation is variable throughout the mineralized zone but is
more extensive in BE-11-3 especially in a section from 245 m to 272 m (27 m)
with pyrite ranging from trace to 10% over narrow intervals, averaging 3% to
5%. Similar brecciation was not noted in the surface trench mapping or
sampling. The orientation of the mineralized / altered zone, which is thought
to be fault bounded, remains unknown. Bedding dips at approximately 30 to 40
degrees, based on surface mapping of the trenches. Gouge zones, thought to
represent fault structures, were noted in drill hole 3, including at the
bottom of the 27 m brecciated section.
Trench channel samples indicate that the altered zone is anomalous in precious
metals (see news release dated August 26, 2010) with gold (Au) values ranging
from 30 ppb to 2,083 ppb with a mean of 71.7 ppb. Silver (Ag) values range
from 1.9 ppm to 13.4 ppm with a mean of 3.55 ppm. The highest gold value, 2083
ppb over 0.7 m, was in silicified sediments cut by a 1.5 m wide quartz vein in
Trench 5. Drill holes BE-11-2 and 3 were drilled along Line 7700 N,
undercutting Trench 5. Core samples from the first two holes and the upper
part (first 78 m) of hole BE-11-3 have been submitted to the laboratory.
Cutting of the samples is continuing and samples will be submitted every few
days. Results will be reported as received.
The drilling is testing Induced Polarization (IP) targets in an altered
(silicified) / mineralized area, which extends in a north-northwesterly
direction, over an area of greater than 1 km by 300 m to 500 m wide, narrowing
to the north and south. Gerard Lambert, a geophysical consultant who evaluated
the IP results, concluded: 1) Results indicate nine shallow (i.e., 25 m depth
or so) anomalous IP features, all of which are of the "non-conductive" type,
indicating disseminated to stringer sulphides, which extend through the
altered / mineralized area, in a north to north-northeast direction, and 2)
The IP anomalies appear to be grouped to form two linear trends, one of which
falls along the corridor of silicification in the central portion of the grid
which appear to show potential for outlining a significant pyritized zone (see
news release dated November 13, 2010).
The 121 claim (30 km(2)) property, located near Thorburn Lake in eastern
Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The
option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5%
buyback for $1.5M, is a total of $110,000 plus 1.6 M shares over three years.
A yearly advance royalty payment of $20,000 per year, deducted from future NSR
payments, is payable from the 4th anniversary on.
Drill core was cut in half using a diamond core saw, with one half sent for
analysis and the other half retained. Samples were submitted to the
Acccurassay Preparation laboratory in Gambo, NL where they were prepped and
then sent to their laboratory in Thunder Bay, ON for analysis for gold by fire
assay with an AA finish and an ICP-30 technique for other elements. Some
samples may also be analyzed for Hg using the ALHg1 technique. Values are
checked by internal standards and check sampling will also be carried out.
Hand samples of the drill core plus pictures showing the core and drill
locations will be displayed at the Silver Spruce AGM, which is being held at
the Akerley Room, Park Place Hotel, 240 Brownlow Ave., Dartmouth, NS at 11:00
AM on Monday, April 11, 2011. All shareholders are invited to attend and hear
an update on the company's exploration activities. Plan maps for the proposed
drill holes, the IP chargeability and resistivity and a compilation map for
the property, plus pictures showing the drilling and the drill core, are also
available on the Silver Spruce website at silverspruceresources.com.
This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for
Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON as
defined in National Instrument 43-101.
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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Silver Spruce Resources Inc. - Head Office Gordon Barnhill CFO & Director
902.527.5700 902.527.5711(FAX) [e-mail]
www.silverspruceresources.com
Ascenta Capital Partners Inc. Hugh Oswald Investor Relations 604.684.4743
ext. 243 or Toll Free: 1.866.684.4743 ext. 243 [e-mail]
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.