Silver Spruce, Universal hit Labrador uranium

Vancouver — Drilling by joint-venture partners Silver Spruce Resources (SSE-V, SSEBF-O) and Universal Uranium (UUL-V, UULFF-O) intersected significant uranium mineralization on their Northwest claim package in Labrador’s Central Mineral Belt.

Hole CMB-07-6 on the Two Time zone cut a wide mineralized zone returning 107 metres (from 172 metres down-hole depth) grading 0.052% U3O8 including a 30-metre higher-grade section averaging 0.11% U3O8.

As the intersection is the deepest encountered to date, the partners are hypothesizing the zone could increase in both size and grade at depth.

Uranium mineralization is hosted within a brecciated and fractured felsic intrusive suite (monzonite to monzodiorite) with extensive chlorite, carbonate and hematite alteration. The mineralized zone appears near-vertical to steeply east-dipping — likely indicating drill intercepts are about half to two-thirds of true width.

The JV partners have traced the zone across more than 200 metres of strike, with indications it narrows towards the north. Higher grades have been encountered to the south, where soil geochemistry indicates the zone may continue beneath a pond.

The Two Time zone was recently discovered by follow-up ground surveys on airborne radiometric anomalies previously found in the region.

Universal Uranium is acquiring a 60% interest in the CMB project for $2 million in exploration spending over three years while Silver Spruce remains project operator during the earn-in period.

Advanced resource definition on Aurora Energy Resources’ (AXU-T, AUEGF-O)’ Michelin and Jacques Lake uranium deposits, about 100 km east of the JV’s discovery, has attracted interest in exploration of the region.

On news of the drill results, shares of Silver Spruce soared 128% to close up 73 at $1.30 apiece on trading volume of 2.7 million while Universal rallied 111% to close at $1.10 per share, up 58, on volume of 8.7 million shares.