• C Zone contains NI 43-101 uranium resource open in all directions for expansion
• Two Time Zone contains NI 43-101 uranium resource open to depth and along strike to the south
• 2006 drilling identified "hot spots" within the C Zone -- areas where zone swells and grades increase
• 2007 drilling continued to test potential 4.5 kilometre long uranium mineralized corridor
• 2008 winter drilling anchored the southern end of the corridor
• 2008 summer/fall drilling will focus on expanding known mineralization along the C Zone - Armstrong Corridor, as well as defining known targets. In addition, Crosshair will test the largely unexplored southern half of the property
• Acquired Universal Uranium's 60% interest in 4741 claims in the CMB, including the Two Time Zone containing a 43-101 uranium resource open in all directions for expansion.

Project Location Map

Satellite Photo of Project Location

History

Uranium was first discovered on the Project in 1956 by British Newfoundland Exploration Limited, which conducted prospecting, geological mapping and radiometric surveying. In 1976, the license was granted to Commodore Mining Company Limited, which in turn, optioned it to Shell Canada Resources Limited (Shell). Over the next few years, Shell drilled a total of 72 holes in the B and C Zones.

In the 1980's, the Uranium price dropped from just over US$40/pound (lb) to less than US$20/lb and then below US$10/lb. This drop suspended all exploration work on the project and Shell abandoned its interest in the area.

Lewis Murphy acquired the claims in 2003 and conducted an airborne gravity survey of the area. As a result of the survey, a kilometre long elliptical anomaly centered between the B and C Zones of uranium was identified. The ground was then optioned to Crosshair in October 2004.

Based on the Property geology, the project has been divided into the Northstar and Lonestar Divisions. The Northstar Division is responsible for developing the more advanced targets on the property including the C Zone, while the Lonestar Division spearheads exploration in the largely unexplored southern portion of the Property.

In July of 2008 Crosshair acquired a 60% interest in an additional 4,741 claims from Universal Uranium. Silver Spruce Resources has retained a 40% interest in the claims. The Property was first identified following uranium-in-lake sediment anomalies discovered by the Government of Newfoundland and Labrador. Various companies were granted concessions in the mid 1940's to mid 1980's. The Property was first claim-staked in September 2005 by 10565 Nfld Inc. The claims were subsequently transferred to Silver Spruce in late 2005. Universal Uranium and Silver Spruce entered into a joint venture agreement in spring of 2006 by which Universal earned in a 60% interest in the Property.

Claim Ownership

Claim Ownership Map

Crosshair optioned the original 67 claims from Lewis Murphy in October 2004. Crosshair can earn a 90% interest in the claims, subject to a 2% Net Smelter Royalty, by spending $3,000,000 in exploration, paying $525,000 in cash and issuing 1.5 million shares over the term of the 5 year earn-in agreement.

In March 2005, the Murphy agreement was amended to include an additional 187 claims to the northeast. An additional $50,000 must be paid in cash and 100,000 shares issued within the 5 year earn-in agreement. Crosshair also staked 2000 claims in March 2005. These claims are 100% held by Crosshair.

Crosshair entered into an option agreement with Triassic Properties Ltd. in December 2005. Crosshair can earn a 100% interest in 56 claims, subject to a 1.5% Net Smelter Royalty, by spending $600,000 in exploration, paying $125,000 in cash and issuing 225,000 shares over the 3 year earn-in agreement.

To date, the total land position of the Central Mineral Belt Project is 2880 claims and 2570 of the claims were staked by Crosshair.

Crosshair acquired Universal Uranium's 60% interest in 4,741 claims in the Central Mineral Belt. In return, Crosshair paid CDN$500,000 and 10,000,000 common shares, and 7,500,000 warrants to Universal. These claims were part of a property agreement between Universal and Silver Spruce Resources under which Universal had earned a 60% interest. Silver Spruce has retained their 40% interest in the Property and continues to act as the operator.

Land Position Map

Crosshair has entered into an agreement with Universal Uranium Ltd. to acquire their 60% interest in 3,122 claims in the Central Mineral Belt. The agreement is subject to Crosshair paying CDN$500,000 and 10,000,000 common shares, and 7,500,000 warrants to Universal. Closing is expected to be completed on June 16, 2008 or such other date as may be mutually agreed, but no later than July 31, 2008. These claims are currently part of a property agreement between Universal and Silver Spruce Resources under which Universal has a 60% interest and Silver Spruce has a 40% interest and acts as the operator.

Geology

Geology Map with Target Areas

The Central Mineral Belt project lies on an area composed of Archean to Mesoproterozoic gneissic, sedimentary, volcanic and granitoid rocks. The project lies near the junction of three regional faults, where the Grenville front overprints the northeast trending boundary between the Nain and Makkovik tectonic Provinces. Basement to the area is Archean gneiss of the Nain craton.

The local geology comprises Early Paleoproterozoic submarine volcanic and sedimentary rocks of the Moran Lake Group overlain unconformably by the late Paleoproterozoic continental sediments and subaerial volcanics of the Bruce River Group. The Moran Lake stratigraphy was deformed during the Makkovikian Orogeny, and after a hiatus of perhaps 500 Ma without sedimentary record, the Bruce River Group was deposited above a profound angular unconformity.

The Moran Lake Group consists of shale, arkose, and dolostone overlain by iron formation in the southwest and pillowed basalts to the northeast. The Bruce River Group consists of a basal, polymictic conglomerate and sandstone overlain by tuffaceous sandstone.

The Two Time Zone is the most advanced prospect on the newly acquired claims. It has a current strike length of 475 metres and remains open to the south and to depth. Mineralization is hosted by altered, brecciated, and fractured granitic rocks of the late-Archean Kanairiktok Intrusive Suite. Chlorite, carbonate, hematite, and albite alteration predominates. This is the first occurrence of significant uranium mineralization in these rocks.

Previous Exploration Work

In early 2005, Crosshair embarked on a program to resample the Shell drill cores archived in the government core storage facility in Goose Bay. The samples were sent to SGS Laboratories to determine the uranium, copper, gold and silver concentrations and these, plus the historic values were incorporated to estimate the 43-101 mineral resource in the Upper C Zone. The resource was based on very shallow drill holes (maximum of 75 metres deep) and the zone is open for expansion along strike and to depth. The resource was completed by Roscoe Postle Associated and they determined an inferred resource of 124,000 tonnes grading 0.25% U3O8 containing 688,000 lbs of U3O8.

During the summer of 2006 Crosshair mounted an extensive helicopter supported exploration program based out of a camp on Armstrong Lake. The work, designed to follow-up airborne radiometric anomalies and Proterozoic unconformities, included prospecting, geological mapping, scintillometer surveys, trenching, sampling and drilling in a number of areas including the C zone, Armstrong, Madsen Lake, Moran Heights, B zone, Croteau Lake, Areas 1, 2, 3, and 51. The 2006 drill program consisted of 137 holes (21,486 metres) of which 58 tested the Upper C Zone and to a lesser extent (10 holes of the 58) the Lower C zone.

During the winter of 2007, the company drilled a total of 9404 metres in 34 holes. An additional 19,280 metres of drilling in 121 holes was completed on the property during the 2007 summer drill program. Drilling focussed on expanding the resource in the C Zone, but also included drilling at Area 1, Armstrong, and Croteau Lake.

Crosshair anchored the southern end of the 4.5 kilometre long mineralized corridor through its 2008 winter drill program. All three areas which comprise the corridor (C Zone, Area 1, and Armstrong) remain open.

In 2006, Fugro Airborne Surveys completed a radiometric survey on the claims which comprise the newest acquisition. The survey identified 17 high priority targets, which were selected for follow-up. Follow-up over the following year, which included prospecting using scintillometers, trenching, channel/chip sampling, stream sediment sampling, and lake bottom surveying, helped to identify the Two Time Zone and Firestone Showing as potential mineralization targets. The majority of subsequent exploration work has focused on the Two Time Zone. Forty one holes have now been drilled in the area, 40 of which tested the Two Time Zone. . A single hole tested a RadonEx soil anomaly located north of the Two Time. A recently completed independent NI 43-101 resource estimate was carried out based on drilling at the Two Time Zone up to Feb. 4, 2008. The report estimates an indicated resource of 2.33 million pounds of uranium (1.82 million tonnes grading 0.058% U3O8) and an additional inferred resource of 3.73 million pounds (3.16 million tonnes grading 0.053% U3O8).

Current Exploration Work

Crosshair has an 8,000 metre drill program planned for the remainder of 2008. The program will utilize 2 to 3 drills and will be directed at expanding known mineralization along the C Zone -- Armstrong Corridor as well as defining known targets and testing new showings in the underexplored southern portion of the Property. A total of 6,000 m will drilled under the direction of the Northstar Division, while the remaining 2,000 m will drilled under the direction of the Lonestar Division.

In addition, Crosshair is focused on compiling the extensive database on the newest acquisition in the CMB in preparation for comprehensive drill and ground exploration programs in the future.

Technical Reports

Click here for the complete NI 43-101 report on the Central Mineral Belt Uranium Project (C Zone) (PDF 6.74MB)

Click here for the complete NI 43-101 report on the CMBNW Property (Two Time Zone) (PDF 2.55MB)