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Project Highlights
The Golden Promise Division is located in west central Newfoundland and includes the Golden Promise Project, the South Golden Promise Project and the Victoria Lake Project. The Golden Promise project is comprised of 8 mineral licenses (1109 claims) covering an area of 27,725 hectares that stretch over 20 kilometres. The claims are located just south of the town of Badger and 35 kilometres west of Grand Falls-Windsor in central Newfoundland. 60 kilometres southwest of Grand Falls-Windsor is the South Golden Promise project which consists of 5 mineral licences (373 claims) for a total area of 9,325 hectares. The Victoria Lake project (formerly known as Block 4 of the South Golden Promise project) is located approximately 125 kilometres south-southwest of Grand Falls-Windsor and 65 kilometres southwest of the town of Buchans. The project consists of 305 mineral claims for a total area of 7,625 hectares.  Location Map Victoria Lake is located in a volcanic hosted massive sulphide (VHMS) trend, which hosts several precious and base metal rich deposits, including:
Exploration in the Buchans -- Badger region of central Newfoundland has traditionally been focused on base metal exploration, and until recently little exploration for gold has been documented. Much of the area was intermittently staked by companies looking for base-metal volcanic hosted massive sulphide (VHMS) deposits. Copper-lead-zinc mineralization was first discovered near Buchans in 1905 by prospector Matty Mitchell. Mining operations began in 1928 and continued on several different ore bodies until the mine closure in 1984. In 2002, prospector William Mercer discovered gold-bearing quartz float near the town of Badger and subsequently optioned his property to Rubicon Minerals Corporation. Rubicon carried out ground and airborne geophysical surveys, trenching & channel sampling, geological mapping, and soil and rock sampling programs on the property. Several thousand metres of diamond drilling were also carried out on the South Golden Promise project as well as approximately $2.5 million in exploration on the Golden Promise project, which included:
As for the Victoria Lake project, historical exploration by Noranda (1980's to early 1990's) highlighted the presence of at least three distinct zones of altered (sericite-silica-pyrite) felsic volcanic rocks exhibiting VHMS indicators including strongly depleted sodium (0.13% to 0.33% Na2O), enriched potassium (up to 12% K2O) and enriched barium (4,940 ppm Ba) whole rock signatures. There are also unsourced, sulphide rich boulders assaying 6.5% zinc, 4.1% lead, 0.37% copper, 33.9 g/t Ag and 1.02 g/t gold. Boulders of massive barite have also been located immediately northeast of the property boundary. Soil sampling completed by Noranda and more recently by Rubicon has outlined significant copper, zinc, lead and silver anomalies that locally correspond with alteration zones and geophysical targets, most of which are untested by diamond drilling. The option agreement by which Crosshair could earn-in 60% interest for the Golden Promise project, the South Golden Promise project and the Victoria Lake project, resulted from the work completed by Rubicon. Claim Ownership In May of 2009, Crosshair closed on the agreement with Paragon Minerals Corporation (TSX-V: PGR) and has acquired a 60% interest in the Golden Promise Gold Project in Central Newfoundland. Crosshair will provide Paragon with a CDN$2.0 million carried interest in initial exploration expenditures to be completed prior to May 2013 with the option to extend this timeframe by 12 months upon issuing 250,000 common shares to Paragon. Crosshair may also elect to earn an additional 10% interest (to 70%) by providing Paragon with an additional CDN$1.0 million carried interest in additional exploration expenditures within 24 months again with the option of extending the timeframe by 12 months upon issuing 100,000 common shares to Paragon. In the vent Crosshair does not complete the additional expenditure program within the required timeframe, Crosshair may purchase the remaining 10% interest by paying Paragon the difference between actually incurred exploration expenditures and CDN$1.0 million or just retain the 60% interest.
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