• Large land position in a highly prospective, emerging gold belt

• Project is host to Linda/Snow White Vein Zone - defined over 170 metres strike length and up to 5 metres wide - open in all directions

• Significant drill intercepts of up to 19.5 g/t gold over 1.15 metres including 63.3 g/t gold over 0.35 metres

• Strong similarities to the Bendigo-Ballarat Gold District in Australia -- an area over 22 million ounces of past gold production

Technical Report

Click here for the complete NI 43-101 technical report on the Golden Promise Project (PDF 11.0MB)


History

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 as well as several thousand metres of 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

Under the terms of an agreement dated February 14, 2003 with Paragon, the Company has earned a 60% interest in the South Golden Promise Property, subject to a 2.5% Net Smelter Return to the underlying vendors, buy issuing a total of 400,000 common shares and completing a minimum of $1,750,000 in exploration expenditures. Paragon declined to participate in the recent programs and has been diluted to a 38.3% interest. (The South Golden Promise Property includes two separate blocks of licenses, these being the South Golden Promise and the Victoria Lake claim blocks, which collectively cover 55 square kilometers in 218 claims in 9 licences).

Geology

The project is underlain by sedimentary rocks (mudstone, greywacke) and lesser volcanic rocks (mafic, rhyolite tuff) of the Victoria Lake Group. These rocks are stratigraphically overlain by the Carodocian black shale sequence, which separates rocks of the Victoria Lake Group to the south from overlying Ordovician to Silurian siliciclastic sediments of the Badger Group to the north. Younger felsic plutonic rocks of the Hodges Hill granite and the Skull Hill intrusion locally intrude all rocks. Several minor gabbroic dykes and sills also cut the stratigraphy.

Exploration Work

Crosshair first completed a high-resolution magnetic-EM helicopter airborne survey over approximately 60% of the property. In 2004, Crosshair completed a soil geochemistry survey collecting a total of 4077 soil samples. Follow-up prospecting led to the discovery of the Linda/Snow White prospect, an area of mineralized float with initial grab samples up to 10 g/t gold. Trenching by Crosshair at the Snow White prospect was successful in exposing a composite quartz vein system over a strike length of approximately 170 metres and up to 5 metres in width. Highlights of the sampling include up to 29.7 g/t gold over 0.5 metres channel samples and grab samples of up to 232 g/t gold.

A 16 hole (1016 metre) drill program was completed by Crosshair in 2006, to test the trench sample results from late 2005. The drilling intersected the mineralized Linda and Snow White vein system with assays up to 19.5 g/t gold over 1.15 metres, including 63.3 g/t gold over 0.35 metres. The vein system at South Golden Promise appears to lie at the same stratigraphic level and on a structure related to the Jaclyn system (on the Golden Promise Project), located 25 kilometres to the northeast.

Stewart Wallis, P.Geo., is President of the Company and a Qualified Person as defined by National Instrument 43-101 for the above mentioned projects. The QP is a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) as a registered Professional Geoscientist (P.Geo.). Mr. Wallis has reviewed and is responsible for the technical information disclosed above.