• South Golden Promise, Golden Promise, and Victoria Lake Properties will be spun out by way of shareholder dividend into a new company called Gemini Metals Corp.
• Large land position in a highly prospective, emerging gold belt
• Surface assays up to 232 g/t gold
• 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

Location

The South Golden Promise project is located in central Newfoundland, about 60 kilometres southwest of the town of Grand Falls-Windsor. The project consists of 5 mineral licences (373 claims) for a total area of 9,325 hectares and is part of the South Golden Promise/Victoria Lake agreement with Paragon Minerals.

Location Map

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. 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 between Crosshair and Paragon resulted from this work.

Claim Ownership

Crosshair entered into an agreement with Paragon Minerals in February 2003 to earn a 60% interest in the South Golden Promise and Victoria Lake projects. Crosshair must carry out a total for both projects of $1,750,000 in exploration expenditures and issue 400,000 shares over the term of the four year earn-in agreement.

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.

Current Exploration Work

Crosshair recently announced that South Golden Promise, along with Golden Promise and Victoria Lake, will be spun out into a new company, Gemini Metals Corp., subject to shareholder, legal and regulatory approvals. Crosshair plans to move ahead on the spin-out quickly and anticipates presenting this matter to the shareholders at its annual general meeting expected to be held in September 2008.

Technical Reports

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