• Victoria Lake, South Golden Promise, and Golden Promise 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 base metal belt
• Project is adjacent to the Boomerang Deposit (Messina Minerals), a high grade precious and base metal rich VHMS deposit
• Three extensive (up to 2.5 kilometres long, 153 metres thick) VHMS style alteration systems identified on the project
• Un-sourced sulphide rich boulders on project assaying 6.5% zinc, 4.1% lead, 0.37% copper, 33.9 g/t silver and 1.02 g/t gold

Location

The Victoria Lake project (formerly known as Block 4 of the South Golden Promise project) is located in west central Newfoundland 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 and is part of the South Golden Promise/Victoria Lake agreement with Paragon Minerals (formerly Rubicon Minerals).

Location Map

• The recent Messina Minerals Boomerang discovery (13.6% zinc, 4.0% lead, 0.7% copper, 102 g/t silver and 1.0 g/t gold over 13.9 metres of core), located adjacent to the Victoria Lake property.

• The past producing Buchans mine (16 million tonnes @ 14.5% Zn, 7.5% Pb, 1.3% Cu, 126 g/t Ag and 1.3 g/t Au), located 60 kilometres to the Northeast.

• The Duck Pond deposit (proven and probable reserves of 4.1 million tonnes at an average grade of 3.3% Cu, 5.7% Zn, 59 g/t Ag and 0.9 g/t Au), located 55 kilometres to the northeast.

• The Messina Minerals controlled Long Lake massive sulphide prospect (historical resources of 0.5 million tonnes grading 16% zinc, 2% copper, 1% lead, 38 g/t Ag and 0.9 g/t gold), located 15 kilometres to the northeast.

History

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.

Claim Ownership

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

Geology

Geology Map

The Victoria Lake project is predominantly underlain by submarine volcanic rocks of the Victoria Lake Group, which hosts several significant VHMS deposits including the Duck Pond and Boundary deposits. The property lies 6 kilometres southeast of the high-grade (zinc-rich massive sulphide) Boomerang Prospect, discovered by Messina Minerals in December 2004.

The rocks underlying most of the project were originally mapped as part of the Tulks Hill volcanics, but they have subsequently been recognized as belonging to a separate belt of rocks called the Long Lake belt. The Long Lake belt comprises intercalated volcanic, volcaniclastic and sedimentary rocks that outcrop over a length of 70 kilometres in the vicinity of the Victoria Lake property. Exposed on the eastern shore of Henry Waters on the Victoria Lake project is a sequence of altered and flattened porphyritic pillow lava referred to as the Henry Waters basalts, which are thought to represent the upper part of the Victoria Lake group.

Several major northeast structures occur in the Victoria Lake area and have affected all rock units through extensive shearing and faulting. The northeastern portion of the project is underlain mainly by volcanic and volcaniclastic rocks with a strong penetrative foliation resulting in the development of chloritic and sericitic schists. The southwestern portion of the project is underlain by a mix of volcaniclastics as well as strongly deformed shale and chert known as the "Caradocian Shale".

Exploration Work

Grid Location Map

Exploration on the Victoria Lake project in 2005 was focussed on the VHMS potential of the area, especially in light of the newly discovered Boomerang Cu-Pb-Zn massive sulphide prospect located approximately 6 kilometres northwest of the property. Crosshair's program on the Victoria Lake project focussed on four main areas known as the DPS, Swamp, Henry Waters and Long Lake grids. Work consisted of geological sampling and gravity geophysical surveys on all four girds, which outlined several significant targets.

During the fall and winter of 2006, an eleven hole (2,198 metre) drill program was completed in the four grid areas. The program was very successful in outlining multiple horizons of strongly altered, sulphide-bearing felsic volcanic rocks that could host a significant precious-metal rich massive sulphide deposit. The encouraging results received from the widely spaces drilling are strongly suggestive of a proximal VHMS environment and will be followed up with additional drilling.

Current Exploration Work

Crosshair recently announced that Victoria Lake, along with Golden Promise and South Golden Promise, 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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