Adds Historical Uranium Estimate / IOCG CROSSHAIR ADDS TO HISTORICAL URANIUM ESTIMATE AT MORAN LAKE, LABRADOR
Vancouver, British Columbia CANADA, November 02, 2004 /FSC/ - Crosshair Exploration & Mining Corp. (CXX - TSX Venture), (the "Company") is pleased to announce the following update on the recently acquired (pending TSX Venture Exchange approval) Moran Lake property (the "Property") in central Labrador. The Property consists of 67 claims (1675 ha) located 135 kilometres north of Happy Valley-Goose Bay and 75 kilometres southwest of the coastal community of Postville.
The Company believes the Property is an excellent acquisition as it allows low risk access to a significant uranium prospect as well as polymetallic Iron Oxide Copper Gold (IOCG) type targets. Olympic Dam in Australia, owned by Western Mining Corporation, is of this type and is a world class producer of copper, uranium, silver and gold with past production and reserves of 2.0 billion tonnes grading 1.6% Cu, 0.06% U3O8, 3.5 g/t Ag and 0.60 g/t Au.
Archived assessment files retrieved from the Department of Natural Resources detail work completed on the Property in 1979 by Shell Canada and identify a zone of uranium mineralization contained within the lower "C" Zone as having potential for 2,236 tonnes (4.92 million pounds) of contained U3O8. This is in addition to the 500 tonnes (1.1 million pounds) U3O8 in the upper "C" Zone, as previously announced on October 15, 2004 (This historical resource estimate is considered relevant but does not comply with NI 43-101 standards and should not be relied upon as the Company has not yet verified the data. Any reference to potential quantity and grade is conceptual in nature at the present time. The Company believes that the amount of drilling completed in critical portions of the "C" zone would substantiate a significant portion of the estimated contained U3O8). A selected number of intersections from the "C" Zone are tabled below (no assaying was done for base or precious metals):
Hole # From - To (m) length (m) Grade (% U3O8)
C-6 68.56 - 70.74 2.18 0.284% (incl. 1.04% over 0.21m)
C-9 87.02 - 89.57 2.55 0.189% (incl. 0.596% over 0.56 m)
C-11 90.48 - 94.48 4.40 0.239% (incl. 1.22% over 0.55 m)
C-18 32.01 - 33.13 1.12 0.132%
C-22 71.20 - 72.52 1.32 1.18%
And 90.83 - 94.82 3.99 0.562%
C-23 87.03 - 88.53 1.50 0.268%
C-24 58.56 - 65.06 6.50 0.120%
C-29 71.91 - 74.44 2.53 0.184% (incl. 0.483% over 0.73 m)
C-32 60.56 - 61.90 1.34 0.136%
and 105.44 - 106.87 1.43 0.228% (incl. 0.488% over 0.45 m)
Shell Canada also reported that the "C" Zone remains open to the west and to depth for additional mineralization. Numerous radioactive core intervals remain un-sampled from several "C" Zone drill holes. There is no estimate on the amount of contained U3O8 in the "B" Zone as only one round of drilling (15 holes) has been drilled in the zone. The "B" Zone mineralization is open to depth beneath the previous round of drilling. Crosshair plans to sample all radioactive core not previously sampled and will carry out a scintillometer scan of all core to ensure all radioactive intervals have been identified.
IOCG TYPE MINERALIZATION
The "B" Zone mineralization sampled by Shell Canada in the 1970's was found to be strongly enriched in copper and silver as well as uranium and returned surface channel sample results of 11.8 metres grading 0.087% U3O8, 0.28% copper (Cu) and 13.23 grams per ton silver (Ag). Trench sampling by Shell Canada is tabled below (trench maps are currently being digitized and will be posted on the Company website):
Trench F-T-6
Sample #'s Length(m) %U3O8 %Cu Ag g/t Au g/t
30 to 45 24.8 0.116% 0.15% 7.76 not assayed
incl. 38 to 45 11.8 0.087% 0.28% 13.23 not assayed
52 to 55 5.30 0.178% 0.04% 1.80 not assayed
Trench F-T-7
Sample #'s Length(m) %U3O8 %Cu Ag g/t Au g/t
2 to 7 10.8 0.113% 0.09% 4.79 not assayed
incl. 5 to 7 4.60 0.191% 0.12% 8.29 not assayed
In spite of the enrichment at surface, none of the holes drilled in the "B" Zone were analyzed for base or precious metals. The drilling results include the following uranium intersections:
Hole # From - To (m) length (m) Grade (% U3O8)
3794S-1 21.42 - 24.48 3.06 0.197%
3794S-2 34.96 - 41.98 7.02 0.106%
3794 – 6 19.04 - 21.84 2.80 0.117%
Sampling results provided by the vendor of altered sediments from the "B" zone in 2003 returned the following reconnaissance grab sample results which include strongly anomalous gold mineralization (prior to 2003, no sampling for gold had taken place):
% Cu Ag g/t Au g/t
1. 0.46% Cu 31.7 g/t Ag 0.02 g/t Au
2. 0.295% Cu 1.2 g/t Ag 1.03 g/t Au
The "C" Zone also has strong evidence supporting the presence of a large IOCG deposit on the Property including locally significant concentrations of sulphides, including chalcopyrite, as noted by Shell in several drill holes. Drill hole C-14 revealed a 7.7 metre interval to contain 4% chalcopyrite within a 28 metre section of core containing variable chalcopyrite, none of which was sampled. Similarly in hole C-
15, approximately 8 metres of core was noted to carry an estimated 4% disseminated chalcopyrite and as was the case in C-14, this core was not sampled. In addition, a review of the drill logs and sample records indicates a number of radioactive zones were not sampled by Shell.
The results of past work in both the "C" and "B" Zones indicate excellent potential for the discovery of additional uranium mineralization as well as significant polymetallic IOCG-type mineralization. A core sampling program will commence in the near future in order to analyze mineralized core un-sampled from the previous exploration programs carried out by Shell in the 1970's.
The Company can earn a 90% interest in the Property, from the vendor, Lewis Murphy (subject to a 2% NSR and a 10% carried interest to the vendor) by spending $3,000,000 in exploration and by paying a total of $525,000.00 in cash and issuing 1.5 million shares over the term of the 5 year earn-in agreement.
Crosshair is an aggressive gold and precious metals exploration and development company with significant holdings in North America and China. Through a joint venture with Rubicon Minerals Corporation, Crosshair has secured a position in more than 2,500 strategically located mineral claims in Newfoundland, Canada. These claims include four projects, of which one is adjacent to the Rubicon/Placer-Dome, Jacyln Gold Discovery. The others are located in the Mustang Trend and Botwood Basin area.
For more information on the Company and its properties, please visit the website at www.crosshairexploration.com.
ON BEHALF OF THE BOARD
"Timothy Froude P.Geo."
General Manager/Chief Geologist Newfoundland Projects
Crosshair Exploration & Mining Corp. – Newfoundland
T: 709 834 8442
F: 709 834 6442
E: tim@crosshairexploration.com
www.crosshairexploration.com
Boardmarker Consultancy Group
T: 403 517 2270
F: 403 517 2289
E: dean@boardmarker.net