Crosshair Exploration & Mining Corp.
TSX VENTURE : CXX

Crosshair Exploration & Mining Corp.

October 04, 2005 09:15 ET

Crosshair Exploration and Mining Corp: New Uranium Discoveries at Moran Lake, Labrador

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 4, 2005) - Crosshair Exploration and Mining Corp (TSX VENTURE:CXX) (the "Company") is pleased to provide an update of the continuing exploration program on the 612 sq km Moran Lake property, located in the Central Mineral Belt of Labrador. The property is host to significant uranium mineralization, as well as potentially significant Iron Oxide Copper Gold (IOCG- Olympic Dam) type mineralization.

The airborne radiometric and magnetic survey being flown by Fugro Airborne Systems was completed on October 1, 2005. The Company has been receiving preliminary maps for portions of the property during the course of the survey that have outlined a significant number of highly prospective radiometric anomalies. These anomalies exhibit radiometric signatures of comparable, and in some cases greater, size and strength to the radiometric signals from areas of known mineralization on the Moran Lake property; specifically the Upper C Zone, which contains an historic uranium resource identified by Shell Canada Resources in the late 1970's and is the subject of a NI 43-101 report currently being completed by Roscoe Postle Associates. The Company will issue a comprehensive press release and post a full radiometric map on the Company website once all final maps have been received from Fugro.

The ground program to follow up on a multitude of high priority targets identified from preliminary radiometric maps has been underway since the survey began and will continue through the month of October. To date, the Company's geological team have investigated 5 new high priority targets (currently being referred to as Areas 1 through 5) in the northern area of the property and have received assay results for 62 rock chip and grab samples. The crews also collected a total of 20 samples from the B and C Zones and additional prospecting was carried out in the Moran Heights area to verify historic occurrences on the Moran Lake property.

The ongoing ground follow up program has resulted in the discovery of four zones of bedrock uranium (U3O8) mineralization, as well as sub-crop and high grade float on Areas 1 through 4. Area 5 has a very strong radiometric response; however the area is completely covered by thick overburden and will require further work to sample. The company considers these initial results very encouraging as most are considerably higher than the world average grade for a producing uranium mine which is 0.15% U3O8.

These new uranium targets are located southeast and southwest of the C Zone (Areas 1 and 2), northeast and southeast of the B Zone (Areas 3 and 4) and a target located north of Moran Lake, four kilometres north of the C Zone (Area 5). A map showing the locations of these new areas and a table with full assays have been posted on the Company web site at www.crosshairexploration.com.

Highlights from sample results returned so far from Areas 1 through 4 are tabulated below.



Location Type % U3O8 %Copper g/t Ag ppb Au
---------------------------------------------------------------------

Area 1 bedrock grab 0.39% 0.99% 20.9 104
Area 1 bedrock grab 0.20% 5.20% 61.6 531
Area 1 float 5.79% NSV 2.40 5
Area 1 float 4.90% NSV 3.00 5
Area 1 float 4.76% NSV 2.00 5
Area 1 subcrop 0.56% 0.41% 25.3 5
Area 1 bedrock grab 1.06% NSV 1.30 5
Area 1 0.5 meter chip 0.24% NSV 0.60 5
Area 2 bedrock grab 0.66% NSV 1.80 5
Area 2 bedrock grab 0.20% NSV 0.30 5
Area 2 subcrop 0.47% NSV 1.20 5
Area 2 subcrop 0.50% NSV 0.70 5
Area 2 bedrock grab 0.58% NSV 0.50 5
Area 2 float 0.10% 0.04% 17.1 5
Area 3 float 0.06% NSV 0.50 5
Area 3 float 0.15% NSV 0.40 5
Area 3 float 0.15% NSV 0.70 5
Area 3 bedrock grab 0.14% NSV 0.50 5
Area 3 subcrop 0.37% NSV 0.70 5
Area 3 subcrop 0.39% NSV 0.60 5
Area 3 float 0.83% NSV 4.90 5
Area 3 bedrock grab 0.20% NSV 0.70 5
Area 3 bedrock grab 0.31% NSV 1.00 5
Area 3 bedrock grab 0.46% NSV 1.30 5
Area 4 0.5 meter chip 0.26% NSV 0.20 5
Area 4 bedrock grab 0.73% NSV 0.20 5
Area 4 bedrock grab 0.13% 0.09% 10.3 36
Area 4 bedrock grab 0.10% 0.04% 4.70 5
Area 4 bedrock grab 0.21% NSV 1.30 5
Area 4 bedrock grab 0.13% NSV 0.30 5

Area 1


The radiometric signature for this anomaly measures approximately 1 kilometre in length and to date a total of 13 samples have been collected from bedrock, subcrop and float over a strike length of 400 meters. Mineralization occurs within heavily oxidized volcanic breccias similar to the C zone breccias 1.5 kilometers to the northeast. Significant copper, silver and locally anomalous gold values are often associated with the uranium mineralization including 5.2% copper, 61.6 grams per tonne silver and 0.53 grams per tonne gold from a bedrock grab sample grading 0.20% U3O8. The highest value returned from bedrock sampling assayed 1.06% U3O8. A series of four subcrop samples located 400 meters east ranged from 0.13% U3O8 to 0.56% U3O8 with up to 0.41% copper and 25.5 grams per tonne silver. Initial work at Area 1 has shown the mineralization to be similar to the IOCG (Olympic Dam) style mineralization of the Upper C Zone and the B Zone.

A small cluster of boulders were uncovered in the central portion of the anomaly and represent some of the highest grade mineralization found to date on the property. Three samples were collected from dark grey, fine grained, massive looking rock, locally with secondary uranium staining which returned 4.76%, 4.90% and 5.79% U3O8 and suggest that high grade surface mineralization may be associated with the Area 1 anomaly. The highest value from bedrock was 1.06% U3O8 and is located 300 meters down-ice from the high grade float.

Area 2

The radiometric anomaly at Area 2 was prospected and was found to be due to surface uranium mineralization returning up to 0.66% U3O8 hosted in hematitic, locally brecciated, fine grained rock similar in appearance to areas of the C Zone located 1 kilometer to the northwest. The extent of the mineralization is not yet known as the anomaly trends into a nearby pond and is partially covered by swampy ground. A total of eight samples were collected and all returned significant U3O8 values.

Areas 3 and 4

The airborne radiometric survey outlined two areas, located 1.5 kilometers southeast of the B zone (Area 3) and 1.0 kilometer northeast of the B Zone (Area 4). Several old trenches (although there is no record of work on this location in government archives) were located and sampled within the radiometric anomaly. Mineralization occurs as heavily oxidized and iron rich sediments and locally intrusive looking rocks cut by strong joint sets with chlorite and variable amounts of fine grained sulphides, mainly pyrite. Sampling took place over a strike length of 300 meters and returned a range of U3O8 values from 0.04% to 0.73% U3O8.

Area 5

Area 5 has a strong radiometric response that is over 1 km in length and the signature is very similar to that produced by the Upper C Zone. The area has been difficult to sample due to a thick till cover and the field crews were unable to dig down to bedrock. The Company's geological team considers this very encouraging as the radiometric signal is still very strong through the overburden. Sampling from the area flanking Area 5 has returned up to 0.05% U3O8 and resulted in the discovery of a significant zone of base metal and precious metal mineralization returning up to 1.04 grams per tonne Au, 36.6 grams per tonne silver and strongly anomalous copper and lead. The extent of this mineralization is not known at this point and will be the subject of further work.

Due diligence sampling at the known uranium occurrences focussed on the Moran Heights area, the B zone and to a lesser degree the C Zone. High grade mineralization grading 3.23%, 3.74% and 4.54% U3O8 was returned from new boulders located adjacent to the Moran Heights boulder field. Sampling was also carried out in the B Zone where significant uranium, copper, and silver mineralization (0.116% U3O8, 0.15% Cu and 7.76 g/t Ag over 24.8 meters) was identified by Shell Canada in a surface trench.

Ongoing and Future Exploration

An array of significant airborne radiometric anomalies has yet to be prospected as preliminary maps provided by Fugro have yielded an unexpectedly high number of targets. The Company's ground crews are currently on the property conducting follow up work.

Preparations are being made to commence line cutting in the central portion of the property where a portion of the old Shell grid covering the C and B zones will be refurbished for ground geophysics, including gravity, induced polarization and possibly electromagnetic surveys to prepare for drilling after target selection has been completed. The Company has applied for drilling permits and is currently finalizing a drill program for the upper C zone.

The National Instrument 43-101 technical report on upper C Zone mineralization is progressing and a final copy of this report is expected within a few weeks, at which time it will be submitted for regulatory review.

The Moran Lake property is host to several areas of significant uranium and uranium rich IOCG type (Olympic Dam) mineralization. IOCG type deposits are typically large, iron rich systems that carry variable amounts of copper, silver and gold and locally significant amounts of uranium. The largest known deposit of this type is the Olympic Dam deposit in Australia, which has a total resource of 3.8 billion tonnes with an average grade of 1.1% copper, 339 ppm uranium (0.04% U3O8), 3.0 g/t silver and 0.50 g/t gold. Olympic Dam is the world's largest uranium deposit and one of the world's largest copper deposits.

The Government of Newfoundland and Labrador, particularly the Department of Natural Resources, are thanked for their financial support towards this project through the Mineral Incentive Program (Junior Exploration Assistance).

Sampling Methodology

Rock samples reported in this report were bagged and sealed by Company personnel and transported directly to Eastern Analytical Limited in Springdale, Newfoundland. The samples were analyzed at Eastern for Au by one assay ton fire assay with atomic absorption finish, and Ag and Cu by atomic absorption. Pulps were then shipped to SGS Laboratories in Don Mills Ontario for whole rock, ICP and uranium analysis (uranium by assay). The overall exploration activities on this project are being directed by Timothy Froude P. Geo., who is the Qualified Person as defined by National Instrument 43-101.

Other Developments

The Company has returned the Glenwood Break and Wing's Point joint venture projects to Rubicon Minerals Corporation. The Company is maintaining the South Golden Promise / Victoria Lake joint venture property.

About Crosshair

Crosshair is an aggressive gold and uranium exploration and development company with significant holdings in North America and China. The Company is currently exploring the 612 sq km Moran Lake Uranium / IOCG Project in Labrador. In addition, through a joint venture with Rubicon Minerals Corporation, Crosshair has secured a position in one of the most prospective massive sulphide districts in Canada and an excellent early stage high grade gold property at South Golden Promise. Crosshair has also set its sights on the emerging market in China with the development of the Beigou Gold Project.

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."

Senior Vice President, Exploration

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Contact Information