Crosshair jv cuts 19.9 grams over 1.6 metres

Assay results from the Golden Promise project of Crosshair Exploration & Mining (CXX-T,CXZ-X) and joint-venture partner Paragon Minerals (PGR-V) have extended the strike length of the Jaclyn main zone and returned encouraging intercepts.

Crosshair has intersected coarse visible gold in 17 of the 31 drillholes it has completed so far in its planned 36-hole, 6,500 metre, drill program.

The company has identified ignificant gold-bearing quartz veins at three main sites on the property: the Jaclyn main zone, Jaclyn north zone and Jaclyn south zone, the Christopher Zone and the Shawn’s Shot occurrences. The project is immediately west of the town of Grandfalls-Windsor, in Newfoundland.

Twelve metallurgical test drillholes (641.1 metres) have been completed in the central portion of the Jaclyn main zone and the Jaclyn north zone has been extended 200 metres east, extending the strike length to 450 metres on wide-spaced drilling. The Jaclyn north zone is about 250 metres north of the main zone.

Each drillhole intersected the gold-bearing quartz vein zone over widths ranging from 0.16 to 8.45 metres, averaging 1.44 metres, with ten of the drillholes containing coarse visible gold. Assay results for these drillholes are pending.

Eight drillholes (2,126 metres) were completed on the eastern extension of the Jaclyn main zone and have extended the gold-bearing quartz vein zone 100 metres to the east of the current National Instrument 43-101 compliant resource.

In 2008 the company published an inferred resource for the Jaclyn main zone of 921,000 tonnes averaging 3.02 grams gold per tonne for 89,500 oz. of contained gold.

Significant assays from drilling include 19.9 grams gold per tonne over 1.6 metres in hole GP10-121 and 5.18 grams gold over 0.3 metres in hole GP10-108.

The Jaclyn main zone now extends over a strike length of 900 metres and to a depth of 275 metres. The zone remains open along strike and to depth. An additional 1,400 metres of drilling remains to be completed on the eastern extension.

Three drillholes (702 metres) tested the down-dip extension of the Jaclyn main zone in the western portion of the vein zone at vertical depths ranging from 150-210 metres. All three of these drillholes intersected the gold-bearing quartz vein zone including the deepest hole, GP10-122, which returned 2.52 grams gold over 0.54 metres. The vein zone remains open to depth. A fourth hole (GP10-124) was lost due to adverse ground conditions.

Three drillholes (645 metres) tested the eastern strike and down-dip potential of Jaclyn north zone; a parallel gold-bearing quartz vein zone 500 metres north of the Jaclyn main zone. The drilling extended the zone 200 metres to the east and to a depth of 175 metres on wide spaced drilling. Each drillhole intersected gold-bearing quartz veins with assays of 6.19 grams over 0.35 metres in hole GP10-103 and 4.68 grams gold over 0.3 metres in hole GP10-99.

Because of the high nugget-effect gold deposit, Crosshair will start a 5,000-tonne bulk sample in the third quarter of this year to better determine gold grades.

The 2010 exploration programs are being funded by Crosshair is funding the 2010 exploration program as part of its agreement with Paragon Minerals. Crosshair has a 60% interest in the Golden Promise project with an option to acquire up to a 70% interest from Paragon.

At presstime Crosshair remained unchanged at 19¢ per share. The junior has traded in a 14¢-36 range over the last 52 weeks and has 124.7 million shares outstanding.