Crosshair Energy Corporation ( NYSE Amex: CXZ) (TSX: CXX) (“Crosshair” or the “Company”) is pleased to announce that the Nunatsiavut Government of Newfoundland and Labrador enacted its Environmental Protection Act and an amendment to the Labrador Inuit Lands Act. This legislation officially lifts the moratorium on the working, production, mining and development of uranium on Labrador Inuit Lands, which had been in effect since April 2008.
“Labrador contains one of the largest undeveloped uranium resources in the world,” said Stewart Wallis, President and CEO of Crosshair. “Lifting this moratorium allows uranium companies operating in Labrador, such as Crosshair and Paladin, to advance their projects and paves the way for an economic infusion that mineral exploration and development will bring to the communities of Labrador.”
The moratorium was originally put in place in April 2008 for a period of three years, in order to allow the Nunatsiavut Government time to establish a lands administration system and to develop an Environmental Assessment Act and environmental protection legislation. Even though 92% of Crosshair’s Labrador property falls outside the Labrador Inuit Lands, the moratorium had a significant negative impact on the market value of all companies operating in Labrador.
The focus of Crosshair’s exploration activities in Newfoundland and Labrador are the CMB and CMB-JV properties. The CMB Project consists of 2,116 claims in 22 licences and covers 529 square km. It hosts the C Zone – Area 1 – Armstrong Corridor, which has a current Indicated Mineral Resource of 5.19 million pounds of uranium (6.92 million tonnes at 0.034% U 3O 8) and an additional Inferred Mineral Resource of 5.82 million pounds of uranium (8.17 million tonnes at 0.032% U 3O 8) between all three zones. It also contains an Indicated Mineral Resource of 42.8 million pounds of vanadium (14.7 million tonnes at 0.15% V 2O 5) and an additional Inferred Mineral Resource of 93.6 million pounds (28.3 million tonnes at 0.16% V 2O 5). All three zones remain open and future programs will be aimed at confirming the continuity of mineralization between the zones.The CMB JV Project (800 claims in 11 licences) is a joint venture partnership with Silver Spruce Resources (“SSE”). The Company has notified SSE that their interest will be diluted to less than 10% and thus they will now retain a 2% Net Smelter Return Royalty. The Project is host to the Two Time Zone, which has an existing Indicated Mineral Resource of 2.33 million pounds of uranium (1.82 million tonnes at 0.058% U 3O 8) and an additional Inferred Mineral Resource of 3.73 million pounds of uranium (3.16 million tonnes at 0.053% U 3O 8), also open for expansion. In addition to the Two Time prospect, the CMB-JV also contains the Firestone, South Brook, Running Man and Big Bear prospects. Stewart Wallis, P.Geo. President and CEO of Crosshair and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release.