Champion Intersects 38.3% Iron Over 133.9 Metres on the Fire Lake North Claim Block, Fermont Iron Property
May 04 2010 - 7:30AM
Marketwired
CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:
CHM)(FRANKFURT: P02) is pleased to announce the first Iron assay
results from diamond drill holes FL10-01 and FL10-06 of the 11
drill hole winter 2010 drill program on the Fire Lake North Claim
Block ("Fire Lake North") of the Fermont Iron Property (the
"Property"). The Property is located 250 km north of the St.
Lawrence River port town of Port-Cartier in the Fermont Iron Ore
District ("FIOD") of northeastern Quebec.
Assay results are from the East Limb target located in the south
central portion of Fire Lake North and 750m north of the
ArcelorMittal Fire Lake Mine claim boundary. The Fire Lake Mine
(341 million tonnes grading 33.4% Iron) is a seasonal operation
that supplies ore to the ArcelorMittal Mont Wright Mine and
Concentrator Complex located 50km to the north. The 11 drill holes
were completed over a 3km strike length on the East Limb target
area totaling 1,989m.
The East Limb target is comprised of two parallel northward
trending iron formations approximately 300m apart that extend for
several kilometres. Holes FL10-01 and FL10-06 were drilled on the
furthest section to the south and each tested one of the two
parallel iron formations (refer to the appended location map). The
most significant Iron assay intervals are provided from holes
FL10-01 and FL10-06 and are summarized in the following table:
----------------------------------------------------------------------------
CORE IRON
FROM TO LENGTH(1) ASSAY
DDH # (m) (m) (m) (% Total Fe)
----------------------------------------------------------------------------
FL10-01 70.4 87.0 16.6 33.2
-----------------------------------------------
158.6 237.7 79.1 30.2
----------------------------------------------------------------------------
FL10-06 55.9 189.8 133.9 38.3
----------------------------------------------------------------------------
including 67.0 186.5 119.5 40.2
----------------------------------------------------------------------------
including 115.0 155.0 40.0 50.4
----------------------------------------------------------------------------
including 143.4 155.0 11.6 59.6
----------------------------------------------------------------------------
(1) Core length is approximately equal to true width.
Note - refer to the Champion website at www.championminerals.com for a
complete listing of the individual sample assay results.
Jean Lafleur, P. Geo., Fermont Iron Property Project Manager and
a Director of Champion, stated, "Assay results highlight the
quality of the Iron mineralization at Fire Lake North. Higher Iron
grades are associated with zones of coarse-grained specularite
within quartz-specularite and quartz-magnetite-specularite iron
formations. The coarse grained characteristic is due to heating and
re-crystallization of the iron formation. Drill hole FL-10-06 even
contained an individual assay of 65.1% Iron over a 4m interval. All
of these intersections will be submitted expediently for
metallurgical testing to quantify the benefits of this style of
iron mineralization."
Thomas Larsen, President and CEO of Champion, added "The higher
Iron grades at Fire Lake North are significant due to its location
adjacent to ArcelorMittal's Fire Lake Mine. Champion will continue
drilling at Fire Lake North after spring breakup as part of the
planned 15,000m diamond drilling program in this area, including
the Harvey-Tuttle claim block. With $17 million in working capital,
Champion is now in a position to rapidly advance its objective of
defining the full iron potential at the Fermont Iron Property. The
exploratory focus is on the highly prospective Harvey-Tuttle, Fire
Lake North, Bellechasse and other surrounding claim blocks. The
recent hiring of the engineering firm BBA Inc. will be instrumental
in the assessment of these iron resources."
To date a total of 4,142m has been drilled in 24 holes during
the 2010 winter drilling campaign on Fire Lake North (refer to the
appended location map). Fire Lake North is located 45km south of
the town of Fermont (Quebec) and is centered 7km east of Highway
#389 linking the port community of Baie-Comeau to Fermont, and is
underlain by iron formation that is similar to those which host the
iron deposits of the FIOD, such as the Bloom Lake Deposit (827
million tonnes @ 29.3% Iron) (refer to the Consolidated Thompson
Iron Mines website).
Quality Assurance and Quality Control
All drill core logging and sample preparation was conducted by
qualified Company personnel under National Instrument ("NI") NI
43-101 standards at the Company's core logging facilities in Wabush
(Newfoundland). The NQ-sized drill core was split in half. One-half
of the drill core was kept in the core tray for reference purposes
and the other half core was individually bagged, tagged, sealed and
packed in large nylon bags which were then securely closed and sent
by commercial ground transportation for analysis to COREM
laboratories in Quebec City (Quebec). Quality Assurance samples
including standards of certified reference material, field
duplicates, pulp duplicates and blank samples were inserted every 5
samples. COREM also inserted blank samples, standards and
duplicates for Quality Control purposes.
The Fermont Iron Property
Champion previously announced an initial Mineral Resources
Estimate ("MRE") on the Company's Bellechasse and Fire Lake North
Claim Blocks ("Bellechasse" and "Fire Lake North") under NI 43-101
guidelines (refer to the Company news release dated November 18,
2009). The MRE totals 503.3 million tonnes grading 28.0% Iron in
the Inferred Mineral Resources(i) category. Bellechasse hosts 215.1
million tonnes grading 28.7% Iron; whereas Fire Lake North hosts
288.2 million tonnes grading 27.5% Iron (all at a 15% Iron cut-off
grade). (i)Inferred Mineral Resources are that part of a Mineral
Resource for which quantity and grade or quality can be estimated
on the basis of geological evidence and limited sampling gathered
through appropriate techniques from drill holes and outcrops, and
reasonably assumed, but not verified, geological and grade
continuity. There has been insufficient exploration to define any
of the resources as Indicated or Measured Mineral Resources and
there is no guarantee that further exploration will upgrade the
Inferred Mineral Resources to Indicated or Measured Mineral
Resources.
Champion has under option a land package of 384.6 km2 in 16
strategic claim blocks grouped into 3 clusters comprising the
Property. Champion had previously announced 8 claim blocks with
historical Mineral Resources of 694 million tonnes grading 30.4%
Iron, but now after 2 of the 8 claim blocks (Bellechasse and Fire
Lake North) host a current MRE, there are 6 remaining claim blocks
that host historical Mineral Resources of 578 million tonnes
grading 30.4% Iron (Paquet, 1963; Ministere des ressources
naturelles et de la faune Quebec Assessment File GM 13035). The
Mineral Resources are strictly historical in nature and are
non-compliant to NI 43-101 Mineral Resources and Mineral Reserves
standards, and should therefore not be relied upon. A Qualified
Person has not done sufficient work to upgrade or classify these
historical Mineral Resources as current NI 43-101 compliant.
The Company is currently in the second year of an option
agreement (the "Agreement") with Fancamp Exploration Ltd. (TSX
VENTURE: FNC) and the Sheridan Platinum Group Ltd. (the "Vendors")
on the Property.
Pursuant to the Agreement, Champion can earn a 65% interest in
all 16 claim blocks within the Property by expending C$6 million in
staged exploration and development work expenditures, making cash
payments totalling C$1 million, and issuing 2.9 million shares, all
over a 4-year period, with the Vendors retaining a 3% Net Smelter
Returns royalty, one third of which may be purchased by Champion
for C$3 million. The Agreement also includes a right of first
refusal on the Lamelee Lake Claim Block. Once Champion has
completed its earn-in, a 65-35 joint venture would be formed
between Champion and the Vendors.
About Champion Minerals Inc.
Champion is an exploration Company focused on discovering and
developing significant metal resources in eastern Canada,
particularly in the provinces of Quebec and Newfoundland &
Labrador. The Company's projects include the Attikamagen Iron
Property in northeastern Quebec and western Labrador, the Fermont
Iron Property in northeastern Quebec, and the Powderhorn/Gullbridge
Base Metal Projects in central Newfoundland. Please visit
Champion's website at www.championminerals.com.
The technical information in this news release was prepared,
revised and approved by Jeff Hussey, P. Geo., VP Exploration of the
Company and Jean Lafleur, P. Geo., the Fermont Iron Property
Project Manager, Director and Technical Advisor to the President
and CEO of Champion. Both individuals are Qualified Persons under
NI 43-101 standards.
The statements made in this news release that are not historical
facts are "forward-looking statements" and readers are cautioned
that any such statements are not guarantees of future performance,
and that actual developments or results, may vary materially from
those in these "forward-looking" statements.
To view the map associated with this release, please visit the
following link: http://media3.marketwire.com/docs/CHM1.pdf
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Contacts: Champion Minerals Inc. Thomas G. Larsen President and
CEO (416) 866-2200 (416) 361-1333 (FAX) Champion Minerals Inc.
Jorge Estepa Vice-President (416) 866-2200 (416) 361-1333 (FAX)
www.championminerals.com
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