Champion Minerals Drills Significant Assay Intervals on the Fire Lake North Claim Block
May 18 2010 - 9:32AM
Marketwired Canada
CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX
VENTURE:CHM)(FRANKFURT:P02) is pleased to announce Iron assay results from the
remaining diamond drill holes completed during the winter 2010 drill program on
the Fire Lake North Claim Block ("Fire Lake North") of the Fermont Iron Property
(the "Property"). Assay results are from the north-south trending East Limb and
the Southwest target areas (refer to the appended location map). The most
significant Iron assay intervals are summarized in the following table:
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DDH # FROM TO CORE TOTAL IRON
(m) (m) LENGTH(1) ASSAY
(m) (% Fe)
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East Limb Target
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FL10-03 2.5 18.6 16.1 32.8
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FL10-04 3.7 26.6 22.9 36.2
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FL10-05 64.1 93.9 29.8 29.6
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FL10-07 3.0 53.0 50.0 34.6
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92.0 109.8 17.8 37.1
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FL10-08 70.3 143.7 73.4 36.2
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FL10-09 8.4 63.2 54.8 33.7
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FL10-16 82.0 99.1 17.1 32.6
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Southwest Target
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FL10-14 9.0 73.0 64.0 34.5
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FL10-15 43.5 136.0 92.5 32.9
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FL10-17 15.5 61.0 45.5 40.3
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FL10-18 17.0 50.0 33.0 32.9
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FL10-19 189.5 242.0 52.5 34.9
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FL10-20 103.2 120.9 17.7 31.8
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FL10-21 56.0 227.0 171.0 36.2
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including 87.0 158.0 71.0 43.9
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including 87.0 111.0 24.0 54.5
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and 174.0 226.0 52.0 39.4
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FL10-22 48.0 60.1 12.1 37.0
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FL10-24 26.2 224.0 197.8 38.3
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including 181.0 224.0 43.0 43.6
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(1) Core length is approximately equal to true width.
(2) Fl-10-02, FL-10-10, FL-10-11, FL-10-13 and FL-10-23 had no significant
Iron assay intervals.
Refer to the Champion website at www.championminerals.com for a complete
listing of the individual sample assay results.
A total of 4,142m were drilled in 24 holes at a drill hole spacing of 400 meters
during the 2010 winter drilling campaign on Fire Lake North (refer to the
appended location map). The East Limb target is comprised of two parallel
north-south trending iron formations approximately 300 meters apart that extend
for several kilometers. The best Iron assay interval results were obtained in
drill holes FL-10-01, FL-10-04, FL-10-06, FL-10-07, FL-10-08, and FL-10-09.
Drill holes FL-10-01 (30.2% over 79.1 meters) and FL-10-06 (38.3% over 133.9
meters) were previously announced by Champion (refer to the Champion news
release dated May 4, 2010).
The Southwest target is interpreted to be a wide bowl-shaped iron formation,
with drill holes FL-10-21 and FL-10-24 returning significant intersections of
iron oxide mineralization. Both target areas host Fermont style quartz
specularite-magnetite mineralization, and contain higher grade zones of
coarse-grained specularite with up to 3-5mm sized crystals.
The most significant iron assay intervals from the East Limb and Southwest
targets are located within 1.5 kilometers 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 50 kilometers to the north.
Metallurgical tests will quantify weight recovery and the quality and grade of
the concentrate produced from the assays listed above. Comparatively, the iron
ore at ArcelorMittal's Fire Lake Mine is considered to have excellent metallurgy
associated with this type of high grade and coarse grained iron oxide
mineralization.
At Fire Lake North, a follow up drill program is being planned to further
explore for this higher quality specularite mineralization and to further
delineate their extent along strike and down dip. The target area near the
eastern claim boundary will also be drill tested. Other claim blocks in the area
such as O'Keefe Purdy, Midway and Oil Can Lake are also being evaluated for
drill testing.
Harvey Tuttle Claim Block
The 2010 drill program on the Harvey-Tuttle Claim Block ("Harvey-Tuttle") will
also resume after spring break up and will remain the key component of
Champion's exploration efforts due to its significant blue sky potential. The
Company's objective is to define over 1 billion tonnes of Iron mineral resources
at Harvey-Tuttle (refer to the Champion news release dated December 15, 2009;
and the National Instrument 43-101 Technical Report on Harvey-Tuttle filed on
May 11, 2010, and available on SEDAR at www.sedar.com) and to define several
smaller 200 million to 500 million tonnes Iron resources close to existing
infrastructure. These estimates are purely conceptual in nature and are not part
of a recognized mineral resource or mineral reserve category. They are being
used by the Company to identify priority mineralized target areas for diamond
drill testing and definition.
The Fermont Iron Property
The Fire Lake North Claim Block 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).
Champion previously announced an initial Mineral Resources Estimate ("MRE") on
the 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 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). 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). Historical 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.
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 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 Fire Lake North Claim Block, Fermont Iron Property - Location Map of
the 2010 Winter Diamond Drilling Campaign, please visit the following link:
http://media3.marketwire.com/docs/FireLakeNorth.pdf
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