CHAMPION MINERALS INC. (TSX VENTURE: CHM)(FRANKFURT: P02)
("Champion" or the "Company") is pleased to announce the resumption
of diamond drilling on the Fermont Iron Property (the "Property")
at the prospective Harvey-Tuttle Claim Block ("Harvey-Tuttle") in
the Fermont Iron Ore District of northeastern Quebec.
Harvey-Tuttle Diamond Drilling Campaign
The planned footage for the current campaign is estimated at
7,000 meters in 31 holes. Drilling commenced mid-June with 1,110
meters in 5 holes completed to date on the Turtleback Mountain
target. The program follows an initial campaign of 12 holes
totaling 3,013 meters completed earlier this year.
Two drills are turning at Harvey-Tuttle to follow up on the
previously announced discovery hole HT10-07 that intersected 234
meters of 26.7% Total Iron, including a higher grade interval of
109.2 meters of 34% Total Iron. The Turtleback Mountain target is a
100 meters high crescent shaped hill covering an area 2.5
kilometers long by 1.6 kilometers wide. The magnetic signature of
the iron formation and the interpreted geology infer the structure
is a kilometric scale re-folded iron formation. The refolding
results in a structural thickening of the iron formation horizon
commonly demonstrated at Fermont-Labrador iron mines.
Champion will be testing an additional 6 targets on the
Harvey-Tuttle Claim Block ("NW Extension", "Western Fold", "South
Hinge", "NW Harvey", "South Tuttle" and "Figure 8"). The "Figure 8"
target is also a re-folded synform with a figure-8 shaped magnetic
signature approximately 2 kilometers long and 2 kilometers wide.
This pattern is created by the two major phases of folding and is
one of the main variables that contribute to building volume and
creating basin shaped geometry optimal for open pit mining
methods.
Regional Exploration on the Clusters 2 and 3 Claim Blocks
Champion continues to explore the Cluster 2 claim blocks with
the objective of outlining several 200 million tonne to 500 million
tonne lenses within 25 kilometers of the road-rail infrastructure
and ArcelorMittal's Fire Lake Mine (341 million tonnes grading
33.4% Iron), a seasonal operation that supplies ore to the Mont
Wright Mine and Concentrator Complex located approximately 50 km to
the north (www.arcelormittal.com; MRNFQ Files).
A review and evaluation of the available historic geological
data for the Property is ongoing. The objective is to provide a
compilation of the historic work performed on the 11 other claim
blocks that comprise the Property, validating the historical work
and proposing new exploration work that will potentially delineate,
or increase the historical resources, into current and compliant
mineral resources. The claim blocks include Casse Lake, Hope Lake,
Hope Lake SW, Lamelee South, Midway SE, Oil Can Lake,
O'Keefe-Purdy-Audrea Lakes from Cluster 2, and Aubertin-Tougard
Lakes, Audrey-Ernie Lakes, Big Three Lakes and Silicate-Brutus
Lakes from Cluster 3. The compilation work should be completed in
Q3-2010.
Careful evaluation of the compiled data suggests that the
targeted iron formations within the claim blocks constitute
significant potential iron mineral resources that warrant rigorous
evaluation and exploration programs. The recommended exploration
going forward will focus on volumetrically-significant,
tectonically-thickened, synclinal-hinge areas cored by iron
formations. The programs will include detailed geological mapping
of target areas and systematic drilling and sampling of the iron
formations. The iron formations were outlined by Champion's 2008
airborne geophysical survey. New targets of interest in Cluster 2
are being outlined on the O'Keefe-Purdy Claim Block.
Champion is planning an airborne gravity survey, which will
better define larger masses of hematite-rich iron formation
targets.
Metallurgical Work on Bellechasse and Fire Lake North
BBA Inc. ("BBA") of Montreal (Quebec) is currently reviewing the
preliminary metallurgical testing completed by COREM of Quebec City
(Quebec) from drill core of the 2009 campaign at Fire Lake North
and Bellechasse as part of two preliminary assessment studies.
COREM completed mineralogy, and Wilfley Table (gravity separation)
and SATMAGAN (magnetic separation) tests on composite samples for
orientation mineralogy and metallurgy. Five Fire Lake North
composite samples showed Total Iron content ("FeT") varying from
25.4% to 39.0%. The composites contain varying amounts of both
hematite and magnetite, and show a high FeT recovery ranging from
83.6% to 89.2%. The Bellechasse composites contain FeT varying from
31.3% to 33.8%. The magnetite content is high with SATMAGAN values
varying from 27.1% to 35.7%. A more detailed analysis is being
completed by BBA with their significant experience and expertise in
the Fermont Iron Ore District.
Champion will be launching the second round of metallurgical
testing soon on drill core from the winter 2010 diamond drill
program from Fire Lake North and Harvey-Tuttle.
The Fermont Iron Property Joint Venture Exploration Program
Champion will undertake a comprehensive exploration and
development program at the Fermont Property during the next 12
months. At Harvey-Tuttle, the current diamond drilling campaign
(7,000 m) will be completed followed by geological modeling,
metallurgical test work and mineral resource estimation while other
Cluster 2 claim blocks will be evaluated for potential iron mineral
resources with prospecting/assaying, diamond drilling (2,500
meters) and initial orientation metallurgical tests.
Preliminary assessment studies have been initiated on each of
the Bellechasse, Fire Lake North and the Harvey-Tuttle claim blocks
that will provide guidelines for definition diamond drilling, bulk
sampling, advanced metallurgy, road construction, costing and
financial analysis required for the planned feasibility studies for
each of these projects. As these studies progress, other Cluster 2
claim blocks will be diamond drilled (10,000 meters) and scoping
studies initiated.
The Fermont Iron Property
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 19,
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 now has an 82.5% direct interest in the 384.6 km2
Property consisting of 16 strategic claim blocks grouped into three
clusters, termed Clusters 1, 2 and 3. Champion 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.
Champion and Fancamp Exploration Ltd. ("Fancamp") (TSX VENTURE:
FNC) are currently in a 82.5% / 17.5% joint venture on the
Property. Champion earned an initial 65% interest in all 16 claim
blocks within the Property by expending $C6 million in exploration
expenditures, making cash payments totalling C$1 million, and
issuing 2.9 million shares. Champion acquired a further 17.5% from
The Sheridan Platinum Group ("Sheridan") (refer to the Company news
release dated June 28, 2010). Under the terms of the latest
agreement, Champion has agreed to issue 4 million shares from
treasury to Sheridan on closing and to pay C$2 million in cash (C$1
million of which is payable on closing, plus two further payments
of C$500,000 each, payable 12 months and 18 months after closing).
This agreement is subject to regulatory approval and other
conditions usual to transactions of this nature. Both Fancamp and
Sheridan still retain a 3% Net Smelter Returns royalty, which may
be reduced to 2% by paying C$3 million. The agreement also includes
a right of first refusal on the Lamelee Lake Claim Block.
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., 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.
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 Champion Minerals Inc. Jorge Estepa
Vice-President (416) 866-2200 www.championminerals.com
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