Champion Minerals Issues Updated Inferred Resource Estimate of 388 Million Tonnes Grading 29% Total Iron for Fire Lake North, Wh
August 18 2010 - 8:00AM
Marketwired Canada
CHAMPION MINERALS INC. (TSX VENTURE:CHM)(FRANKFURT:P02) ("Champion" or the
"Company") is pleased to announce an updated National Instrument ("NI") 43-101
Mineral Resources Estimate (the "Mineral Resources") for the Fire Lake North
Claim Block ("Fire Lake North") from the Fermont Iron Property (the "Property")
in the Fermont Iron Ore District of northern Quebec.
The current Mineral Resources combine the 2009 and 2010 winter drill campaign
results totaling 31 holes which yielded intersections of up to 171 m grading
36.2% Total Iron (drill hole FL10-21), 134 m of 38.3% Total Iron (FL10-6), and
198 m of 38.3% Total Iron (drill hole FL10-24) (refer to the Champion news
releases dated May 4, 2010 and May 18, 2010) covering the East Limb, West Limb
and Don Lake target areas. The current Mineral Resources were estimated by
Eugene Puritch, P. Eng., of P&E Mining Consultants Inc. ("P&E") (Brampton,
Ontario), an independent Qualified Person under NI 43-101 guidelines. The
geological, mineral resource and pit optimization modeling parameters were
established by P&E with assistance from Patrice Live, P. Eng. and Andre Allarie,
P. Eng., both of BBA Inc. (Montreal, Quebec), to complete a Preliminary Economic
Assessment (Scoping Study) for Fire Lake North.
At a 15% Total Iron cut-off grade, there are 388 million tonnes grading 29%
Total Iron in Inferred Mineral Resources(i) from Fire Lake North (all Mineral
Resources numbers in the text are rounded per NI 43-101 guidelines). The
Inferred Mineral Resource Estimates at varying cutoff grades are appended (Table
1) with the geological and Mineral Resources modeling parameters and the Quality
Assurance and Quality Control ("QA/QC") program. The current Mineral Resource
estimate represents a 35% increase in tonnage from previous Mineral Resource
estimates at Fire Lake North that yielded Inferred Mineral Resources(i) of 288.2
million tonnes grading 27.5% Total Iron (refer to the Champion news release
dated November 19, 2009).
It is estimated an exploration target of between 320 million and 350 million
tonnes of additional Potential Mineralized Material(i) is present for which no
sampling data is available to estimate grade. The Potential Mineralized
Material(i) includes the un-estimated iron formation between widely spaced drill
holes and the recently discovered iron formation of the Northeast Zone. In
addition, the conceptual optimized pit-shell of undiluted and in-situ Mineral
Resources at Fire Lake North utilized a mining cost of US$ 1.76 per tonne of ore
and waste, process cost of US$1.67 per tonne, process recovery of 82%, transport
costs of US$4.75 per tonne and G&A costs of US$0.75 per tonne, pit slopes of 48
degrees to accommodate ramp and mine design, and a moving average price of Iron
concentrate of US$ 1.1420 per dry metric tonne unit or US$ 114.20 per tonne, are
304 million tonnes grading 30% Total Iron. The conceptual pit-shell indicates
approximately 80% of Inferred Mineral Resources(i) report within a conceptual
open-pit (refer to Table 2) at the same 15% Total Iron cut-off grade.
The Fire Lake North iron formations continue on the contiguous Bellechasse Claim
Block ("Bellechasse") where Champion had previously outlined Inferred Mineral
Resources(i) of 215 million tonnes grading 29% Total Iron. The combined Fire
Lake North and Bellechasse estimates total 603 million tonnes grading 29% Total
Iron in Inferred Mineral Resources(i), all in close proximity to ArcelorMittal's
road-rail infrastructure and Fire Lake Mine (341 million tonnes grading 33.4%
Iron) that supplies ore to the Mont Wright Mine and Concentrator Complex located
approximately 50 kilometers to the north.
Thomas Larsen, Champion's President and CEO, stated, "I am very pleased with the
expediency of Champion's technical group in outlining over 600 million tonnes at
29% Total Iron in NI 43-101 compliant Mineral Resources over the past 18 months.
From an exponential cost-reward valuation perspective, the iron mineralization
discovered far exceeds the cost of exploration incurred. The current Mineral
Resource estimated tonnage represents a 35% increase from previous Mineral
Resource estimates. Furthermore, a significant estimated tonnage of additional
mineralized material remains to be drilled."
Mr. Larsen added "We believe our current Mineral Resources are near the
threshold required for a potential economically viable operation and have
focused our efforts accordingly. BBA Inc is now in a position to complete the
scoping study for the latter part of October while Champion aggressively
initiates a 15,000 m staged drill program to upgrade the current Inferred
Mineral Resources to the Measured and Indicated categories, and delineates the
remaining potential, including the newly discovered Northeast Zone."
(i) Inferred Resources are part of a National Instrument 43-101 Mineral Resource
for which the estimated quantity and grade of a deposit, or a part thereof, that
is determined on the basis of limited sampling, but for which there is
sufficient geological information and a reasonable understanding of the
continuity and distribution of metal values to outline a deposit of potential
economic merit. There is no guarantee that further exploration will upgrade the
Inferred Resources to Indicated and/or Measured Resources. Mineralized Material
is not recognized Mineral Resources categories and there is no guarantee that
any future exploration will ever convert any of this material to compliant NI
43-101 Mineral Resources.
The Fermont Iron Property
Champion has an 82.5% direct interest, with Fancamp Exploration Ltd. (TSX
VENTURE:FNC) holding 17.5%, in the 608 km2 Fermont 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 current Mineral Resources there are 6
remaining claim blocks that host historical Mineral Resources of 578 million
tonnes grading 30.4% Iron (Paquet, 1963; MRNFQ 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.
Fully funded, having raised over $C 20 million since November 2009, Champion is
aggressively exploring the Fermont Iron Property, including the ongoing 7,000 m
drill campaign on Harvey-Tuttle, with the objective of outlining several 200 to
500 million tonnes lenses. The Fermont Iron Property hosts more than 200
kilometres of iron formation with potential to host Mineral Resources.
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 Alexander Horvath, P. Eng., Executive VP Exploration of the Company,
Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO
of Champion, and Eugene Puritch, P. Eng., of P&E Mining Consultants. All
individuals are Qualified Persons under NI 43-101 standards with Mr. Puritch
being independent of the issuer.
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.
Table 1: Inferred Mineral Resources(i) at 5% incremental Total Iron cutoff
grades from 10% to 30%.
--------------------------------------------------------------
Cut-off Total Iron
grades Tonnes(1) grade Ca2O MgO
--------------------------------------------------------------
10% 425,232,000 27.5 0.41 0.37
--------------------------------------------------------------
15% 387,733,000 28.9 0.39 0.35
--------------------------------------------------------------
20% 327,349,000 31.0 0.38 0.32
--------------------------------------------------------------
25% 252,089,000 33.6 0.35 0.28
--------------------------------------------------------------
30% 184,702,000 35.9 0.24 0.23
--------------------------------------------------------------
(1) Numbers are rounded according to NI 43-101 guidelines.
Table 2: Pit Optimized Mineral Resources at 5% incremental Iron cutoff
grades from 15% to 30%.
--------------------------------------------------------------
Cut-off Total Iron
grades Tonnes(1) grade Ca2O MgO
--------------------------------------------------------------
10% 324,800,000 29.3 0.34 0.32
--------------------------------------------------------------
15% 303,732,000 30.4 0.33 0.30
--------------------------------------------------------------
20% 274,787,000 31.8 0.33 0.29
--------------------------------------------------------------
25% 222,095,000 33.9 0.31 0.27
--------------------------------------------------------------
30% 166,645,000 36.1 0.24 0.23
--------------------------------------------------------------
(1) Numbers are rounded according to NI 43-101 guidelines.
Geological and Mineral Resource Modeling Parameters
-- The current Mineral Resource estimates were completed using Inverse
Distance Squared ("ID2") interpolation of four-meter assay composites
within modelled mineralization domains defined by geology and assay
values.
-- The assay values were capped at 58% Total Iron prior to compositing and
the area of influence for high grade composites above 45% Total Iron
were restricted to 50% of the 300 meter search and interpolation range
used to estimate resources.
-- The current Mineral Resources were evaluated only from recent NI 43-101
compliant drill hole assay results. The mineralized areas were
interpreted from transverse sections defined by drill hole traces
combined with geophysical data.
-- The 15% Iron cut-off grade was derived from a 4 year moving average
price of Iron concentrate price at US$ 1.142 per dry metric tonne unit
(or US$ 114.20 per tonne), based on the ArcelorMittal Mines Canada
October 2009 European deliveries of concentrate (Freight on Board or FOB
Port-Cartier, Quebec) price set at US$1.0242 per Iron unit or US$ 102.42
per tonne (www.arcelormittal.com); processing of US$ 1.67 per tonne of
ore; concentrate transport of US$ 4.75 per tonne of ore; G&A of US$ 0.75
per tonne of ore; and a process recovery of 85%.
-- A bulk density of 3.30 tonnes per cubic metre was used to calculate
tonnages from the volumetric estimates of the resource grade block
model. Initial density test results on a limited number of samples
indicate the density could be higher; however, additional testing would
be required to validate any increase in the current assigned density.
-- Any discrepancies in the estimate numbers are due to rounding effects;
rounding followed the recommendations in NI 43-101.
-- The Mineral Resources for Fire Lake North were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by CIM Council December 11, 2005.
Quality Assurance and Quality Control
All drill core logging and sample preparation was conducted by qualified Company
personnel under NI 43-101 guidelines at the Company's core logging facilities in
Labrador City, Newfoundland. The NQ-sized drill core was split and one-half
retained in the core tray as a reference sample while the other half core
samples were individually bagged, tagged, and sealed within large sealed nylon
bags and shipped by commercial ground transport for sample preparation and
analysis to ALS Laboratory Group facilities in Val d'Or (Quebec) and North
Vancouver (British Columbia). Certified reference standards and blank samples
were inserted regularly for Quality Assurance and Quality Control ("QA/QC")
purposes, and QA/QC work and results was supervised and processed by Alex S.
Horvath of A. S. Horvath Engineering Inc. (Ottawa, Ontario), and reviewed and
approved by Tracy Armstrong, P. Geo., of P&E Mining Consultants Inc.
Champion Minerals Inc. (TSXV:CHM)
Historical Stock Chart
From Nov 2024 to Dec 2024
Champion Minerals Inc. (TSXV:CHM)
Historical Stock Chart
From Dec 2023 to Dec 2024
