Champion Minerals Inc.
TSX VENTURE : CHM
FRANKFURT : P02

Champion Minerals Inc.

May 04, 2010 07:30 ET

Champion Intersects 38.3% Iron Over 133.9 Metres on the Fire Lake North Claim Block, Fermont Iron Property

Iron Occurs in Coarse-Grained Specularite - the Optimal Mineralization in the Fermont Iron Ore District; Individual Assays Up to 65.1% Iron Over 4 Metres

TORONTO, ONTARIO--(Marketwire - May 4, 2010) - 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* 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; Ministère des ressources naturelles et de la faune Québec 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 Lamêlée 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.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2200
    (416) 361-1333 (FAX)
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200
    (416) 361-1333 (FAX)
    www.championminerals.com