Champion Minerals Inc.

Champion Minerals Inc.

March 23, 2010 06:00 ET

Champion Minerals Drilling at Harvey-Tuttle and Fire Lake North Claim Blocks on the Fermont Iron Property; Metallurgical Testing In-Progress

TORONTO, ONTARIO--(Marketwire - March 23, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to provide an update on the winter diamond drilling campaign at the Fermont Iron Property (the "Property") in the Fermont Iron Ore District of northeastern Quebec. The Property surface area totals 384.6 km2; consisting of 16 strategically located claim blocks grouped into three clusters (see Corporate Presentation and Fact Sheet located at

A total of 6 diamond drills are turning at this time on the Harvey-Tuttle ("Harvey-Tuttle") and Fire Lake North ("Fire Lake North") Claim Blocks. In 2009, National Instrument ("NI") 43-101 Inferred Mineral Resources were outlined by Champion on Fire Lake North (refer to Champion's news release dated November 19, 2009). Drilling is progressing rapidly; however, the planned 15,000m drill program may be downsized depending upon the onset of spring breakup. Champion has commenced the application process for all season road and gravel permitting at Fire Lake North and Harvey-Tuttle with road construction contract tenders being initiated in Q2-2010.

To date 5,000m have been drilled in 27 holes with 6 holes in progress from the total 15,000m planned campaign. At Fire Lake North, 3 drills are operating on the multi-kilometric East and Southwest Limb sectors. Up to 133m (in core length) of iron formation has been intersected in drill hole FL10-06, including an intersection of 55m of coarse grained quartz specularite-magnetite mineralization. Samples are being shipped for analysis.

Another 3 drills are turning at Harvey-Tuttle where the Mammoth Zone hosts a 5km by 5km area of iron formation targets that is one of several untested target areas on the claim block. Drilling has intersected 180m (in core length) of iron formation in hole HT10-01 and 140m in HT10-02, these holes are sampled and being shipped for analysis. The first hole drilled on Turtleback Mountain (HT10-07) in the heart of the Mammoth Zone has intersected 200m of magnetite iron formation.

Champion believes Harvey-Tuttle has potential to ultimately host resources in excess of 1 billion tonnes of iron resources (refer to Champion news release dated December 15, 2009) for which an economic evaluation could eventually justify a standalone type operation.

The COREM research laboratory (Quebec City, Quebec) has been selected to assay and perform metallurgical testing on drill core from the 2009 Fire Lake North and Bellechasse campaigns and the 2010 Fire Lake North and Harvey-Tuttle campaigns. Major producers in the Fermont and Wabush-Labrador City Iron Ore Districts use this laboratory that is specialized in iron ore metallurgy. The metallurgical beneficiation tests will produce concentrates and estimate weight recovery. Concentrates will be assayed for the typical major elements and total Iron to compare to end user specification limits. Initial tests will be performed using a "Wilfley Table" for concentrating by gravity to separate material based upon differing densities. Magnetic separation tests are also scheduled following mineralogical tests. Also density tests will be completed for use in resource estimation.

Champion has shipped an initial six composite samples of specular hematite – magnetite iron ore from the 2009 Fire Lake North drill core with weighted average grades of 21% to 32% Iron as summarized in the following table. Assay results for Iron, Calcium and Magnesium are comparable with Consolidated Thompson Iron Mines assay results from both the Bloom Lake Deposit and the Lamêlée-Peppler Iron mineralized zone. Assay and metallurgical results from Fire Lake North, Bellechasse and Harvey-Tuttle will be issued as they become available.

DL-09-01 25.00 0.04 0.12
DL-09-02 32.40 0.16 0.20
DL-09-04-1 27.30 0.01 0.06
DL-09-04-2 26.40 0.08 0.13
FL-09-01 28.75 1.28 0.96
FL-09-02 21.63 0.70 0.36
Consolidated Thompson Iron Mines Ltd. (TSX:CLM)
Bloom Lake*
Measured+Indicated Resources 29.35 1.81 1.69
Inferred Resources 30.03 0.39 0.38
Lamêlée-Peppler Iron Property**
Indicated Resources 30.30 2.39 1.69
Inferred Resources 30.30 2.78 2.36
* taken from NI 43-101 Technical Report on the Feasibility Study for the Bloom Lake Project, 8-million tonnes per year of Iron Concentrate, Consolidated Thompson Iron Mines Ltd. And BBA inc.; prepared by A. Allaire, P. Eng., E. Palumbo, P. Eng., P. Live, P. Eng., and R. Scherrer, P. Eng.; dated November, 2008
** taken from NI 43-101 Technical Report on the Diamond Drilling and Resource Estimation on the Lamêlée-Peppler Iron Property for Quinto Mining Corporation a wholly owned subsidiary of Consolidated Thompson Iron Mines Limited; prepared by E. Lyons, P. Geo., N. Rioux, P. Geo., and M. Robert, P. Eng.; dated August 2009

Champion's current exploration goals aim to increase the quantity and quality of iron resources for the Property, in addition to acquiring more sample material for the metallurgical test work mentioned above, particularly at Fire Lake North that is adjacent to the north of 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 situated approximately 50 km to the north (; MRNFQ Files).

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 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

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.

Contact Information

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