Champion Minerals Inc.
TSX VENTURE : CHM
FRANKFURT : P02

Champion Minerals Inc.

December 15, 2009 11:29 ET

Champion Minerals Estimates Conceptual Tonnages at Harvey-Tuttle, Including the 25 km2 Iron Formation of the "Mammoth" and "Mammoth SW" Zones, and Plans Staged Drilling Campaign

TORONTO, CANADA--(Marketwire - Dec. 15, 2009) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to announce the planning of a staged drilling campaign to test the Mammoth Zone, a 25 km2 magnetic signature representing an extensive sequence of folded and potentially thickened iron formation within the Harvey-Tuttle Claim Block ("Harvey-Tuttle"), one of 16 claim blocks that make up the Fermont Iron Property (the "Property"), currently under option from Fancamp Exploration Ltd. and the Sheridan Platinum Group Ltd.

Prioritized targeting of iron formations on the Property is progressing on schedule using Champion's 2008 airborne geophysical survey that has outlined numerous and significant airborne magnetic signatures of iron formations. The processing uses the zero-contour line of the Second Vertical Derivative Magnetic Contour (the "SVDMC"), by calculating the anomaly's surface area and depth, and estimating the total volume in cubic metres (or "Volumetrics") of the iron formations. The Volumetrics are converted to Conceptual Tonnages by multiplying the Volumetrics and a specific gravity (in tonnes per cubic metre) of the iron formation. The table below outlines the Volumetrics and Conceptual Tonnages for Harvey Tuttle for each of the five geographic sectors of the claim block, at vertical depths of -125 m and -250 m. The Harvey-Tuttle Conceptual Tonnages range from 2 billion tonnes to 4 billion tonnes which includes the 25 km2 Mammoth Zone.

HARVEY-TUTTLE
CLAIM BLOCK
 SECTORS
AREA
(
m2)
DEPTH
(metres)
VOLUMETRICS
(m3)
SPECIFIC
GRAVITY
(
tonnes/m3)
CONCEPTUAL
TONNAGE
(1) (tonnes)
Mammoth Zone 4,851,110 125 606,388,725 3.3 700,378,977
250 1,212,777,450 3.3 1,400,757,954
Mammoth Zone SW 1,763,455 125 220,431,900 3.3 254,598,845
250 440,863,800 3.3 509,197,689
Harvey Tuttle East 1,840,499 125 230,062,319 3.3 265,721,978
250 460,124,638 3.3 531,443,957
O'Keefe West 2,313,968 125 289,245,949 3.3 334,079,071
250 578,491,898 3.3 668,158,142
O'Keefe East 3,116,885 125 389,610,681 3.3 450,000,337
250 779,221,363 3.3 900,000,674
TOTAL TONNES TO -125 METRES VERTICAL DEPTH 2,004,779,208
TOTAL TONNES TO -250 METRES VERTICAL DEPTH 4,009,558,416

(1) Conceptual Tonnage is derived by multiplying Volumetrics, Specific Gravity and 35% (refer to the text for a detailed explanation).

The Volumetrics and Conceptual Tonnages are helping define the potential of mega-iron formations, such as the Mammoth Zone, enabling the Company to focus its exploration efforts. A Conceptual Tonnage is not a recognized mineral resource or mineral reserve category. They are strictly conceptual in nature; being used by the Company to identify priority mineralized targets. Conceptual Tonnages are usually presented as a range of tonnes and grades. There has been insufficient exploration to define Conceptual Tonnages as current National Instrument ("NI") 43-101 compliant Mineral Resources, and it is uncertain if further exploration will result in the Conceptual Tonnages being defined as Mineral Resources.

Abitibi Geophysics Inc. (of Val-d'Or, Quebec) recently processed the magnetic data to produce the Volumetrics on Harvey-Tuttle's Mammoth Zone, located in close proximity to the Bellechasse Claim Block ("Bellechasse"). At Bellechasse, the estimated Mineral Resources in the Inferred category tonnage were approximately 65% lower than the Conceptual Tonnages of the iron formation. The magnetic anomalies are interpreted (and were previously documented on the Bellechasse and Fire Lake North Claim Blocks) to host similar iron mineralization as the Consolidated Thompson Iron Mines ("CTIM") Bloom Lake Deposit (827 million tonnes grading 29.3% Iron) and Lamelee-Pepplar Lake Project (935 million tonnes grading 29.7% Iron) (www.consolidatedthompson.com).

Champion is planning a major staged drill program divided into three campaigns: (1) confirmation/validation drilling to determine the extent and grades of the iron formation from the first two priority targets, the Mammoth and Mammoth SW zones; (2) in-fill drilling to convert all or part of the Conceptual Tonnage of the Mammoth and Mammoth SW Zones into NI 43-101 compliant mineral resources; and (3) testing of the three other priority targets, the Harvey Tuttle East, O'Keefe West and O'Keefe East Zones. Details of the campaigns will be made available early in 2010.

Jeff Hussey, VP Exploration for Champion stated "Our plan since 2008 for the Fermont Iron Property was to outline the maximum high quality iron resources by prioritizing the top 3 to 5 areas of the Property that can be advanced towards feasibility. We are on-track with Bellechasse and Fire Lake North claim blocks and are setting our sights on Harvey-Tuttle with its billion tonne stand-alone potential. The Fermont area is known for its high quality coarse grained iron ore and it is currently undergoing an economic boom with the startup of Consolidated Thompson Iron Mines Ltd.'s Bloom Lake Mine. ArcelorMittal is the major producer in the camp and in June 2008 they announced the company currently meets 46% of iron ore needs with its own mines, and the plan is to reach 75% to 85% self-sufficiency by 2015, suggesting the Canadian mining subsidiary's contribution will likely be crucial to ArcelorMittal's overall growth strategy."

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. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

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). 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 with Fancamp Exploration Ltd. (TSX VENTURE:FNC) and the Sheridan Platinum Group Ltd. (the "Vendors") on the Property. 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, as announced by the Company on May 13, 2009. 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, located in western Labrador and northeastern Quebec, the Fermont Iron Property in northeastern Quebec and the Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland.

The technical information in this news release was prepared, revised and approved by Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion, and Jeff Hussey, P. Geo., VP Exploration of the Company. Both individuals are Qualified Persons under NI 43-101 standards.

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. 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.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2200
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200