Champion Minerals Inc.

Champion Minerals Inc.

August 24, 2010 08:00 ET

Champion Minerals Reports Favourable Iron Recoveries from Metallurgical Tests at Fire Lake North With No Significant Contaminants Reporting to Concentrate

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2010) - CHAMPION MINERALS INC. (TSX VENTURE:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce that initial orientation metallurgical tests from the 2009 Fire Lake North drill core samples are producing excellent recoveries using gravity separation at a standard grind size to produce concentrate grading 65% Iron. Furthermore and significantly, no contaminants report to the iron oxide concentrate outside of market specifications. The Fire Lake North Claims are located within the Fermont Iron Property in the Fermont Iron Ore District of northern Quebec.

Test recoveries range from 83.6% to 89.2% Total Iron at a standard grind size of -20 mesh or 850 microns, typical for the Fermont Iron Ore District. Binocular microscope examination of the samples did not identify any minerals that would lead to contamination and is supported by the analytical test results.

Champion is advancing metallurgical test work on drill core samples collected from the 24 holes completed in Q1-2010. The samples include coarse grained massive specular hematite intersections that returned higher grades such as 38.3% Total Iron over 197.8 meters in drill hole FL-10-24, including an interval of 43.6% Total Iron over 43.0 meters (refer to the Champion news release dated May 18, 2010).

Champion is also preparing three sites on the Fire Lake North Claims for bulk sample collection for metallurgical test work. The sites are located along the East Limb zone where outcrops of both typical and the higher grade coarser grained specular hematite mineralization occur. A large outcrop in the newly discovered and unexplored North East zone is also planned for sample collection.

BBA Inc. ("BBA") of Montreal (Quebec) has reviewed the preliminary metallurgical test results completed by COREM of Quebec City (Quebec) and are overseeing the upcoming metallurgical test program for Fire Lake North as part of the commissioned preliminary assessment study. BBA has significant experience and expertise with iron ore deposits in the Fermont Iron Ore District. BBA has recommended the upcoming tests be performed at the typical grind size of -20 mesh (0.85 mm) as a base case, with additional tests to be performed at various grind sizes for optimizing recoveries, grinding energy consumption and cost benefit analysis.

Champion recently reported updated Inferred* Mineral Resource Estimates for the Fire Lake North Claims of 388 million tonnes grading 29% Total Iron at a 15% Total Iron cutoff that contains an estimated 185MT grading 36% Total Iron at a 30% Total Iron cutoff (refer to the Champion news release dated August 18, 2010). The higher grade resources reported at the 30% Total Iron cutoff are directly associated with the zones of higher grade massive coarse grained specular hematite that core the lower grade wider zones in the southern half of the mineralized lens.

Potential to schedule these high grade resources during initial years of mine production could significantly enhance project economics and will be evaluated by BBA as part of the preliminary assessment study.

In addition to the metallurgical recovery results, point density determinations on the Fire Lake North metallurgical composite samples indicate specific gravities ranging from 3.2 to 3.65 with an average of 3.49. The current Mineral Resource Estimates are determined using a global density of 3.30 for all mineralized iron formation. Test results from an additional 241 point density tests have been received and are being evaluated for construction of a variable density model to produce more accurate mineral resource tonnage and grade estimates. Some additional 60 core samples are being collected for bulk density test measurements to validate and refine the variable density model.

These metallurgical results follow the newly released resource update of the combined Fire Lake North and Bellechasse mineralization of Inferred* Mineral Resource estimates that total 603 million tonnes grading 29% Total Iron, 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, "These metallurgical results are very positive at Fire Lake North and are key to unlocking the property's value. We are very pleased to be working with BBA to help us do just that during these positive iron ore market conditions."

Quality Assurance and Quality Control

All metallurgical sample collection was conducted by qualified Company personnel under NI 43-101 guidelines at the Company's core logging facilities in Val-d'Or, Quebec. Assay sample rejects were split and a sample was sent to the COREM laboratory in Quebec City. COREM combined the split samples into composite samples for metallurgical testing. Certified reference standards, duplicates, and blank samples are used as part of Quality Control and Quality Insurance ("QA/QC") protocol for assays.

* 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.

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.

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
    1 (877) 448 2201 or (416) 866-2200
    Champion Minerals Inc.
    Jorge Estepa
    1 (877) 448 2201 or (416) 866-2200