Champion Minerals Inc.

Champion Minerals Inc.

January 15, 2010 12:20 ET

Champion Minerals to Start Major Drilling Campaign to Outline Iron Resources on the 25 km2 Mammoth Zone at Harvey-Tuttle Claim Block, Fermont Iron Property (Quebec)

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to announce that a 10,000 m drilling campaign will start in early February to test the Mammoth Zone, a 25 km2 area with a magnetic signature representing extensive folded and potentially thickened iron formation. This zone is located on the Harvey-Tuttle Claim Block ("Harvey-Tuttle"), one of 16 claim blocks that make up the Fermont Iron Property (the "Property") that includes a total surface area of 384 km2 (734 claims). Boart Longyear of North Bay (Ontario) has been selected as the drilling contractor to operate 3 diamond drill rigs for the campaign.

Thomas Larsen, President and CEO of Champion stated, "Champion has raised $6.3M which will permit us to fast-track and fully test Harvey-Tuttle's Mammoth Zone with its billion tonne potential. The winter access road is progressing ahead of schedule. The first few holes have been spotted and we look forward to having the Boart Longyear drills turning shortly. Further exploration programs are being planned for the remainder of 2010 and in 2011 on the entire Fermont Property."

Harvey-Tuttle Claim Block

The Property is located in the southwesterly extension of the Labrador Trough that hosts the major iron ore producers in the Fermont Iron Ore District (the "FIOD"), including ArcelorMittal, RTZ, Wabush Mines and Consolidated Thompson Iron Mines Ltd.

Previous assessment work and reports have documented iron occurrences on Harvey-Tuttle, and in particular the Mammoth Zone, composed of coarse grained specular hematite and magnetite-rich iron formation, typical of the deposits and other occurrences in the FIOD. Only two short drill holes were drilled in 1957 in the northern part of Harvey-Tuttle and both returned intersections of quartz specularite, the first containing 26.7% iron over 26 m and the second 32.7% iron over 20 m (MRNFQ Deposit File 23B/12-0010).

The Star Lake Iron Occurrence is located approximately 5 km north of the Harvey Tuttle northern claim boundary and hosts a historical resource of 234.7 million tonnes grading 32.4% iron (MRNFQ Deposit File 23B/12-0002); whereas the Lamelee-Peppler Deposits are located 15 km to the southeast and contain a current Indicated Mineral Resource of 935 million tonnes grading 29.72% iron (Consolidated Thompson Iron Mines Ltd., 2009). The historical resource quoted is strictly historical in nature and is non-compliant to NI 43-101 Mineral Resource standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to classify the historical resource as current NI 43-101 compliant Mineral Resources. There is no guarantee that any future exploration would upgrade the historical Mineral Resources into current Mineral Resources.

The Fermont Iron Property

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 (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 Lamelee Lake Claim Block. Once Champion has completed its earn-in, a 65-35 joint venture would be formed between Champion and the Vendors.

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

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.

We invite you to access Champion's corporate presentation at

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.

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
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2200