Champion Minerals Inc.

Champion Minerals Inc.

September 14, 2010 08:00 ET

Champion Minerals Acquires Strategic Claims in the Fermont Iron Property; Two of Which Contain Historic Mineral Resources of 35.3 Million Tonnes of 36% Iron

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2010) - CHAMPION MINERALS INC. (TSX VENTURE:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce the acquisition of 3 strategic mineral claims located in the Company's O'Keefe-Purdy and Moire Lake Claims Blocks of the Fermont Iron Property in the Fermont Iron Ore District of northeastern Quebec. The acquisition includes two claims (the "O'Keefe Claims") in the O'Keefe-Purdy-Audrea Lake Claim Block, and one claim (the "Moire Claim") in the Moire Lake Claim block.

The O'Keefe Claims

The O'Keefe claims cover the O'Keefe Lake Iron Occurrence (Ministère des ressources naturelles et de la faune Québec or the "MRNFQ" Deposit File 23B12-0003) discovered in 1957. The claims are centred on a tightly folded and coarse-grained hematite, magnetite (5%) and quartz iron formation which hosts historic mineral resources(1) of 35.3 million tonnes grading 36% Iron (MRNFQ Assessment File GM31090, 1975). In 1975, the O'Keefe Lake Occurrence was part of a larger claim package held by Canadian Javelin Limited who were active in the area at that time. Canadian Javelin Limited completed metallurgical testing on a combined sample from the O'Keefe property and other proximinal claims which yielded a concentrate of 67.44% Iron and 3.44% Silica at a crushing size of -20 mesh (or under 0.84 millimetres) (MRNFQ Assessment File GM31090, 1975). The O'Keefe Lake Iron Occurrence now forms part of the 182 claims / 94.3 km2 O'Keefe-Purdy-Audrea Lake Claim Block in Cluster 2 claim blocks, due north of the Harvey-Tuttle Claim Block, where Champion is currently drilling to delineate iron formation and iron mineral resources.

The Moire Claim

The Moire Claim encompasses the eastern extension of the Moire Lake Iron Occurrence (MRNFQ Deposit File 23B14-0014) in Champion's Moire Lake Claim Block, located 4 kilometres southwest of the mining town of Fermont. Explored in the 1950's, the Moire Lake Iron Occurrence hosts historic mineral resources1 of 101.6 million tonnes grading 30.8% Iron (GM13035, 1963). The iron formation is essentially a massive, thick-banded quartz-magnetite rock, with approximately one-quarter of the formation consisting of a magnetite and specular hematite mixture, plus a 30 meter wide zone of specular hematite. The Moire Lake Claim Block now consists of 25 claims totalling 11 km2.

The Agreement

Under the terms of the acquisition agreement executed between Champion and an arm's length individual (the "Vendor"), Champion is acquiring a 100% interest in the Moire and O'Keefe Claims through the payment of $25,000 and the issuance of 125,000 Champion common shares to the Vendor. The issuance of the 125,000 common shares is subject to regulatory approval and a resale restriction of four months plus one day from closing. The Vendor retains a 1% NSR royalty.

The Fermont Iron Property

Champion is also pleased to announce that in accordance with the terms of its agreement (the "Agreement") with The Sheridan Platinum Group Ltd. (the "Vendor"), Champion has completed its acquisition of all of the Vendor's remaining 17.5% interest in the Joint Venture among Champion, the Vendor and Fancamp Exploration Inc. ("Fancamp"). The Joint Venture covers 16 iron-rich mineral concessions in the Fermont Iron Ore District of north-eastern Quebec. With the completion of the acquisition of this additional 17.5%, Champion has increased its ownership in the Joint Venture and its properties to 82.5%. Fancamp retains the other 17.5% interest. The Vendor and Fancamp also retain a 3% royalty, which may be reduced to 2% by paying $3,000,000.

Under the terms of the Agreement, Champion issued 4,000,000 shares from treasury and paid $1,000,000. Champion owes two further payments of $500,000 each, payable July 12, 2011 and January 12, 2012, respectively. The share certificates, funds, promissory notes and other closing documents have been delivered to the Vendor following the recording and registration of transfers of the property interests to increase Champion's interest in the properties to 82.5%. The shares are subject to a resale restriction for four months plus one day from closing.

The 608 km2 Fermont Iron Property consisting of 16 strategic claim blocks grouped into three clusters, termed Clusters 1, 2 and 3, which contain historical mineral resources* of 578 million tonnes grading 30.4% Iron (Paquet, 1963; MRNFQ Assessment File GM 13035).

Champion recently issued National Instrument ("NI") 43-101 Mineral Resources Estimates for the Fire Lake North Claim Block ("Fire Lake North") (refer to the Champion news release dated August 18, 2010). At a 15% Total Iron cut-off grade, there are 388 million tonnes grading 29% Total Iron in Inferred Mineral Resources. Utilizing a mining cost of US$ 1.76 per tonne of ore and waste, process cost of US $1.67 per tonne, process recovery of 82%, transport costs of US$ 4.75 per tonne and G&A costs of US$ 0.75 per tonne, pit slopes of 48° to accommodate a ramp and mine design, and a moving average price of Iron concentrate of US$ 114.20 per tonne, the conceptual optimized pit-shell of undiluted and in-situ Mineral Resources stand at 304 million tonnes grading 30% Total Iron. This indicates approximately 80% of Inferred Mineral Resources report within a conceptual open-pit at the same 15% Total Iron cut-off grade. BBA Inc. (of Montreal) is currently proceeding with a Preliminary Assessment Study on Fire Lake North slated for completion in October 2010.

It is also estimated that between 320 million and 350 million tonnes of additional Potential Mineralized Material1 is present for which no sampling data is available to estimate grade. The Fire Lake North iron formations continue on the contiguous Bellechasse Claim Block ("Bellechasse") where Champion had previously outlined Inferred Mineral Resources of 215 million tonnes grading 29% Total Iron. The combined Fire Lake North and Bellechasse estimates total 603 million tonnes grading 29% Total Iron Inferred Mineral Resources.

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 Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion, a Qualified Person 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.

(1) All historical mineral resources and Potential Mineralized Material outlined in the text 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 and Potential Mineralized Material as current NI 43-101 compliant Mineral resources.

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
    (416) 361-1333 (FAX)