Champion Minerals Inc.

Champion Minerals Inc.

January 11, 2011 08:00 ET

Champion Minerals Acquires Strategic Iron Properties in the Fermont Iron Ore District, Labrador Trough, Quebec

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2011) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce the addition of two strategically located claim blocks to its extensive holdings in the Fermont Iron Ore District of northeastern Quebec.

The newly acquired claim blocks, known as the "Black Dan" and "East Inlet" Properties, border the Company's Penguin Lake and Audrey-Ernie Lakes claim blocks in the southern "Cluster 3" part of Champion's Fermont Iron Property(1), which contains historical iron-ore resources* of over 350 million tonnes(2).

The Black Dan Property

The Black Dan Property covers 6.9 km2 in 13 claims and contains historic mineral resources* of 10 million tonnes grading 32.3% Iron2. The claims overlie a strong, sharply defined, 4,000 m by 200 m, crescent-shaped, vertical-gradient magnetic anomaly that is coincident with locally exposed iron formation. In 1961, Quebec Cartier Mining Co. ("QCM") completed two diamond-drill holes that intersected 91 m and 113 m of iron formation containing 30% to 35% Iron(3). Notably, the second hole was terminated while still in iron formation.

A 1961 Report by QCM3 documented that, "… a single limb of a synclinal structure flanked by a parallel anticline exposes 3,000 ft of iron formation with an average width of 300 ft. (from which) an estimated 10 million tons (9 million tonnes) of ore could be mined." An airborne survey commissioned by QCM and flown in 2000(4) shows that the geophysical anomaly associated with the described exposure is 5.5 km in length and extends onto Champion's Penguin Lake claims.

With the addition of the Black Dan Property, Champion has enhanced the southern portion of the Penguin Lake claim group, which now forms a contiguous block of claims, 15 km in length.

The East Inlet Property

The East Inlet Property consists of 28 claims covering 14.8 km2 and hosts historical mineral resources* of 7.1 million tonnes grading 30% Iron2. The claims occupy the area between Champion's Audrey-Ernie Lakes and the northern Penguin Lake claims, which will now comprise a contiguous block underlain by over 40 km of iron formation.

The East Inlet Property hosts the Thémines 4 and East Inlet occurrences. According to 1961 published Reports2,(5), 18 m of iron formation grading 33% Iron is exposed in a cliff face at Thémines 4(6); whereas at East Inlet, iron formation between 15 m and 45 m thick is exposed over a surface area of 1,850 m by 925 m, with historic mineral resources* estimated at 7.1 million tonnes grading 30% Iron.

The addition of the East Inlet claims will allow Champion to access iron mineralization in close proximity to the former boundaries of its Audrey-Ernie Lakes and Penguin Lake claims, which may otherwise have proven logistically problematic.

The Acquisition 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 Black Dan and East Inlet Properties through the payment of $60,000 and the issuance of 80,000 Champion common shares to the Vendor. The issuance of the 80,000 common shares is subject to regulatory approval and a resale restriction of four months plus one day from the closing date.

Thomas Larsen, Champion's President and CEO, remarked, "Although the Company is prioritizing its ongoing drill program to delineate additional iron-ore resources in the Cluster 2 area, it will continue to be proactive with other strategic and prospective areas of its substantial iron portfolio in the Labrador Trough. The acquisition of the Black Dan and East Inlet Properties is a positive step towards enhancing the value of Champion's iron portfolio from both a potential resource size and strategic land position standpoint."

About Champion Minerals Inc.

Champion is an exploration and development Company focused on discovering and developing significant iron ore resources in eastern Canada, particularly in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include the Fermont Iron Property in northeastern Quebec, the Attikamagen Iron Property in northeastern Quebec and western Labrador, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland.

*Note: All historical mineral resources are non-compliant to NI 43-101 Mineral Resources and Mineral Reserves standards. The historical estimates should therefore not be relied upon. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.

The technical information in this news release was prepared John Langton, P. Geo., an independent mineral exploration consultant with Champion, and approved by Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion, both Qualified Persons under NI 43-101 standards.

Please visit Champion's website at

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) The Fermont Iron Property is a joint venture encompassing 16 claim blocks in three clusters over 642 km2 with Champion owning an 82.5% interest and Fancamp Exploration Ltd., owning the remaining 17.5% interest.

(2) Quebec Assessment File GM13035.

(3) Quebec Assessment File GM12097.

(4) Quebec Assessment File GM58496.

(5) Quebec Assessment File GM12096.

(6) Quebec Assessment File GM11284.

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)