Champion Minerals Inc.

Champion Minerals Inc.

September 15, 2011 07:30 ET

Champion Minerals' Drillhole LM11-09 Intersects 359m Grading 30% Total Iron at the Moire Lake Project in Cluster 1 of the Fermont Holdings

- Drillhole LM11-10 intersects 249.5m grading 22.3% Total Iron including an interval of 130.7m grading 29.1% Total Iron

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2011) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is pleased to provide an update of drilling results from the Company's Moire Lake Project in Cluster 1 of the Fermont Holdings in north-eastern Quebec. The Moire Lake Project is strategically located adjacent to ArcelorMittal's operating Mont Wright Mine and Concentrator Complex and 8km south of existing rail transport infrastructure.

Drillhole LM11-09 intersected 358.9 metres ("m") grading 30.3% Total Iron ("FeT") on the southeast side of the historic Lac Moire Occurrence1, confirming the continuity of the iron-rich Sokoman Formation around the southern fold closure. Drillhole LM11-10, located on the southwest side of the historic Lac Moire Occurrence intersected 249.5m grading 22.3% FeT including an interval of 130.7m grading 29.1% FeT. Results from hole LM11-10 successfully validate a historic intersection of 206.1m grading 24.1% FeT including an interval of 143.3m grading 34.1% FeT reported for drillhole QE612.

Table 1 provides a list of select composite assay results for holes LM11-06A to LM11-10 inclusive.

metres degrees degrees metres metres metres Total Fe%
LM11-06A 352 60 -55 3.0 95.7 92.7 17.4
and 133.0 179.7 46.7 16.8
and 197.9 232.2 34.3 18.2
LM11-07 446 230 -55 164.6 229.4 64.9 19.3
LM11-08 457 60 -70 333.1 434.3 101.2 28.6
includes 345.1 434.3 89.2 30.2
includes 345.1 404.9 59.8 31.5
LM11-09 383 90 -55 24.5 383.4 358.9 30.3
includes 31.5 133.0 101.5 35.2
and 133.0 383.4 250.4 28.2
LM11-10 456 15 -60 135.9 385.4 249.5 22.3
includes 135.9 298.6 162.7 27.1
includes 135.9 266.6 130.7 29.1
* Selected Composite Assay Results are stated only for results recently received. The Selected Composites are not necessarily representative of the average grade or thickness of the mineral zones or potential resource.
** Intervals are down-hole lengths and not true widths of the mineral zones.
*** Grades are calculated from Total Fe% sample assays completed by ALS Chemex Laboratories using the "High Grade/Ores Method" and XRF analysis.

The diamond-drilling program at Moire Lake initially comprised 5,000 m and was designed to validate the historic Resource of the Lac Moire Occurrence, which was estimated at 101 MT grading 31% FeT3. The program was increased to a projected 10,400 m as a result of favourable results obtained early in the program. A total of 19 drill holes, totalling 8,500 m, have been completed in 2011 at Moire Lake, with the final proposed hole for the Lac Moire Occurrence currently in progress on the north side of the occurrence.

The initial 2011 drill program also included two planned holes to test a northeast-trending linear magnetic anomaly underlying the eastern part of the Project. Recent prospecting revealed outcrops containing specular-hematite and magnetite iron mineralization in zones up to 40 m wide coincident with this anomaly. As a result, an added 1,800 m of drilling (permit-pending) is planned to delineate the extent of iron formation along this trend.

Champion expects to complete a Mineral Resource Estimate for the Moire Lake Project in Q4-2011 followed by a PEA study in early 2012.

The Fermont Holdings drill program continues to utilize nine drill rigs including one drill at Moire Lake and eight drills distributed amongst four Projects within Cluster 2 that are proximal to the Company's flagship Fire Lake North Project.

Champion's current National Instrument ("NI") 43-101 Inferred Resource Estimate of 388 Million Tonnes (MT) grading 28.9% FeT on Fire Lake North, completed in Q4-2010, is expected to realize an increase to the iron Mineral Resource with the recently completed 26,267m drill program. Also expected, is a reclassification of some Inferred Resources into the Indicated category. Early indications suggest an increase of in-pit resources, reduced strip ratios for the East Area and West Area designed pits, and to the potential feasibility of an open pit at Don Lake. An updated Mineral Resource Estimate is scheduled for completion in Q3-2011, followed by an update of the Preliminary Economic Assessment in Q4-2011.

Champion's statements of expectations for the Fire Lake North Project including; realizing an increase and re- categorization of the iron resources, reducing strip ratios for the proposed designed pits and the potential feasibility of an open pit at Don Lake are "forward-looking statements" and not historical facts. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those stated herein.

Champion remains dedicated to exploring the Cluster 2 Projects in 2011 focusing on those with the best potential for coarse grained specular-hematite mineralization which would supply more highly valued resources for sinter feed. Champion will continue to further delineate the magnetite-rich resources at other Cluster 2 projects for potential development as sinter and pellet mill feed producers.

The Fermont Iron Holdings

Champion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined NI 43-101 compliant Inferred Mineral Resources currently estimated at 1.55 Billion Tonnes grading 25.4% FeT, at a 15% FeT cut-off. Seven of Champion's remaining fourteen Fermont properties contain combined Historical Mineral Resource Estimates* totalling 620 MT grading 31% Total Iron.

An on-going, fully-funded, 60,000+m diamond drilling program will investigate eight of Champion's Fermont Projects and is scheduled for completion in 2011-2012.

About Champion Minerals Inc.

Champion Minerals is an iron ore exploration and development company with offices in Montreal and Toronto, focused on developing its significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include: the Fermont Holdings in Quebec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); and the Attikamagen Iron Property in Quebec and Labrador. Champion's Fermont Property Holdings, including the flagship Fire Lake North Project, are located in Canada's major iron ore producing district among three producing mines. Champion's team and advisory board includes mining and exploration professionals with substantial iron ore expertise to effectively advance the Fire Lake North Project into production.

1 The on-line documented information on the Lac Moire Occurrence (Lac Moire (Quartz)-Est) describes the rocks hosting the mineralization and lists an historic3 estimate of 101 million tons of probable ore grading 30.75% iron. The description of the occurrence can be viewed on-line at (COGITE #23B/14-0014).

2 The historic drillhole QE61 intersection grades were calculated using assay results obtained from (MRNFQ Assessment File GM32289, Nov. 15, 1976.)

3 The historical Mineral Resources estimate for the Lac Moire Occurrence is from Paquet (1963) as described in MRNFQ Assessment File GM 13035. All Historical Mineral Resources outlined in this disclosure 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 Mineral resources. The current Mineral Resource estimates were calculated 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 reviewed and approved by Bruce Mitton, P.Geo., VP Exploration of the Company and a Qualified Person under NI 43-101 standards.

Please visit Champion's website at

Statements made in this news release that are "forward-looking statements" are not historical facts. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those stated herein.

Contact Information

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

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

    Champion Minerals Inc.
    Salisha Hosein
    Director, Investor Relations
    (416) 866-2200