Champion Minerals Inc.

Champion Minerals Inc.

September 27, 2011 07:30 ET

Champion Minerals' Drilling at Fire Lake North Includes Three Intervals of Over 150 m Grading 35% Total Iron; Updated NI 43-101 Mineral Resource Estimate to Be Announced Oct. 3, 2011

- Remaining Assays from the 84 Hole, 26,221 m Drilling Program Recently Completed at Fire Lake North Project Confirm Long Intervals of High-Grade Iron Mineralization

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2011) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is pleased to provide the final assay results for remaining drill holes completed in 2011 at the Fire Lake North Project in Fermont, Quebec. These results complete the current phase of Champion's 2011 Drill Program at Fire Lake North, and an up-dated Mineral Resource Estimate ("MRE") for the project is scheduled to be announced on October 3, 2011.

Significant results from the final drill holes include three intervals* of over 150 m grading 35% Total Iron ("FeT") in holes FL11-64B, FL11-75 and FL11-82. Furthermore, holes, FL11-76, FL11-78 and FL11-80, have intersections ranging from 95 m to 120 m grading 34% to 41% Total Iron.

*Note: Intervals reported herein correspond to core-lengths, not true widths of the mineral zones.

Tom Larsen, Champion's President and CEO commented, "Results from our 2011 Drill Program at the Fire Lake North Project confirm the significant size and continuity of the iron formation deposits. The combined assay results are particularly significant and we expect that the updated resource estimate will describe a material upgrade in the quality and quantity of the iron resources. The next major milestone is the updated Preliminary Economic Assessment ("PEA"), which we expect to deliver in November."

A total of 84 drill holes comprising 26,221 total metres have been completed at the Fire Lake North Project since the last MRE and PEA, which were completed in Q4-2010. Selected composite assay results not previously reported from this drilling are tabulated in Table 2.

Champion's November 2010 National Instrument ("NI") 43-101 Inferred Resource Estimate of 388 Million Tonnes (MT) grading 28.9% Total Iron on Fire Lake North, was calculated from 31 drill holes completed in 2009 and 2010, totalling 5,869 m. The pending MRE update is expected to describe a significant increase to the current Inferred Resource Estimate. Also expected, is a reclassification of some Inferred Resources into the Indicated category. Preliminary, in-house calculations point to 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. The updated MRE is scheduled for completion in Q3-2011, followed by an update of the PEA 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.

metres degrees degrees metres metres metres Total Fe%
FL10-05d 158 50 -55 64.10 93.90 29.80 29.60
FL10-05B 296 50 -55 169.24 181.93 12.69 16.42
and 194.85 213.13 18.28 29.94
FL11-64B 561 270 -50 126.00 282.40 156.40 35.38
and 500.38 537.25 36.87 24.42
FL11-68 480 50 -55 210.00 393.87 183.87 11.61
including 346.47 393.87 47.40 35.79
and 430.75 446.32 15.57 25.56
FL11-69 539 50 -50 265.04 475.35 210.31 25.83
and 523.78 539.00 15.22 21.75
FL11-72B 321 270 -45 124.00 158.50 34.50 24.64
and 232.10 246.81 14.71 35.42
FL11-73 440 95 -45 251.85 276.70 24.85 24.70
and 336.61 381.01 44.40 25.02
FL11-74 639 270 -45 469.85 639.00 169.15 18.79
including 544.61 599.75 55.14 33.81
FL11-75 429 270 -55 33.50 201.74 171.96 35.76
and 270.20 310.16 39.96 32.48
FL11-76 475 270 -45 46.00 165.65 119.65 41.04
and 412.00 447.37 35.37 34.56
FL11-77 377 270 -55 44.00 117.30 73.30 33.39
and 236.85 282.33 45.48 36.17
FL11-78 267 110 -55 54.53 76.34 21.81 26.86
and 123.38 225.49 102.11 36.51
FL11-79 318 270 -45 46.00 96.26 50.26 30.94
and 121.68 168.46 46.78 30.40
FL11-80 336 80 -55 78.00 118.90 40.90 18.31
including 90.00 113.68 23.68 28.66
and 186.00 303.41 117.41 29.28
including 186.00 281.16 95.16 33.80
FL11-81 315 110 -50 45.00 143.00 96.00 30.83
FL11-82 381 110 -50 57.39 76.69 19.30 19.10
and 117.08 281.00 163.92 34.95
a 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.
b Intervals are down-hole lengths and not true widths of the mineral zones.
c Grades are calculated from Total Fe% sample assays completed by ALS Chemex Laboratories using the "High Grade/Ores Method" and XRF analysis.
d FL10-05 was completed in early 2010 and the hole deepened in 2011 as FL10-05B. The original FL10-05 intersection appears as reported in press release dated May 18, 2010.

The 2011 Fermont Property Holdings exploration drilling program at the Moire Lake, Bellechasse and Midway projects is nearing completion. Three drill rigs will continue to operate at the O'Keefe-Purdy and Oil Can projects for the remainder of the year in order to complete the originally proposed 10,000 m and 8,000 m respective drilling programs. Other drill programs originally scheduled for 2011 at the Harvey-Tuttle, Hope Lake and Claire Lake projects have been deferred until 2012. These budgeted expenditures have been re-allocated towards infill drilling and development at Fire Lake North in connection with the scheduled feasibility study and also, the drilling program at Moire Lake was increased in order to delineate the maximum resource potential.

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 higher quality hematite rich sinter feed. Champion will also continue to further delineate the magnetite-rich resources at other Cluster 1 and 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-off1. 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 is investigating six of Champion's Fermont Projects in 2011, completing an estimated 50,000+ m of drilling. The remaining funds for the additional 10,000 m of drilling are being held in reserve to commence Feasibility definition-drilling at Fire Lake North as soon as PEA results and drilling permits are available.

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 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