Champion Minerals Inc.

Champion Minerals Inc.

October 18, 2010 10:45 ET

Champion Minerals Drills 361.5 Metres of Iron Mineralization at Fire Lake North

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to update shareholders on the ongoing 15,000 m diamond drill campaign at the Company's Fire Lake North Claim Block from the Fermont Iron Property in northeastern Quebec. Currently there is one drill in operation and the Company plans on having three drills in operation shortly.

The first hole extended drill hole FL10-21 on the East Limb Zone from 227.0 m to 442.2 m, adding 190.5 m of iron mineralization to the original 171.0 m length grading 36.2% Total Iron. The total intersection of continuous iron mineralization in hole FL10-21 is now 361.5 m. Assays are pending on the recent extension of this drill hole.

Drill hole FL10-24 from the West Limb which initially intersected 197.8 m grading 38.3% Total Iron including an interval of 43.6% Total Iron over 43.0 meters (refer to the Champion news release dated May 18, 2010) will also be extended. This hole was collared and ended in higher grade mineralization and will be extended and undercut in the upcoming drilling. This area along with areas in the East Limb adjacent to holes FL10-01, FL10-06, and FL10-08 will be drilled.

The drilling campaign aims to outline additional Inferred* Mineral Resources from: (1) the Don Lake, East and West Limb Zones where Champion recently reported Inferred* Mineral Resource Estimates of 388 million tonnes grading 29% Total Iron at a 15% Total Iron cutoff that contains an estimated 185 million tonnes grading 36% Total Iron at a 30% Total Iron cutoff (refer to the Champion news release dated August 18, 2010), and (2) the new Northeast Zone where a large surface outcrop of quartz-specularite iron mineralization was recently mapped.

Tom Larsen, Champion's President and CEO, states "With BBA's preliminary economic assessment report expected before the end of October, the additional iron mineralization intersected in hole FL10-21 bodes well for increasing Mineral Resources at Fire Lake North notwithstanding what could develop with further deepening of existing holes left in mineralization in Q1 and Q2, 2010, as well as the potential of the newly discovered Northeast Zone. We believe that Champion can reach its goal of 1 billion tonnes of Mineral Resources at economic grades just in the surrounding Fire Lake North area quickly."

Jeff Hussey, P. Geo., Champion's VP Exploration adds "The 15,000 m drill program is aimed at outlining sufficient Mineral Resources on Fire Lake North to proceed with a Feasibility Study for a centralized operation in Champion's Cluster 2 area that also include the adjacent claim blocks such as Bellechasse with 215 million tonnes of Inferred Mineral Resources grading 28.7 % Total Iron, and the Harvey-Tuttle, O'Keefe-Purdy, Midway and Oil Can Lake claim blocks, all within a reasonable distance from Fire Lake North."

* The Mineral Resources for Fire Lake North were estimated 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 prepared, revised and approved by Jeff Hussey P. Geo., VP Exploration of the Company and Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion. Both individuals are Qualified Persons 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.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    1 (877) 448 2201 or (416) 866-2200
    Champion Minerals Inc.
    Jorge Estepa
    1 (877) 448 2201 or (416) 866-2200