Champion Minerals Inc.
TSX VENTURE : CHM
FRANKFURT : P02

Champion Minerals Inc.

May 18, 2010 08:00 ET

Champion Minerals Drills Significant Assay Intervals on the Fire Lake North Claim Block

- 36.2% Iron Over 171.0 Meters (FL-10-21), Including 43.9% Iron Over 71.0 Meters, and 400 Meters Further South:

- 38.4% Iron Over 197.8 Meters (FL-10-24), Including 43.6% Iron Over 43.0 Meters

TORONTO, ONTARIO--(Marketwire - May 18, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to announce Iron assay results from the remaining diamond drill holes completed during the winter 2010 drill program on the Fire Lake North Claim Block ("Fire Lake North") of the Fermont Iron Property (the "Property"). Assay results are from the north-south trending East Limb and the Southwest target areas (refer to the appended location map). The most significant Iron assay intervals are summarized in the following table:

DDH # FROM
(m)
TO
(m)
CORE
LENGTH(1)
(m)
TOTAL IRON
ASSAY
(% Fe)
East Limb Target
FL10-03 2.5 18.6 16.1 32.8
FL10-04 3.7 26.6 22.9 36.2
FL10-05 64.1 93.9 29.8 29.6
FL10-07 3.0 53.0 50.0 34.6
92.0 109.8 17.8 37.1
FL10-08 70.3 143.7 73.4 36.2
FL10-09 8.4 63.2 54.8 33.7
FL10-16 82.0 99.1 17.1 32.6
Southwest Target
FL10-14 9.0 73.0 64.0 34.5
FL10-15 43.5 136.0 92.5 32.9
FL10-17 15.5 61.0 45.5 40.3
FL10-18 17.0 50.0 33.0 32.9
FL10-19 189.5 242.0 52.5 34.9
FL10-20 103.2 120.9 17.7 31.8
FL10-21 56.0 227.0 171.0 36.2
including 87.0 158.0 71.0 43.9
including 87.0 111.0 24.0 54.5
and 174.0 226.0 52.0 39.4
FL10-22 48.0 60.1 12.1 37.0
FL10-24 26.2 224.0 197.8 38.3
including 181.0 224.0 43.0 43.6
  1. Core length is approximately equal to true width.
  2. Fl-10-02, FL-10-10, FL-10-11, FL-10-13 and FL-10-23 had no significant Iron assay intervals.

Refer to the Champion website at www.championminerals.com for a complete listing of the individual sample assay results.

A total of 4,142m were drilled in 24 holes at a drill hole spacing of 400 meters during the 2010 winter drilling campaign on Fire Lake North (refer to the appended location map). The East Limb target is comprised of two parallel north-south trending iron formations approximately 300 meters apart that extend for several kilometers. The best Iron assay interval results were obtained in drill holes FL-10-01, FL-10-04, FL-10-06, FL-10-07, FL-10-08, and FL-10-09. Drill holes FL-10-01 (30.2% over 79.1 meters) and FL-10-06 (38.3% over 133.9 meters) were previously announced by Champion (refer to the Champion news release dated May 4, 2010).
The Southwest target is interpreted to be a wide bowl-shaped iron formation, with drill holes FL-10-21 and FL-10-24 returning significant intersections of iron oxide mineralization. Both target areas host Fermont style quartz specularite-magnetite mineralization, and contain higher grade zones of coarse-grained specularite with up to 3-5mm sized crystals.

The most significant iron assay intervals from the East Limb and Southwest targets are located within 1.5 kilometers north of the ArcelorMittal Fire Lake Mine claim boundary. The Fire Lake Mine (341 million tonnes grading 33.4% Iron) is a seasonal operation that supplies ore to the ArcelorMittal Mont Wright Mine and Concentrator Complex located 50 kilometers to the north.

Metallurgical tests will quantify weight recovery and the quality and grade of the concentrate produced from the assays listed above. Comparatively, the iron ore at ArcelorMittal's Fire Lake Mine is considered to have excellent metallurgy associated with this type of high grade and coarse grained iron oxide mineralization.

At Fire Lake North, a follow up drill program is being planned to further explore for this higher quality specularite mineralization and to further delineate their extent along strike and down dip. The target area near the eastern claim boundary will also be drill tested. Other claim blocks in the area such as O'Keefe Purdy, Midway and Oil Can Lake are also being evaluated for drill testing.

Harvey Tuttle Claim Block

The 2010 drill program on the Harvey-Tuttle Claim Block ("Harvey-Tuttle") will also resume after spring break up and will remain the key component of Champion's exploration efforts due to its significant blue sky potential. The Company's objective is to define over 1 billion tonnes of Iron mineral resources at Harvey-Tuttle (refer to the Champion news release dated December 15, 2009; and the National Instrument 43-101 Technical Report on Harvey-Tuttle filed on May 11, 2010, and available on SEDAR at www.sedar.com) and to define several smaller 200 million to 500 million tonnes Iron resources close to existing infrastructure. These estimates are purely conceptual in nature and are not part of a recognized mineral resource or mineral reserve category. They are being used by the Company to identify priority mineralized target areas for diamond drill testing and definition.

The Fermont Iron Property

The Fire Lake North Claim Block is located 45km south of the town of Fermont (Quebec) and is centered 7km east of Highway #389 linking the port community of Baie-Comeau to Fermont, and is underlain by iron formation that is similar to those which host the iron deposits of the FIOD, such as the Bloom Lake Deposit (827 million tonnes @ 29.3% Iron) (refer to the Consolidated Thompson Iron Mines website).

Champion previously announced an initial Mineral Resources Estimate ("MRE") on the Bellechasse and Fire Lake North Claim Blocks ("Bellechasse" and "Fire Lake North") under NI 43-101 guidelines (refer to the Company news release dated November 18, 2009). The MRE totals 503.3 million tonnes grading 28.0% Iron in the Inferred Mineral Resources category. Bellechasse hosts 215.1 million tonnes grading 28.7% Iron; whereas Fire Lake North hosts 288.2 million tonnes grading 27.5% Iron (all at a 15% Iron cut-off grade). Inferred Mineral Resources are that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling gathered through appropriate techniques from drill holes and outcrops, and reasonably assumed, but not verified, geological and grade continuity. There has been insufficient exploration to define any of the resources as Indicated or Measured Mineral Resources and there is no guarantee that further exploration will upgrade the Inferred Mineral Resources to Indicated or Measured Mineral Resources.

Champion has under option a land package of 384.6 km2 in 16 strategic claim blocks grouped into 3 clusters comprising the Property. Champion had previously announced 8 claim blocks with historical Mineral Resources of 694 million tonnes grading 30.4% Iron, but now after 2 of the 8 claim blocks (Bellechasse and Fire Lake North) host a current MRE, there are 6 remaining claim blocks that host historical Mineral Resources of 578 million tonnes grading 30.4% Iron (Paquet, 1963; Ministère des ressources naturelles et de la faune Québec Assessment File GM 13035). Historical Mineral Resources are strictly historical in nature and 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.

The Company is currently in the second year of an option agreement (the "Agreement") with Fancamp Exploration Ltd. (TSX VENTURE:FNC) and the Sheridan Platinum Group Ltd. (the "Vendors") on the Property. Pursuant to the Agreement, Champion can earn a 65% interest in all 16 claim blocks within the Property by expending C$6 million in staged exploration and development work expenditures, making cash payments totalling C$1 million, and issuing 2.9 million shares, all over a 4-year period, with the Vendors retaining a 3% Net Smelter Returns royalty, one third of which may be purchased by Champion for C$3 million. The Agreement also includes a right of first refusal on the Lamêlée Lake Claim Block. Once Champion has completed its earn-in, a 65-35 joint venture would be formed between Champion and the Vendors.

Quality Assurance and Quality Control

All drill core logging and sample preparation was conducted by qualified Company personnel under National Instrument ("NI") NI 43-101 standards at the Company's core logging facilities in Wabush (Newfoundland). The NQ-sized drill core was split in half. One-half of the drill core was kept in the core tray for reference purposes and the other half core was individually bagged, tagged, sealed and packed in large nylon bags which were then securely closed and sent by commercial ground transportation for analysis to COREM laboratories in Quebec City (Quebec). Quality Assurance samples including standards of certified reference material, field duplicates, pulp duplicates and blank samples were inserted every 5 samples. COREM also inserted blank samples, standards and duplicates for Quality Control purposes.

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., the Fermont Iron Property Project Manager, Director and Technical Advisor to the President and CEO of Champion. Both individuals are Qualified Persons under NI 43-101 standards.

The 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.

To view the Fire Lake North Claim Block, Fermont Iron Property – Location Map of the 2010 Winter Diamond Drilling Campaign, please visit the following link: http://media3.marketwire.com/docs/FireLakeNorth.pdf

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
    (416) 361-1333 (FAX)
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200
    (416) 361-1333 (FAX)
    www.championminerals.com