Champion Minerals Inc.
FRANKFURT : P02
TSX : CHM

Champion Minerals Inc.

February 15, 2011 08:15 ET

Champion Minerals Initiates 5,000 m Diamond Drilling Campaign on Moire Lake Iron Project in the Fermont Iron Property

- Drilling aims to validate Historic Mineral Resources(i) of 101 million tonnes grading 31% Iron into Current Mineral Resources and to increase the size of the occurrence

- Moire Lake campaign is part of an aggressive 60,000 m diamond drilling program designed to validate and increase the portfolio of Historical Mineral Resources(i) totaling 613 million tonnes grading 30% Iron

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2011) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce the start of a 5,000 m diamond drilling campaign on the Company's Moire Lake iron project in the Fermont Iron Property in northeastern Quebec.

The 25 claim/11 km2 Moire Lake Project ("Moire Lake" or the "Project") in Champion's Fermont Iron Property Cluster 1 is located 4 km southwest of the town of Fermont (Quebec), and occurs adjacent and contiguous to the east of ArcelorMittal's Mt. Wright Mine and Concentrator operations.

The Project hosts the Moire Lake Iron Occurrence (MRNFQ Deposit File 23B14-0014). Explored in the 1950's, the occurrence hosts Historic Mineral Resources* of 101.6 million tonnes grading 30.8% Iron (MRNFQ Assessment File GM13035, 1963). The iron formation is essentially a massive, thick-banded quartz-magnetite-hematite rock.

Champion's 5,000 m drill program at Moire Lake will test the deposit in order to validate the historical numbers as the Company seeks to potentially significantly increase tonnage while upgrading the Historical Mineral Resources* into a National Instrument ("NI") 43-101 compliant Mineral Resource Estimate.

The Fermont Iron Property and the planned 60,000 m Drilling Program

Following the completion of a detailed assessment of the historic work and mineral resources potential on fourteen (14) individual properties of the Fermont Iron Property (refer to the Champion news release dated December 15, 2010) and the closing of a recent $30 million bought-deal financing (refer to the Champion news release dated February 3, 2011), Champion has outlined an aggressive 60,000 m diamond drilling program designed to validate and potentially significantly increase and upgrade Historical Mineral Resources* from the current 613 million tonnes grading 31% Iron.

Of the fourteen (14) properties, seven (7) host a total of 613 million tonnes grading 31% Iron in Historical Mineral Resources* (Paquet, 1963; MRNFQ Assessment File GM 13035). Two (2) additional properties, the Fire Lake North and Bellechasse Projects, host 603 million tonnes in current NI 43-101 Mineral Resources grading 29% Iron representing a near 5-times increase over the historic estimates. With the planned 60,000 m of drilling, Champion hopes to achieve similar success at several other properties with Historic Mineral Resources*. The following table summarizes the Historic and Current Mineral Resources* from the Fermont Iron Property:

PROPERTY CLUSTER HISTORIC
MINERAL
RESOURCES*
(% GRADE IRON)
CURRENT
NI 43-101
MINERAL
RESOURCES
(% GRADE IRON)
CURRENT
PROGRAM
STATUS
Moire 1 101 Mt @ 31% n/a DD: 5,000m
Fire Lake North 2 41 Mt @ 31% 388 Mt @ 29%1 PEA, DD: 17,000m
Bellechasse 2 91 Mt @ 30% 215 Mt @ 29%1 DD: 3,000m
Harvey-Tuttle 2 n/a n/a MRE pending
O'Keefe-Purdy 2 51 Mt @ 37% n/a DD: 6,000m
Penguin 3 100 Mt @ 30% n/a n/d
Silicate-Brutus 3 304 Mt @ 29% n/a n/d
Audrey-Ernie 3 23 Mt @ 33% n/a n/d
Big Three 3 24 Mt @ 33% n/a n/d
Black Dan 3 10 Mt @32.3% n/a n/d
TOTAL   613 Mt @ 31% 603 Mt @ 29%  

Notes: Numbers have been rounded following NI 43-101 standards; PEA – Preliminary Economic Assessment Study; DD – Diamond Drilling; n/a – no estimates; n/d – not determined at this time; MRE - Mineral Resources Estimates. Historical Mineral Resources* are from Paquet, 1963 (MRNFQ Assessment File GM 13035). The table contains the Historical Mineral Resources* at Fire Lake North and Bellechasse but they are not included in the total Historical Mineral Resources*, since they have been converted and increased to significantly higher current NI 43-101 Mineral Resources. 1 Grade is quoted at a 15% Iron cut-off.

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 Quebec, jointly held by Champion, with an 82.5% interest and Fancamp Exploration Ltd., holding a 17.5% interest, and the Attikamagen Iron Property in Quebec and Labrador, and the Powderhorn / Gullbridge Base Metal Projects in central Newfoundland.

* All Historical Mineral Resources outlined in the text 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 prepared, revised and approved by Alex S. Horvath, P. Eng., Executive VP Exploration and Jeff Hussey, P. Geo., VP Exploration of the Company. Both individuals are Qualified Persons under NI 43-101 standards.

Please visit Champion's website at www.championminerals.com.

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
    (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