Champion Minerals Inc.
TSX VENTURE : CHM
FRANKFURT : P02

Champion Minerals Inc.

May 27, 2009 15:42 ET

Champion Minerals Intersects Up to 28.7% Iron on the Fire Lake North Claim Block, Fermont Iron Property, Northeastern Quebec

TORONTO, ONTARIO--(Marketwire - May 27, 2009) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to announce assay results from the winter drill program on the Company's Fire Lake North Claim Block of the Fermont Iron Property (the "Property") located 250 km north of the St. Lawrence River port town of Port-Cartier in the Fermont Iron Ore District ("FIOD") of northeastern Quebec. Champion is currently in the first year of a 5 year option agreement to initially earn a 65% interest in the Property from Fancamp Exploration Ltd. and the Sheridan Platinum Group Ltd.

The Fire Lake North Claim Block (the "Claim Block") is located 42km southwest of the town of Fermont (Quebec) and is centered 6km east of Highway #389 linking the port community of Baie-Comeau to Fermont. The project area is underlain by two-kilometric outcrop ridges of coarse grained quartz-specularite-magnetite iron formations, similar to those which host the iron deposits of the FIOD, such as the Bloom Lake Deposit that hosts 827 million tonnes grading 29.3% Iron (refer to the Consolidated Thompson Iron Mines website at www.consolidatedthompson.com).

The 7 hole, 1,526m diamond drilling program was completed in two areas on the Fire Lake North Claim Block at Don Lake and Half Mile Lake (refer to the appended location map). Abitibi Geophysics Inc. of Val-d'Or (Quebec) interpreted the airborne geophysical data and provided the Company plan maps and Magnetic 2D-Inversion profiles to aid the drill target selection in the iron formations. Drill holes were collared at approximately 400m spacing along the strike-length of the iron formation-magnetic anomaly and 154 core samples were taken for iron analysis. The southwest portion of the Fire Lake North Claim Block contains a historical resources of 25 million tonnes grading 32% Iron(i) along the 6.5km long north-trending Fire Lake magnetic anomaly located 2km west of the Half Mile Lake anomaly; however this area could not be included for drilling in this campaign due to difficult access conditions, but is still being considered for drilling in the near term. This remains an excellent target because it is adjacent and to the north of the Fire Lake Mine (341 million tonnes @ 33.4% Iron) that is a seasonal producer in the area (www.arcelormittal.com; MRNFQ Files). Significant iron assay intervals are summarized in the following table:



------------------------------------------------------------------
CORE IRON
DDH # FROM TO LENGTH(1) ASSAY(2)
(m) (m) (m) (% Fe)
------------------------------------------------------------------
77.1 106.3 29.2 24.0
DL09-01 ---------------------------------------------
202.6 223.1 20.5 14.0
------------------------------------------------------------------
DL09-02 32.4 54.0 21.6 15.1
------------------------------------------------------------------
DL09-02B 55.3 105.4 50.1 15.5
------------------------------------------------------------------
including 57.3 65.0 7.7 20.7
------------------------------------------------------------------
including 74.4 95.4 21.0 18.0
------------------------------------------------------------------
DL09-03 69.2 87.0 17.8 20.2
------------------------------------------------------------------
65.3 89.5 24.2 23.4
DL09-04 ---------------------------------------------
203.8 225.0 21.2 23.6
------------------------------------------------------------------

------------------------------------------------------------------



------------------------------------------------------------------
CORE IRON
DDH # FROM TO LENGTH (1) ASSAY (2)
(m) (m) (m) (% Fe)
------------------------------------------------------------------
FL09-01 84.5 90.8 6.3 28.7
------------------------------------------------------------------
106.9 122.6 15.7 18.2
------------------------------------------------------------------
including 106.9 116.8 9.9 22.9
------------------------------------------------------------------
105.4 140.2 34.8 11.9
FL09-02 ---------------------------------------------
105.4 116.4 11.0 21.6
------------------------------------------------------------------

(1) Approximate true widths.
(2) All drill core logging and sample preparation was conducted by
qualified Company personnel under NI 43-101 standards at the
Company's core logging facilities in Labrador City, 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 the ALS Laboratory Group
facilities in Val-d'Or (Quebec) ("ALS-Chemex"). Certified reference
standards were inserted every 40 samples as well as a blank sample was
inserted every 41 samples for Quality Assurance and Quality Control.
ALS-Chemex also inserted blank samples, standards and duplicates.
Note - refer to the Champion website at www.championminerals.com for a
complete listing of the individual sample assay results.


Key Drilling Highlights

In the Don Lake area 5 drill holes were completed totaling 1,135.6m. The drill holes tested 5 parallel northwest-trending magnetic anomalies over a 2.1km strike length. A moderately inclined and northeast dipping U-shaped synform was identified consisting of 25m to 85m wide north and south limbs of lean quartz-specularite-magnetite iron formation intersected in DL09-01 / DL09-04 and DL09-02 and 2B / DL09-03, respectively, yielding assays in the range of 15% to 24% Iron over an average core length or true width intervals of approximately 24m.

In the Half Mile Lake area 2 holes were drilled for a total of 390m. Drilling tested the northern 400m segment of the northwest-southeast striking 4.5km long Half Mile Lake magnetic anomaly. Steeply northeast-dipping lean quartz-specularite-magnetite iron formations were intersected in the range of 12% to 29% Iron over an average core length or true width intervals of approximately 15.5m.

Mr. Thomas Larsen, President and CEO of Champion stated, "Champion has achieved another milestone on the Fermont Iron Property by successfully completing the winter 2009 drill campaign and its objectives of not only validating the presence of a number of iron formations along the 15km Bellechasse-Fire Lake Iron Corridor, and also confirming their combined specularite(hematite)-magnetite composition, their strike lengths, depths and widths, and their iron grades from both the lean and rich portions of the iron formations. With these results in hand, Champion expects to complete a new mineral resource estimate for the Bellechasse-Midway Claim Block later in 2009."

Mr. Jeff Hussey, VP Exploration of Champion added, "Further exploration and drilling will also be undertaken in 2009 on the Moire Lake East Claim Block which hosts a historical mineral resource of 101 million tonnes grading 30.8% Iron(i). The Harvey-Tuttle Claim Block will also be evaluated for drilling with its 50km plus of untested and folded magnetic anomalies that are favorable for concentrating iron formations in a smaller area. The Silicates-Brutus Claim Block contains historical mineral resources of 304 million tonnes grading 29.4% Iron(i), and is being evaluated to develop the best targets for upcoming drilling campaigns. All three projects are considered to be accessible in the summer months. The strategy in the near term is to validate the historical work and potentially delineate or increase the historical mineral resources in to current NI-43-101 Mineral Resources."

Owing to the success of the magnetic volumetrics and tonnage potential estimates completed on Champion's Attikamagen Iron Property (refer to the Company's news release dated April 27, 2009) in the Schefferville Mining Camp located 245km north of Fermont, a similar study Champion is being initiated on the Property. The study would enable the Company to better understand the geometry of the iron formations on all 15 claim blocks by outlining their lengths, widths, depths and dips, ultimately resulting in an estimate of their volumes and also their tonnage potential at different specific gravities, but not their grades. Champion is of the opinion this study can add value to the exploration targeting process for the Property by producing higher quality drill targets to possibly convert the tonnage potential to an eventual mineral resource.

About Champion Minerals Inc.

Champion is an exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in the Provinces of Labrador and Newfoundland, and Quebec. The Company's projects include the Attikamagen Iron Property, located in western Labrador and northeastern Quebec, the Fermont Iron Property in northeastern Quebec and the Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland.

The technical information in this news release was prepared, revised and approved by Mr. Jeff Hussey, P. Geo., VP Exploration for Champion, and Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion. Both individuals are Qualified Persons under NI 43-101 regulations.

(i) The mineral resource estimates quoted in the news release are strictly historical in nature, 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 classify the historical mineral resource estimates as current mineral resources.

Statements in this 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 Project map, please visit the following link: http://media3.marketwire.com/docs/chm0527.pdf


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2200
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200
    www.championminerals.com