Champion Minerals Inc.

Champion Minerals Inc.

February 02, 2010 08:00 ET

Champion Minerals Update From Harvey-Tuttle; Additional Drilling Planned at Fire Lake North

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to update shareholders on the advancement of the winter exploration program at the Fermont Iron Property (the "Property") in the Fermont Iron Ore District of northeastern Quebec. Program planning is on schedule and with the recent financings Champion will be very active in outlining resources in 2010 not only on the 69 km2/122 claims Harvey-Tuttle Claim Block ("Harvey-Tuttle"), but also on the adjacent Fire Lake North and Bellechasse Claim Blocks ("Fire Lake North" and "Bellechasse"). These claim blocks are located adjacent to and within 5km to 20km of surface infrastructures.

The 10,000m drilling campaign is slated to begin by mid-February at the 25 km2 Mammoth Iron Zone on Harvey-Tuttle. The drilling is to be performed with a number of service providers to facilitate the execution of the program. All of the preparatory work has been completed to determine the shortest access points to Harvey-Tuttle in order to minimize wood cutting, camp emplacement and to facilitate the implementation of the drill program. Winter access roads to the drill sites are proceeding as scheduled.

Champion is completing the detailed design of each drill hole supported by magnetic inversion interpretations. All of the drill holes are 150m to 300 m in length and are aimed at outlining the maximum mineral resources for a potential open pit scenario. Also included in the current campaign is metallurgical and mineralogical testing to qualify and quantify the value of the iron mineralization.

Champion is also preparing a 5,000m drilling program on Fire Lake North where the Company has already outlined (in 2009) National Instrument ("NI") 43-101 compliant (*)Inferred Mineral Resources of 288.2 million tonnes grading 27.5% Iron in 2009. Fire Lake North is contiguous to the north of ArcelorMittal's Fire Lake Mine (341 million tonnes grading 33.4% Iron), a seasonal operation that supplies ore to the Mont Wright Mine and Concentrator Complex located approximately 50 km to the north (; MRNFQ Files). Once the Fire Lake North resource delineation drilling is completed the next step would be to finalize resource delineation on nearby Bellechasse and also test the Midway Claim Block which Champion believes has similar potential to Bellechasse and Fire Lake North.

Thomas Larsen, President and CEO of Champion stated, "Champion will have winter road access to Harvey-Tuttle and Fire Lake North, and will seek permitting to construct an all-season road to both claim blocks to allow continuous drilling on both locations. We look forward to communicating drill results as soon as they are available. Champion continues to focus on the Fermont Iron Ore District and the Fermont Iron Property that has seen a renewed interest in its high quality iron resources. New projects are being developed in the area and existing producers are considering expansions in response to improving market conditions and higher iron ore prices."

The Fermont Iron Property

Champion previously announced an initial Mineral Resources Estimate ("MRE") on Bellechasse and Fire Lake North under NI 43-101 guidelines (refer to the Company news release dated November 19, 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).

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). The 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.

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 Quebec and Newfoundland & Labrador. The Company's projects include the Attikamagen Iron Property in northeastern Quebec and western Labrador, the Fermont Iron Property in northeastern Quebec, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland. Please visit Champion's website at

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.

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.

(*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.

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
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2200
    (416) 361-1333 (FAX)