Champion Minerals Continues to Delineate High-Grade and Coarse-Grained, Specular Hematite-Rich Mineralization at Fire Lake North
TORONTO, ONTARIO -- (Marketwire) -- 06/09/11 -- CHAMPION MINERALS INC. (TSX: CHM)(FRANKFURT: P02) ('Champion', or the 'Company') is pleased to announce assay results recently received for diamond-drill holes completed at the Fire Lake North Project.
Highlights of assay results from eight new holes are detailed in Table 1. Three of the holes were drilled in the area of the proposed West Limb Open Pit, one hole was drilled in the vicinity of the proposed East Limb Open Pit, and four of the holes were drilled in the Don Lake area.
Table 1. Significant Results from Recent Diamond-Drilling at the Fire Lake North Project
TOTAL
Area HOLE-ID AZIMUTH DIP DEPTH FROM TO INTERVAL Fe_Total
metres metres metres metres Fe%
West Limb FLN11-50 270 -50 264 110.15 230.30 120.15 30.97
FLN11-52 270 -70 217 9.00 79.93 70.93 38.33
FLN11-54 270 -50 464 226.43 274.12 47.69 38.10
and 387.63 440.97 53.34 24.95
East Limb FLN11-55 50 -45 455 245.31 322.00 76.69 29.47
includes 249.77 321.00 71.23 31.51
and 375.06 455.00 79.94 7.18
DonLake DL11-11 210 -50 179 131.00 178.94 47.94 4.29
DL11-12 235 -65 329 187.40 245.36 57.96 10.92
includes 217.77 245.36 27.59 18.81
DL11-13 210 -65 451 228.40 321.43 93.03 13.95
includes 288.61 321.43 32.82 31.01
and 404.50 423.00 18.50 31.48
DL11-14 210 -45 394 215.83 246.61 30.78 31.26
and 320.58 354.32 33.74 23.54
Intervals are down-hole core lengths and not true widths.
FLN11-51 and FLN11-53 results were reported in the Company's Press Release
dated April 14, 2011.
The definition drilling at both the East Limb and West Limb designed pit areas continues to intersect high-grade, coarse-grained, specular hematite-rich mineralization. At the West Limb designed pit area, drillhole FLN11-52 intersected 70.9 m grading 38.3% Total Iron (FeT) on section 8100N (see Figure 1). Drillhole FLN11-50 intersected 120.2 m grading 31.0% FeT on section 8300N and is interpreted to have passed through the fold hinge of an east-dipping synform (see Figure 2). Drillhole FLN11-54 intersected 47.7 m grading 38.1% FeT in the upper limb and 53.3 m grading 25.0% FeT in the lower limb on section 8700N of the same synform (see Figure 3).
The interpreted sections of the West Limb designed pit area (Figures 1, 2 and 3) show a trace line of the current designed pit from the November 2010 NI 43-101 Mineral Resource Estimate and Preliminary Economic Assessment ('PEA') report. As the sections demonstrate, the re-interpreted fold geometry generated from the results of the 2010-11 definition drilling will require the final pit design to be significantly modified. The new pit design will likely significantly increase current in-pit resources and reduce strip ratios, which in turn will positively impact the Project Economics that are expected in the forthcoming PEA update, scheduled for completion by the end of Q3-2011.
At the East Limb designed pit area, drillhole FLN11-55 intersected 76.7 m of coarse-grained, specular hematite-rich iron formation grading 29.5% FeT, which includes an interval of 71.2 m grading 31.5% FeT, in the upper limb of the synform. Further down-hole, 79.9 m of lean iron formation grading 7.2% FeT was encountered; however, the hole was lost, due to bad ground conditions. The last sample in the drillhole grades 34.4% FeT over 3.0 m suggesting the hole was just entering the lower limb of the specular hematite-rich iron formation when the hole was lost.
Drilling at the Don Lake area is complete, with 16 holes having been drilled during 2011. Assay results are pending for drillholes DL11-15 to DL11-20 (inclusive) and geological modelling of the Don Lake zone is in progress. Drilling in the Don Lake area was designed to outline additional iron resources with the objective of establishing a third potential open pit on the Fire Lake North Property.
In Q4-2010, Champion initiated a proposed 17,500 m program of infill and extensional definition drilling at Fire Lake North, following positive results published in the November 2010 NI 43-101 Mineral Resource Estimate and PEA report. By 2010 year end, 5,500 m of drilling had been completed and the proposed program was increased to 20,000 m. As of the end of May, 2011 a total of 16,660 m had been drilled at Fire Lake North and the total proposed program was increased to 23,000 m. The additional metres of drilling were required to delimit the maximum resources and favourable fold geometry of the mineralization for open pit mine design.
When all drilling is completed and assay results are available, Champion will update its current Inferred Mineral Resource Estimate, calculated at 388 Million Tonnes (MT) grading 28.9% FeT in November 2010 and the PEA of the Project. The PEA update will evaluate integrating the resources both at the Don Lake area, which were not previously included, and the Inferred Mineral Resources at the Bellechasse Project, which are currently estimated at 215 MT grading 28.7% Fe. The Bellechasse Project is located 5 km northwest of the Fire Lake North Property.
The Fermont Iron Holdings
Champion's Fermont Property Holdings are comprised of seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - currently contain combined NI 43-101 compliant Inferred Mineral Resources totalling 1.55 Billion Tonnes grading 25.4 % Total Iron at a 15% cut-off. The Company recently announced positive results from drilling at the Lac Moire Project, adjacent to the east of ArcelorMittal's Mont Wright Mine property. A Mineral Resource estimate is scheduled for the Lac Moire Project in Q3-2011. Seven of the remaining fourteen properties contain combined Historical Mineral Resource Estimates(i) totalling 620 MT grading 31% Total Iron.
An ongoing, fully-funded, 60,000 m diamond-drilling program is scheduled for nine of Champion's Fermont properties in 2011.
About Champion Minerals Inc.
Champion Minerals 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 Property Holdings in Quebec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); the Attikamagen Iron Property in Quebec and Labrador, and; the Powderhorn / Gullbridge base-metal Projects in central Newfoundland.
(i) Historical Mineral Resources(i) are from Paquet, 1963 (MRNFQ Assessment File GM 13035) (see press release date February 15, 2011). 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 reviewed and approved by Jeff Hussey, P. Geo., Executive VP Development of the Company and a Qualified Person 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.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/chm_fig1.pdf
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/chm_fig2.pdf
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/chm_fig3.pdf
Contacts:
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
(416) 866-2200
(416) 361-1333 (FAX)
Champion Minerals Inc.
Jorge Estepa
Vice-President
(416) 866-2200
(416) 361-1333 (FAX)
Champion Minerals Inc.
Salisha Hosein
Director, Investor Relations
(416) 866-2200
(416) 361-1333 (FAX)
www.championminerals.com