Champion Minerals Announces Up to 139 Metres of 52.8% Total Iron from the Attikamagen Project
TORONTO, ONTARIO -- (Marketwire) -- 07/06/11 -- CHAMPION MINERALS INC. (TSX: CHM)(FRANKFURT: P02) ('Champion') is pleased to announce assay results from the Attikamagen Project, which is wholly-owned by Champion and under option to Century Iron Mines Corp. ('Century Iron') and is located in north-eastern Quebec and western Labrador, near the town of Schefferville, Quebec. The 2011 winter drilling program focused on several potential taconite and direct shipping ore ('DSO')(1) targets near Hayot Lake, Quebec and Joyce Lake in western Labrador. Century Iron completed over 2,000 metres of combined diamond and reverse circulation ('RC') drilling and are continuing the current phase of drilling which is expected to be completed by December 2011.
Highlights
-- 2011 RC drilling completed at Joyce Lake encountered a potential DSO
target. Drill hole JOY-11-06 intersected 139.0 m grading 52.8% Total
Iron ('FeT'), and drill hole JOY-11-07 intersected 91.0 m grading 52.5%
FeT, including 42.0 m grading 65.3% FeT.
-- 2011 diamond-drilling at Hayot Lake corroborates results of the Century
Iron 2010 drilling, which intersected a taconite iron occurrence. Drill
hole HAY-11-10 intersected 108.2 m grading 33.2% FeT. Previously, drill
hole HAY-10-06 intersected 92.6 m grading 31.6% FeT.
Iron assay results from the 2011 winter drilling program on the DSO targets at Joyce Lake, as reported by Century Iron, are presented in the following table:
----------------------------------------------------------------------------
Core Length(i)
Hole Number From (m) To (m) (m) Fe% Total
----------------------------------------------------------------------------
JOY-11-06 3.00 142.00 139.00 52.80
----------------------------------------------------------------------------
includes 96.00 138.00 42.00 64.19
----------------------------------------------------------------------------
JOY-11-07 12.00 93.00 91.00 52.46
----------------------------------------------------------------------------
includes 12.00 54.00 42.00 65.26
----------------------------------------------------------------------------
JOY-11-08 3.00 114.00 111.00 37.20
----------------------------------------------------------------------------
includes 60.00 66.00 6.00 59.85
----------------------------------------------------------------------------
JOY-11-09 2.00 126.00 123.00 46.64
----------------------------------------------------------------------------
includes 9.00 18.00 9.00 61.26
----------------------------------------------------------------------------
and 54.00 69.00 15.00 64.80
----------------------------------------------------------------------------
(i) Note: All reported intervals are down-hole core lengths and not true
thickness. Iron values were determined by X-ray fluorescence (XRF) major
element analysis at an ISO 17025 accredited laboratory.
(1) The DSO term was used by previous operators in the Schefferville mining
district to designate 'oxidized iron ore' with iron grades in excess of 55%,
and is only used here for historical reference and is not intended to imply
that a positive economic study has been completed on the Attikamagen
Property.
Assay results from the 2011 winter drilling program on the Hayot Lake taconite targets, as reported by Century Iron, are presented in the following table:
Core Length(i)
Hole Number From (m) To (m) (m) Fe% Total
----------------------------------------------------------------------------
HAY-11-07 71.2 163.1 91.9 32.34
----------------------------------------------------------------------------
HAY-11-08 12.8 109.5 96.7 32.46
----------------------------------------------------------------------------
HAY-11-09 102 232 130 31.55
----------------------------------------------------------------------------
HAY-11-10 86.7 197.6 110.9 32.3
----------------------------------------------------------------------------
HAY-11-11 2 69 67 33.01
----------------------------------------------------------------------------
HAY-11-12 No significant mineralization
----------------------------------------------------------------------------
HAY-11-13 3.2 39.6 36.4 32.19
----------------------------------------------------------------------------
HAY-11-14 2.6 74.2 71.6 32.56
----------------------------------------------------------------------------
HAY-11-15 109 188.1 79.1 32.44
----------------------------------------------------------------------------
(i)Note: All reported intervals are down-hole core lengths and not true
thickness. Iron values were determined by X-ray fluorescence (XRF) major
element analysis at an ISO 17025 accredited laboratory.
The assay results above are consistent with those of the orientation drilling program Century Iron completed in its autumn 2010 Attikamagen drilling program, as tabled below:
----------------------------------------------------------------------------
Core Length(i)
Hole Number From (m) To (m) (m) Fe% Total
----------------------------------------------------------------------------
HAY-10-01 4.80 57.10 52.30 30.90
----------------------------------------------------------------------------
----------------------------------------------------------------------------
HAY-10-02 1.40 64.40 63.00 29.70
----------------------------------------------------------------------------
----------------------------------------------------------------------------
HAY-10-04 0.00 54.70 54.70 31.90
----------------------------------------------------------------------------
----------------------------------------------------------------------------
HAY-10-05 1.50 90.50 89.00 31.95
----------------------------------------------------------------------------
----------------------------------------------------------------------------
HAY-10-06 11.80 104.40 92.60 31.59
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i)Note: All reported intervals are down-hole core lengths and not true
thickness. Iron values were determined by X-ray fluorescence (XRF) major
element analysis at an ISO 17025 accredited laboratory.
Sandy Chim, President and CEO of Century Iron commented: 'We are very encouraged by the drilling results at Joyce Lake for its DSO potential, and at Hayot Lake for its taconite potential. The initial assay results from the 2011 Attikamagen drilling program shows that the Joyce Lake iron formation has the potential to become a DSO deposit. We look forward to receiving assay results for drill holes just recently completed and are very pleased and encouraged by the exploration program thus far.'
The Attikamagen Project and the Ongoing 2011 Drilling Program
Century Iron and Champion Minerals Inc. entered into an Option and Joint Venture Agreement ('Agreement') on May 12, 2008, which was subsequently amended effective July 9, 2009 and March 25, 2010. The Agreement provides Century Iron with the option to earn a 51% interest in the Attikamagen Project by completing the funding of $7.5 million by March 26, 2012 and right to earn a 56 % interest by completing an additional funding of $2.5 million by March 26, 2013 and right to earn a 60% interest by completing additional funding of $3.0 million by March 26, 2014.
Century Iron is continuing with the RC drilling program at Joyce Lake and the diamond drilling program at Hayot Lake, designed to evaluate the overall resource potential at both areas of the Attikamagen Project. The objective of the 2011 drilling program is to determine cross-sectional shape and a preliminary indication of the lateral continuity of the iron mineralization, in order to evaluate general size/grade potential.
About Champion Minerals Inc.
Champion Minerals Inc. is a Canadian-based iron ore exploration and development company with properties located in the heart of Canada's premier iron ore mining district, the Labrador Trough. Champion Minerals is one of the largest landholders of highly prospective iron ore claims located southwest of Fermont, Quebec and northeast of Schefferville. The Company's core projects include Fire Lake North, Bellechasse and Harvey-Tuttle. The Fermont area is located close to water, power, roads and railways, and connects to three ports on Quebec's north shore of the St. Lawrence Seaway. Champion Minerals' shares are traded on the Toronto Stock Exchange under the symbol CHM.
About Century Iron Mines Corporation ('Century Iron')
Century Iron Mines Corporation's (TSX VENTURE: FER) mission is to enhance shareholder value through the development of iron ore projects in Canada and to become a Canadian iron ore producer. Century Iron has promising iron ore assets in, and is firmly entrenched in Western Quebec and in the prolific iron ore producing region of the Labrador Trough.
Century Iron Mines Corporation has two key strategic partners in WISCO and Minmetals, both state-owned Chinese companies with the financial and technical resources to provide Century Iron with funding and technical expertise for the exploration and development of all of Century Iron's iron ore projects.
Century Iron Mines Corporation is an emerging iron ore exploration and development company with interests in the following mineral exploration projects:
-- The Duncan Lake Project (currently a 51% interest with an option to
increase to a 65% interest under an option and joint venture agreement
with Augyva Mining Resources Inc.
-- The Attikamagen Project (option to acquire up to a 60% interest under an
option and joint venture agreement with Champion Minerals Inc. as
described above).
-- The Sunny Lake Project (100% owned by Century Iron).
All of the projects are located in the provinces of Quebec and Newfoundland and Labrador and are held indirectly by Century Iron Mines Corporation through Canadian subsidiaries.
About Wuhan Iron & Steel Co. Ltd. ('WISCO')
WISCO is 428th in the list of Forbes Global 500 and is the third largest steel producer in China. WISCO will have a 25% equity stake and off-take agreement for up to 60% of Century Iron's production. WISCO is one of the major subsidiaries of Wuhan Iron & Steel (Group) Corporation ('WISCO Group'), headquartered in Wuhan in the province of Hubei in the People's Republic of China. The WISCO Group is one of the 'big three' Chinese state-owned integrated iron and steel groups. In 2010, the WISCO Group had an annual output of 36 million tonnes of steel. The WISCO Group's portfolio of business activities includes mining, coking, sintering, iron making, steel making, rolling and associated utilities.
About Minmetals Resources Ltd. ('Minmetals')
Minmetals is 332nd in the list of the Forbes Global 500. Minmetals will have a 5% equity stake and off-take agreement for up to 10% of Century Iron's production. Minmetals is one of the major subsidiaries of China Minmetals Corporation ('China Minmetals'). China Minmetals is a state-owned diversified metals and mining company based in Beijing, in the People's Republic of China. China Minmetals is engaged in the production and trading of metals and minerals, including copper, aluminum, tungsten, tin, antimony, lead, zinc, iron and steel-related commodities. China Minmetals also engages in activities related to real estate development, finance, shipping and tendering. In 2009, China Minmetals had operations in 44 countries and revenue of approximately US$26.8 billion.
The technical information in this news release was reviewed and approved by Mr. Bruce Mitton, P. Geo., Vice President, Exploration of Champion Minerals Inc. and a Qualified Person under NI 43-101 standards.
Contacts:
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
(416) 866-2200; Toll-Free: (877) 448-2201
info@championminerals.com
Champion Minerals Inc.
Jorge Estepa
Vice-President, Secretary and Treasurer
(416) 866-2200; Toll-Free: (877) 448-2201
info@championminerals.com
Champion Minerals Inc.
Salisha Hosein
Director, Investor Relations
(416) 866-2200; Toll-Free: (877) 448-2201
(416) 361-1333 (FAX)
info@championminerals.com
www.championminerals.com