Champion Minerals Completes Phase 1 Feasibility Definition Drilling Program at Fire Lake North Project
TORONTO, ONTARIO -- (Marketwire) -- 06/21/12 -- CHAMPION MINERALS INC. (TSX: CHM)(OTCQX: CPMNF)(FRANKFURT: P02) ("Champion", or the "Company") is pleased to announce the completion of the Phase I Feasibility Definition Drilling program on its wholly-owned flagship Fire Lake North Project, in the Fermont Iron Ore Mining District of Quebec. Over 22,000 metres (m) of definition drilling has been completed since early January 2012 in the East and West pit areas. The 2012 drilling was focused within the proposed West area designed pit limits and the East area starter pit as outlined by the November 2011 Preliminary Economic Assessment (PEA).
In the West pit area, over 17,000 m of definition drilling has been completed since the PEA and defines the underlying iron resource within a tight, overturned synform. The synform is gently east-dipping at the south end of the deposit and rotates from east-dipping through a vertical position and into a moderately west-dipping orientation at the north end of the deposit. With the exception of one cross-section, the limbs and fold closure hosting the specular hematite mineralization remains open down-dip along the deposit's entire 3,500 m strike length.
The feasibility drilling program has outlined specular hematite iron mineralization in the West pit area with approximate true widths varying from 100 to 200+ m and beyond the limits of the PEA designed pit. Drill holes FW12-24 (section 9800N) and FW12-15 (section 9700N) each contained substantial near true width intersections ranging from 30.3% Total Iron (FeT) over 167 m to 34.2% FeT over 226 m, respectively. The near true width intersections indicate the iron formation dips are shallowing in this area at vertical depths of less than 350 meters and remain open down-dip extending beyond the west wall of the PEA designed pit (see Table 1 and Figures 1 and 2).
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Table 1: Fire Lake North 2012 Selected(1) Composite Assay Results
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Azimuth Interval Grade
Length degrees Dip From To (2) (3)
Hole # Section metres TN degrees metres metres metres FeT%
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FW12-42B 9500N 724.5 95 -58 142.3 155.9 13.6 Pending
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and(4) 208.76 724.5 515.74 Pending
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FW12-21B(4) 9600N 805 100 -60 203.15 805.00 601.85 40.54
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FW12-15 9700N 440 110 -65 82.36 103.80 21.44 20.60
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and 145.70 371.70 226.00 34.19
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FW12-22 9800N 194 85 -55 66.54 161.82 95.28 33.69
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FW12-24 9800N 402 100 -70 113.28 137.38 24.10 26.59
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and 185.50 352.50 167.00 30.32
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(1) Selected Composite Assay Results are stated only for selected results
recently received. The Selected Composites are not necessarily
representative of the average grade or thickness of the mineral zones
or potential resource.
(2) Intervals are down-hole lengths and not true widths of the mineral
zones.
(3) Grades are calculated from Total Fe% sample assays completed by ALS
Chemex Laboratories using the "High Grade/Ores Method" and XRF
analysis.
(4) Lower portions of these intersections may be drilling partially down-
dip.
Drill hole FW12-21B (section 9600N) cored a 601 m long intersection grading 40.5% FeT that ended in high grade Specular Hematite mineralization at 805 m approximately 650 m vertical below surface and 300 m vertical below the PEA designed pit limits. Drill hole FW12-42B (section 9500N) intersected 515 m of specular hematite with assay results pending. The lower half of the mineralized intervals in each of these two holes displays low core angles indicating the holes may have passed through a folded and thickened portion of the mineralized zone. The lower mineralized intervals are located entirely outside the PEA designed pit limits. Champion is currently drilling a cross-cut hole in this area to clarify the geometry and true width of the zones.
Tom Larsen, CEO and President commented, "These new intersections of Specular Hematite mineralization encountered beyond the PEA designed pit limits, indicate a possible substantial increase to our current 1 billion tonne resource and necessitate an expansion of the West Pit for the Feasibility Study. We see the possibility that sufficient resources might eventually be delineated to support a second concentrate production line and total annual production up to 18 to 20 million tonnes of sinter-feed concentrate from Fire Lake North alone."
In the East Pit area, 4,900 m of drilling was completed in late April, 2012 further delineating the near-surface iron resources of the Fire Lake North Project's currently designed starter pit. The geometry of the iron formation in this planned pit area is a steep to gently south-west dipping, tightly-folded synform. For the majority of its 2,400 m strike length, the synform fold hinge has not been completely defined and the continuation of the Specular Hematite mineralization remains open down-dip.
Three additional, widely spaced step-out drill holes are in-progress in the West pit area, and two additional holes are planned for the East pit area to help determine both the extents of mineralization beyond the current resource (and PEA designed pit limits), plus the number of additional holes that may be required to further delineate this potential resource in a second phase of Feasibility drilling.
The Fire Lake North Project
The Fire Lake North Project is located immediately adjacent north of Arcelor Mittal's operating Fire Lake Mine and 60 km to the south of Cliffs Natural Resources Inc.'s Bloom Lake Mine property in northeastern Quebec. Fire Lake North is situated within the Grenville geological Province at the southern end of the Labrador Trough.
The Fermont Iron Holdings
Champion's Fermont Holdings comprise seventeen properties, four of which - Fire Lake North, Bellechasse, Harvey-Tuttle and Moire Lake - host combined current estimates of Measured and Indicated Iron Mineral Resources totalling 564 Million Tonnes and Inferred Iron Mineral Resources totalling 2.2 Billion Tonnes(1). The Fermont Holdings, including the flagship Fire Lake North Project, are located in Canada's major iron ore producing district, proximal to five producing iron mines. Champion's team and advisory board includes mining and exploration professionals with the mine operations experience to build and commission the Fire Lake North Project into a producing mine.
About Champion Minerals Inc.
With offices in Montreal and Toronto, Champion Minerals is an iron ore exploration and development company focused on developing its significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. Champion holds a 100% interest in the Fermont Iron Holdings, following the recent acquisition of the 17.5% interest from its former joint venture partner Fancamp Exploration Ltd. (see May 18, 2012 News Release). Champion also holds a 44% interest in the Attikamagen Iron Property in Quebec and Labrador.
(1) 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 and subsequently June 30th, 2011. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The technical information in this news release was reviewed and approved by Bruce Mitton, P. Geo., Vice-President Exploration of the Company, who is 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 "forward-looking statements" are not historical facts. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those stated herein.
To view the figures accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/800259.pdf
Contacts:
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
(416) 866-2200
Champion Minerals Inc.
Jorge Estepa
Vice-President
(416) 866-2200
www.championminerals.com
