Champion Minerals Completes Assessment of Historic Work on 14 Claim Blocks of its Fermont Iron Property
December 15 2010 - 9:05AM
Marketwired Canada
CHAMPION MINERALS INC. (TSX:CHM) (FRANKFURT:P02) ("Champion" or the "Company")
is pleased to announce it has completed an assessment of the exploration
potential of the historic work on fourteen (14) claim blocks from the Company's
Fermont Iron Property (the "Property"). Two (2) additional claim blocks, Fire
Lake North and Bellechasse already host 603 million tonnes in current NI 43-101
Mineral Resources grading 29% Total Iron. Of these fourteen (14) claim blocks,
six (6) host a total of 603 million tonnes grading 30.5% Iron in Historical
Mineral Resources(i) (Paquet, 1963; MRNFQ Assessment File GM 13035). The
following table summarizes the Historic and Current Mineral Resources(i) from
the Property:
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STRIKE CURRENT
LENGTH HISTORIC NI 43-101 CURRENT
CLAIM IRON MINERAL MINERAL PROGRAM
BLOCK FORMATION RESOURCES(i) RESOURCES STATUS
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41 Mt @ 31% 388 Mt @ 29% PEA, DD:
Fire Lake North 17 Iron Iron(1) 15,000m
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91 Mt @ 30% 215 Mt @ 29%
Bellechasse 10 Iron Iron(1) DD: 3,000m
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101 Mt @ 31%
Moire 8 Iron n/a DD: 5,000m
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51 Mt @ 37%
O'Keefe -Purdy 19 Iron n/a DD: 6,000m
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100 Mt @ 30%
Penguin 14 Iron n/a DD pending
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304 Mt @ 29%
Silicate-Brutus 19 Iron n/a DD pending
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23 Mt @ 33%
Audrey-Ernie 22 Iron n/a DD pending
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24 Mt @ 33%
Big Three 2 Iron n/a DD pending
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Harvey-Tuttle 38 n/a n/a MRE pending
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603 Mt @ 30.5% 603 Mt @ 29%
TOTAL 149 Iron Iron
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Notes: Numbers have been rounded following NI 43-101 standards; PEA -
Preliminary Economic Assessment Study; DD - Diamond Drilling; n/a - no
estimates; MRE - Mineral Resources Estimates. Historical Mineral Resources(i)
are from Paquet, 1963 (MRNFQ Assessment File GM 13035). (1) Grade is quoted at a
15% Iron cut-off.
The table contains the Historical Mineral Resources(i) at Fire Lake North and
Bellechasse but they are not included in the total Historical Mineral
Resources(i), since they have been converted and increased to significantly
higher current NI 43-101 Mineral Resources.
Jeff Hussey, P. Geo., VP Exploration of Champion stated "We expect to have new
NI 43-101 compliant Mineral Resource Estimates at Harvey-Tuttle early in Q1-2011
followed in early Q2 by estimates for the Moire Lake Claim Block that already
hosts 101 million tonnes of Historical Mineral Resources(i). The completion of
drilling at Fire Lake North and Bellechase in Q1-2011 also has the potential to
add significant additional resources to the current NI 43-101 compliant mineral
resources of 603 MT of 29% Total Iron. Current exploration plans also include
drill testing the main iron occurrences that already host 51 million tonnes at
37% Total Iron at the O'Keefe-Purdy Claim Block. One of these showings hosts
coarse grained - higher grade specularite similar to the higher grade portions
of the Fire Lake North deposits. This higher grade material produces a very
clean and higher grade concentrate. With O'Keefe-Purdy's deca-kilometric
magnetic iron formation signatures, we are looking forward to drill testing this
claim block".
Tom Larsen, President and CEO of Champion, added "We plan an initial 25,000 m of
drilling during the first two quarters of 2011, to validate and potentially
increase the Historical Mineral Resources(i) from the present 603 million tonnes
at 30.5% Total Iron on 6 claim blocks (Moire Lake, O'Keefe-Purdy, Penguin,
Silicate-Brutus, Audrey-Ernie and Big Three) into compliant NI 43-101 Mineral
Resources. A further 25,000 m will be continued in the second half of the year,
including a program to enhance value in the Cluster 3 area located to the
southwest of Cluster 2." Highlights of this program are outlined below for two
(2) of the most strategic claim blocks, Moire Lake and O'Keefe-Purdy, due to
their proximity to the ongoing Champion drilling at Fire Lake, current
resources, and existing infrastructure.
Moire Lake Claim Block
The 25 claims / 11 km2 Moire Lake Claim Block in Cluster 1 encompasses the
eastern extension of the Moire Lake Iron Occurrence (MRNFQ Deposit File
23B14-0014) in Champion's Moire Lake Claim Block, located 4 kilometres southwest
of the mining town of Fermont. Explored in the 1950's, the Moire Lake Iron
Occurrence hosts Historic Mineral Resources(i) of 101.6 million tonnes grading
30.8% Iron (MRNFQ Assessment File GM13035, 1963). The iron formation is
essentially a massive, thick-banded quartz-magnetite rock, with approximately
one-quarter of the 8 kilometres long magnetite and specular hematite iron
formation being tested. Previous work has already defined a 30 m wide zone of
specular hematite.
Champion has scheduled a 5,000 m drill program at the Moire Lake Iron Occurrence
to commence in Q1-2011. The drilling will test the iron mineralization in order
to validate the historical numbers as the Company seeks to significantly
increase the Historical Mineral Resources(i) into NI 43-101 compliant Mineral
Resource Estimates.
O'Keefe-Purdy Claim Block
The 182 claims / 94.3 km2 O'Keefe-Purdy Claim Block in Cluster 2, located due
north of the Harvey-Tuttle Claim Block, covers the O'Keefe Lake Iron Occurrence
(MRNFQ Deposit File 23B12-0003) discovered in 1957. The claims are centred on 19
kilometres of tightly folded and coarse-grained hematite, magnetite (5%) and
quartz iron formation which hosts Historic Mineral Resources(i) of 51 million
tonnes grading 37% Total Iron (MRNFQ Assessment File GM31090, 1975). In 1975,
the O'Keefe Lake Occurrence was part of a larger claim package held by Canadian
Javelin Limited who was also exploring the Star Lake Occurrence located 2.5 km
to the west (outside Champion's claim block). At Star Lake, Historic Mineral
Resources(i) totalled 235.7 million tonnes grading 32.4% Total Iron.
Canadian Javelin Limited completed metallurgical testing on a combined sample
from Star Lake and O'Keefe Lake Occurrences which yielded a concentrate of 67.4%
Iron and 3.4% Silica at a crushing size of -20 mesh (or under 0.84 millimetres)
(MRNFQ Assessment File GM31090, 1975).
Champion completed a surface prospecting program in 2010. Mineralized bedrock
from the northwest segment of the O'Keefe Lake Iron Occurrence displayed coarse
grained specular hematite with four (4) grab sample grades ranging from 22.9% to
35.5% Total Iron.
Champion has also scheduled a 6,000 m drill program at the O'Keefe Lake Iron
Occurrence to commence in Q1/Q2-2011, designed to validate and potentially
significantly increase the Historical Mineral Resources(i) into NI 43-101
compliant Mineral Resources Estimates.
The Fermont Iron Property
Champion has an 82.5% direct interest, with Fancamp Exploration Ltd. (TSX-V:
FNC) holding 17.5%, in the 642 km(2) Fermont Iron Property consisting of 16
strategic claim blocks grouped into three clusters, termed Clusters 1, 2 and 3,
which contain Historical Mineral Resources(i) of 603 million tonnes grading
30.5% Iron (Paquet, 1963; MRNFQ Assessment File GM 13035). The Fermont Iron
Property hosts more than 200 kilometres of iron formation with large untested
potential to host additional Mineral Resources.
Champion recently issued a NI 43-101 Mineral Resource Estimate for the Fire Lake
North Claim Block (refer to the Champion news release dated August 18, 2010). At
a 15% Total Iron cut-off grade, there are 388 million tonnes grading 29% Total
Iron in Inferred Mineral Resources. BBA Inc. (of Montreal) is completing a NI
43-101 Technical Report with results of a Preliminary Assessment ("PA") Study on
Fire Lake North that include engineered or designed pits on the East and West
Limb areas that include 251 million tonnes grading 30.5% Total Iron. The PA
study shows a Net Present Value (NPV) of US$ 1.637 billion at a cash flow
discount rate of 5% based on an Iron concentrate production rate of 7 million
tonnes per year at a grade of 65% Iron. The internal rate of return ("IRR") for
the project is 24.8% (refer to the Champion news release dated November 3,
2010).
The Fire Lake North iron formations continue on the contiguous Bellechasse Claim
Block ("Bellechasse") where Champion had previously outlined Inferred Mineral
Resources of 215 million tonnes grading 29% Total Iron. The combined Fire Lake
North and Bellechasse estimates total 603 million tonnes grading 29% Total Iron
Inferred Mineral Resources.
The Fermont Iron Property Fire Lake North is situated within the Labrador Trough
of northeastern Quebec and western Labrador, widely recognized as a world class
Iron ore mining camp, the Fermont-Wabush-Labrador City Iron Ore District (the
"District"). The four producers in the vicinity comprise Canada's Iron ore
production estimated at more than 40 million tonnes of Iron ore concentrate per
year including the recently commissioned Consolidated Thompson Iron Mines
Limited's Bloom Lake mine. Indications are that the District will be producing
more than 60 million tonnes of concentrate per year in the future based on
disclosed expansion plans. This is a well recognized Canadian iron ore producing
camp known for its high quality concentrate and relatively low operating costs.
About Champion Minerals Inc.
Champion 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 Iron Property in northeastern Quebec, the Attikamagen Iron Property
in northeastern Quebec and western Labrador, and the Powderhorn/Gullbridge Base
Metal Projects in central Newfoundland.
(i) 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 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.
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.
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