Champion Minerals Intersects 503 Metres Grading 31% Total Iron at Its Fermont Holdings' Moire Lake Project
TORONTO, ONTARIO -- (Marketwire) -- 10/06/11 -- CHAMPION MINERALS INC. (TSX: CHM)(FRANKFURT: P02) ('Champion', or the 'Company') is pleased to provide the latest assay results from the Company's Moire Lake Project, which is strategically located immediately east of and contiguous to ArcelorMittal's Mont Wright Mine property, and is 8 km south of existing rail transport infrastructure.
Drill hole LM11-12 intersected 503.4 metres grading 31.2% Total Iron ('FeT') on the southeast side of the historic Lac Moire Occurrence(1). Drill hole, LM11-16, located approximately 400 m northeast and along strike of drill hole LM11-12, intersected 390.1 m grading 27.6% FeT and included an interval of 237.1 m grading 31.5% FeT. Drill hole LM11-09, located approximately 400m northeast of LM11-16, intersected 383.4 m of iron formation grading 30.3% FeT (see Champion's press release dated September 15, 2011). These three drill holes delineate approximately 1 kilometre of iron formation along strike, with down-hole intersections of 383 m to 503 m (core-length), and confirm the continuity of the iron-rich Sokoman Formation around the thickened southeast fold closure.
Tom Larsen, Champion's President and CEO commented, 'The latest results from our 2011 drill program at Moire Lake further confirm the high grade and continuity of the iron formations present on the property which is strategically located in the Labrador Trough. The combined thickness and assay results from Moire Lake are significant and we expect the new resource estimate will identify a sizeable increase in the historical resource.'
Table 1 provides a list of select composite assay results from holes LM11-11
to LM11-16.
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TABLE 1 - SELECTED(i) COMPOSITE ASSAY RESULTS (HOLES LM11-11 to LM11-16)
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HOLE-ID HOLE INTERVAL GRADE
LENGTH AZIMUTH DIP FROM TO (ii) (iii)
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metres degrees degrees metres metres metres Total Fe%
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LM11-11 451 120 -55 No intersection
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LM11-12 515 111 -45 3.50 506.93 503.43 31.21
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including 60.30 490.40 430.10 31.83
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LM11-13 572 45 -60 407.50 572.00 164.50 29.56
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including 407.50 509.95 102.45 31.45
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and 527.10 572.00 44.90 32.25
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LM11-14 307.5 170 -45 2.70 231.45 228.75 29.50
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34.70 231.45 196.75 30.26
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LM11-14A 389 170 -45 288.90 337.20 48.30 28.16
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LM11-015 402 55 -65 143.80 361.17 217.37 25.29
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including 159.26 236.70 77.44 30.75
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LM11-016 474 100 -45 83.90 474.00 390.10 27.63
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including 87.90 325.00 237.10 31.53
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(i) Selected Composite Assay Results are stated only for results recently
received. The Selected Composites are not necessarily representative of the
average grade or thickness of the mineral zones or potential resource.
(ii) Intervals are down-hole lengths and not true widths of the mineral
zones.
(iii) Grades are calculated from Total Fe% sample assays completed by ALS
Chemex Laboratories using the 'High Grade/Ores Method' and XRF analysis.
Champion previously announced plans to drill a northeast-trending linear magnetic anomaly underlying the eastern part of the Moire Lake Project, where recent prospecting located outcrop containing specular-hematite and magnetite iron mineralization in zones up to 40 m wide, coincident with this anomaly. Permits are pending for this additional planned drilling, and hence this element of the exploration program has been deferred until 2012.
The final 2011 drill hole (LM11-21), which is designed to pass through the southeast fold closure of the Lac Moire Occurrence, is in-progress. It is being drilled on the same section as LM11-12, but on an opposing azimuth in order to verify the dips and true thickness of the iron formation intersected by holes LM11-09, LM11-12 and LM11-16. These holes may have been drilled slightly down-dip, as the iron formation is interpreted to dip steeply southeast in this area (see appended figures 1 and 2).
A total of 21 drill holes, totalling approximately 9,325 m, will be completed in 2011 at the Moire Lake Project. Champion is preparing samples for initial metallurgical tests as the geological interpretation is finalized. Upon receipt of the remaining assay results in early November Champion will initiate a NationaI Instrument 43-101 Mineral Resource Estimate ('MRE') for the Moire Lake Project with results expected later in Q4-2011. Champion plans to initiate a Preliminary Economic Assessment for the Moire Lake Project upon completion of the MRE.
The Fermont Iron Holdings
Champion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined, NI 43-101 compliant, Measured and Indicated Mineral Resources estimated at 400 Million Tonnes grading 30.6% FeT and Inferred Mineral Resources estimated at 1.82 Billion Tonnes grading 25.4% FeT, at a 15% FeT cut-off(3). Seven of Champion's remaining fourteen properties contain combined historical Mineral Resource estimates(2) totalling 620 Million Tonnes grading 31% FeT.
The Company will continue drilling with three drill rigs through the remainder of 2011 at the O'Keefe-Purdy and Oil Can projects in order to complete the ongoing 10,000 m and 8,000 m programs, respectively. These drills will be moved to Fire Lake North to commence Feasibility definition-drilling as soon as drilling permits are obtained.
About Champion Minerals Inc.
Champion Minerals is an iron ore exploration and development company with offices in Montreal and Toronto, focused on developing its significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include: the Fermont Holdings in Quebec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); and the Attikamagen Iron Property in Quebec and Labrador. Champion's Fermont Holdings, including the flagship Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to three producing mines. Champion's team and advisory board includes mining and exploration professionals with substantial iron ore expertise to effectively advance the Fire Lake North Project into production.
(1) The on-line documented information on the Lac Moire Occurrence (Lac Moire (Quartz)-Est) describes the rocks hosting the mineralization and lists an historic estimate(2) of 101 million tons of probable ore grading 30.75% iron. The description of the occurrence can be viewed on-line at http://sigeom.mrnf.gouv.qc.ca/ (COGITE #23B/14-0014).
(2) All historical Mineral Resource estimates outlined in this disclosure 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.
(3) 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 Bruce Mitton, P.Geo. VP Exploration 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 '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 Figure 1, please visit the following link: http://media3.marketwire.com/docs/chmfig1105.pdf
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/chmfig2105.pdf
Contacts:
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
(416) 866-2200
Champion Minerals Inc.
Jorge Estepa
Vice-President
(416) 866-2200
Champion Minerals Inc.
Salisha Hosein
Director, Investor Relations
(416) 866-2200
www.championminerals.com