Champion Minerals Inc.: News Release
16.12.2010 | Marketwire
NEWS RELEASEChampion Minerals completes assessment of historic work on 14 claim blocks
of its Fermont Iron Property: outlines 2011 drilling program with the
potential to confirm and significantly increase Historical Mineral
Resources* from the current 600 million tonnes grading 30.5% Total Iron
Toronto (Canada), December 15, 2010 - CHAMPION MINERALS INC. (TSX: CHM;
FSE: 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* (Paquet, 1963; MRNFQ Assessment File GM 13035). The
following table summarizes the Historic and Current Mineral Resources* from
the Property:
CLAIM STRIKE- HISTORIC CURRENT CURRENT
BLOCK LENGTH MINERAL NI 43-101 PROGRAM
IRON FORMATION RESOURCES* MINERAL STATUS
RESOURCES
Fire Lake 17 41 Mt @ 31% 388 Mt @ PEA, DD:
North Iron 29% Iron1 15,000m
Belle- 10 91 Mt @ 30% 215 Mt @ DD: 3,000m
chasse Iron 29% Iron1
Moire 8 101 Mt @ 31% n/a DD: 5,000m
Iron
O'Keefe 19 51 Mt @ 37% n/a DD: 6,000m
-Purdy Iron
Penguin 14 100 Mt @ 30% n/a DD pending
Iron
Silicate- 19 304 Mt @ 29% n/a DD pending
Brutus Iron
Audrey- 22 23 Mt @ 33% n/a DD pending
Ernie Iron
Big 2 24 Mt @ 33% n/a DD pending
Three Iron
Harvey- 38 n/a n/a MRE pending
Tuttle
TOTAL 149 603 Mt @ 603 Mt @
30.5% Iron 29% Iron
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*
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* at Fire Lake North and
Bellechasse but they are not included in the total Historical Mineral
Resources*, 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*. 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* 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* 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* 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* 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* 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* 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 km2 Fermont Iron Property consisting
of 16 strategic claim blocks grouped into three clusters, termed Clusters
1, 2 and 3, which contain Historical Mineral Resources* 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.
* 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.
For further information please contact Thomas G. Larsen, President and CEO,
and Jorge Estepa, Vice-President, at (416) 866-2200.
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.
End of Corporate News
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Unternehmen: Champion Minerals Inc. - ISIN: CA1585321013