The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Champion Minerals Increases Intersection Length in Drill Hole FL10-21 to 336.9m Grading 36.2% Total Iron on Fire Lake North

Tuesday, November 16, 2010

Champion Minerals Increases Intersection Length in Drill Hole FL10-21 to 336.9m Grading 36.2% Total Iron on Fire Lake North08:39 EST Tuesday, November 16, 2010TORONTO, ONTARIO--(Marketwire - Nov. 16, 2010) - CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion" or the "Company") is pleased to announce new assay results from the extension of diamond drill hole FL10-21 on the Fire Lake North Claim Block from the Company's Fermont Iron Property in northeastern Quebec. Champion announced on October 18, 2010, that drill hole FL10-21 increased the core length of Iron mineralization to 361.5m from the original 171.0m of 36.3% Total Iron that was drilled during Champion's winter 2010 drill program as reported May 18, 2010. The expanded interval assay results equates to 336.9m of 35.4% Total Iron, including 292.5m grading 37.0% Total Iron and 178.1m of 40.5% Total Iron (refer to the table below). DRILL HOLE FL10-21 INTERVAL ASSAY RESULTSFROM (m)TO (m)CORE LENGTH (m)% TOTAL IRON56.00392.90336.9035.4including87.00379.50292.5037.0including87.00265.10178.1040.5Note - Core length may not represent true width due to complex folding; additional drilling is required to determine true width.The Fire Lake North Project and Claim BlockChampion announced on November 3, 2010, positive results from a Preliminary Economic Assessment ("PEA") study on the Fire Lake North Project performed by BBA Inc. (of Montreal, Quebec). The PEA 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 over a 14 year mine life. The internal rate of return ("IRR") for the project is 24.8%.Based on these positive results a Feasibility Study is being planned for 2011. Fire Lake North is considered to be a viable project with the current Mineral Resource estimate of 388 million tonnes grading 29% Total Iron with drilling underway. The ongoing 15,000m Fire Lake North drilling program has the potential to enhance the project's economics if it increases the NI 43-101 compliant Mineral Resources and production profile that could result in higher Net Present Value and extend the mine life. This extension in drill hole FL10-21 could potentially help in this regard. The drilling is progressing on schedule with 3 drill rigs on site with a fourth drill to be added shortly to accelerate the program. The objective of this drill program is to increase tonnage in the two outlined open pit areas and increase the inferred resources on several exploration targets in the area. Work is also being planned on several additional claim blocks surrounding Fire Lake North and will include diamond drilling at: (1) Bellechasse; (2) O'Keefe-Purdy where several kilometric-sized folded iron formations are known to occur; and (3) Harvey-Tuttle where Champion has just completed the second tranche of 47 holes for 10,140m from the Phase 1 drill program. Champion's Fire Lake North Claim Block is located 8km to the north of the operating Fire Lake Mine owned by ArcelorMittal and is 60km to the south of Consolidated Thompson Iron Mines Ltd.'s Bloom Lake Mine. 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 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. Fire Lake North, Bellechasse and fourteen other claim blocks are 82.5% owned by Champion, with its joint venture partner Fancamp Exploration Ltd. (TSX-V: FNC) owning the remaining 17.5% interest.Quality Assurance and Quality ControlAll drill core logging and sample preparation was conducted by qualified Company personnel under National Instrument ("NI") NI 43-101 standards at the Company's core logging facilities at the Bellchasse Camp (Quebec). The NQ-sized drill core was split in half. One-half of the drill core was kept in the core tray for reference purposes and the other half core was individually bagged, tagged, sealed and packed in large nylon bags which were then securely closed and sent by commercial ground transportation for analysis to COREM laboratories in Quebec City (Quebec). Quality Assurance samples including standards of certified reference material, field duplicates, pulp duplicates and blank samples were inserted every 5 samples. COREM also inserted blank samples, standards and duplicates for Quality Control purposes. About Champion Minerals Inc. Champion is an exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include the Attikamagen Iron Property in northeastern Quebec and western Labrador, the Fermont Iron Property in northeastern Quebec, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland. Champion has an 82.5% direct interest, with Fancamp Exploration Ltd. 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. The Fire Lake North Claim Block is located in Cluster 2. The Fermont Iron Property hosts more than 200km of iron formation with large untested potential to host additional Mineral Resources.Please visit Champion's website at www.championminerals.com. The quoted Mineral Resources 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.FOR FURTHER INFORMATION PLEASE CONTACT: Thomas G. LarsenChampion Minerals Inc.President and CEO(416) 866-2200ORJorge EstepaChampion Minerals Inc.Vice-President(416) 866-2200