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Press release from Marketwire

Champion Minerals' Drilling at Fire Lake North Nears Completion and Continues to Delineate High-Grade Zones of Coarse-Grained, Specular Hematite-Rich Mineralization

Wednesday, August 03, 2011

Champion Minerals' Drilling at Fire Lake North Nears Completion and Continues to Delineate High-Grade Zones of Coarse-Grained, Specular Hematite-Rich Mineralization07:30 EDT Wednesday, August 03, 2011TORONTO, ONTARIO--(Marketwire - Aug. 3, 2011) -CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is pleased to announce assay results recently received for diamond-drill holes completed at the Fire Lake North Project. Highlights of assay results from nineteen new holes are detailed in Table 1, including eight holes drilled in the proposed East Pit area ("East Area"), five holes drilled in the proposed West Pit area ("West Area"), and six holes drilled in the Don Lake area ("Don Lake"). The definition drilling at both the East and West designed pit areas continues to intersect wide intervals of iron formation containing distinct zones of high-grade, coarse-grained, specular hematite-rich mineralization.Drilling at the East Area is complete with 27 holes added since the last Mineral Resource Estimate and Preliminary Economic Assessment (PEA) Report, published in 2010. Drillhole FLN11-61 intersected 262.8 m grading 32.4% Total Iron (FeT) and is interpreted to have been drilled partially down-dip into the upper (western) limb, and subsequently passed through the thickened fold hinge, of a westward dipping, overturned synform, cored by iron formation. Further south, Drillhole FLN11-57 intersected65.5 m grading 26.3% FeT in the upper (western) limb of the same synform. Drillhole FLN11-56, located on the same section, intersected 52.0 m grading 32.1% FeT in the lower (eastern) limb of the overturned synform. Geological modelling of the East Area has commenced, with assay results pending for three remaining drill holes in this area.At the West Area, the latest phase of drilling is nearing completion, with 4 drill rigs completing their current holes. Drillhole FLN11-60 intersected 120.70 m grading 26.3% FeT, including an interval of 87.8 m grading 34.6% FeT, in the eastern limb of the synform. Geological logging of drill hole FL11-76, completed on the same section, intersected both the upper (eastern) and lower (western) limbs indicating that the synform is overturned to the east. Sampling and assay results are pending for drillhole FL11-76. Drilling at Don Lake is complete, with 16 holes drilled during 2011. Geological modelling of the Don Lake zone is complete and resource modelling has commenced. The drilling at Don Lake was designed to outline additional iron resources with the objective of establishing a third potential open pit on the Fire Lake North Property.The re-interpreted fold geometry and additional potential resources generated from the results of the 2010-11 definition drilling at the East and West Areas are expected to produce significantly differing pit shells and final pit designs from the 2010 model. The new pit designs will likely contain increased in-pit resources and reduced strip ratios, which in turn will positively impact the Project Economics that are expected in the forthcoming PEA update, scheduled for completion by the end of Q3-2011.Table 1. Significant Results from Recent Diamond-Drilling at the Fire Lake North ProjectAreaHOLE-IDAZIMUTHDIPTOTAL DEPTHFROMTOINTERVALFe_TotalmetresmetresmetresmetresFe%East PitFLN11-5650-65335103.25155.2051.9532.1FLN11-5750-60350259.70325.2365.5326.3FL11-5945-75281169.93205.3235.3929.6FL11-61230-55473125.00387.79262.7932.4FL11-6350-70428360.97391.6230.6230.9FL11-6550-60485287.97333.5345.5631.9and417.39456.8139.4226.7FL11-7050-55471222.32244.0021.6831.8and333.52374.6141.0929.3FL11-7150-65551476.41542.2365.8229.0West PitFLN11-58230-45261178.70213.1034.4025.6FL11-60255-50327196.20316.90120.7026.3includes229.12316.9087.7834.6FL11-62D105-46349160.75180.5119.7635.1and248.27308.7060.4326.3including266.32308.7042.3831.5FL11-64270-55183138.40183.0044.6027.3FL11-66B95-45327185.68208.5922.9129.5Don LakeDL11-15200-47349196.17231.0034.8325.8and281.60299.5517.9522.6DL11-16215-60301122.55156.0033.4521.1DL11-17215-60293114.47140.8026.3326.3DL11-18210-75389221.34262.8841.5427.8and356.40369.9913.5926.3DL11-19210-80272208.76244.1635.4030.9DL11-2035-7017662.0126.064.0020.6Assays pending for Holes FL11-64B, FL11-67, FL11-68 and FL11-69Intervals are down-hole core lengths and not true widths.In Q4-2010, Champion initiated a proposed 17,500 m program of infill definition drilling at Fire Lake North following positive results published in the November 2010 NI 43-101 Mineral Resource Estimate and PEA report. By 2010 year end, 5,500 m of drilling had been completed and the proposed program was increased to 20,000 m. As of the end of July, 2011 a total of 24,885 m had been drilled at Fire Lake North and the total proposed program increased to 26,300 m. The additional metres of drilling were required to delimit the maximum resources and favourable fold geometry of the mineralization for open pit mine design.Once all drilling is completed and assay results are available, Champion will update the current Inferred Mineral Resource Estimate, which was calculated in the November 2010 PEA as 388 Million Tonnes (MT) grading 28.9% FeT.The Fermont Iron HoldingsChampion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined NI 43-101 compliant Inferred Mineral Resources currently estimated at 1.55 Billion Tonnes grading 25.4% FeT, at a 15% cut-off. The Company recently announced positive results from drilling at the Lac Moire Project adjacent to the east of ArcelorMittal's Mont Wright Mine property. A Mineral Resource estimate for the Lac Moire Project is anticipated in Q3-2011. Seven of Champion's remaining fourteen Fermont properties contain combined Historical Mineral Resource Estimates* totalling 620 MT grading 31% Total Iron.An ongoing, fully-funded, 60,000+ m diamond-drilling program that will investigate nine of Champion's Fermont properties is scheduled for completion in 2011-2012.About Champion Minerals Inc. Champion Minerals is an exploration and development company focused on discovering and developing significant iron ore resources, particularly 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); the Attikamagen Iron Property in Quebec and Labrador, and the Powderhorn / Gullbridge base-metal Project in central Newfoundland. * Historical Mineral Resources are from Paquet, 1963 (MRNFQ Assessment File GM 13035) (see press release date February 15, 2011). 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 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" 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. FOR FURTHER INFORMATION PLEASE CONTACT: Thomas G. LarsenChampion Minerals Inc.President and CEO(416) 866-2200ORJorge EstepaChampion Minerals Inc.Vice-President(416) 866-2200ORSalisha HoseinChampion Minerals Inc.Director, Investor Relations(416) 866-2200www.championminerals.com