DGAP-News: Champion Iron Mines Limited: Champion Provides Mineral Resource Estimate Update for East and West Deposits at Consolidated Fire Lake North Project
ID: 218030
(firmenpresse) - DGAP-News: Champion Iron Mines Limited / Key word(s): Drilling Result
Champion Iron Mines Limited: Champion Provides Mineral Resource
Estimate Update for East and West Deposits at Consolidated Fire Lake
North Project
09.01.2013 / 15:00
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NEWS RELEASE
Champion Provides Mineral Resource Estimate Update for East and West
Deposits at Consolidated Fire Lake North Project
- Measured + Indicated Resources Total 693.5 Million tonnes grading 31.5%
Total Iron
- Inferred Resources Total 521.6 Million tonnes grading 30.1% Total Iron
Toronto (Canada), January 9th, 2013 - CHAMPION IRON MINES LIMITED (TSX:
CHM; OTCQX:CPMNF; FSE: P02) ('Champion', or the 'Company') is pleased to
announce the results from its updated Mineral Resource Estimate (MRE) for
the East and West deposits underlying the Consolidated Fire Lake North
(CFLN) Project (Table 1).
The updated MRE doubles the combined Measured and Indicated Resources in
the East and West deposits to 693.5 Million tonnes (Mt) grading 31.5% total
Iron (FeT). The Inferred Resources have increased by 10% to 521.6 Mt
grading 30.1% FeT at a 15% FeT cut-off grade. Altogether, total resources
have increased by 48% in the two deposits.
Thomas Larsen, Champion's President and CEO commented, 'Our 2012 drilling
campaign was highly successful at upgrading Inferred Resources to Measured
and Indicated categories while significantly expanding total resources. The
updated resource tonnages position the Fire Lake North deposits among the
best in the Labrador Trough in terms of size and grade. The increased
resource is close to the tonnage required to double the expected annual
concentrate production to 20 Mt, which will have a significant positive
impact on the FLN Project economics.' Mr. Larsen added, 'The new project
scope and economics will be presented in the CFLN Project Preliminary
Feasibility Study later this month. However, for the Feasibility Study,
expected July 2013, we plan additional drilling to further enhance our
resource and reserve base to support a 20-year mine plan with 20 Mt of
annual concentrate production.'
Table 1: Categorized Mineral Resource Estimate at 15% Total Iron Cut-Off1
West Area East Area TotalSince the effective date of the preceding MRE, which was disseminated in
Tonnes Grade Tonnes Grade Tonnes Grade
(millions) FeT% (millions) FeT% (millions) FeT%
Measured 23.6 35.4 3.0 34.2 26.6 35.2
Indicated 404.9 32.6 262.0 29.6 666.9 31.4
Measured + Indicated 428.5 32.7 265.0 29.6 693.5 31.5
Inferred 329.2 30.9 192.4 28.7 521.6 30.1
the March 2012 Preliminary Economic Assessment, eighty-nine (89) additional
drill holes totalling 33,000 metres have been completed in the West Area
(75 holes) and East Area (14 holes). Ten holes did not have assay results
available in time to be integrated into the updated MRE.
P&E utilized a 1:1 $CDN:$US exchange rate, a mining cost of $1.84/Tonne,
and a charge of $10.03/Tonne for the total processing, G&A, and freight
costs. The process recovery, estimated to be 82%, an Iron ore price of
$1.77/dmtu, and a 49ºoverall pit-slope, were used to complete the Whittle
pit optimization and estimate the portion of in-situ Mineral Resource
within the pit shell. The economic sensitivity of the resource estimates
are demonstrated by comparing the proportion of the mineral resources that
may be economically exploited within the optimized pit shell to the
categorized resource. Results of the In-Pit Optimization at a 15% FeT
cut-off grade are presented in Table 2.
Table 2: In-Pit Optimization Results at 15% Total Iron Cut-Off
West Area East Area TotalModels and results from the current MRE have been provided to BBA Inc.
Tonnes Grade Tonnes Grade Tonnes Grade
(millions) FeT% (millions) FeT% (millions) FeT%
Measured 23.5 35.4 3.0 34.2 26.5 35.2
Indicated 403.6 32.6 261.2 29.6 664.8 31.4
Measured + Indicated 427.1 32.7 264.2 29.6 691.3 31.5
Inferred 301.1 31.2 178.7 29.0 479.8 30.4
(Montreal, QC) for the open pit mine designs that will be incorporated into
the Preliminary Feasibility Study for the Project, which is expected to be
published in late January.
The updated Measured and Indicated Resources delineated at the Fire Lake
North deposits are near sufficient to support a second concentrator line in
the development scenario. Adding a second concentrator line would double
concentrate production to an estimated 20 Mt annually and significantly
enhance the economics of the Project. With this in mind, Champion is
initiating a second additional infill drilling campaign this winter focused
primarily within the confines of the proposed East pit, to delineate
sufficient Measured and Indicated Resources from the current Inferred
Resources to support the two-line concentrator scenario for 20 years of
production.
Champion awaits CN Rail's Feasibility Study expected in June 2013 for a
proposed new rail line that would connect the CFLN Project to Port
facilities in Pointe Noire. Their report would facilitate completion of
Champion's Feasibility Study for the Project expected in July 2013.
In July 2012, the Fire Lake North claims were consolidated with surrounding
claims of the Bellechasse, Midway and Oil Can properties and designated the
Consolidated Fire Lake North Property. Preliminary study suggests the
deposits located within the new Property limits might potentially be
developed using common infrastructure planned for the development of the
Fire Lake North - East and West deposits.
Table 3 provides the current Mineral Resource Estimates all at the same 15%
total Iron cut-off grade for the deposits within the Consolidated Fire Lake
North Property
Table 3: Categorized Mineral Resource Estimate at 15% Total Iron Cut-Off1
Deposit Measured Indicated InferredTom Larsen further stated, 'Champion's resource base of over 2.6 Billion
Tonnes Grade Tonnes Grade Tonnes Grade
(millions) FeT% (millions) FeT% (millions) FeT%
FLN - West 23.6 35.4 404.9 32.6 329.2 30.9
FLN - East 3.0 34.2 262.0 29.6 192.4 28.7
FLN - Don Lake 0.4 21.4 52.2 26.5 188.2 25.3
Bellechasse 215.1 28.7
Oil Can - Oxide - - - - 972.0 33.2
Totals 27.0 35.0 719.1 31.0 1,896.9 31.1
tonnes within the confines of the Consolidated Fire Lake North Project
might ultimately support 30-40 Million tonnes of iron concentrate
production annually and could suffice to support an independent rail
solution if necessary. Furthermore, we have not yet assessed potential
development of the 2.4 Billion tonnes of additional resources that have
been delineated within our Fermont Holdings.'
1 The current Mineral Resource Estimate was calculated by P&E Mining
Consultants Ltd. ('P&E') of Brampton, Ontario using the Canadian Institute
of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources
and Reserves and Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions. Mineral resources, which are not mineral
reserves, do not have demonstrated economic viability. The mineral resource
estimate may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant issues. In
addition, the quantity and grade of estimated Inferred Resources reported
herein are uncertain and there has been insufficient exploration to
categorize them as an Indicated or Measured Resource. Furthermore, it is
uncertain whether further exploration will result in reclassification of
Inferred Mineral Resources to the Indicated or Measured resource
categories. The tonnage numbers are rounded according to NI 43-101
standards. Core samples were analyzed by ALS Minerals using the 'High
Grade/Ores XRF Method' to determine total Iron (FeT) percentages.
About Champion Iron Mines Limited
Champion is an iron exploration and development company with offices in
Montreal and Toronto, and is focused on developing its significant iron
resources in the provinces of Québec and Newfoundland&Labrador. Champion
holds a 100% interest in the Fermont Iron Holdings and a 44% interest in
the Attikamagen Iron Project located in both Québec and Labrador. The
Attikamagen Project is under option to Labec Century Iron Ore Inc.
('Labec'), a subsidiary of Century Iron Mines Corporation, under which
Labec can earn up to a 60% interest.
Champion's Fermont Iron Holdings, including its flagship Consolidated Fire
Lake North Project, are located in Canada's major iron ore producing
district, in close proximity to five producing iron mines, existing
transportation and power infrastructure. Consolidated Fire Lake North is
located immediately north of ArcelorMittal's operating Fire Lake Mine and
60 km south of Cliffs Natural Resources Inc.'s Bloom Lake Mine in
northeastern Québec. Champion's management and advisory board includes
mining and exploration professionals with the mine development and
operations experience to build, commission, and operate the future
Consolidated Fire Lake North mine.
The technical information in this news release was prepared, revised and
approved by Mr. Bruce Mitton P. Geo., VP Exploration and Mr. Jean-Luc
Chouinard, ing. VP Project Development for Champion Iron Mines, Mr. Antoine
Yassa, P. Geo and Ms. Tracy Armstrong, P. Geo. for P&E Mining Consultants
Ltd. and Mr. Andre Allaire, ing. for BBA Inc. who are Qualified Persons
under NI 43-101 standards.
For further information please contact:
Thomas G. Larsen, President and CEO, or Jorge Estepa, Vice President at
Tel: (416) 866-2200.
For additional information on Champion, please visit our website at
www.championironmines.com.
This news release includes certain information that may constitute
'forward-looking information' under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited to,
statements about planned operations at the Company's projects, including
its Consolidated Fire Lake North Project. Forward-looking information is
necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and
future events to differ materially from those expressed or implied by such
forward-looking information, including the risks identified in Champion's
annual information forms, management discussion and analysis and other
securities regulatory filings by Champion on SEDAR (including under the
heading 'Risk Factors' therein). There can be no assurance that such
information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information contained in
this press release is given as of the date hereof and is based upon the
opinions and estimates of Champion's management and information available
to management as at the date hereof. Champion disclaims any intention or
obligation to update or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except as required
by law.
This press release has been prepared by Champion Iron Mines Limited and no
regulatory authority has approved or disapproved the information contained
herein.
End of Corporate News
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