DGAP-News: Champion Minerals Inc.: NEWS RELEASE
(firmenpresse) - DGAP-News: Champion Minerals Inc. / Key word(s): Miscellaneous
Champion Minerals Inc.: NEWS RELEASE
17.11.2010 / 15:00
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NEWS RELEASE
Champion Minerals increases intersection length in drill hole FL10-21 to
336.9m grading 36.2% Total Iron on Fire Lake North
Toronto (Canada), November 16, 2010 - CHAMPION MINERALS INC. (TSX: CHM;
FSE: 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 RESULTS
FROM TO CORE LENGTH TOTAL IRONNote - Core length may not represent true width due to complex folding;
(m) (m) (m) %
56.00 392.90 336.90 35.4
including 87.00 379.50 292.50 37.0
including 87.00 265.10 178.10 40.5
additional drilling is required to determine true width.
The Fire Lake North Project and Claim Block
Champion 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 islocated 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 Control
All 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.
For further information please contact Thomas G. Larsen, President and CEO,
and Jorge Estepa, Vice-President, at (416) 866-2200.
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
17.11.2010 Dissemination of a Corporate News, transmitted by DGAP - a
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103822 17.11.2010
Datum: 17.11.2010 - 15:00 Uhr
Sprache: Deutsch
News-ID 32650
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