DGAP-News: Champion Minerals Inc.: Champion Minerals provides update on expanded development for Fire Lake North Project
(firmenpresse) - DGAP-News: Champion Minerals Inc. / Key word(s): Miscellaneous
Champion Minerals Inc.: Champion Minerals provides update on expanded
development for Fire Lake North Project
28.03.2011 / 13:30
---------------------------------------------------------------------
NEWS RELEASE
Champion Minerals provides update on expanded development for Fire Lake
North Project
- a site selection study, examining the viability of using conveyors to
integrate several projects and feed a centralized concentrator, is
underway;
- expanding to eight drill-rigs in May; two drills currently turning on
Lac Moire and four turning on Fire Lake North.
Toronto (Canada), March 28, 2011 - CHAMPION MINERALS INC. (TSX: CHM; FSE:
P02) ('Champion', or 'the Company') is pleased to present an update on the
Fermont Property Holdings development and exploration program. Following up
on the successful 2010 exploration campaign, which saw substantial
increases in NI 43-101 compliant resources (see Champion's press releases
of February 28th and March 7th, 2011), Champion is focusing on increasing
and upgrading the Fire Lake North Project's Inferred Resources to the
Measured and Indicated Resource category, in preparation for a Feasibility
study anticipated in Q2 2012.
An update to the November 2010 Preliminary Economic Assessment (PEA) study
on the Fire Lake North Project is underway by BBA Inc. and scheduled for
completion in Q3 2011. This update will evaluate extending the mine life
from the 14 years that was previously reported, towards a 25 year mine life
by increasing the total iron resources available in the area.
To better define and increase the total iron resources at Fire Lake North,
four drill rigs are drilling on 200 m vertical section spacing to better
define the full potential and upgrade the mineralization for the proposed
East Limb and West Limb open pits. The November 2010 PEA reported that two
designed open pits contained 250 million tonnes of In-Pit Resources. The
Don Lake deposit is also being evaluated (using two drill-rigs) with the
goal of defining a third in-pit iron resource on the property. In addition,
the Bellechasse deposit, which is 10 km northwest of Fire Lake North, will
be drilled during the second quarter of 2011. It is anticipated that the
iron resources at Bellechasse will also be incorporated into the updated
PEA Report. In May, 2011 two drills will be added to the Fermont
exploration program to increase the overall drilling rate.
Champion is studying the option of integrating the Fire Lake North and
Bellechasse Projects by conveying mill feed from both projects to a central
concentrator. Benchmark studies of current conveyor technology have been
initiated by BBA Inc.
Additionally, the Harvey-Tuttle and O'Keefe-Purdy Projects are scheduled
for both exploration drilling and metallurgical testing in 2011.
Harvey-Tuttle hosts deposits with open pit potential, and O'Keefe Purdy has
20 km of untested iron formation strike length. The economic iron
mineralization that will potentially be outlined could improve the
economies of scale for the Fermont Property Holdings and thereby reduce
overall operating expenditures.
The bulk handling studies using conveyors will examine incorporating feed
from these potential projects to the Fire Lake North concentrator. A second
option could be another stand-alone operation, separate from the Fire Lake
North complex. The viability and advantages of both options will be
investigated, giving Champion flexibility going forward. The 60,000 metres
of diamond-drilling planned in the Fire Lake North area will help to
ascertain whether 1 or 2 concentrator complexes are needed.
Tom Larsen, President and CEO stated, 'The exploration potential at O'Keefe
Purdy is tremendous and it has not been tested for decades. Limited
historic drilling returned up to 90 metres of iron mineralization. A
surface showing composed of high-grade, coarse-grained, massive, specular
hematite is the priority target. Historical metallurgical tests on this
showing reported good results, and it will be sampled and tested again this
year. An initial drilling campaign of 10,000 m is planned for this summer
to test the 20 kilometers of iron formation strike length.'
Two drills are also currently validating the Lac Moire Historical Resource
of 101 million tonnes grading 30.5% iron, located adjacent to
ArcelorMittal's Mt. Wright mine and mill complex. The objective is to fully
delineate this deposit and test the metallurgical quality to determine if
there is sufficient material for conventional gravity and magnetic
separation.
Direct Reduced Iron ('DRI') technology is also being considered as a new
technology for Lac Moire. The DRI process produces an equivalent to scrap
iron grading over 90% iron. The DRI processing of iron ore is performed by
using a reducing gas produced from natural gas or coal. This process does
not use conventional separation methods including the more costly gravity
and magnetic separation methods nor does it require pelletizing
infrastructure. This reduces the capital expenditures required and thus
requires less iron resources to justify an economically viable operation.
Lac Moire is located within 10 km of the Bloom Lake railway.
SGS Lakefield is currently carrying out specific gravity and metallurgical
tests designed to measure concentrate quality for the Bellechasse and
Harvey-Tuttle Projects and results are expected in the next quarter.
Along with Champion's development project plans, described above, several
initiatives to meet with the Quebec Provincial Government, the Sept-Îles
Port Authority, and the Quebec North Shore&Labrador Railway are being
scheduled now that Champion has outlined a significant resource base and is
now at the development phase.
BBA Inc. will be completing the Fire Lake North PEA update study and is
also assisting Champion with engineering support in this transition phase
towards development. Roche Limited Consulting Group was contracted in
February 2011 to complete an Environmental Baseline study as a first phase
of an Environmental and Social Impact Study (ESIS) that is required for
final feasibility. A successful environmental audit visit by the Provincial
Government representatives was also completed in February.
Regional infrastructure expansion studies are underway by several
government agencies and industry participants to quantify the increasing
demands on infrastructure associated with the iron ore mining boom in the
Labrador Trough. Champion will participate in and support these initiatives
to secure capacity for future production as the PEA and feasibility studies
progress.
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 Holdings in Quebec, jointly
held by Champion, with an 82.5% interest and Fancamp Exploration Ltd.,
holding a 17.5% interest, the Attikamagen Iron Project in Quebec and
Labrador, and the Powderhorn / Gullbridge Base Metal Projects in central
Newfoundland.
* 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., Executive VP Development and Alex S.
Horvath, P. Eng., Executive VP Exploration of the Company both individuals
are Qualified Persons under NI43-101 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 NEW 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
---------------------------------------------------------------------
28.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
117207 28.03.2011
Datum: 28.03.2011 - 13:30 Uhr
Sprache: Deutsch
News-ID 33603
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 236 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Champion Minerals Inc.: Champion Minerals provides update on expanded development for Fire Lake North Project"
steht unter der journalistisch-redaktionellen Verantwortung von
Champion Minerals Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
