Champion Minerals Awards Two Railway Infrastructure Studies to Rail Cantech Inc. and Stantec Consulting
TORONTO, ONTARIO–(Marketwire – April 18, 2011) – CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) (“Champion”, or the “Company”) is pleased to announce that contracts for two railway studies have been awarded to determine rail options for the Fire Lake North (“FLN”) Project. These studies will clarify existing options for rail and port infrastructure associated with the updated FLN Preliminary Economic Assessment (“PEA”) scoping study scheduled for release in the third quarter of 2011. The studies will be utilized to define the best rail infrastructure option and scope of work for the Feasibility Study that is scheduled for delivery during the second quarter of 2012.
In the initial November 2010 PEA, the cost of a 62 km railway to connect to the Bloom Lake Railway (“BLR”) was included in the project study. This was the lowest capital expenditure solution of several options being considered for connecting to the Quebec North Shore and Labrador (“QNS&L”) railway. The FLN railway infrastructure study has been awarded to Rail Cantech Inc., a full service railway provider that constructed the BLR in 2010. Rail Cantech will compare each option and determine the optimal scenario for Champion’s FLN Project.
A second study was also awarded to Stantec Consulting to determine the capacity of the QNS&L railway that connects to the Port of Sept Isles. Due to increasing demand for rail access associated with the growing Canadian iron ore industry, this study will also help to determine the optimal railway infrastructure solution for the Company.
Tom Larsen, President and CEO stated, “This study will enable the Company to identify the best railway option for the FLN Project. We have retained Rail Cantech who constructed the Bloom Lake Railway in 2010 and their expertise will be utilized by Champion in the ongoing PEA Update study that will define the scope of work for the 2012 Feasibility studies on FLN.”
THE FERMONT IRON HOLDINGS
Champion’s Fermont Property Holdings comprise seventeen Properties. Three of the seventeen Projects drilled by Champion to-date, namely Fire Lake North, Bellechasse and Harvey-Tuttle, contain current combined National Instrument 43-101 compliant Inferred Mineral Resources totaling 1.55 Billion Tonnes grading 25.4 % Total Iron at a 15% cut-off. Seven other Properties contain combined Historical Mineral Resource Estimates* totaling 613 MT grading 31% Total Iron.
A fully-funded, 60,000 m diamond-drilling program is underway and is designed to outline the resource base for eight Projects within conveying distance of the Fire Lake North Project in Cluster 2, together with ongoing drilling on the Lac Moire Project, which is adjacent to the east of ArcelorMittal’s Mont Wright Mine.
ABOUT CHAMPION MINERALS INC.
Champion Minerals is an exploration and development company focused on discovering and developing significant iron ore resources in the provinces of Quebec and Newfoundland & Labrador. The Company’s projects include the Fermont Property Holdings in Quebec, jointly held by Champion, with an 82.5% interest and Fancamp Exploration Ltd., holding a 17.5% interest, the Attikamagen Iron Property in Quebec and Labrador, and the Powderhorn / Gullbridge base-metal Projects 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 prepared, revised and approved by Jeff Hussey P.Geo., Executive VP Development 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 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.
Champion Minerals Inc.
Thomas G. Larsen
President and CEO
Champion Minerals Inc.