Champion Responds to CN’s Decision to Suspend Feasibility Study on a Proposed Rail Line to Serve the Quebec and Labrador Iron Ore Districts
TORONTO, ONTARIO–(Marketwire – Feb. 14, 2013) – Champion Iron Mines Limited (TSX:CHM)(OTCQX:CPMNF)(FRANKFURT:P02) ("Champion", or the "Company") announces that further to the decision by the Canadian National Railway Company ("CN") released on February 12, 2013, to suspend the multi-user railway feasibility study, Champion reports that it considered the CN proposal for an integrated rail line and terminal handling facility to service the entire Quebec/Labrador iron ore range to be one of its three rail transport options.
Prior to joining the CN feasibility study process, Champion commissioned Rail Cantech who successfully completed a feasibility study for a private rail line from the Company's Consolidated Fire Lake North Project to the Pointe Noire wharf at the Port of Sept-Îles where Champion has reserved sufficient loading and storage capacity. Champion will now re-focus its efforts on a proposed rail line southbound to Pointe Noire and reactivate discussions with relevant parties that can assist the Company in the construction, financing and operation of this more flexible and highly economic alternative.
Tom Larsen, President and CEO of Champion commented, "While we are disappointed with CN's decision not to proceed with their rail line feasibility study at this time, we believe our Consolidated Fire Lake North project has the unique advantage of containing large-scale, superior iron deposits and has now progressed to the stage where it will attract major partners to bring the project into production." Mr. Larsen added, "We are committed to advancing our Consolidated Fire Lake North Project along with the necessary infrastructure and welcome the participation of global investors that take a long-term view and can bring the necessary expertise and resources to develop what we believe to be one of Quebec's most attractive mine projects."
With CN's termination of the feasibility study, CN is obligated to refund the entire deposit Champion contributed towards the study costs and provide any results and materials generated from the feasibility study.
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.
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 the Company's annual information forms, management discussion and analysis and other securities regulatory filings by the Company 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 the Company's management and information available to management as at the date hereof. The Company 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.
Thomas G. Larsen
President and CEO
Champion Iron Mines Limited
Vice President, Secretary and Treasurer