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Champion Iron Intersects Several Zinc-rich Intervals at Its Powderhorn Project, Newfoundland

MONTREAL, Aug. 15, 2018 (GLOBE NEWSWIRE) -- Champion Iron Limited (TSX: CIA, ASX:CIA) reports that its wholly-owned subsidiary Champion Iron Mines Limited (the “Company” or “Champion”) is pleased to disclose results of recent exploration drilling at its Powderhorn property, located in North Central Newfoundland, 40 km southwest of the town of Springdale.  This program intersected several zinc (“Zn”) rich intervals, including drill hole PH18-01 which intersected 3.31% Zn, 0.53% copper (“Cu”) and 48 g/t silver (“Ag”) over 4.45 meters, 5.2% Zn, 0.48% Cu and 22 g/t Ag over 4.46 meters and 1.18% Cu over 0.69 meter.  Drill hole PH18-06, located 100 meters away, intersected 6.94% Zn and 48 g/t Ag over 3.35m, including a 1-meter width which returned 16.4% Zn.

The 3,500 meters drilled during spring 2018 cross-cut one or several Zn-rich layers (table 1).

Hole Id From To Width Zn (%) Cu (%) Ag (g/t)
PH18-01 224.17 228.63 4.46 5.20 0.48 22
PH18-01 131.67 136.12 4.45 3.31 0.53 48
PH18-01 330.31 331.00 0.69 0.47 1.18 26
             
PH18-02 120.35 125.47 5.12 1.98 0.40 -
including 121.29 122.46 1.17 5.68 1.15 20
             
PH18-05 136.59 141.80 5.21 2.52 - 16
PH18-05 190.15 190.84 0.68 2.48 - -
             
PH18-06 205.25 208.6 3.35 6.94 0.25 48
including 206.8 207.8 1.00 16.40 0.63 50
             
PH18-08 10.13 10.93 0.80 6.72 1.43 63
             
PH17-07 668.33 670.74 2.41 5.29 0.32 18
PH17-07 676.61 678.01 1.40 4.83 - -

Table 1: Significant intervals drilled during the 2017-2018 exploration of the Powderhorn property. Reported widths are core length and core angle is approximately 70 degrees, meaning that reported widths are approximately 1.07 times larger than true width.  Except for PH18-01, all holes are vertical which means that from and to can be used as real depth.  A 2% Zn cu-off was used for outer limits of the reported intervals.  Any samples, regardless of their grade, occurring within the listed intervals are included in the intervals grade calculation. Assaying was done at Eastern Analytical in Springdale, NL.

The Powderhorn project targets the same volcanic units that host the Buchans Mine, located 60 km away, one of the richest volcanogenic massive sulphide deposits ever discovered.  Geological data acquired by Champion in 2017 and 2018 strongly suggests that the Zn-rich layer discovered near surface in PH18-08 is continuous and is likely linked to one of the layers intersected in PH17-07, located 1 km to the northwest.

Figure 1 accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/74082af0-35c7-436f-8c01-50a36cac2013

Hole Id Type Northing (m) Easting (m) RL (m) EOH (m) Dip Azimuth
PH17-07 DDH 5441305 564125 191 712 -85 150
PH18-01 DDH 5440846 565020 171 499 -50 200
PH18-02 DDH 5440511 564571 174 494 -90 0
PH18-03 DDH 5440786 564206 178 463 -60 130
PH18-04 DDH 5440848 565020 171 359.5 -90 0
PH18-05 DDH 5440778 564947 172 436 -90 0
PH18-06 DDH 5440711 564872 172 340 -90 0
PH18-07 DDH 5440704 565014 172 277 -90 0
PH18-08 DDH 5440771 565089 172 275.9 -90 0
PH18-09 DDH 5440576 564722 172 310 -90 0

Table 2: Holes drilled between December 2017 and May 2018.  DDH: Diamond Drill Hole.  Location in Universal Transverse Mercator (UTM) NAD83 projection, Zone 21N.

A preliminary geological model (figure 2) suggests the occurrence of three Zn-rich zones (grey, blue and green) on top of a Cu-rich zone (red).  At this point it is not defined if the zones are linked or if they are stacked lenses or layers.  A 12,000-meter drilling program scheduled to commence in the fall of 2018 is designed to test and add geological data and details to the shallow zone (e.g. the potential link between the different Zn-rich zones and the distribution of the copper mineralization) and confirm the presence of continuity of the zinc mineralization between PH18-01 and PH17-07.  Except in the south direction where PH18-02 and PH18-09 did not intersect any mineralization, the target area is open in all directions and therefore there is potential to add significant volume of massive and semi-massive sulphide to the project. 

About Powderhorn

The Powderhorn project is located in North Central Newfoundland, 40 km southwest of the town of Springdale, 15 km north of the community of Badger and 3 km away from the Trans-Canada Highway.  The property is comprised of 7 exploration licences covering 63 km2 (figure 3).

Figure 2 accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/87694e66-9459-4b3f-b5b8-ab32518f2d77

Discovery of sulphides in the area date back to 1940 but it appears that those were related to sediment-hosted pyrite and pyrrhotite.  Zinc mineralization was found later along the shore of Powderhorn Lake and in a boulder located along a logging road.  Although the property has been owned by several companies, exploration to date has resulted in limited drilling (less than 12,000 meters). Champion’s exploration strategy at Powderhorn has been to identify geophysical anomalies underneath the sedimentary rocks that overly the mineralization-bearing felsic volcanic rocks.  Drilling these anomalies was done in 2017.

The geology at Powderhorn is similar to the one at Bucchans which produced more than 16 Mt at 14.5% Zn (Kirkham, 1987. In Geological Survey of Canada Paper 86-24), but also to several deposits of the Bathurst Mining Camp.  Geological and electromagnetic data suggest that mineralized layers at Powderhorn are undulating with an overall dip toward the northwest.

Figure 3 accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/9b04c410-2a4b-4355-813d-070c0e0151a7

Qualified Person

In accordance with National Instrument 43-101, Dr. Hugues Longuépée, P.Geo. is the Qualified Person responsible for the technical data reported in this press release.  He is a Professional Geologist registered in Québec and in Newfoundland and Labrador.  He is the Geology Manager at Champion Iron Mines Limited.  He has visited the core logging facilities on several occasions and validated the data (QAQC).

About Champion Iron Limited

Champion is an iron mining, development and exploration company, focused on developing its significant iron resources in the south end of the Labrador Trough in the province of Québec. Following the acquisition of its flagship asset, the Bloom Lake iron ore property, the Company implemented upgrades to the mine and processing infrastructure and has partnered in projects associated with improving access to global iron markets, including rail and port infrastructure initiatives with government and other key industry and community stakeholders. Champion’s management team includes professionals with mine development and operations expertise, who also have vast experience from geotechnical work to green field development, brown field management including logistics development and financing of all stages in the mining industry.

For further information please contact:

Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858

David Cataford, COO at Tel. +1 514-316-4858

For additional information on Champion Iron Limited, please visit our website at www.championiron.com

Cautionary Note Regarding Forward-Looking Information

This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation.  The use of any of the words “will”, “expect”, “anticipate”, “intend”, “believe”, “plan”, “potential”, “outlook”, “forecast”, “estimate” and similar expressions are intended to identify forward-looking information. 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 final short form prospectus relating to a completed equity Offering, annual information form, management’s discussion and analysis and other securities regulatory filings made 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 of Champion’s 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 of its forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

A different version of the current new release was submitted to the ASX and formatted according to the JORC requirements.  The technical data presented in both reports are identical and only the format and legal statements may differ.