hampion Minerals restarts drilling at Harvey-Tuttle
Ticker Symbol: C:CHM

Champion Minerals restarts drilling at Harvey-Tuttle

Champion Minerals Inc (C:CHM)
Shares Issued 56,339,997
Last Close 7/5/2010 $0.83
Tuesday July 06 2010 - News Release

Mr. Thomas Larsen reports

CHAMPION MINERALS CONTINUES MAJOR DRILL PROGRAM AT THE PROSPECTIVE HARVEY-TUTTLE CLAIM BLOCK AND PROVIDES UPDATE ON OTHER ACTIVITIES FROM THE FERMONT IRON PROPERTY

Champion Minerals Inc. is resuming diamond drilling on the Fermont iron property at the prospective Harvey-Tuttle claim block in the Fermont iron ore district of northeastern Quebec.

Harvey-Tuttle diamond drilling campaign

The planned footage for the current campaign is estimated at 7,000 meters in 31 holes. Drilling commenced mid-June with 1,110 meters in 5 holes completed to date on the Turtleback Mountain target. The program follows an initial campaign of 12 holes totaling 3,013 meters completed earlier this year.

Two drills are turning at Harvey-Tuttle to follow up on the previously announced discovery hole HT10-07 that intersected 234 meters of 26.7% Total Iron, including a higher grade interval of 109.2 meters of 34% Total Iron. The Turtleback Mountain target is a 100 meters high crescent shaped hill covering an area 2.5 kilometers long by 1.6 kilometers wide. The magnetic signature of the iron formation and the interpreted geology infer the structure is a kilometric scale re-folded iron formation. The refolding results in a structural thickening of the iron formation horizon commonly demonstrated at Fermont-Labrador iron mines.

Champion will be testing an additional 6 targets on the Harvey-Tuttle Claim Block ("NW Extension", "Western Fold", "South Hinge", "NW Harvey", "South Tuttle" and "Figure 8"). The "Figure 8" target is also a re-folded synform with a figure-8 shaped magnetic signature approximately 2 kilometers long and 2 kilometers wide. This pattern is created by the two major phases of folding and is one of the main variables that contribute to building volume and creating basin shaped geometry optimal for open pit mining methods.

Regional Exploration on the Clusters 2 and 3 Claim Blocks

Champion continues to explore the Cluster 2 claim blocks with the objective of outlining several 200 million tonne to 500 million tonne lenses within 25 kilometers of the road-rail infrastructure and ArcelorMittal's Fire Lake Mine (341 million tonnes grading 33.4% Iron), a seasonal operation that supplies ore to the Mont Wright Mine and Concentrator Complex located approximately 50 km to the north (see the ArcelorMittal website; MRNFQ Files).

A review and evaluation of the available historic geological data for the Property is ongoing. The objective is to provide a compilation of the historic work performed on the 11 other claim blocks that comprise the Property, validating the historical work and proposing new exploration work that will potentially delineate, or increase the historical resources, into current and compliant mineral resources. The claim blocks include Casse Lake, Hope Lake, Hope Lake SW, Lamelee South, Midway SE, Oil Can Lake, O'Keefe-Purdy-Audrea Lakes from Cluster 2, and Aubertin-Tougard Lakes, Audrey-Ernie Lakes, Big Three Lakes and Silicate-Brutus Lakes from Cluster 3. The compilation work should be completed in Q3-2010.

Careful evaluation of the compiled data suggests that the targeted iron formations within the claim blocks constitute significant potential iron mineral resources that warrant rigorous evaluation and exploration programs. The recommended exploration going forward will focus on volumetrically-significant, tectonically-thickened, synclinal-hinge areas cored by iron formations. The programs will include detailed geological mapping of target areas and systematic drilling and sampling of the iron formations. The iron formations were outlined by Champion's 2008 airborne geophysical survey. New targets of interest in Cluster 2 are being outlined on the O'Keefe-Purdy Claim Block.

Champion is planning an airborne gravity survey, which will better define larger masses of hematite-rich iron formation targets.

Metallurgical Work on Bellechasse and Fire Lake North

BBA Inc. ("BBA") of Montreal (Quebec) is currently reviewing the preliminary metallurgical testing completed by COREM of Quebec City (Quebec) from drill core of the 2009 campaign at Fire Lake North and Bellechasse as part of two preliminary assessment studies. COREM completed mineralogy, and Wilfley Table (gravity separation) and SATMAGAN (magnetic separation) tests on composite samples for orientation mineralogy and metallurgy. Five Fire Lake North composite samples showed Total Iron content ("FeT") varying from 25.4% to 39.0%. The composites contain varying amounts of both hematite and magnetite, and show a high FeT recovery ranging from 83.6% to 89.2%. The Bellechasse composites contain FeT varying from 31.3% to 33.8%. The magnetite content is high with SATMAGAN values varying from 27.1% to 35.7%. A more detailed analysis is being completed by BBA with their significant experience and expertise in the Fermont Iron Ore District.

Champion will be launching the second round of metallurgical testing soon on drill core from the winter 2010 diamond drill program from Fire Lake North and Harvey-Tuttle.

The Fermont Iron Property Joint Venture Exploration Program

Champion will undertake a comprehensive exploration and development program at the Fermont Property during the next 12 months. At Harvey-Tuttle, the current diamond drilling campaign (7,000 m) will be completed followed by geological modeling, metallurgical test work and mineral resource estimation while other Cluster 2 claim blocks will be evaluated for potential iron mineral resources with prospecting/assaying, diamond drilling (2,500 meters) and initial orientation metallurgical tests.

Preliminary assessment studies have been initiated on each of the Bellechasse, Fire Lake North and the Harvey-Tuttle claim blocks that will provide guidelines for definition diamond drilling, bulk sampling, advanced metallurgy, road construction, costing and financial analysis required for the planned feasibility studies for each of these projects. As these studies progress, other Cluster 2 claim blocks will be diamond drilled (10,000 meters) and scoping studies initiated.

The Fermont Iron Property

Champion previously announced an initial Mineral Resources Estimate ("MRE") on the Bellechasse and Fire Lake North Claim Blocks ("Bellechasse" and "Fire Lake North") under NI 43-101 guidelines (refer to the Company news release dated November 19, 2009). The MRE totals 503.3 million tonnes grading 28.0% Iron in the Inferred Mineral Resources category. Bellechasse hosts 215.1 million tonnes grading 28.7% Iron; whereas Fire Lake North hosts 288.2 million tonnes grading 27.5% Iron (all at a 15% Iron cut-off grade). Inferred Mineral Resources are that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling gathered through appropriate techniques from drill holes and outcrops, and reasonably assumed, but not verified, geological and grade continuity. There has been insufficient exploration to define any of the resources as Indicated or Measured Mineral Resources and there is no guarantee that further exploration will upgrade the Inferred Mineral Resources to Indicated or Measured Mineral Resources.

Champion now has an 82.5% direct interest in the 384.6 km2 Property consisting of 16 strategic claim blocks grouped into three clusters, termed Clusters 1, 2 and 3. Champion previously announced 8 claim blocks with historical Mineral Resources of 694 million tonnes grading 30.4% Iron, but now after 2 of the 8 claim blocks (Bellechasse and Fire Lake North) host a current MRE, there are 6 remaining claim blocks that host historical Mineral Resources of 578 million tonnes grading 30.4% Iron (Paquet, 1963; Ministere des ressources naturelles et de la faune Quebec Assessment File GM 13035). The Mineral Resources are strictly historical in nature and 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.

Champion and Fancamp Exploration Ltd. ("Fancamp") (TSX VENTURE:FNC) are currently in a 82.5% / 17.5% joint venture on the Property. Champion earned an initial 65% interest in all 16 claim blocks within the Property by expending $C6 million in exploration expenditures, making cash payments totalling C$1 million, and issuing 2.9 million shares. Champion acquired a further 17.5% from The Sheridan Platinum Group ("Sheridan") (refer to the Company news release dated June 28, 2010). Under the terms of the latest agreement, Champion has agreed to issue 4 million shares from treasury to Sheridan on closing and to pay C$2 million in cash (C$1 million of which is payable on closing, plus two further payments of C$500,000 each, payable 12 months and 18 months after closing). This agreement is subject to regulatory approval and other conditions usual to transactions of this nature. Both Fancamp and Sheridan still retain a 3% Net Smelter Returns royalty, which may be reduced to 2% by paying C$3 million. The agreement also includes a right of first refusal on the Lamelee Lake Claim Block.

2010 Canjex Publishing Ltd.