Mr. Michael O'Keeffe reports
CHAMPION IRON INTERSECTS SEVERAL ZINC-RICH INTERVALS AT ITS POWDERHORN PROJECT, NEWFOUNDLAND
Champion Iron Ltd.'s wholly owned subsidiary Champion Iron Mines Ltd. has provided results of recent exploration drilling at its Powderhorn property, located in north-central Newfoundland, 40 kilometres southwest of the town of Springdale. This program intersected several zinc-rich intervals, including drill hole PH18-01 which intersected 3.31 per cent Zn, 0.53 per cent copper (Cu) and 48 grams per tonne silver (Ag) over 4.45 metres, 5.2 per cent Zn, 0.48 per cent Cu and 22 g/t Ag over 4.46 metres, and 1.18 per cent Cu over 0.69 metre. Drill hole PH18-06, located 100 metres away, intersected 6.94 per cent Zn and 48 g/t Ag over 3.35 m, including a one-metre width which returned 16.4 per cent Zn.
Although PH18-03 is not listed in the attached table, there is a one-metre-long 4.45-per-cent-Zn interval that suggest that the zinc-rich layer may extend to that area.
The 3,500 metres drilled during spring 2018 crosscut one or several Zn-rich layers (see attached table).
SIGNIFICANT INTERVALS DRILLED DURING THE 2017-2018 EXPLORATION OF THE POWDERHORN PROPERTY
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 - -
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-per-cent-Zn cut-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
interval grade calculation. Assaying was done at Eastern Analytical in Springdale, Nfld.
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 suggest 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 one km to the northwest.
A preliminary geological model suggests the occurrence of three Zn-rich zones on top of a Cu-rich zone. At this point it is not defined if the zones are linked or if they are stacked lenses or layers. A 12,000-metre drilling program scheduled to commence in the fall of 2018 is designed to test and add geological data and details to the shallow zone (for example, 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.
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 three km away from the Trans-Canada Highway. The property comprises seven exploration licences covering 63 square km.
Discovery of sulphides in the area dates 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 metres). 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 million tonnes at 14.5 per cent 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.
In accordance with National Instrument 43-101, Dr. Hugues Longuepee, PGeo, is the qualified person responsible for the technical data reported in this press release. He is a professional geologist registered in Quebec and in Newfoundland and Labrador. He is the geology manager at Champion Iron Mines. He has visited the core logging facilities on several occasions and validated the data (quality assurance/quality control).
About Champion Iron Ltd.
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 Quebec. 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 greenfield development, brownfield management including logistics development and financing of all stages in the mining industry.
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