Champion Minerals Inc.
Champion Minerals Inc. is a Toronto-based exploration company with an exploration office in Val d’Or, Quebec, Canada. Champion's base metal and iron properties are located in the Canadians provinces, specifically western Labrador, central Newfoundland, and northeastern Quebec. Originally founded as a basic metals company seeking to benefit from funding programs launched by the government of Labrador Province, which reimburses 50% of exploration expenses, Champion has narrowed its focus to iron ore production in its main properties of Fermont and Schefferville in the border area between Quebec and Labrador.
One of the Schefferville projects, Attikamagen, is a joint venture with Labec Century Iron Ore Inc., a subsidiary of the well-experienced Chinese Century Iron Ore Group. Attikamagen has three zones of near-surface mineralization, creating a clear potential for extraction by open-pit mining. A 3D magnetic inversion volumetric survey demonstrated several billion tonne potential of iron-ore-containing rock.
Iron ore from this region is much harder than conventional ore and lends itself to the production of high-quality, high-price iron ore pellets. Although the necessary plants for producing the pellets are expensive to build, the initial investment is quickly paid off through the sales price of the pellets (15-25% higher than normal ore). Several of the larger mining companies in the area are in conversation with the Provincial Government of Labrador to build such a plant, further strengthening the investment potential of the area. The government of Labrador has a strong interest in the further expansion of mining activities in the region.
Champion also owns 15 different claims in the Fermont iron ore district; the district accounts for 90% of Canadian iron ore production. The Fermont project is an earn-in project; Champion will need to invest 6 million CAD in property exploration and development over a five-year period to earn a 65% interest. Champion would enter into a JV with the Fancamp Group to qualify to earn up to 90%. A historical reserve of 690 million tons of rock (32% iron grading) exists on 7 of the 15, and Champion recently acquired another project in the same district and have an option to buy a further claimblock, the last free claimblock in the district. This means that no additional junior companies will be entering the district. (In 2008, the last junior company acquiring claims in the Fermont district was taken over by Consolidated Thompson through a 150-million-CAD share deal last year.)
The company has recently completed private placements in excess of 5 million CAD. Those proceeds are earmarked for drilling future iron ore resources in the Fermont camp of Quebec. President and CEO Thomas Larsen of Champion notes, “I see persistent demand and a huge appetite primarily in the iron ore sector. With a market capitalization of 20 million CAD, Champion Minerals is grossly underestimated, especially when seen against the backdrop of persistently high iron ore demands in the years to come and China's increasing interest in large, high-grade iron ore deposits. We have a Chinese partner and are highly optimistic that we will soon find a strong partner to also join our Fermont flagship project.”
Key to the Champion team is Jean LaFleur, previously with Consolidated Thompson, where he worked on the scoping study and bankable feasibility study for one of Consolidated Thompson's Fermont projects. Other key members are Martin Bourgoin, Executive Vice President; Alexander Horvath, Vice President of Exploration – Precious and Base Metals; and Jeff Hussey, Vice President of Exploration – Iron Ore Projects.
In an interview on BNN, Gus Chow, President and CEO of Harmony Asset Management, singled out Champion as a company to watch. “They have it all: a huge reserve and growth potential and they present a long-term investment opportunity.” Champion Minerals Inc. (CHM) is traded on the TSX Venture Exchange and has approximately 27,000,000 shares issued and outstanding. Contact Champion at 416-866-2200.
55 Adelaide Street East, Suite 410 Toronto, Ontario Canada M5C 1K6 Tel: 416.866.2200 Fax: 416.361.1333 info@championminerals.com
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