Champion Iron reports exploration results at Powderhorn project, Newfoundland
March 20, 2019Download PDF »
Confirmed Continuity of High-Grade Zinc Zone and Addition of Gold to the Expanded Copper Zone
Montreal, March 20, 2019 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (the “Company” or “Champion”) discloses strong results from its 9,350-m drilling campaign completed in the fall of 2018 at its wholly-owned Powderhorn property, located in North Central Newfoundland, 40 km southwest of the town of Springdale. The drill program was designed to test the lateral continuity of the zinc-rich intervals intersected by Champion in the spring of 2018. Several drill holes yielded significant zinc values, including one interval in PH18-34 which returned 23.6% zinc (“Zn”) and 163 g/t silver (“Ag”) over 0.88 m. This high-grade sample is part of a mineralized layer that locally reaches 4.5 m in thickness (see Champion’s August 15, 2018 press release). The copper zone interpreted from previous work was also intersected and carries gold grades above 1 g/t. Powderhorn, originally considered a zinc project, can now be viewed as polymetallic.
David Cataford, Chief Operating Officer, commented: “The fall 2018 drilling results at Powderhorn are very encouraging, with the occurrence of a copper-gold zone close to surface and the continuity of high-grade zinc at depth. Champion is optimistic about this project, as these findings reflect the potential of an under-explored area located on prospective land held by the company.”
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. Drilling in the fall of 2018 was done along a 100-meter-spaced grid in the shallower part of the Powderhorn deposit (southeast) while testing the possible connexion between the near surface zones with the deep intersect to the northeast.
Champion Iron’s board of directors approved an additional 4,000-meter drilling program targeting the area between the shallow SE area the deeper NW zone. The ongoing program has been scheduled during the ice freeze-up in the winter months to minimize and prevent any damage to the wetland environment.
The most significant intervals from the 9,350 meters of drilling are listed in tables 1 (copper zone) and 2 (zinc zone).
Table 1: Significant intervals in the copper zone drilled during fall 2018 at Powderhorn
Table 2: Significant intervals in the zinc zone drilled during fall 2018 at Powderhorn
Figure 1: Drill holes with noticeable copper and zinc grades
The geological data acquired by Champion in 2017 and 2018 demonstrates the existence of a 50-meter-thick zinc-bearing unit with an average background value of 0.22% Zn in which several high-grade lenses are found. While high copper grade and gold are located in a lens located in the up-dip (SE) direction, hole PH18-38 suggests that the zinc zones extend from near surface down to 630 meters. The target area remains open in all directions as only the northeast holes have been systematically barren.
Table 3: Hole location (UTM NAD83 Zone 21)
Figure 2: Geological cross-section of zinc and copper zones
Table 4: Assays or composites above 2% Zn or 0.7% Cu cut-off
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).
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 overlie the mineralization-bearing felsic volcanic rocks. Drilling these anomalies was completed in 2017.
The geology at Powderhorn is similar to the one at Buchans, which produced more than 16 Mt of zinc grading 14.5% (Kirkham, 1987. Geological Survey of Canada Paper 86-24), and 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: Champion’s Powderhorn property in Newfoundland, Canada
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 and has visited the field and core logging facilities on several occasions and validated the data (QA/QC).
About Champion Iron Limited
Champion is a producing iron 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 green field development, brown field management including logistics development and financing of all stages in the mining industry.
For further information please contact:
Michael Marcotte, Vice‐President, Investor Relations 514‐316‐4858, Ext. 128
For additional information on Champion Iron Limited, please visit our website at www.championiron.com
This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this news release that address future events, developments or performance that Champion expects to occur including management’s expectations regarding (i) the Company’s growth; (ii) the Company’s exploration activities and programs; (iii) the potential polymetallic nature of the Powderhorn property; and (iv) the similarities between the Powderhorn property and the Buchans and Bathurst mines; are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as “plans”, “expects”, “is expected”, “views”, “scheduled”, “suggests”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “aims”, “targets”, or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Although Champion believes the expectations expected in such forward-looking statements are based on reasonable assumptions, such forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, without limitation: project delays; continued availability of capital and financing and general economic, market or business conditions; general economic, competitive, political and social uncertainties; in obtaining governmental approvals, necessary permitting, as well as those factors discussed in the section entitled “Risk Factors” of the Company’s 2018 Annual Information Form and the risks and uncertainties discussed in the Company’s MD&A for the year ended March 31, 2018, both available on SEDAR at www.sedar.com. 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 report 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.