MONTREAL, Jan. 22, 2019 (GLOBE NEWSWIRE) -- Champion Iron Limited (CIA.TO) (CIA.TO) (“Champion”) is pleased to announce that a joint exploration agreement (the “Agreement”) has been reached with Supreme Metals Corp. (CSE:ABJ) (A68.F) (“Supreme”) in order to access the claims located on the Bloom Lake East Property (“Bloom East”).
Magnetic survey work, conducted by Supreme in 2018, identified iron ore prospects at Bloom East, which could be of strategic importance to Champion and its subsidiary Quebec Iron Ore Inc. (“QIO”), as it could potentially be considered as a source of iron ore feed for the Bloom Lake Mine (“Bloom Lake”) concentration plant owned and operated by QIO. The southern part of Bloom East is geologically continuous with the Bloom Lake orebody and is located east of the Quebec-Labrador Boundary, less than 3 km from the Bloom Lake mill. Furthermore, Champion will evaluate the northern section of Bloom East, which hosts iron ore according to the Newfoundland and Labrador Geoscience Atlas.
Pursuant to the Agreement, Champion will grant Supreme access to the Walsh Prospect located on QIO’s Bloom Lake Mining Lease. The Walsh Prospect, located 1.3 km away from current mining operations, was discovered in 1951 and yielded results “running to better than 11% Cobalt”1.
In addition to accelerating exploration on the Walsh Prospect, the one-year Agreement allows Champion to evaluate further mineralization outside of QIO’s current claims and lease and could potentially increase the resources in the vicinity of Bloom Lake operations. Champion will dedicate CAD$50,000 of its exploration budget to acquire geological data on the Walsh Prospect and will further commit to a minimum spend of CAD$100,000 on exploration of Bloom East. Supreme will provide its expertise on cobalt deposits and share data and findings emanating from its exploration to date. Further to such commitments, a long-term agreement will subsequently be considered, assuming the potential for one or both commodities is deemed positive by either company. Champion will retain a right of first refusal to partner with Supreme on Bloom East for a period of 3 years following this Agreement.
Hugues Longuépée, P.Geo, Geology Manager, commented, “The Champion team has been tracking the results of Supreme’s exploration program. Partnering with them at this juncture is a natural progression to evaluate prospects near our operations. Not only will it give Champion and QIO the opportunity to add resources to the Bloom Lake Mine, it will also increase the potential for cobalt by combining underexplored occurrences into a single project. I am confident that this agreement will lead to great gain for both companies and we are looking forward to this collaboration with Supreme.”
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 several years of experience in iron ore in Québec and Labrador.
1 Quebec Department of Mines Mineral Deposits Branch Report # GM-1689, Report on Walsh Cobalt Group, Mount Wright Area. April 22, 1952.
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.
About Quebec Iron Ore Inc.
Founded in 2016 by the mining development company Champion Iron Limited, Quebec Iron Ore Inc. is a 100% Quebec-based entity managed by experts from Quebec. The company was mandated to direct the relaunch of the Bloom Lake Mine, a Champion Iron flagship project in Fermont, in northern Quebec.
About Supreme Metals Corp.
Supreme Metals Corp. (CSE:ABJ) (A68.F) is a Canadian based exploration company with a focused approach in the area of green and energy metals in the Western World adjacent to anticipated downstream manufacturing projects that will have a significant need for these metals.
For further information please contact:
Michael Marcotte, Vice-President, Investor Relations 514-316-4858, Ext. 128
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This news release contains certain information and statements, which may be deemed “forward-looking statements” within the meaning of applicable securities laws (collectively referred to herein as “forward-looking statements”). All statements other than statements of historical fact, that address future events, developments or performance that Champion Iron expects to occur including management’s expectations regarding the Company’s mineral resources and the potential addition to mineral resources 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”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “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 Iron 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; future prices of Iron Ore; failure of plant, equipment or processes to operate as anticipated; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities, as well as those factors discussed in the section entitled “Risk Factors” of the Company’s 2018 Annual Information Form available on SEDAR at www.sedar.com. The forward-looking statements in this news release are based on assumptions management believes to be reasonable and speak only as of the date of this news release or as of the date or dates specified in such statements. Champion Iron cautions that the foregoing list of risks and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company’s ability to predict or control.
The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Champion Iron undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.