Champion Iron Reports Exploration Results at Powderhorn Project, Newfoundland Confirmed Continuity of High-Grade Zinc Zone and Addition of Gold to the Expanded Copper Zone
Champion Iron Reports Exploration Results at
Powderhorn Project, Newfoundland
Confirmed Continuity of High-Grade Zinc Zone and Addition of Gold to the Expanded Copper Zone
MONTREAL
,
March 20, 2019
/CNW/ - 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
Hole ID
Down hole (m)
Length (m)
Copper
(Cu %)
Gold
Au (g/t)
Silver
(Ag g/t)
Zinc
(Zn %)
From
To
PH18-16
52.04
55.96
3.92
0.89
1.1
13.9
0.09
Incl.
52.04
53.04
1.00
0.94
1.8
14.0
0.04
Incl.
54.15
54.78
0.63
1.16
0.7
15.0
0.12
Incl.
54.78
55.28
0.50
2.31
1.8
28.6
0.33
Incl.
55.28
55.96
0.68
0.98
1.4
24.6
0.08
PH18-17
14.00
17.00
3.00
1.11
1.0
7.7
0.08
Incl.
14.00
15.29
1.29
1.47
1.1
11.3
0.04
Incl.
15.29
16.32
1.03
0.51
1.0
3.7
0.03
Incl.
16.32
17.00
0.68
1.33
0.6
7.0
0.22
PH18-42
73.62
75.62
2.00
1.16
0.3
8.3
0.29
Incl.
73.62
74.62
1.00
1.13
0.3
8.6
0.11
Incl.
74.62
75.62
1.00
1.19
0.3
7.9
0.48
Reported widths are core length with an approximate 60-degree angle; hence estimated true widths are approximately 87% of the reported widths. All listed holes were completed
using vertical drilling and thus
from
and
to
can be used as real depth. Assaying was done at Eastern Analytical in Springdale, NL.
Table 2
:
Significant intervals in the zinc zone drilled during fall 2018 at Powderhorn
Hole ID
Down hole (m)
Length (m)
Zinc
(Zn %)
Copper
(Cu %)
Silver
(Ag g/t)
Gold
Au (g/t)
From
To
PH18-12
207.31
210.53
3.22
6.90
0.14
7.7
n/a
Incl.
207.31
207.50
0.19
10.50
0.48
22.8
n/a
Incl.
207.85
208.31
0.46
1.51
0.06
3.7
n/a
Incl.
208.31
208.65
0.34
8.20
0.12
7.4
n/a
Incl.
208.65
209.53
0.90
0.73
0.13
5.9
n/a
Incl.
209.53
210.53
1.00
16.10
0.16
1.2
n/a
PH18-34
323.24
324.92
1.68
14.54
0.40
105.9
<0.1
Incl.
323.24
324.04
0.80
4.58
0.44
43.1
<0.1
Incl.
324.04
324.92
0.88
23.60
0.36
162.9
<0.1
PH18-38
710.22
712.98
2.76
10.21
0.42
10.7
<0.1
Incl.
710.22
710.93
0.71
6.26
0.43
8.0
<0.1
Incl.
710.93
711.98
1.05
10.70
0.35
9.3
<0.1
Incl.
711.98
712.98
1.00
12.50
0.50
14.1
<0.1
PH18-40
123.08
125.65
2.57
8.34
0.72
21.6
<0.1
Incl.
123.08
124.08
1.00
11.10
0.64
15.8
<0.1
Incl.
124.08
124.69
0.61
13.90
0.74
17.5
<0.1
Incl.
124.69
125.65
0.94
1.92
0.79
30.2
<0.1
Reported widths are core length with an approximate 70-degree angle; hence true widths are approximately 94% of the reported widths. Holes PH18-12 and PH18-40 are vertical
which means that
from
and
to
can be used as real depth. PH18-34 and PH18-38 are at -65 degrees which means PH18-38 intersect is at approximately 630m deep. Assaying was
done at Eastern Analytical in Springdale, NL.
Figure 1 - Drill holes with noticeable copper and zinc grades. Figure 1 depicts the location of the fall
2018 drill holes and previously drilled holes with noticeable copper and zinc grades. Intervals listed in
tables 1 and 2 are located on the map (PH18-16 and PH18-17 are shown as 16 and 17). The AB
line depicts the location of the geological section shown in figure 2. Drilling was done on a 100-
meter-spaced grid. (CNW Group/Champion Iron Limited)
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)
Hole ID
X (UTM)
Y (UTM)
Z (UTM)
Length (m)
Collar dip (
°
)
Collar az (
°
)
PH18-10
564798
5440644
172
294.7
-90
0
PH18-11
565157
5440695
165
209.0
-90
0
PH18-12
564939
5440637
171
377.0
-90
0
PH18-13
565082
5440628
168
382.0
-90
0
PH18-14
564865
5440569
170
269.0
-90
0
PH18-15
565008
5440562
169
281.0
-90
0
PH18-16
564791
5440502
170
224.0
-90
0
PH18-17
564933
5440495
170
230.7
-90
0
PH18-18
564858
5440427
170
269.0
-90
0
PH18-19
564955
5440918
173
397.0
-80
135
PH18-20
564925
5440352
170
204.9
-90
0
PH18-21
565000
5440420
167
144.6
-90
0
PH18-22
565075
5440488
165
152.0
-90
0
PH18-23
564880
5440851
173
314.0
-80
135
PH18-24
565149
5440554
173
152.0
-90
0
PH18-25
565225
5440622
161
161.0
-90
0
PH18-26
565306
5440831
164
203.0
-90
0
PH18-27
565164
5440838
168
419.0
-90
0
PH18-28
565231
5440764
164
239.0
-90
0
PH18-29
565143
5440413
160
172.0
0
0
PH18-30
564327
5441165
187
704.0
-65
135
PH18-31
565068
5440347
163
214.0
-90
0
PH18-32
564993
5440278
164
166.0
-90
0
PH18-33
564917
5440211
166
166.0
-90
0
PH18-34
564319
5441023
180
671.0
-65
135
PH18-35
564850
5440284
170
140.7
-90
0
PH18-36
564783
5440360
170
139.0
-90
0
PH18-37
564648
5440509
170
205.0
-90
0
PH18-38
564177
5441035
188
758.5
-65
135
PH18-40
564575
5440438
170
326.5
-90
0
PH18-41
564499
5440375
170
333.7
-90
0
PH18-42
564776
5440218
170
242.0
-90
0
PH18-43
565299
5440690
161
149.0
-90
0
PH18-44
564641
5440368
170
244.4
-90
0
Holes listed in tables 1 and 2 are highlighted in table 3.
Figure 2 - Geological cross-section of zinc and copper zones. Figure 2 depicts the schematic
geological cross section showing the location of low-grade mineralized lenses in which the high-
grade zinc and copper zones are located. Copper is found in the up-dip areas to the SE (B). (CNW
Group/Champion Iron Limited)
Table 4: Assays or composites above 2% Zn or 0.7% Cu cut-off
Hole ID
Down hole (m)
Length (m)
Copper
(Cu %)
Zinc
(Zn %)
Silver
(Ag g/t)
Gold
Au (g/t)
From
To
PH18-10
Best assay at 1.03% Zn / 0.80 m at 226.2m
PH18-11
Best assay at 1.74% Zn / 1.25 m at 8.44m
PH18-12
86.70
87.68
0.98
0.81
0.42
10.5
n/a
PH18-12
207.31
210.53
3.22
0.14
6.90
7.7
n/a
PH18-13
Best composite 1.29% Zn / 2.52m at 332.55m
PH18-14
44.13
45.49
1.36
0.74
0.11
9.7
n/a
PH18-14
59.64
60.53
0.89
0.25
3.26
3.8
n/a
PH18-16
52.04
55.96
3.95
0.89
0.09
13.9
1.1
PH18-16
97.71
98.71
1.00
0.82
0.72
8.9
1.0
PH18-17
13.00
17.00
4.00
0.93
1.23
8.3
0.7
PH18-18
23.00
23.65
0.65
0.10
2.40
1.8
0.1
PH18-18
223.43
223.84
0.41
0.85
0.03
3.8
0.0
PH18-20
Best composite 0.63% Cu / 3 m at 10.52m
PH18-21
Best composite 0.42% Cu / 5.59 m at 6.55m
PH18-24
Best assay at 0.65% Cu / 1.0 m at 58.38m
PH18-25
Best composite 1.16% Zn / 2.12 m at 122.66m
PH18-29
Best assay at 1.03% Zn / 0.80 m at 226.2m
PH18-30
Best composite 1.13% Zn / 3.03 m at 649m
PH18-31
Best assay at 1.51% Zn / 0.86 m at 150.64m
PH18-32
4.54
7.59
3.05
0.85
0.17
7.4
0.8
PH18-34
323.24
324.92
1.68
0.40
14.54
105.9
<0.1
PH18-34
562.68
564.68
2.00
0.84
0.17
14.6
0.1
PH18-35
66.30
67.30
1.00
0.92
0.49
10.0
0.2
PH18-37
100.52
101.98
1.46
0.17
2.37
3.8
n/a
PH18-37
121.35
122.23
0.88
0.12
2.13
9.1
n/a
PH18-38
710.22
712.98
2.76
0.42
10.20
10.7
<0.1
PH18-40
123.08
125.65
2.57
0.72
8.34
21.6
<0.1
PH18-41
156.46
156.75
0.29
0.30
2.85
12.8
0.2
PH18-41
168.25
169.25
1.00
0.09
6.01
36.8
0.1
PH18-42
73.62
75.62
2.00
1.16
0.30
8.3
0.3
PH18-44
102.13
103.42
1.29
0.73
4.98
19.2
n/a
PH18-44
119.55
120.64
1.09
0.08
2.89
3.3
n/a
Where there are no assays or composites above these cut-offs, best sample or composite is stated. Barren holes are not listed.
About Powderhorn
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 km
2
(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. Red star indicates the
location of the Powderhorn discovery. (CNW Group/Champion Iron Limited)
Qualified Person
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 additional information on Champion Iron Limited, please visit our website at:
www.championiron.com
.
Forward-Looking information
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.
SOURCE
Champion Iron Limited
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For further information:
Michael Marcotte, Vice-President, Investor Relations, 514-316-4858, Ext.
128, [email protected]
CO: Champion Iron Limited
CNW 07:00e 20-MAR-19