Champion Minerals (TSE:CHM) announced Monday high grade drill results from the company's Fire Lake North iron ore project in northeastern Quebec
Last fall, the company completed a premilinary economic assessment and a mineral resource estimate of the project.
In the West Limb designed pit area, drill hole FLN10-34 intersected 123 metres of hematite rich iron formation at 34.1% total iron (Fe). Hole FLN10-40 returned 58.9 metres grading 33.4% Fe, with a second intersection further down hole assaying 61.75 metres at 30.1% Fe.
In addition, hole FLN11-47, drilled at the northern limits of the West Limb pit, intersected 85.65 metres at 36.4% Fe, extending the strike length of the zone 200 metres further north.
Meanwhile, at the East Limb pit, the company intersected similar iron formation, with hole FLN10-36 returning 74.2 metres at 30.2% Fe and hole FLN10-38 assaying 92.81 metres at 26.1% Fe.
Champion said that infill drilling at each of the pit areas could potentially increase resources and significantly reduce strip ratios in the designed open pits used for the initial PEA, which could in turn improve the project's economics.
The company also said it completed exploratory drilling in the northeast area of the property, with the best results being hole FLN10-26, which returned 35.6 metres at 30.4% Fe, and hole FLN10-31, which intersected 21.3 metres at 30.4% Fe.
To date, Champion has completed almost 50% of the planned 17,500 metres of drilling for 2011. When all the results are available, the company will release an update of the inferred mineral resource estimate as well as a new preliminary economic assessment. Currently, Fire Lake has 388 million tonnes of inferred resources grading 28.9% Fe.
Champion's Fire Lake property is part of its Fermont Property Holdings, which are comprised of seventeen different projects. A fully-funded 60,000m drilling program is scheduled on nine projects within these holdings in 2011.