Toronto-based Champion Minerals (TSE:CHM) rallied over 5% after it announced Thursday the latest drill results from its Moire Lake iron ore project in Quebec, located just east of steel giant ArcelorMittal's Mont Wright Mine.
The company said drill hole LM11-12 returned 503.4 metres grading 31.2% total iron on the southeast side of the historic Lac Moire occurence.
Drill hole, LM11-16, located approximately 400 metres northeast and along strike of drill hole LM11-12, intersected 390.1 metres grading 27.6% total iron, and included an interval of 237.1 metres grading 31.5% total iron.
In addition, LM11-09, located roughly 400 metres northeast of LM11-16, found 383.4 metres of iron formation grading 30.3% total iron.
These three drill holes delineate approximately one kilometre of iron formation along strike, Champion said, with down-hole intersections of 383 metres to 503 metres.
Champion's president and CEO, Tom Larsen, commented, "The latest results from our 2011 drill program at Moire Lake further confirm the high grade and continuity of the iron formations present on the property which is strategically located in the Labrador Trough.
"The combined thickness and assay results from Moire Lake are significant and we expect the new resource estimate will identify a sizeable increase in the historical resource."
Champion said previously it plans to drill a northeast-trending linear magnetic anomaly underlying the eastern part of the Moire Lake project, where recent prospecting located outcrop containing specular-hematite and magnetite iron mineralization in zones up to 40 metres wide.
Permits are pending for this additional planned drilling, with this element of the exploration program deferred until 2012, Champion said. The final 2011 drill hole is in-progress, and is being drilled on the same section as LM11-12.
A total of 21 drill holes, totalling approximately 9,325 metres, will be completed in 2011 at the Moire Lake project.
Champion is preparing samples for initial metallurgical tests, and once the remaining assay results are received in early November, it will begin an NI 43-101 compliant resource estimate, with results expected later in the fourth quarter.
The company plans to initiate a preliminary economic assessment for the Moire Lake project once the resource is completed.
Champion's Fermont Holdings comprise of 17 properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined, NI 43-101 compliant, estimated measured and indicated resources of 400 Million tonnes grading 30.6% iron and inferred resources of 1.82 billion tonnes grading 25.4% iron, at a 15% total iron cut-off.
Seven of Champion's remaining fourteen properties contain combined historical mineral resources totalling 620 million tonnes grading 31% iron.
The company's shares were up 4.4% late Thursday, to trade at 94 cents as of 2:36pm EDT.