Champion Iron Ltd: Champion Iron drills 5.12 m of 1.98% Zn at Powderhorn
CHAMPION IRON INTERSECTS SEVERAL ZINC-RICH INTERVALS AT ITS POWDERHORN PROJECT, NEWFOUNDLAND
Champion Iron Ltd.'s wholly owned subsidiary Champion Iron Mines Ltd. has provided results of recent exploration drilling at its Powderhorn property, located in north-central Newfoundland, 40 kilometres southwest of the town of Springdale. This program intersected several zinc ("Zn") rich intervals, including drill hole PH18-01 which intersected 3.31% Zn, 0.53% copper ("Cu") and 48 g/t silver ("Ag") over 4.45 meters, 5.2% Zn, 0.48% Cu and 22 g/t Ag over 4.46 meters and 1.18% Cu over 0.69 meter. Drill hole PH18-06, located 100 meters away, intersected 6.94% Zn and 48 g/t Ag over 3.35m, including a 1-meter width which returned 16.4% Zn.
Location of the 2017-2018 drill holes. The red area represents the target area based on 2017-2018 drilling and two historical holes (not shown). Although PH18-03 is not listed in table 1, there is a 1 meter long 4.45% Zn interval that suggest that the zinc-rich layer may extend to that area.
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 overly the mineralization-bearing felsic volcanic rocks. Drilling these anomalies was done in 2017. The geology at Powderhorn is similar to the one at Bucchans which produced more than 16 Mt at 14.5% Zn (Kirkham, 1987. In Geological Survey of Canada Paper 86-24), but 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.