The Consolidated Fire Lake North Project

Champion's Consolidated Fire Lake North Project ("CFLN") is located in northeastern Québec contiguous to the north of ArcelorMittal's operating Fire Lake Mine, and located 60 km south of Cliff Natural Resources' Bloom Lake Mine. It is within the Fermont Iron Ore District (FIOD), a world renowned iron ore mining camp at the Southern end of the Labrador Trough also located within the Grenville Province where it was metamorphosed to a coarser grain size overall. The four current producers in the FIOD account for Canada's total Iron ore production, which is estimated at 47 million tonnes of Iron-ore concentrate per year and is expected to increase to 200 million tonnes per year over the next ten years, based on current expansion plans.

Consolidated Fire Lake North Geology

The geology underlying the northern part of the CFLN Project consists of a moderately northeast-dipping, overturned, curvilinear, northwest-trending synform. It is cored by Lower Iron Formation and Middle Iron Formation members of the Sokoman Formation the main source of iron ore in the Labrador Trough. The quartz-biotite-feldspar schist is part of the Menihek Formation. This 6 km long synform parallels a ridge southwest of Don Lake and is referred to as the Don Lake Zone..

A 2008 airborne magnetic survey completed by Champion indicates that the Sokoman Formation is truncated by faulting northwest of the Projec t, but is continuous towards the southeast. In the southern part of the Projec t, the regional structure gradually changes orientation towards the south and thence to the south-southeast.

There are two distinct iron formation structures, known as the West Zone and the East Zone, in the southern part of the Projec t. Geophysical survey results show that the West Zone is a synform that is continuous with the Don Lake Zone synform.

The East Zone iron formation is a poly deformed synclinal structure outlined by definition drilling. The East Zone trends northwest-southeast, but is re-oriented to north-south at its northern extension. The geophysical signature of this structure is continuous over 6 km and appears to diverge away from the western synform, suggesting that the two structures have been tectonically juxtaposed by thrust-faulting.