Century Iron Mines (TSE:FER) said Wednesday that it has completed the earn-in of its 51 percent interest in the Attikamagen project, located 20 kilometres northeast of Schefferville, straddling the boundary between the provinces of Quebec and Newfoundland and Labrador.
Under the terms of an option and joint venture agreement with Champion Minerals (TSE:CHM), Champion has signed, and delivered the 51 percent interest in the iron ore property to Century Iron's subsidiary.
Century said it fulfilled its obligation under the deal to fund $7.5 million in exploration and development work on the property required to earn this initial interest.
The iron ore explorer also has the option to increase its interest to up to 60 percent, by funding an additional $3.0 million in exploration and development work before May 12, 2014.
A winter drilling program at Attikamagen last year targeted direct shipping ore potential at Joyce Lake, and taconite potential at Hayot Lake. Taconite is a variety of iron formation, which is an iron-bearing sedimentary rock, while direct shipping ore refers to iron ore that can be shipped directly to a steel furnace.
Reverse circulation drilling at Joyce Lake intersected 139 metres grading 52.8% total iron in hole JOY-11-06, while hole JOY-11-07 returned 91.0 metres of 52.5% total iron, including 42.0 metres of 65.3% iron. The company said that while still at an early stage, results indicated that the Joyce Lake iron formation has the potential to become a DSO deposit.
At Hayot Lake, hole HAY-11-10 intersected 108.2 metres grading 33.2% total iron.
"Century is pleased to have had the earn in completed through its subsidiary, Labec Century, thus forming the joint venture with Champion and achieving a major milestone on the development of the Attikamagen Project," said Century Iron president and CEO, Sandy Chim.
"The Project has been progressing well with encouraging results announced earlier from our 2011 exploration program.
"We look forward to taking the Project to the next level with WISCO International Resources Development & Investment Limited, a partner in Labec Century to fund $40 million for its further exploration for a 40% therein.”
Century Iron Mines is Canada's largest holder of iron ore land claims, with interests in several properties in the provinces of Quebec and Newfoundland and Labrador.
The company is backed by two Chinese strategic partners through financing and off-take agreements: MinMetals and WISCO International Resources, a unit of Wuhan Iron & Steel, also known as China's third-largest steel producer.