Champion Minerals Inc.

Champion Minerals Inc.

May 04, 2007 15:11 ET

Champion Minerals Acquires Iron Prospect Near Schefferville, Quebec

TORONTO, CANADA--(CCNMatthews - May 4, 2007) - CHAMPION MINERALS INC. ("Champion" or the "Company") is pleased to announce that the Company has signed a letter agreement to acquire the Attikamagen Lake Iron Prospect (the "Property") consisting of 52 claims in eastern Labrador, located 15 km E-NE of Schefferville, Quebec (the "Acquisition").

Champion has agreed to acquire a 100% interest in the Property from an arm's length vendor (the "Vendor"), by: i) making cash payments totaling C$40,000 (C$20,000 which was paid upon execution of the letter of intent; with an additional C$20,000.00 payable upon closing); and ii) the issuance to the Vendor of 100,000 fully paid and non-assessable common shares of the Company at a deemed value of $0.30 per share upon closing. Champion has agreed to pay an aggregate royalty to the Vendor of Cdn$3.00 per tonne of iron content in any and all iron ore, pellets or other product produced from the Property, calculated at the port when shipped. The shares issued pursuant to the Acquisition are subject to the receipt of any necessary regulatory approvals and will be subject to a four month hold period.

The Property hosts a significant taconite or Superior-type iron formation, at least 8 km in length, 1.2 km wide and minimum 75 m thick. The taconite is massive, dense and very fine grained, with hematite as the main iron oxide. Previous surface work from 1941 reported an average grade of 41% iron, 0.18% manganese and 0.011% phosphates; whereas sampling in 1961 outlined 40.22% iron, 36.56% insoluble iron, 0.26% manganese and 0.013% phosphates. These are historical results which are not compliant with National Instrument 43-101 and, accordingly, cannot be relied upon.

The magnetic signature varies from non-magnetic to strongly magnetic. Operators in the region attribute the magnetic lows to "higher grade soft iron oxides". The accepted theory of the origin of these soft iron oxides is that they are younger laterites formed from an older siliceous iron formation, rich in magnetic magnetite. Concentration of the iron is believed to be the result of weathering and groundwater interaction. The process leaches out the silica and concentrates iron as hematite-limonite, the non-magnetic component. Any future exploration on the Property should focus on determining the extent and grade of this material, since it would have a positive impact on economic scenarios of the mineralization.

Jean Lafleur, P. Geo., Director and Technical Advisor to the Company, and the qualified person under National Instrument 43-101 standards, prepared the technical information in this news release.

About Champion Minerals Inc.

Champion is a junior exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in Newfoundland-Labrador. The Company currently has two properties, the Powderhorn base metal project located in central Newfoundland, and now, the Attikamagen Lake Iron Prospect, located in eastern Labrador.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2600
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2600