Champion Minerals Inc.
TSX VENTURE : CHM

Champion Minerals Inc.

February 26, 2009 14:11 ET

Champion Minerals Assay Results From the Attikamagen Iron Property Confirm Taconite Potential

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2009) - CHAMPION MINERALS INC. (TSX VENTURE:CHM) ("Champion" or the "Company") is pleased to announce that assay results have been received from the channel/grab sample and diamond drilling programs completed in 2008 at the Company's wholly-owned Attikamagen Iron Property (the "Property"), located in western Labrador and north-eastern Quebec, 15km northeast of Schefferville, Quebec.

Channel/grab sampling program

Pursuant to the ongoing $12.5 million option agreement between Labec Century Iron Ore Inc. ("CIOI") and the Company, the program focused on classic magnetite(-hematite)-quartz Iron formation or taconite outcrops from the two highest priority targets at the Lac Sans Chef and Jennie Lake (refer to Table 1 below for interval or composite Iron assay results(i)). Here taconites are repeated by folding adding significant width potential. These folded areas offer the best potential for significant Iron mineral resources and are outlined by strong airborne magnetic anomalies along a 60km strike length on the Property.



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CHANNEL AVERAGE NUMBER COMPOSITED
ID IRON% OF CHANNEL LENGTH
SAMPLES (meters)
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Jennie Lake
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JL-01 29.62 37 141
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JL-02 32.82 16 78
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JL-03 36.28 16 165
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JL-04 35.00 34 123
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JL-05 31.31 7 53
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JL-06 29.99 12 131
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JL-07 26.16 30 200
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JL-08 27.63 10 148
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JL-09 27.92 27 320
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JL-10 32.80 4 4.5
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AVERAGE 24.98 193 samples 1363.5m
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Lac-Sans-Chef
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T-01 24.31 8 42
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T-02 24.77 9 52
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T-03 27.82 6 22
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T-04 25.34 7 21
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T-05 27.60 4 15
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T-06 24.23 7 58
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T-07 25.77 17 48
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T-08 27.37 18 124
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T-09 27.55 25 160
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T-10 24.77 35 84
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T-11 28.19 12 40
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T-12 26.21 23 81
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T-13 27.99 11 33
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T-14 20.50 7 25
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T-15 22.97 15 46
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T-16 25.83 19 70
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T-17 26.07 20 170
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T-18 33.48 13 54
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T-19 32.44 5 30
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T-20 24.27 9 44
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T-21 28.42 18 40
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T-22 26.95 26 105
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T-23 16.17 6 25
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T-24 27.92 13 35
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T-25 26.13 18 44
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T-26 31.44 8 17
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T-27 26.62 11 30
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T-28 25.70 5 14
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T-29 28.08 23 62
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T-30 27.33 21 46
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T-31 29.29 19 49
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T-32 26.26 30 97
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T-33 26.03 17 86
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T-34 27.60 14 39
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T-35 28.64 12 18
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T-36 27.24 16 32
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T-37 27.81 37 58
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AVERAGE 26.45% 564 samples 2016m
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(i) Channel/grab sampling and assay protocols are given below.


More than 35% of the Iron assays from both Lac-Sans-Chef and Jennie Lake returned values between 30% Iron and 50% Iron. The channel/grab assay results average 26.79% Iron in 564 samples from 37 locations in the Lac-Sans-Chef area. At Lac-Sans-Chef, the Iron formations consist of strongly magnetic, black, laminated magnetite up to 20m wide, in places deformed, repeated, forming intervals of magnetite-rich rocks that are up to 100m wide, covering 5 areas that extend close to 2,500m in length and 300m in width. The Jennie Lake area has a higher Iron content average of 30.66% Iron in 193 samples from 10 locations, and this area of Iron formation is also relatively more magnetic, based on field observations.

Channel sampling on outcrops was complimented by grab samples in areas of poor outcrop exposure. The averages quoted are a combination of channels and grab samples taken perpendicular to the orientation of the taconites. The lengths of the non-continuous channel and grab sampled areas varied between 5m and 200m. The channel samples were taken wherever possible and were taken on sections or lines with a 400m line-spacing. The sampling protocol was used to evaluate grade and volume potential of large areas to help focus future drilling targets.

Diamond drilling program

Drilling in 4 holes totaling 433m tested the taconites in the Lac-Sans-Chef area. Iron assays range from 25% Iron to 32.03% Iron, and the global average grade of all the intersections listed in the table(ii) below is 27.93% Iron.



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CORE AVERAGE
DRILL FROM TO LENGTH IRON%
HOLE # (m) (m) (m)
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2.72 27.43 24.71 30.41
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27.43 57.43 30.00 28.01
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57.43 71.48 14.05 27.26
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LSC-08-01 71.48 129.41 57.93 26.96
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129.41 144.00 14.59 27.09
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144.00 176.80 32.80 28.41
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176.80 186.00 9.20 30.97
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LSC-08-02 35.86 40.42 4.56 26.23
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40.42 109.6 69.18 28.31
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5.64 24.20 18.56 28.67
-------------------------------
LSC-08-03 24.20 74.05 49.85 27.42
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74.05 84.30 10.25 25.90
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84.30 87.00 2.70 25.00
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LSC-08-06 3.00 28.76 25.76 26.21
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28.76 60.60 31.84 32.03
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(ii) Diamond drilling and assay protocols are given below.
Holes LSC-08- 04 and 05 were not drilled.


Impact of the Iron assay results

Iron assay results confirm the taconite grade potential of the Attikamagen Property in the eastern portion of the Schefferville Mining Camp. Schefferville was historically renowned for hosting some of the world's largest direct-shipping Iron ore (or "DSO") bodies associated with taconites; however, the taconites themselves were never really mined since they were not deemed economic at the time. The DSO term is only used for historical accuracy and is not intended to imply that a positive economic study has been completed.

Current economic scenarios for Iron in general offer potential opportunities in connection with higher Iron ore prices. The taconites from Champion's Attikamagen Property are extensive with minimum grades of 30%. Champion and its partner CIOI will be expediting a drill program following the spring break-up to work towards outlining, in the near term, the highest quantity and quality Iron mineral resources.

Mira Geoscience Ltd. (of Montreal, Quebec) is currently completing a 3-D geological model and a magnetic inversion model to better understand the geometry of the taconites on the Property. The airborne magnetic survey response was utilized to estimate the volume of taconite and the resource potential for the Property. The taconite resource potential will be disclosed as an exploration target with a range of tonnages and grades that includes the supporting technical information. The potential quantity and grade is strictly conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will results in the discovery of a mineral resource.

The ongoing evaluation indicates that both the Lac-Sans-Chef and Jennie Lake areas have potential for hosting significant iron mineral resources. At Lac-Sans-Chef the 30-50m wide taconite is tightly and vertically folded with 8 fold-repetitions within a 2km by 3km sector. Locally the magnetic signature is relatively lower and these horizons have potential for DSO in low-lying areas where the taconite does not outcrop since it is usually softer and more friable and it has been scraped to a lower elevation due to glaciation.

About Champion Minerals Inc.

Champion is an exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in Labrador and Newfoundland and Quebec. The Company's projects include the Attikamagen Iron Property, located in western Labrador and northeastern Quebec, and the Fermont Iron Property in northeastern Quebec and the Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland.

About Labec Century Iron Ore Inc. (CIOI)

CIOI is a member of the Century Iron Ore Group which is based in the Far East and has extensive network, experience and expertise in the international iron ore industry with the focus on developing iron ore resources targeted to and supplying iron ore products to China, the largest and fastest growing consumer of the raw material today.

CIOI is financing the exploration and development program on the Attikamagen Iron Property pursuant to an option agreement with the Company, wherein CIOI was granted the right to earn a 60% interest in the Property by expending C$12.5 million in staged exploration and development work expenditures over a 5 year period.

Drill core samples were split in two and one-half of the core was sent for assaying. All samples were delivered in sealed and numbered bags to the ALS Laboratory Group ("ALS") sample preparation facilities in Val d'Or, Quebec. During sample preparation the samples were dried, crushed and pulverized. Sample assaying was performed in the ALS Vancouver laboratory for Iron using a four acid digestion ICP method. Quality control and quality assurance consisted of inserting blanks, certified standards and duplicate check samples.

The technical content of this press release was prepared and revised by Mr. Jeff Hussey, P. Geo., Champion's Vice President Exploration, and Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion. Both individuals are Qualified Persons under the NI 43-101 standards.

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) 866-2200
    (416) 361-1333 (FAX)
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice President
    (416) 866-2200
    (416) 361-1333 (FAX)
    Website: www.championminerals.com