Champion Minerals Inc.

Champion Minerals Inc.

February 17, 2009 15:00 ET

Champion Minerals Completes Initial Drilling at Powderhorn-Gullbridge VMS Projects in the Buchans Mining Camp

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2009) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM) is pleased to announce that diamond drilling, logging and sample assay results have been received for 3 diamond drill holes completed in January 2009 on the Company's Powderhorn and Gullbridge VMS base metals properties in the Buchans Mining Camp of Central Newfoundland. The work is being partially funded by a 2008 Government of Newfoundland and Labrador Ministry of Natural Resources grant under the Junior Company Exploration Assistance Program awarded to its joint-venture partner Copper Hill Resources Inc.

A total of 1,477 m of drilling was completed in 3 holes (PH09-01 to 03) designed to test the first 3 of 5 coincident ground gravity and airborne magnetic anomalies identified on the two properties (refer to the January 7, 2009 Company News Release). The first two holes were drilled on the Powderhorn Property and the third hole was drilled on the Gullbridge Property located contiguously to the north and northwest of Powderhorn Lake.

PH09-01 was near vertical to a total depth of 599 m on the northwest flank of the Powderhorn felsic "dome" where previous surface sampling and diamond drilling have identified felsic volcanic rocks with disseminated and stringer sulphides and local concentrations of zinc, copper, lead, gold and silver. PH09-01 was drilled on the peak residual gravity high of a large 1 km by 1.5 km anomaly with coincident airborne magnetic and ground InfiniTEM™ deep-EM anomalies. A brief geological description and highlights from sample assay results(i) for PH09-01 are provided below:

CORE ---------------------------------
(m) (m) (m) (%) (%) (g/t) (%)
PH09-01 452.79 455.74 2.95 0.81 0.05 3.9 0.02
including 0.59 3.00 0.10 8.8 0.03
489.13 494.38 5.25 0.61 0.04 2.9 0.07
including 0.40 1.33 0.17 22.2 0.64
515.96 517.66 1.70 2.19 0.06 17.4 -
including 0.59 3.50 0.08 24.2 -
including 0.41 3.60 0.11 29.2 -
(i) Sample analysis were completed by Eastern Analytical Laboratories of
Springdale (Newfoundland). Samples were designated for initial coarse
crushing, pulverization of 250 gram splits, and analysis of 30 elements by
ICP using a standard aqua-regia extraction. For all samples reporting above
geochemical detection limits for the ICP for copper (Cu), zinc (Zn), lead
(Pb) or silver (Ag), the samples were re-assayed using an industry standard
"ore grade" assay to determine the final reported grade. Industry standard
1 assay-ton fire assays were used to establish gold grade for the samples.
Sampling and assaying quality assurance and quality control protocols were
initiated by Champion to monitor the precision and accuracy of results and
potential contamination during processing of samples and included the
submission of field duplicate samples, certified multi-element reference
standards and blank standards.

A strong sericite (potassium mica)-silica alteration zone was intersected over a 70.60 m interval between 452.20 m and 522.80 m. The interval contained up to 10% disseminated and stringer style sulphides. Results indicate the Powderhorn felsic volcanic rocks are over 250 m thick with undetermined total thickness since underlying lithologies have not been intersected by drilling to-date. These variably altered and sulphide mineralized rocks have been traced from surface down-dip to depths of 280 m below the sedimentary cover to the northwest over a distance of 1.5 km. Volumetrically, the sulphides (and base and precious metals) contained within the highly altered rocks are significant and representative of a large base (and precious) metals generating volcanogenic environment.

Champion believes the disseminated and stringer-style mineralization encountered in PH09-01 does not account for the residual gravity anomaly and plans to collect density data from core samples for use in gravity modelling. The sulphides encountered within the upper portion are interpreted to have been deposited during phases of sulphide exhalation coincident with increased sedimentation. The potential for more concentrated massive sulphide bodies is interpreted to lie below and/or laterally down-dip of the existing intersections. Results from the gravity modeling will be used to determine whether PH09-01 should be down-hole geophysically surveyed, deepened and/or additional drilling completed down-dip.

PH09-02 was drilled on the eastern portion of the Powderhorn Property targeting a 750 m circular strong residual ground gravity anomaly with a similar intense airborne magnetic anomaly on the western flank of the Powderhorn dome at the contact with the eastern limits of the Dawes Pond Intrusive Complex. PH09-02 was stopped at 159.5 m and before the allocated depth of 400 m. Strongly magnetic gabbros, with up to 15% magnetite (iron oxide) and ilmenite (titanium-iron oxide) was intersected from bedrock surface to the end of the hole. The intersection explains the strong coincident gravity and magnetic anomalies and since only trace to 1% sulphide was encountered, the potential for nickel-copper magmatic sulphides is not evident at this time. Results from the hole will be further studied to determine potential for magnetite-ilmenite concentration and mineralization.

PH09-03 was drilled on the Gullbridge Property targeting the largest and most intense of the five gravity high anomalies identified from the surveying. The anomaly is 1.5 km by 1 km in size and occurs southeast of the historic Baker Brook Zinc Occurrence and east of the main regional thrust fault known as the Red Indian Line. A recent re-interpretation of the regional geology suggests that the prolific volcanic rocks of the Roberts Arm Formation may lay beneath the sedimentary rock cover east of the historically interpreted thrust fault.

PH09-03 was drilled near vertical to a total depth of 719 m and intersected 60 m of cherty sediments, chloritic mafic tuff and volcanic breccias and tuffs, followed by almost 100 m of mafic volcanic rocks; then by 85 m of more cherty sediments. The thick intersection of mafic volcanics suggests the hole has possibly reached the top of the Gull Pond Basalts that overlay the horizons of the Gullbridge units that host copper sulphide stringer mineralization at the Gullbridge Deposit located 2 km along strike to the north. Core samples will be collected from the hole for density determinations to be used in gravity modeling. It is unclear whether the source of the anomaly is from the thick mafic intervals or another source. Follow-up down-hole electromagnetic surveying and potential deepening of the hole will be determined from gravity modeling results. Minor and trace element lithogeochemical analysis are in progress on select intervals of core to characterize stratigraphy and assist interpretation of results.

In 2009, Champion plans to proceed with the gravity modelling and pending results, proceed with down-hole electromagnetic surveys and deepening of PH09-01 and DP09-03 to further evaluate target areas 1 and 3 identified from the gravity survey. The magnetite-ilmenite potential of target area 2 will be evaluated in addition to drill testing the two principal remaining target areas 4 and 5.

The Gullbridge and Powderhorn Properties

Champion is in the first year of its option to acquire a 51% interest in the Gullbridge Property by paying C$30,000, completing C$800,000 in exploration work on the Property and issuing a total of 300,000 common shares of the Company by April 2011. Champion has a further option to increase its interest to 75% by funding an additional C$700,000 in exploration and issuing an additional 150,000 common shares of the Company within a further two year period. Champion could then increase its interest to 85% by funding all necessary expenditures to completion of a positive bankable feasibility study.

Champion is in the second year of its option to acquire a 70% interest in the Powderhorn Property by paying C$50,000, completing C$1,000,000 in exploration work on the Property and issuing a total of 500,000 common shares of the Company by June 2010. Champion could increase its interest to 80% by funding 100% of a positive bankable feasibility study.

About Champion Minerals Inc.

Champion is a junior exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in Labrador and Newfoundland and northeastern 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.

The technical content of this press release has been prepared, reviewed and approved by Mr. Alex S. Horvath, P. Eng., Champion's Executive Vice President, and Mr. Jean Lafleur, P. Geo., a Director of the Company and Technical Advisor to the President and CEO. Both individuals are Qualified Persons under NI 43-101 standards.

Statements in this release that are not historical facts are "forward-looking statements" and 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) 866-2200
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2200
    (416) 361-1333 (FAX)