Champion Minerals Inc.

Champion Minerals Inc.

July 10, 2008 12:27 ET

Champion Minerals Initiates Field Exploration on Attikamagen Iron Property; Identifies Key "Taconite" or Magnetite-Rich Iron Formation Known for Its Large Tonnage Potential and Higher Iron Grades

TORONTO, ONTARIO--(Marketwire - July 10, 2008) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM) is pleased to announce the recent start of its summer field exploration program at the Company's wholly-owned Attikamagen Iron Property (the "Property"), located in western Labrador, approximately 15km east of the town of Schefferville, Quebec.

The Company has constructed a ten person helicopter-supported camp and has mobilized geologists and technicians on the Property for the Phase 1 exploration program in order to efficiently evaluate several zones with "enriched ore" or "direct shipping ore" ("DSO") potential, as described by Burgess (Iron Ore Company, 1951), and "taconite" iron formation potential. Both types of iron mineralization are historically known to occur in the Lac-Sans-Chef, Jennie Lake and Joyce Lake portions of the Property.

The Phase 1 work will include a 2,500 line-kilometer airborne high resolution geophysical survey (Magnetic, Electro-magnetic and Radiometric) over the newly acquired claims of the Property in order to identify iron formation contacts, favorable folding under overburden cover and potential DSO mineralization. Processing of the airborne magnetic data with Magnetic Inversion combined with the geological mapping will help create a 3-D model of the iron formation at depth that can be used for initial volumetric estimation. This approach combined with modest amounts of diamond drilling and assaying would enable the Company to possibly establish a National Instrument (NI) 43-101 compliant mineral resources stage where warranted. In addition, Schefferville-type iron formation expertise will be provided to the Company by outside consultants, Dr. P. Pufahl (Queen`s University, Kingston, Ontario) and Dr. E. Hiatt (University of Wisconsin-Madison, Wisconsin USA).

Highlights of the field observations to date are as follows:

- The iron formations located on the Property appear to be rich in magnetite, a recognizable "Taconite Window";

- Thick intervals of magnetite-rich iron formation or "taconite" was found at the Lac Sans Chef and Jennie Lake sectors;

- At Lac-Sans-Chef, the iron formations consist of several meter-scale intervals 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;

- Channel sampling has been initiated over the magnetite-rich areas of Lac-Sans-Chef over 300m interval lengths where minimal bedrock stripping is required, with more than 200kg of samples taken to date;

- At Jennie Lake, the magnetite-rich intervals are steeply dipping providing a much deeper potential for mineralization that appears to extend for several kilometres based on the geophysics, and historical work by Burgess (Iron Ore Company, 1951) and recent work by the Company in 2007;

- The magnetic horizons at both Lac-Sans-Chef at the north end of the Property and at Jenny Lake to the south extend for 20km;

- There is a good potential for discovery of DSO in vegetation-covered topographic lows at Lac-Sans-Chef, Jenny Lake and Joyce Lake;

Mr. Thomas Larsen, President and CEO of Champion stated, "The initial findings at Attikamagen, based on the Company's limited field investigations, have been significant. We identified wide intervals of magnetite iron formations or "taconites" that have been recognized from one end of the Property to the other, a distance of 20km. Based on these observations, the upcoming airborne geophysical and 3-D modeling of the "taconites", we are confident in initiating diamond drilling in the very near term to define the vertical extent of the "taconites" and possibly NI 43-101 compliant mineral resources."

Attikamagen Lake Iron Formation and Project

The Property comprises 532 mineral exploration claims totaling 139.7 km2 in western Labrador and northeastern Quebec, primarily located 15 km E-NE of Schefferville, Quebec. The Schefferville-type iron formations of Quebec and Labrador contain some of the world's largest iron formation deposits. The Property consists of the Attikamagen Lake Iron and the Attikamagen Extension Claim Blocks, both located in Labrador, and the Lac Sans Chef Quebec Claim Block, located in the province of Quebec and partially adjacent to the northern portion of the Attikamagen Extension Claims. Work completed in 2007 at the Attikamagen Lake Iron Claim Block by Champion consisted of an airborne geophysical survey, as well as a preliminary surface mapping and sampling program. The surface sampling program was completed to ground reference samples for correlation with the geophysical data.

The airborne magnetic response correlates well with surface geological mapping, and is useful in delineating the magnetite iron formation and wall rock contacts in talus or overburden covered areas where there is an absence of bedrock exposure. The total field and first vertical derivative magnetic data indicates a series of NW-SE trending strongly magnetic horizons linked with the iron formations and they have a surface expression ranging in true thickness from 150 to 500 meters where folding causes favorable structural thickening. The mineralization may extend over 8 km beneath shallow overburden based on the magnetic response, with dips ranging to near vertical.

Although not compliant with current NI 43-101 resource estimation standards, these types of iron formations can be estimated volumetrically by utilizing a combination of sampling and magnetic survey responses to estimate global mineral resource potential with remarkable accuracy on metric tonnes per vertical meter basis. Exploration drilling is required primarily to determine the extent and iron grades of the iron formations and provide samples for metallurgical testing. The average total iron content from 21 grab samples taken by Champion in 2007 was 37.7% within a range of 22.60% to 49.30%. Some 11 samples contain more than 40% total iron within the upper range of 40.30% to 49.30%. Champion plans to complete metallurgical beneficiation testing on samples to determine whether a marketable concentrate can be produced from the Property.

Labec Century Iron Ore Corporation ("CIOC") is currently financing the Phase 1 exploration and development program on the Property. CIOC can earn, via an option agreement with Champion, a 60% interest in the Property by expending C$ 12.5 million in staged exploration and development work expenditures over a 5 year period.

About Champion Minerals

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 Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland, the Attikamagen Iron Property, located in western Labrador and northeastern Quebec, and the Fermont Iron Property in northeastern Quebec.

The technical content of this press release has been prepared by Mr. Jeff Hussey, P. Geo., Champion's Vice President Exploration, 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 the guidelines of NI 43-101.

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
    (416) 361-1333 (FAX)
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2200
    (416) 361-1333 (FAX)