Champion Minerals Inc.

Champion Minerals Inc.

October 16, 2008 08:30 ET

Champion Minerals Outlines Massive Sulphide Potential with New Gravity-Magnetic Anomalies at Gullbridge in Buchans Mining Camp

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2008) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM) is pleased to announce the completion of a gravity geophysical survey at the Company's Gullbridge Base Metals Property (the "Property") in the Buchans Mining Camp, central Newfoundland. Champion has the option to acquire a 51% interest in the Property by paying $30,000, completing $800,000 in exploration work on the Property and issuing a total of 300,000 common shares of the Company by April 2011. Champion will have a further option to increase its interest to 75% by funding an additional $700,000 in exploration and issuing an additional 150,000 common shares of the Compay 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.

The Property covers 45 km2 of prospective base and precious metals ground at Buchans. The historical Buchans Mine, located 50 km SW of the Property, produced 16.2 million tonnes of ore with an average mill head grade of 1.33% copper, 14.51% zinc, 7.56% lead, 126 g/t silver and 1.37 g/t gold from 1929 to 1984 (as reported in NI 43-101 Technical Report on the Buchans River Limited Properties, Newfoundland, Canada, May 2008, under Buchans River Ltd., on Teck Cominco Limited is currently mining the Duck Pond Deposit, located 50 km south of the Property, which has reserves of 3.298 million tonnes at an average grade of 3.25% copper and 4.90% zinc with silver and gold credits (2007 year-end proven and probable reserves;

The Property hosts several historic base metal occurrences including the past producing Gullbridge Mine where ore reserves reported in 1953 stood at 4.35 million tonnes grading 1.24% copper, based on a Newfoundland assessment file report titled "Geological Synthesis and Interpretation of the Gullbridge Property" by Dr. J.H. Akkerman, Ph.D. The reader is cautioned that the reserves are historic in nature, are non-compliant to current National Instrument 43-101 reporting standards, and cannot be relied upon. In the late 1960's and early 1970's, Gullbridge Mines Ltd., processed 3 million tonnes of ore grading 1.1% copper that also contained credits in zinc, gold and silver. Historic drill holes on the Property have outlined a zinc mineralized zone over 250m long with grades up to 1.5% zinc over 6.4m.

The Property also adjoins Champion's Powderhorn Property ("Powderhorn") contiguous to the SE, where Champion is currently in the second year of a 3 year option to earn a 70% interest. At Powderhorn, 7 diamond drill holes completed by the Company to-date have intersected stringer-style copper mineralization similar to the Gullbridge Mine and zinc-gold-silver mineralization. Re-interpretation of the regional geological setting was enhanced by a June 2007 government airborne magnetic survey. The Company now believes that the copper mineralization at Gullbridge and Powderhorn is related to the same volcanic system or possibly two separate volcanic centres that host disseminated, stringer-style and massive sulphide accumulations.

The geological model for the Gullbridge-Powderhorn area is similar geologically and in metallogenic context to the Neves Corvo area of the Iberian Pyrite Belt in Portugal. The large massive sulphide deposits of Neves Corvo lay below extremely conductive sedimentary rocks (similar to the Gullbridge-Powderhorn area) that made their discovery by conventional electromagnetic geophysical methods more difficult. Gravity surveying provided critical data necessary to delineate prospective base metal horizons at Neves Corvo, eventually leading to the discovery of the World-Class base metal deposit.

Champion is investigating the Gullbridge-Powderhorn area by applying a similar strategy that led to Neves Corvo discoveries. The Company contracted Abitibi Geophysics of Val d'Or (Quebec) to complete a regional ground gravity survey over the eastern half of the Gullbridge Property and the NW portion of the adjoining Powderhorn ground. A total of 1,360 stations were surveyed on 200m centers covering 57.5 km2 of both properties. Five high priority target areas (Target areas 1 to 5) were identified for follow-up investigation that may coincide with possible Volcanogenic Massive Sulphides style mineralization typical of the Buchans Mining Camp.

Target areas 1 and 2 occur on the Powderhorn Property. Target area 1 is centered on the Powderhorn Cu-Zn occurrence covering two gravity highs of 0.6 mGal and 1 mGal in a 1km x 2km corridor interprested in the first case to be potential massive sulphides down-dip from the existing stringer-style mineralization, and in the second case a sub-volcanic intrusive lying deeper within the core of the Powderhorn dome. Target area 2 is defined by a near circular 1 km wide 1.5 mGal anomaly, with a corresponding intense magnetic anomaly, possibly linked to Ni-Cu bearing sulphides in mafic intrusive rocks. Target areas 3, 4 and 5 are located on the Gullbridge Property. The 0.25 mGal to 1 mGal anomalies occur within sediments and felsic volcanics that generally overlay the massive sulphides bearing Roberts Arm Formation further at depth.

Champion is also compiling and synthesizing historic mine and drill data from the Property, surface geology and structural data for development of a 3-D geological model to compliment the interpretation of the gravity survey results. Target areas identified from the gravity and modeling results will likely be further delineated by deep high resolution electromagnetic surveying in preparation for diamond drilling later in 2008-09.

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. Alex S. Horvath, P. Eng., Champion's Executive 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 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
    Vice President
    (416) 866-2200
    (416) 361-1333 (FAX)