Champion Minerals Inc.

Champion Minerals Inc.

March 03, 2008 09:00 ET

Champion Minerals Retains the International Engineering Company BBA Inc. for Scoping Studies on the Attikamagen Lake Iron Property

TORONTO, ONTARIO--(Marketwire - March 3, 2008) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM) is pleased to announce that it has retained the international engineering firm BBA Inc. ("BBA") to perform geological and metallurgical work towards scoping studies on the Company's wholly-owned Attikamagen Lake Iron Property ("Attikamagen" or the "Property"), near Schefferville, Quebec.

Mr. Thomas Larsen, President and CEO of Champion states, "With the strong demand and dramatic price increase for iron feed stocks, management is of the opinion that the Attikamagen Lake Iron Property warrants much more rigorous evaluation and exploration, since there is an excellent potential to host a large iron resource. BBA's geological, engineering and economic expertise in the Labrador-type iron ore systems will be of great benefit to Champion. BBA's mandate is the near term evaluation of the iron potential at Attikamagen, in terms of maximizing tonnage at the highest recoverable iron grades."

Champion is also pleased to announce that it has renegotiated the royalty agreement on Attikamagen. The royalty has been reduced to C$ 1.50 per tonne of iron content in any and all iron ore pellets or other product produced from the property (a 50% reduction from the original C$ 3.00 per tonne) and to provide for Champion to have the right and option to purchase this royalty at any time for C$ 2.5 million. As consideration for the reduction of the royalty interest and the buy-out option, Champion agreed to issue 150,000 fully paid and non-assessable common shares of the Company. The shares to be issued are subject to acceptance of the agreement by the TSX Venture Exchange and will be subject to a four-month hold period.

Attikamagen Iron Formation and Project

The Property is comprised of 52 mineral exploration claims in western Labrador, located 15 km E-NE of Schefferville, Quebec. Recent work in 2007 completed by Champion consisted of an airborne geophysical survey at Attikamagen, 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 have a surface expression ranging in true thickness from 150 to 500 meters. The mineralization may extend over 8 km beneath shallow overburden based on the magnetic response, with dips ranging from near vertical to 80 degrees to the NE.

Although not compliant with current 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 mineral resources with remarkable accuracy on a 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.

The 2008 exploration program and scoping studies will be supervised by Mr. Jeff Hussey, P. Geo., Champion's Vice-President Exploration. The information contained in this release was prepared and revised by Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to the Champion Minerals. Both individuals are Qualified Persons under National Instrument 43-101 standards.

About Champion Minerals

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 the Attikamagen Lake Iron Property, located in eastern Labrador.

About BBA Inc.

Based in Montreal (Quebec), BBA Inc. provides high quality expertise and customized services in the fields of Metallurgy & Mineral Processing, Mining and Geology. BBA is currently involved with Consolidated Thompson Iron Mines Limited to perform overall engineering, procurement, construction and management services (EPCM) for the development of the Bloom Lake Iron Ore Project, located 13 km northwest of the Quebec town of Fermont and 8 km north of the Quebec Cartier Mining Company (QCM) Mount-Wright mine and concentrator.

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 & CEO
    (416) 866-2600
    Champion Minerals Inc.
    Jorge Estepa
    (416) 866-2600