Champion Minerals Inc.

Champion Minerals Inc.

October 21, 2010 09:13 ET

Labec Century Iron Ore Start Diamond Drilling Program on Champion Minerals' Attikamagen Iron Property, Schefferville Mining District

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company")(TSX:CHM)(FRANKFURT:P02) is pleased to announce that a 2,000 m diamond drilling program has been initiated at the Company's wholly-owned Attikamagen Iron Property (the "Attikamagen Property" or the "Property") by Labec Century Iron Ore Inc ("LCIO"). The program is expected to be completed in November 2010. The Property is under an option and joint venture agreement (the "Agreement") between Champion and LCIO allowing LCIO to earn up to a 60% interest in the Property by expending up to C$13 million in exploration and development work expenditures. Pursuant to the Agreement, LCIO are acting as operators on the Property.

Several potential direct shipping ore targets ("DSO") will be tested at the Jenny Lake, Joyce Lake and Lac Sans Chef targets as well as taconite at Hayot Lake. The DSO targets were selected based on geological and magnetic data as well as the results of a ground gravity survey completed this spring. The DSO term was used by previous operators in the Schefferville mining district to designate "oxidized iron ore" with iron grades in excess of 55%, and is only used here for historical reference and is not intended to imply that a positive economic study has been completed on the Attikamagen Property. The taconite target is an area of shallow dipping iron formation with good magnetite content with an expected minimum thickness of 60 meters based on interpreted geology.

The Property comprises 946 mineral exploration claims totaling 310 km2 in western Labrador and northeastern Quebec, and covers approximately 60 km of regional, NW-SE trending strike length. The Attikamagen Property is located 15 km northeast of Schefferville, Quebec, the hub of a major iron-ore mining camp from 1953 to 1983. The Attikamagen Property hosts a Superior-type iron formation with significant potential and characterized by massive hematite/magnetite iron oxide, upon which only limited geological mapping and surface sampling has been carried out since its discovery 80 years ago. Detailed geological bedrock mapping, airborne geophysical surveys and extensive surface sampling have been carried out by Champion to quantify the iron formation over considerable strike-length. This exploration work has helped to target areas for drilling.

The Attikamagen Option and Joint Venture Agreement

The Attikamagen Project is operated by LCIO under the terms of the Agreement. Pursuant to the Agreement, LCIO can earn an initial 51% interest in the Attikamagen Property by funding aggregate exploration and development expenditures of C$7.5 million on or before March 26, 2012, in two remaining yearly increments of C$2.5 million per year in staged expenditures. After earning the initial 51% interest, LCIO will have the option to increase its interest in the Attikamagen Property to 56% by expending a further C$2.5 million on or before March 26, 2013, and to 60% by expending an additional C$3 million on or before March 26, 2014. After LCIO completes its earn-in, LCIO and Champion will form a joint venture reflective of their proportionate ownership interests in the Attikamagen Property.

About Champion Minerals Inc.

Champion is an exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include the Attikamagen Iron Property in northeastern Quebec and western Labrador, the Fermont Iron Property in northeastern Quebec, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland. For further information please visit the Champion website at

About Labec Century Iron Ore Inc.

LCIO 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.

The technical information in this news release was prepared, revised and approved by Mr. Eddy Canova, P. Geo., Senior VP Exploration and Claude Britt, P. Geo., Technical Advisor, of Century Iron Ore Group, and Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion. All three individuals are Qualified Persons under NI 43-101 standards.

Statements made in this news 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.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    1 (877) 448 2201 or (416) 866-2200
    Champion Minerals Inc.
    Jorge Estepa
    1 (877) 448 2201 or (416) 866-2200