Exploration Program Confirms Multi-Kilometric Magnetite-rich Taconite Iron Formation on Champion Minerals Attikamagen Iron Propertyadmin
Friday, August 15th 2008
CHAMPION MINERALS INC. provide an update on the recently initiated field exploration program at the Company’s wholly-owned Attikamagen Iron Property, in western Labrador, 15km east of the town of Schefferville, Quebec. Labec Century Iron Ore Corporation (“CIOC”) is currently financing the Phase 1 exploration and development program on the Property pursuant to an option agreement with the Company, wherein CIOC was granted the right to earn a 60% interest in the Property by expending C$ 12.5 million in staged exploration and development work expenditures over a 5 year period.
Phase 1 Exploration Program
The Company mobilized geological field crews to the Property in June 2008 to evaluate the size and grade potential for “direct shipping ore” (“DSO”), and “taconite” iron. Occurrences of “DSO” were mapped by L.C.N. Burgess and highlighted a potential for both types of iron mineralization in the Lac-Sans-Chef, Jennie Lake and Joyce Lake areas of the Property where folding repeats the Sokoman iron formation several times (Geologic Report of the area West of Attikamagen Lake; Iron Ore Company, 1951).
The Company believes there is excellent potential for taconite iron mineralization throughout the Property and discovering “DSO” is significant in low lying areas at Lac-Sans-Chef, Jenny Lake and Joyce Lake. Observations conclude that glaciers stripped the softer material creating topographic lows. In order to detect DSO potential, airborne magnetic data will be used to define targets going forward.
Novatem Inc., completed a 1,010 line-kilometer, airborne, high-resolution Magnetic and Radiometric geophysical survey over the Property to delineate the geometry of the iron formation and to define potentially larger tonnage taconite, with associated DSO mineralization. Magnetic inversion processing of the airborne magnetic data in combination with recent geological mapping will be used to create a 3-D model of the iron formation which can then be used for an initial volumetric estimation. Highlights of the program to date include:
– Mapped kilometric scale taconite iron formation better known as the Pink Grey Chert (“PGC”) and Lower Red Chert (“LRC”) members of the Sokoman Formation in the Schefferville area; – The PGC is black, finely laminated magnetite and the LRC is a magnetic chert iron formation with a combined width averaging 30m or more. This taconite is isoclinally folded, and fold limb repetitions produced at least 6 iron formation bands in a 2km wide area that extend over 3km; – A 3,000m drilling campaign is scheduled to test the down dip extent with the objective of defining iron tonnage potential;
– Channel sampling totaling approximately 2 tonnes of taconite has been completed and is being sent for assaying at the ALS Group Laboratories in Val-d’Or, Quebec;
Jennie Lake area
– The PGC and LRC units are similarly repeated by tight folding with steeply dipping limbs;
– Airborne magnetic data illustrates presence of 3 to 4 fold-repeated horizons extending from Jennie Lake to Lac Sans Chef, a distance of 30km;
Attikamagen Lake Iron Formation Property
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 orebodies.
In 2007 the Attikamagen airborne magnetic survey delineated a series of strongly magnetic horizons trending NW-SE. The PGC and LRC units explain this highly magnetic geophysical signature. Tight to isoclinal folding has repeated these horizons several times locally.
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. Exploration drilling is required primarily to confirm the extent and determine iron grades and provide samples for metallurgy.
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 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.