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Champion Minerals Inc.: Champion Minerals Initiates Phase 2 Resource Drilling Along 57 km Taconite Iron Formation at the Attika

^{Published on 2008-11-17 11:37:43 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2008) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM) is pleased to provide an update on the recently completed Phase 1 field exploration program at the Company's wholly-owned Attikamagen Iron Property (the "Property"), in western Labrador, 15km east of the town of Schefferville, Quebec. Labec Century Iron Ore Inc. ("CIOI") is currently financing the exploration and development program on the Property pursuant to an option agreement with the Company, wherein CIOI 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.

The Company initiated field work in June 2008 to evaluate the size and grade potential for "direct shipping ore" ("DSO") and "taconite" iron ore.

Iron mineralization and NI 43-101 compliant mineral resources associated with taconite iron formation has already been identified in the greater Schefferville Mining Camp area of Quebec by New Millennium Capital Corp. ("New Millenium"), on the Kemag Property located 40km northwest of Schefferville (in Quebec), which hosts 2,314 million tonnes grading 31.3% Fe in the Measured and Indicated resource categories and an additional 1,034 million tonnes at 31.4% Fe in the Inferred category ([ www.nmlresources.com ]).

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 large scale taconite throughout the Property and discovering "DSO" is significant in low lying areas at Lac-Sans-Chef, Jenny Lake and Joyce Lake.

The Phase 1 program was completed on November 12, 2008 and included:

Airborne geophysical survey

A 1,010 line-kilometer, airborne, high resolution Magnetic and Radiometric geophysical survey was completed by Novatem Inc. over the Property to delineate the geometry of the iron formation and to define potential zones of large 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.

Field mapping and sampling

The objective of the geological mapping was to outline magnetite rich taconite units within the Sokoman Formation for channel sampling and future drilling. A total of 36 traverses ranging in length from 1km to 2.5km were completed at Lac Sans Chef; 34 at Jennie Lake and 7 others of the same length in Joyce Lake. Field crews performed detailed 1:2500 scale mapping of outcrops along 150m to 300m spaced lines perpendicular to the NW-SE trending iron formation ridges.

In the Lac-Sans-Chef area along the northeastern portion of the Property, Champion identified several kilometric long taconites better known as the Pink Grey Chert ("PGC") and Lower Red Chert ("LRC") members of the Sokoman Formation in the nearby Schefferville Mining Camp. The Lac Sans Chef Zone hosts 3 to 4 synclinal and adjacent anticlinal folds. This type of macroscopic folding enhances the tonnage potential of the favorable taconite in a relatively smaller area. Synclinal fold structures are a well known in Schefferville where the synclines have a better potential for "DSO" type mineralization.

The PGC is black, finely laminated magnetite and the LRC is a magnetic chert iron formation with a combined width of 30m to 40m regionally but local structural thickening can increase the thicknesses significantly especially in fold closures. The folding in the Lac Sans Chef Zone has repeated the iron formation at least 6 times over a 2km width within a 3km strike length.

In the Jennie Lake area located at the southern end of the Property, the PGC and LRC units are similarly repeated al least 4 times by folding. Here the PGC unit outcrops locally but it is typically a recessive rock unit

At Joyce Lake there are two kilometric scale synclinal folds covering an area 2km wide with a strike length of 3km. In the core of this syncline massive hematite and magnetite iron formations were sampled.

Some 50 channels with a cumulative length more than 500m were cut at Jennie Lake and Lac Sans Chef northwest to which six additional channels were cut and four old trenches identified. A total of 582 saw-cut channel samples were collected for a total weight of approximately 5 tonnes. An additional 150 samples were grabbed in Lac Sans Chef and 60 others in Jennie Lake. About 10 witness samples were also collected in Lac Sans Chef. All of the samples were sent for assaying to the ALS Group Laboratories in Val-d'Or, Quebec.

The airborne magnetic data illustrates the presence of 3 to 4 fold-repeated taconites that extend from the south at Jennie Lake to the north at Lac-Sans-Chef, over a ground distance of 30km.

The taconites extend continuously and are repeated by folding for a cumulative distance of 57km over the entire Property that has seen very limited exploration. It has never been drilled before for iron.

Diamond drilling

Helicopter-supported NQ-sized diamond drilling was completed at Lac Sans Chef where the best taconite potential was mapped this summer. Three holes tested the limbs of folds, and one hole was collared in the nose of a synclinal fold for a total of 430m. A land based drilling campaign is planned for this winter.

The core was logged and 250 sections of core in the taconite were split, tagged and bagged as assay samples, and sent for assaying at the ALS Group Laboratories in Val-d'Or, Quebec. The QA/QC protocol includes duplicate samples, blanks and standards.

Iron assays are pending for the core, channel and grab samples.

Mr. Thomas Larsen, Champion President and CEO stated "Champion has demonstrated the presence of taconite over a 57km strike length on Attikamagen. Considering the 30% to 45% iron grades identified in the 2007 surface sampling program, the surface extent of the taconite, and assuming widths of 30+m and an arbitrary depth of 200m, the taconite potential would be significant. Mr. Larsen added "Champion and its partner plan a major drill campaign to test folded and thickened segments of taconite where the maximum and highest quality NI 43-101 compliant iron resources can be delineated, which at this time appears to be in the Lac-Sans-Chef area. The drilling should start right after freeze-up."

Attikamagen Lake Iron Formation Property

The Property comprises 946 mineral exploration claims totaling 309.7 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. Champion will be initiating an extensive Phase 2 drilling campaign, after completing the Phase 1 validation and modeling work, that should confirm the extent and iron grades of magnetite-hematite iron formations or taconites, as well as providing 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. All properties are proximal to either active or historic mining camps.

About Labec Century Iron Ore Inc. (CIOI)

CIOI 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 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.