Champion Minerals completes acquisition of Iron Prospect near Schefferville, Quebec
Monday, July 23rd, 2007
Champion Minerals Inc is pleased to announce that the Company has completed the acquisition of the Attikamagen Lake Iron Prospect (the “Property”) consisting of 52 claims in eastern Labrador, located 15 km E-NE of Schefferville, Quebec (the “Acquisition”), as previously announced on May 4, 2007.
Champion has acquired a 100% interest in the Property from an arm’s length vendor (the “Vendor”), by making cash payments totaling C$40,000, and through the issuance to the Vendor of 100,000 fully paid and non-assessable common shares of the Company at a deemed value of $0.30 per share. Champion has agreed to pay an aggregate royalty of Cdn$3.00 per tonne of iron content in any and all iron ore, pellets or other product produced from the Property, calculated at the port when shipped. The shares issued pursuant to the Acquisition are subject to a four month hold period.
The Property hosts a significant taconite or Superior-type iron formation, at least 8 km in length, 1.2 km wide and minimum 75 m thick. The taconite is massive, dense and very fine grained, with hematite as the main iron oxide. Previous surface work from 1941 reported an average grade of 41% iron, 0.18% manganese and 0.011% phosphates; whereas sampling in 1961 outlined 40.22% iron, 36.56% insoluble iron, 0.26% manganese and 0.013% phosphates. These are historical results which are not compliant with National Instrument 43-101 and, accordingly, cannot be relied upon.
The magnetic signature varies from non-magnetic to strongly magnetic. Operators in the region attribute the magnetic lows to “higher grade soft iron oxides”. The accepted theory of the origin of these soft iron oxides is that they are younger laterites formed from an older siliceous iron formation, rich in magnetic magnetite. Concentration of the iron is believed to be the result of weathering and groundwater interaction. The process leaches out the silica and concentrates iron as hematite-limonite, the non-magnetic component. Any future exploration on the Property should focus on determining the extent and grade of this material, since it would have a positive impact on economic scenarios of the mineralization.