VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2011) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce the start of Feasibility resource definition drilling at the Company's 17.5% owned Fire Lake North project in the Fermont Iron Ore District, Quebec.
Champion Minerals Inc. (the operator) recently released results of a National Instrument 43-101 Mineral Resource Estimate for the Fire Lake North project which included Measured & Indicated Resources of 400.1 Million Tonnes grading 30.6% Total Iron ("FeT") and Inferred Resources of 661.2 Million Tonnes grading 27.7% FeT, at a 15% FeT cut-off. (Refer to CHM press release dated October 3, 2011.)
On November 3, 2010, Champion announced positive results from a Preliminary Economic Assessment ("PEA") of the Fire Lake North project that included a Net Present Value (NPV) of $1.295 Billion at an 8% discount rate and a 24.8% Internal Rate of Return (IRR) based on total mineral resources estimated at 388 Million Tonnes grading 29% FeT at the same 15% FeT cut-off.
The current mineral resources at the Fire Lake North project have increased to over 1 Billion Tonnes and there are plans to complete a Feasibility study for Fire Lake North in 2012.
In advance of receiving results from the revised PEA, Champion is mobilizing drill rigs from the Oil Can Project to the West Area of the Fire Lake North Project to commence resource definition drilling. This drill program is designed to up-grade the majority of the current resources to the Measured and Indicated Resources categories for the planned 2012 Feasibility study production schedule.
Following the completion of the five remaining holes planned for 2011 on the Oil Can project, the remaining drills will be mobilized to Fire Lake North. Champion expects to augment the Fire Lake North project with additional drills in early 2012 to accelerate completion of the feasibility drilling. A Mineral Resource Estimate and PEA study for the Oil Can project, located north and contiguous with the Fire Lake North property, will be initiated in early 2012.
For further details, please refer to Champion Minerals Inc. news release dated November 7, 2011.
ON BEHALF OF THE BOARD
Peter H. Smith, PhD., P.Eng., President
S.E.C. Exemption: 12(g)3-2(b)
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Peter H. Smith, PhD., P.Eng.
President
514-481-3172
www.fancampexplorationltd.ca
Bay Street Connect Investor Relations
Michael D'Amico
647-500-6023