Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

February 07, 2012 09:15 ET

Fancamp Exploration Ltd.: Final Assay Results From the Magpie Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2012) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce an update following the receipt of all assay results from its 2011 drill programme on the 46.7% owned Magpie titaniferous magnetite deposit on the North Shore of the Gulf of St. Lawrence near Havre St. Pierre, Quebec. Also included are the Vanadium Pentoxide (V2O5) assay results recently obtained from the laboratory which were not available for the press release of November 17, 2011.

All holes presented were drilled on the # 2 Deposit which has an historic and non NI 43-101 compliant resource of 912,474,000 tons of 43.10% Fe, 10.60% TiO2, and 1.55% Cr. A total of 31 diamond drill holes (DDH's) were collared from Section 12 to Section 33 representing a strike length of 2.1 km. Core lengths for 60° E inclined holes are considered close to the true width.

The drill programme was conducted from mid-June to September 2011. It utilized two diamond drills with large core sizes (NQ and BTW); a total of 8,000 metres in 31 holes were completed. A semi-permanent camp for 12 men was established near the south end of the air-strip established by Stratmat in 1959 during their exhaustive sampling program. The equipment was mobilized from Havre St. Pierre by fixed wing to the air-strip; local moves were by helicopter. Core was logged and split on site. The half splits were flown by fixed wing to Havre St. Pierre and thence by truck to ALS Laboratories for assays.

Management is very pleased with the results. Geological logging and chemical assays show that the Magpie deposit is uniform in composition and mineralogy from the hanging wall to the foot wall, with only very minor dyking in the first and last ten metres of each intersection. The deposit forms a long ridge approximately 250 metres above the valley floor - amenable to low cost mining with negligible waste rock.

The Company has commissioned P&E Mining Consultants Inc. of Brampton Ontario to conduct modelling and calculation of the resources at Magpie based upon drilling results. Magpie was visited during the drill programme, and the NI 43-101 resource estimate is expected shortly.

The following table lists all of the drill holes on Magpie together with weighted average assay values.

Northing Easting Hole # Dip AZ Section From To Core Length FeT TiO2 Cr2O3 V2O5
m m m % % % ppm
5693316 425819 PM-08-1 -60 N090 15 3.0 290.8 287.8 43.22 10.80 1.60 3327
310.4 340.9 30.5 43.39 11.27 1.20 3339
342.6 372.3 29.7 42.52 10.80 1.04 3273
379.4 385.6 6.2 33.43 9.06 0.81 2574
5693931 426041 PM-08-2 -60 N090 19 1.5 205.9 204.4 43.11 10.91 2.00 3318
206.6 283.7 77.1 40.15 10.95 1.32 3090
283.7 311.7 28.0 27.66 7.85 0.62 2129
5693931 426041 PM-08-3 -80 N090 19 2.1 75.0 72.9 42.87 10.91 1.87 3300
5693313 426015 PM-11-4 -60 N090 15 1.3 250.0 248.7 42.68 11.22 1.77 3288
PM-11-4 1.3 83.6 82.3 45.12 11.52 2.54 3473
PM-11-4 94.8 234.5 139.7 44.16 11.76 1.47 3438
5693932 426176 PM-11-5 -90 NA 19 3.2 343.1 339.9 41.25 10.92 1.74 3190
PM-11-5 3.2 52.0 48.8 43.81 11.33 2.33 3412
PM-11-5 56.5 311.8 255.3 43.60 11.48 1.81 3406
5693313 426015 PM-11-6 -90 NA 15 3.6 301.0 297.4 45.51 11.92 1.92 3542
5693932 426176 PM-11-7 -60 N090 19 2.0 235.0 233.0 42.65 11.22 1.88 3356
5694076 426198 PM-11-8 -60 N090 20 2.2 190.0 187.8 42.72 11.09 2.03 3315
5693158 425958 PM-11-9 -60 N090 14 4.5 279.0 274.5 42.72 11.26 1.58 3163
5694086 426030 PM-11-10 -60 N090 20 1.8 311.4 309.6 40.07 10.56 1.69 3133
5693013 425985 PM-11-11 -60 N090 13 4.0 270.5 266.5 42.94 11.36 1.78 3289
5693759 426130 PM-11-12 -60 N090 18 3.6 252.3 248.7 42.89 11.31 1.88 3328
5693013 425985 PM-11-13 -90 NA 13 3.5 282.8 279.3 42.89 11.48 1.68 3302
5693762 425967 PM-11-14 -60 N090 18 3.0 373.3 370.3 43.28 11.57 1.62 3307
5692865 426037 PM-11-15 -90 NA 12 3.0 218.9 215.9 42.07 11.30 1.64 3199
5693617 426025 PM-11-16 -90 NA 17 3.5 259.3 255.8 45.06 11.82 2.07 3486
PM-11-16 261.9 278.9 17.0 46.95 12.43 1.71 3594
PM-11-16 287.2 405.8 118.6 44.01 11.84 1.34 3284
PM-11-16 410.0 437.7 27.7 31.24 8.87 0.78 2267
5693018 425771 PM-11-17A -60 N090 13 3.3 30.3 27.0 33.12 9.30 0.93 2504
5693018 425771 PM-11-17B -45 N090 13 14.0 117.0 103.0 36.10 10.02 1.04 2765
PM-11-17B 119.4 144.0 24.6 40.25 11.01 1.15 3179
PM-11-17B 149.3 220.1 70.8 35.57 9.89 0.94 2758
PM-11-17B 222.7 248.2 25.5 26.66 7.80 0.55 1894
5693617 426025 PM-11-18 -60 N090 17 3.6 314.5 310.9 44.40 11.69 1.93 3385
5692862 425790 PM-11-19 -60 N090 12 19.6 66.9 47.3 32.32 9.10 0.86 2415
5693617 425893 PM-11-20 -75 N090 17 3.0 131.3 128.3 37.50 10.04 1.35 2859
PM-11-20 142.1 292.3 150.2 42.12 11.38 1.37 3325
PM-11-20 298.2 356.3 58.1 46.03 12.36 1.52 3612
PM-11-20 361.0 429.9 68.9 44.37 11.95 1.33 3526
5694219 426144 PM-11-21 -60 N090 21 3.0 208.4 205.4 43.29 11.41 2.03 3336
5693475 426002 PM-11-22 -60 N090 16 3.6 302.6 299.0 43.30 11.47 1.82 3387
5694369 426185 PM-11-23 -90 NA 22 3.9 229.0 225.1 42.31 11.14 2.07 3261
5693467 425843 PM-11-24 -60 N090 16 3.3 226.3 223.0 42.04 11.25 1.65 3192
PM-11-24 243.8 273.2 29.4 45.46 12.20 1.53 3486
PM-11-24 276.7 398.4 121.7 42.18 11.45 1.23 3121
5694369 426185 PM-11-25 -50 N090 22 2.3 212.6 210.3 41.88 10.95 1.94 3275
5693168 425803 PM-11-26 -60 N090 14 3.0 221.2 218.2 42.36 11.34 1.49 3272
PM-11-26 236.5 354.0 117.5 43.50 11.72 1.27 3278
PM-11-26 362.6 392.3 29.7 37.25 10.30 0.96 2711
5694514 426248 PM-11-27 -90 NA 23 2.2 250.5 248.3 41.27 10.78 2.23 3245
5694665 426231 PM-11-29 -75 N090 24 2.2 219.0 216.8 43.01 11.40 1.88 3288
5694815 426317 PM-11-31 -90 NA 25 1.6 212.2 210.6 42.26 11.09 1.88 3258
5695112 426393 PM-11-33 -75 N270 27 1.0 152.2 151.2 43.49 11.40 2.13 3378
5695418 426312 PM-11-35 -70 N270 29 3.6 166.3 162.7 44.12 11.84 1.51 3368
5695723 426316 PM-11-37 -90 NA 31 1.5 81.6 80.1 44.69 11.78 1.99 3455
PM-11-37 86.7 94.5 7.8 44.14 11.87 1.54 3329
PM-11-37 97.3 139.0 41.7 39.21 10.72 1.16 2915
5696017 426347 PM-11-39 -90 NA 33 3.0 97.6 94.6 43.96 11.62 1.91 3372

The Company is following two promising metallurgical routes for the Magpie ore. The massive mineralization contains about 15% gangue (feldspar and quartz), most of which can be removed by physical separation, with the objective of increasing the metal content of the concentrate output. This will serve firstly to support high volume production of concentrate products suitable for smelting purposes, in effect an iron product with titanium, chrome and vanadium credits and secondly to allow hydrometallurgical processing for low volume premium metal production of high grade Fe, TiO2, Cr2O3 and V2O5 product. Initial concentrating tests are underway at Corem as were hydrometallurgical tests which have already been reported. These latter are proprietary to Magpie and are in the process of further pilot-scale development scheduled for Q2 2012.

The mechanics of taking the Magpie to an IPO in the Spring are underway.

The historic resource estimates were completed prior to the implementation of the NI 43-101 standards. Given the quality of this work supervised by J.R. Mowat of Stratmat in 1960, the Company believes the resource estimates to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and is not treating the historic resources as current. Hence, they should not be relied upon. The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 by Etienne Forbes, P.Geo., the Company's QP on the project.

ON BEHALF OF THE BOARD

Peter H. Smith, PhD., P.Eng., President

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

S.E.C. Exemption: 12(g)3-2(b)

No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.

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