Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

June 01, 2012 09:58 ET

Fancamp Files NI 43-101 Technical Report on the Mineral Resource Estimates for Its 46.72% Owned Magpie Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2012) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce that it has filed the National Instrument ("NI") 43-101 Technical Report on the in-pit mineral resource estimates prepared by P&E Mining Consultants Inc. ("P&E") of Brampton (Ontario) on the Magpie #2 Deposit at its 46.72% owned Magpie Iron-Titanium-Vanadium-Chrome Project. The NI 43-101 mineral resource estimates were previously announced in a news release dated April 18, 2012. There are no material differences between the results announced in the news release and those of the Technical Report. The mineral resource estimates are set out in the following table:

Magpie #2 Deposit In Pit Resource at 15% FeT (Total Iron) Cut-Off (1)(2)(3)(4)
Classification Tonnes (M) FeT % Fe2O3 % TiO2 % Cr2O3 % V2O5 % Al2O3 %
Indicated 635.2 42.49 60.78 11.20 2.61 0.30 10.56
Inferred 293.2 42.29 60.49 11.21 2.54 0.32 10.82
  1. The current Mineral Resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
  2. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  3. The quantity and grade of estimated Inferred Resource reported herein are uncertain and there has been insufficient exploration to categorize them as an Indicated or Measured Resource. It is uncertain if further exploration will result in reclassification of Inferred Mineral Resources to the Indicated or Measured Mineral Resource categories.
  4. P&E utilized a $1.00 Cdn/US exchange rate, a mining cost of C$1.90/tonne and C$9.50/tonne for the processing, G&A, and freight costs. The process recovery, estimated to be 82%, and an Iron ore price of US$1.85/dmtu were used to complete the Whittle pit optimization with 50 degree overall slopes to estimate the in-situ Mineral Resources.

Management believes that filing the NI 43-101 Report represents a major milestone for the Magpie project, and confirms what management has believed all along about the enormous resource and potential of the Magpie deposits. The Company will be proceeding with its plans for an IPO when market conditions improve.

Metallurgical studies, consisting of Concentration Tests on the massive titaniferous magnetite (containing up to 20% silica and feldspar gangue) continue, together with additional hydrometallurgical test work. This work is being carried out on the perspective of large scale production of a Fe3O4, TiO2, Cr2O3 and V2O5 rich concentrate suitable for smelting purposes, together with relatively small scale hydrometallurgical production from this same concentrate of high purity Fe2,O3 TiO2, Cr2O3and V2O5 products.

A further drill program is planned to bring Deposit #2 to higher quality mineral resources at depth in follow-up to last year's initial program, and also delineate mineral resources on Deposits #1 and #3, immediately joining the #2.

The technical information in this news release was prepared, reviewed and approved by Jean Lafleur, P.Geo., a Fancamp Director, and Eugene Puritch, P. Eng., and Antoine Yassa, P. Geo., of P&E. All individuals are Qualified Persons under NI 43-101 standards.

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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