Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

February 02, 2011 13:20 ET

Fancamp Proposes IPO for Magpie

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2011) - Fancamp Resources Ltd. (TSX VENTURE:FNC) is pleased to announce it has reached an agreement with its partner, The Sheridan Platinum Group Limited. ("Sheridan") to unlock the value contained in the Magpie Deposits held in the private company The Magpie Mines Inc. ("Magpie") which is owned 48.7% by each of Fancamp and Sheridan, with the balance held by third parties.

Fancamp and Sheridan propose that the "Magpie" property be rolled out into a separate entity through an Initial Public Offering in the first half of 2011. Coincident with an IPO, a reconstituted Board of Directors lead by a new Chief Executive Officer will be formed to manage the transaction and the project operations.

The Magpie Iron-Titanium property, which is 100% owned by Magpie Mines Inc., is located in the North Shore area of the St. Lawrence River, about 130 kilometres (81 miles) north of tidewater and approximately forty kilometres (25 miles) west of Havre St. Pierre in the Province of Quebec. The property itself consists of 99 claims with a total area of 5,316 hectares or 13,291 acres. The Iron-Titanium deposits are evidenced by outcrops in a series of prominent en echelon ridges in a corridor approximately 7.25kms (4.5 miles) long and 600 metres (2000 ft) wide. The ridges stand up to 250 metres (800 feet) above the surrounding country, lending themselves to low cost mining methods.

The Magpie Deposits are among the world's largest undeveloped titaniferous magnetite deposits with a historical non-43-101 compliant resource estimate totalling 1.1 B Tons @ 43% Fe and 11% TiO2 with subsidiary values of chromium and vanadium.

In late 2008, Fancamp and Sheridan completed three diamond drill holes on the Magpie Deposit #2, a 3.52 km (2.2 mile) long section of the Magpie having a non-43-101 compliant historic resource of 912,474,000 tons grading 43.1% Fe and 10.6% TiO2. These holes were drilled from west to east, on two EW profiles, 600 metres (2000 ft) apart. Hole 1 was drilled at a dip of -50 degrees on the southern profile, and intersected massive titaniferous magnetite over 400 metres (1306 ft) in the hole. Holes 2 and 3 were drilled on the northern profile. Hole 2 drilled at a dip of -50 degrees intersected 290 metres (960 ft) of massive titaniferous magnetite. Hole 3, drilled from the same setup, at -70 degrees, intersected 70 metres (230 ft) of massive titaniferous magnetite and was terminated in that mineralization. This is the only section of the deposit with NI 43-101 reserves and consists of about one third of the strike length of Deposit #2.

In a 43-101 compliant report prepared by Genivar LP of Val D'Or, Québec and GeoForbes Services Inc., of Sept-Iles, Québec, dated July 2009, the authors report an indicated resource of 84 M tonnes @ 42.4% Fe, 10.7% TiO2 and 1.6% Cr and an inferred resource of 201 M tonnes of 42.1% Fe, 10.6% TiO2 and 1.5% Cr. This report has been filed on SEDAR and is also available in full on the Fancamp website at:

http://www.fancampexplorationltd.ca/FNC_Magpie.html

The foregoing historical resource estimates were completed prior to the implementation of the NI 43-101 requirements. Given the quality of the historic work completed by J.R. Mowat of Stratmat in 1960, discussed herein, 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 and reviewed by Peter H. Smith, Ph.D., P.Eng., a qualified person under National Instrument 43-101.

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

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

  • Fancamp Exploration Ltd.
    Peter H. Smith, PhD., P.Eng.
    President
    514-481-3172
    www.fancampexplorationltd.ca
    or
    Bay Street Connect
    Michael D'Amico
    Investor Relations
    647-500-6023