Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

September 21, 2011 15:32 ET

Fancamp Provides Exploration Update and Summary of Recent Activities on the Stoke Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2011) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) - Following is a brief update on the Company's exploration activities in Quebec and Ontario.

Magpie Mines Inc.

Drilling has been completed on the Company's 46.7% owned Magpie Mines Inc. property. Thirty one holes and 8,124 metres (or 5 miles of core) have been drilled on this world class titaniferous magnetite deposit. The entire strike length of about 11,500 feet of the historic Magpie number 2 deposit has been drilled off and modelling of a NI43-101 quality resource has begun. The Company has contracted P&E Consultants of Brampton, Ontario for this task. Metallurgical test work is continuing. The Company indicated in its press release dated February 2, 2011 that it intends to roll-out this property into a new entity and continues to maintain this objective. Current plans call for an IPO in late 2011 after the publication of assay results and receipt of a NI 43-101 report based on this summer's diamond drilling.

Fermont Properties

The Fermont iron ore properties include a Joint Venture with Champion Minerals Inc. on 17 properties covering about 647 square kilometers and including a total of about 250 km of iron formation strike length. Fancamp holds a 17.5% working interest and a 1.5% NSR on these properties; Champion Minerals Inc. owns 82.5% and is the operator. A new NI43-101 estimate of the Fire Lake ore bodies, only one of the seventeen properties in the venture, is due out shortly, together with an updated Preliminary Economic Assessment, expanding on that provided in July 2010, which indicated an NPV on the Fire Lake ore bodies of $1.64 billion.

In addition, Fancamp holds a 100% interest in the Lac Lamêlée Property, which is located 10 km NW of Arcelor Mittal's operating Fire Lake Mine and 5 km south of Cliffs Natural Resources Inc.'s Lamêlée deposit. Drilling is continuing and the Company expects that current drilling activities will result in an inferred iron ore resource which will serve as a basis for further development.

McFauld's Lake

The McFauld's Lake property in northern Ontario is being explored for nickel, PGM's and chromite. This property is adjacent to Noront's Eagles' Nest Ni, PGM deposit which the Company believes to be a deep level fault offset of its C-1 target. Extensive deep intersections of massive chromitite carrying grades comparable to other chromite discoveries in the immediate area have also been found by the Company in the vicinity of C-1. Currently Fancamp is still awaiting Ni, PGM assays for the last deep hole drilled on the C-1 target.

Gold and Base Metals in Southern Quebec

Grassroots exploration for gold and base metals continue in Southern Quebec, and recently drilling has begun to reveal interesting copper values on the Company's Stoke property. Drill hole ST-2011-06 has reported an intersection of 7.29% copper over a core length of 6.40m starting at a depth of 148.60m, within a thick package of strongly altered volcanics. These volcanics are part of the Ascot-Weedon volcanic belt which is host to a number of historical base metal producers including the Weedon Mine (1.6 Mt @ 2.33% Cu, 0.6% Zn), the Solbec Mine (2.06Mt @1.57% Cu, 4.57% Zn) and the Cupra Mine (2.4Mt at 1.90% Cu, 2.4% Zn). The hole was drilled as a down-dip follow-up of two near surface 1998 Phelps Dodge drill hole intersections. Hole ST-244-01 had reported grades of 6.34% copper over a core length of 5.10m at a depth of 56m from surface and hole ST-244-05 which reported 0.56% copper over a core length of 24.7m including 5.74% copper over 1.10m and 2.10% copper over 3.10m at a depth of 64m from surface. These holes were 30m apart.

Hole ST-2011-06 has now expanded the copper zone to a depth of 135m and the new intersection is located approximately 85 meters down plunge from historic holes just described. The intersection shows compositional layering within bands of semi-massive to massive sulfide defining a probable real thickness of 4.32m for the zone. The zone is open at depth. Intense black chlorite alteration and the presence of chalcopyrite stringers within a broad disseminated pyrite halo lead to the conclusion that the copper zone is a probable discharge point for the various VMS surface showings located in the area. Follow-up in-hole EM surveys are planned.

The Stoke portion of this release was written by Michael Flanagan, P.Geo., the Company's Q.P. on this project.

Management is very pleased with the exploration efforts to date and believes that the potential offered by its property holdings provides significant shareholder value. Future plans continue to focus on unlocking this potential.

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

    Bay Street Connect
    Michael D'Amico
    Investor Relations
    647-550-6023