Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

April 18, 2012 13:59 ET

Fancamp Receives NI 43-101 Resource Estimate for Its 46.72% Owned Magpie Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2012) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to report the receipt of an NI 43-101 in pit mineral resource estimate 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 Property with the following results:

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.

Magpie In Pit Mineral Resources Estimates Sensitivity

INDICATED MINERAL RESOURCES
FeT
Cut-Off
VOLUME
m
3
DENSITY
t/m
3
TONNAGE
Tonnes
FeT
%
Fe2O3
%
TiO2
%
Cr2O3
%
V2O5
%
Al2O3
%
20% 137,613,395 4.61 634,218,022 42.52 60.83 11.21 2.61 0.30 10.57
19% 137,722,956 4.61 634,527,442 42.51 60.82 11.20 2.61 0.30 10.57
18% 137,825,447 4.61 634,814,520 42.50 60.80 11.20 2.61 0.30 10.57
17% 137,870,270 4.61 634,940,068 42.50 60.80 11.20 2.61 0.30 10.57
16% 137,913,688 4.61 635,061,681 42.49 60.79 11.20 2.61 0.30 10.56
15% 137,953,958 4.60 635,174,478 42.49 60.78 11.20 2.61 0.30 10.56
14% 137,989,713 4.60 635,274,627 42.48 60.78 11.20 2.61 0.30 10.56
13% 138,020,913 4.60 635,362,018 42.48 60.77 11.19 2.61 0.30 10.56
12% 138,047,313 4.60 635,435,965 42.47 60.76 11.19 2.61 0.30 10.56
11% 138,065,903 4.60 635,488,034 42.47 60.76 11.19 2.61 0.30 10.56
10% 138,088,076 4.60 635,550,143 42.47 60.76 11.19 2.61 0.30 10.56
INFERRED MINERAL RESOURCES
FeT
Cut-Off
VOLUME
m
3
DENSITY
t/m
3
TONNAGE
Tonnes
FeT
%
Fe2O3
%
TiO2
%
Cr2O3
%
V2O5
%
Al2O3
%
20% 63,688,608 4.60 293,057,308 42.30 60.51 11.22 2.54 0.32 10.82
19% 63,714,503 4.60 293,130,573 42.29 60.50 11.21 2.54 0.32 10.82
18% 63,720,980 4.60 293,148,715 42.29 60.50 11.21 2.54 0.32 10.82
17% 63,731,436 4.60 293,178,001 42.29 60.50 11.21 2.54 0.32 10.82
16% 63,740,415 4.60 293,203,153 42.29 60.50 11.21 2.54 0.32 10.82
15% 63,740,857 4.60 293,204,388 42.29 60.49 11.21 2.54 0.32 10.82
14% 63,745,053 4.60 293,216,141 42.28 60.49 11.21 2.54 0.32 10.82
13% 63,750,778 4.60 293,232,177 42.28 60.49 11.21 2.54 0.32 10.82
12% 63,750,778 4.60 293,232,177 42.28 60.49 11.21 2.54 0.32 10.82
11% 63,755,578 4.60 293,245,622 42.28 60.49 11.21 2.54 0.32 10.82
10% 63,757,978 4.60 293,252,344 42.28 60.49 11.21 2.54 0.32 10.82

The results of 34 drill holes over a 3.4 km strike length show the remarkable homogeneity of the Magpie Number 2 Deposit. Inverse distance squared (1/d2) grade interpolation was undertaken on 5 metre composites in constraining wireframes.

The Magpie #1 and #3 Occurrences, with their non NI 43-101 compliant historical resources of Proven and Probable Mineral Reserves of 89.2 million tonnes of 43.7% FeT (62.5% Fe2O3), 10.0% Ti02 and 1.3% Cr2O3, and 86.6 million tonnes of 40.7% FeT (58.2% Fe2O3), 10.3% TiO2 and 3.7% Cr2O3, respectively, are not as yet included. Historical mineral reserves are non-compliant to NI 43-101 Mineral Reserves and Mineral Resources standards and therefore should not be relied upon. A Qualified Person has not done any work on the historical numbers to qualify them as current Mineral Resources. There is not sufficient exploration and/or development work at this time to indicate if these numbers or parts thereof will ever be qualified as current Mineral Resources.

A third drill program is planned, following the Initial Public Offering ("IPO") to bring the Magpie #1 and #3 Occurrences to current NI 43-101 Mineral Resources standards. In addition, the NI 43-101 Mineral Resources estimates of the Magpie #2 Occurrence, will be upgraded to a higher quality Mineral Resources classification, together with further testing for depth extensions which are currently open.

Hydrometallurgical test work on the Magpie mineralization continues at SGS Lakefield, while beneficiation tests continue at COREM facilities in Quebec City for the objective of achieving optimal concentrate products suitable for smelting purposes.

The technical information in this news release was reviewed and approved by Qualified Persons Eugene Puritch, P. Eng., and Antoine Yassa, P. Geo., of P&E. A technical report to support this news release will be filed on SEDAR within 45 days.

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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