Fjordland Exploration Inc.
TSX VENTURE : FEX

Fjordland Exploration Inc.

September 30, 2010 07:30 ET

Fjordland Grants Capstone Option for 70% Interest in Tak-Milligan Copper-Gold Properties in BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2010) - Fjordland Exploration Inc. (TSX VENTURE:FEX) has entered into a letter agreement with Capstone Mining Corp. whereby the Company has granted Capstone an option to acquire up to a 70% interest in a large property portfolio prospective for copper-gold, porphyry-type deposits. Known as the Tak-Milligan project, the properties comprise Fjordland's 100% owned Tak and Milligan projects located in British Columbia's prolific Quesnel Belt in central British Columbia.

Capstone can earn up to a 70-per-cent interest in the Tak-Milligan project through staged exploration expenditures totaling $6 million by December 31, 2016. Capstone will finance a minimum of $150,000, as a firm commitment by December 31, 2010, and an additional optional $150,000 by June 30, 2011 to earn a 49% interest. It can then earn a further 11% interest in the project by expending an additional $1.7 million in exploration work by December 31, 2013. Capstone can then earn an additional 10% interest, for a total 70% interest in the project, by expending a further $4 million by December 31, 2016.

The Tak copper-gold property portfolio comprises seven individual properties totaling 52,342 hectares, located in the Quesnel Terrane porphyry belt that hosts several of the British Columbia's largest copper-gold deposits. The Tak properties are within an area that extends south of Imperial Metals' Mount Polley copper-gold mine for approximately 50 km. This easily accessible, underexplored region in the south Cariboo is believed by Company geologists to be highly prospective for copper-gold, porphyry-type deposits, as evidenced by recent discoveries on the Woodjam North and South properties, where Gold Fields, under option from Fjordland and Cariboo Rose Resources Ltd., is currently conducting two separate multi-million dollar exploration programs. Maps and further information on the properties are available at http://www.fjordlandex.com/cariboo_properties.htm

The Milligan property consists of two separate claim groups totaling 2,192 hectares which adjoin Terrane Metals Corp's Mt. Milligan copper-gold project located approximately 150 km northwest of Prince George, BC. Terrane Metals is being acquired by Thompson Creek Metals Company Inc. through a plan of arrangement that is expected to be completed in early October. The two properties lie 2 km and 5 km, respectively, west and northwest of the Mt. Milligan deposits on the flanks of the same large magnetic anomaly that hosts the Mt. Milligan deposits. Mt. Milligan is being developed for production with mineral reserves estimated at 482 million tonnes grading 0.20% copper and 0.38 g/t gold. Maps and further information on the properties are available at http://www.fjordlandex.com/milligan_property.html.

Fjordland is the initial operator of the Tak-Milligan project; plans are to complete a reconnaissance work program including prospecting, soil geochemisty, and induced polarization surveys during 2010.

About Capstone Mining Corp.

Capstone is a Canadian based copper producer with two operations, the Cozamin and Minto mines, that are forecast to produce 80-85 million pounds of copper in 2010 at a total cash cost, net of by-product credits, of US$1.10 to US$1.20 per pound of payable copper, as well as the high grade Kutcho copper-zinc project, which is being advanced towards a production decision. As reported on August 10, 2010, Capstone has a strong balance sheet with cash on hand of US$151.6 million (including US$10.8 million of restricted cash) and liquid investments of US$18.1 million as of June 30, 2010. For further information about Capstone visit www.capstonemining.com.

About Fjordland Exploration Inc.

Fjordland Exploration is a mineral exploration company focused on the discovery of gold, copper and molybdenum deposits in British Columbia. Of the 20 properties Fjordland currently owns, the Woodjam North and Woodjam South properties (totaling 56,150 ha) are part of the Woodjam Joint Venture between Fjordland (60%) and Cariboo Rose Resources Ltd (40%); both properties are now under option to Gold Fields Horsefly Exploration Corporation. Fjordland also has a 100% interest in 7 other properties ("Tak Package") totaling 52,342 ha in the Woodjam area. Fjordland and Serengeti Resources Inc. are 41%/59% partners (QUEST) exploring 10 properties totaling 56,670 ha in the Quesnel terrane north of Woodjam for precious and base metals. Fjordland has a 100% interest in the 2,192 ha Milligan property, adjoining Terrane Metals' Mt. Milligan property on the west. Shares of Fjordland Exploration Inc. trade on the TSX Venture Exchange under the symbol "FEX". For more information visit Fjordland's website at www.fjordlandex.com.

Tom Schroeter, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information

  • Fjordland Exploration Inc.
    John Gomez
    Manager, Investor Relations
    604-893-8365
    604-669-8336 (FAX)
    www.fjordlandex.com