- Published: 30 March 2012
- Written by Editor
Fancamp Announces Resource Estimate of High-Grade Specular Hematite/Magnetite-Rich Iron Zones at 17.5% Owned Moire Lake Project
Fancamp Exploration Ltd. (TSX-V: FNC.V ) is pleased to announce that Champion Minerals Inc. (the "Operator") has provided results of a mineral resource estimate completed on the Moire Lake project located in cluster 1 of the Fermont iron holdings in northeastern Quebec, owned 82.5% by Champion and 17.5% by Fancamp. The property is situated immediately east of ArcelorMittal's Mont Wright mine and is eight kilometres south of existing railway and other infrastructure.
Results from 21 diamond drill holes completed by Champion in 2011 were used to model the iron formation deposit and calculate the current mineral resource estimate for a zone historically referenced as the Lac Moire occurrence (COGITE occurrence No. 23B/14-0014; GM-28079). The iron mineralization at Moire Lake is specular hematite and magnetite rich, with distinct lower-grade zones defined along the wall rock contacts. The deposit has a bowl-shaped geometry and has been delineated to the western limits of the property. Geological and geophysical evidence indicates that the mineralization continues westward onto ArcelorMittal's Mont Wright property.
The current mineral resource estimate for the Moire Lake project was completed by P&E Mining Consultants Inc. of Brampton, Ont.
MINERAL RESOURCE ESTIMATE Tonnes FeT (000) (%)(i) High-grade zones at 15% cut-off Indicated resources 164,000 30.53 Inferred resources 417,127 29.35 Low-grade zones at 10% cut-off Indicated resources 20,889 18.42 Inferred resources 119,711 17.68 (i) Total iron.
The current mineral resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM standing committee on reserve definitions.
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.
The quantity and grade of estimated inferred resources reported herein are uncertain and there has been insufficient exploration to categorize these 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.
P&E utilized a $1 Canadian/United States exchange rate, a mining cost of $1.85 per tonne, and $9.21 per tonne for the processing, general and administrative, and freight costs. The process recovery, estimated to be 82 per cent, and an iron ore price of $1.85 per dry tonne unit were used to complete the Whittle pit optimization with 49-degree overall slopes to estimate the in-situ mineral resources. The table presents the results of the in-pit optimized mineral resource estimate at the same cut-off grades for the high- and lower-grade zones and demonstrates the economic sensitivity of the resource estimates by indicating the quantity of the mineral resources that may be potentially economically exploited within the optimized pit shell.
IN-PIT OPTIMIZED MINERAL RESOURCE ESTIMATE Tonnes FeT (000) (%) High-grade zones at 15% cut-off Indicated resources 163,926 30.53 Inferred resources 416,892 29.35 Low-grade zones at 10% cut-off Indicated resources 20,889 18.42 Inferred resources 119,517 17.68
Results of the in-pit optimization demonstrate that nearly 100 per cent of the mineral resources might be potentially economically exploited.
The global mineral resource estimate and in-pit optimized mineral resource estimate presented in each of the tables include mineral resources only within the limits of the property. The optimized pit shell that was generated, however, extends beyond the current western property boundary and includes only overburden and waste rock in this extension.
For comparison purposes, a second in-pit optimization was completed constraining not only the resources but the limits of the entire pit shell to within the limits of the property. The table presents results of the in-pit optimized mineral resource estimate at the same cut-off grades for the high- and lower-grade zones within a pit shell constrained to the property limits.
CONSTRAINED IN-PIT OPTIMIZED RESOURCE ESTIMATE Tonnes FeT (000) (%) High-grade zones at 15% cut-off Indicated resources 128,408 30.40 Inferred resources 305,153 29.07 Low-grade zones at 10% cut-off Indicated resources 17,595 18.59 Inferred resources 95,549 17.78
The results in the table indicate that a portion of the resource would likely not be exploited if the pit shell is constrained to the property limits. The high-grade zone resource would be reduced from the 164 million tonnes indicated and 417 million tonnes inferred to 128 million tonnes indicated and 305 million tonnes inferred.
Champion did not complete any drilling in 2011 on the four-kilometre Northeast trend magnetic anomaly underlying the eastern part of the Moire Lake project. Outcrops of specular hematite-rich iron formation in exposures up to 40 metres across were identified along the Northeast trend and provide a significant exploration target to potentially delineate additional iron resources.
The Fermont iron holdings
Fancamp's Fermont holdings comprise a 17.5% interest in 17 properties, four of which -- Fire Lake North, Bellechasse, Harvey-Tuttle and Moire Lake -- host combined estimates of current measured and indicated iron mineral resources totalling 564 million tonnes and inferred iron mineral resources totalling 2.2 billion tonnes.
The technical information in this news release was reviewed and approved by Bruce Mitton, PGeo, vice-president, exploration, of Champion Minerals Inc., and Tracy Armstrong, PGeo, of P&E Mining Consultants, each a qualified person 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.
Fancamp Exploration Ltd.
Peter H. Smith, Ph.D., P.Eng.
President
514-481-3172
Bay Street Connect
Michael D'Amico
Investor Relations
647-500-6023
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