VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2012) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce that Champion Minerals Inc. has filed on SEDAR an updated National Instrument 43-101 technical report for the preliminary economic assessment study on the Company's 17.5% owned Fire Lake North project. As reported previously by the company on Nov. 21, 2011, some highlights of the PEA study include the following:
| Based on a 25-year financial analysis of one production line at the concentrator, the Fire Lake North base case has a net present value of $4-billion at a discounted cash flow rate of 8 per cent. | |
| The internal rate of return for the project is 41.5 per cent and the payback period is 2.3 years. | |
| For the first five years of production, 10 million tonnes of concentrate will be produced annually from 23 million tonnes of run of mine at a head grade of 34.2 per cent total iron and a strip ratio of 2.46:1, yielding a weight recovery of 43.2 per cent. | |
| Average annual production of 8.7 million tonnes of iron concentrate for the first 25 years grading 65 per cent total iron with in-pit resources sufficient for a 40-year mine life. | |
| The PEA study recommends investigating the option to double the production rate based on the 922 million tonnes of in-pit resources (1). |
A copy of the technical report will also be available on Champion's website.
The PEA was completed by Dr. Andre Allaire, Eng, MEng, PhD, and Stephane Normandin, Eng, from BBA, an international multidisciplinary engineering firm with expertise in mining and metallurgy, based in Montreal, Que. The PEA study has an accuracy of plus/minus 30 per cent, which is considered industry standard for preliminary capital and operating cost estimates.
The PEA has a higher degree of detail than normally required and will facilitate the continuing Fire Lake North feasibility study that is due in 2012.
The PEA study is based on a stand-alone operation at Fire Lake North and does not consider any other adjacent projects in the area. The continuing resource definition drilling program is designed to convert a significant portion of the current inferred mineral resources to the measured and indicated categories for the 2012 feasibility study.
(1) The quoted 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 and adopted by CIM council June 30, 2011. 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.
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.
Contact Information:
Peter H. Smith, PhD., P.Eng.
President
514-481-3172
Bay Street Connect Investor Relations
Michael D'Amico
647-500-6023
michael@baystreetconnect.com
www.fancampexplorationltd.ca