Fancamp's Lac Lamelee South Iron Project Yields Inferred Mineral Resources of 520 Million Tonnes @ 39.5% Fe2O3 (or 27.6% FeT)

Fancamp's Lac Lamelee South Iron Project Yields Inferred Mineral Resources of 
520 Million Tonnes @ 39.5% Fe2O3 (or 27.6% FeT) 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/02/13 -- Fancamp
Exploration Ltd. ("Fancamp" or the "Company") (TSX VENTURE:FNC) is
pleased to announce an initial Mineral Resource Estimate ("MRE") on
the Company's wholly-owned Lac Lamelee South Iron Project (the
"Project") in the Fermont Mining District of northeastern Quebec.  
P. J. Lafleur Geo-Conseil Inc. ("PJLGC") has provided the Company
with a MRE from the Project. The MRE will form part of a National
Instrument ("NI") 43-101 Technical Report to be available within 45
days under the Company's filings on SEDAR at www.sedar.com. The
current MRE were estimated by Ali Ben Ayad, P. Geo., and Pierre-Jean
Lafleur, P. Eng., both of PJLGC and independent Qualified Persons
under NI 43-101 standards.  
At a 22% Fe2O3 cut-off grade, there are 520 million tonnes grading
39.5% Fe2O3 (or 27.6% FeT) in the Inferred Mineral Resources(i)
category. The 22% Fe2O3 cut-off grade used is a natural cut-off grade
since the drilling and the combined geological-resource modeling
covered the target iron formation in its entirety.  
The following table outlines incremental tonnages and Iron grades at
various cut-off grades: 


 
--------------------------------------------------
Fe2O3                                    GRADES       
CUT-OFF                 TONNES    ----------------
GRADES            (in millions)    Fe2O3       FeT
--------------------------------------------------
10%                        524      39.4      27.6
--------------------------------------------------
15%                        523      39.4      27.6
--------------------------------------------------
20%                        522      39.5      27.6
--------------------------------------------------
22%                        520      39.5      27.6
--------------------------------------------------
25%                        510      39.9      27.9
--------------------------------------------------
30%                        465      41.0      28.7
--------------------------------------------------

 
(i) The quantity and grade of the reported Mineral Resources within
the Project are categorized as Inferred Min
eral Resources. Inferred
Mineral Resources are that part of a Mineral Resource for which
quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but
not verified, geological and grade continuity. The estimate is based
on limited information and sampling gathered through appropriate
techniques from drill holes and outcrops. There has been insufficient
exploration to define any of the resources as Indicated or Measured
Mineral Resources and there is no guarantee that further exploration
will upgrade the Inferred Mineral Resources to Indicated or Measured
Mineral Resources. Mineral Resources which are not Mineral Reserves
do not have demonstrated economic viability. The estimate of Inferred
Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant issues.  
Key parameters of the MRE and Whittle Open-Pit Shells Study 


 
--  A total of 57 drill holes and 2 surface trenches totalling 18,305 meters
    were used for the MRE 
--  The volume is constrained by a geological model drawn as polygons on
    sections 
--  The Gems and Whittle software applications from 3DS Geovia (GEMCOM(TM))
    were used for database management, modeling the geology, analyzing the
    data, performing the grade interpolations, creating and managing the
    block model, and creating a conceptual pit shell as well as report the
    mineral resources and its preliminary economic valuation 
--  A total of 1,954 five-meter length composites were created for the iron
    formation unit only from 5,202 original assay data from all rock types
    samples with variable length but mostly two-meter sample lengths 
--  The MRE were modeled using a ten-meter cubic model and grades were
    estimated using Ordinary Kriging within modelled mineralization domains
    defined by structural geology 
--  The MRE were evaluated from historic and current drill hole assay
    results 
--  A search ellipse 150 meters by 150 meters by 50 meters was used to find
    (five-meter) composites for each block in the interpolation process 
--  No top grade capping value was used before or after compositing 
--  The MRE for the Project were estimated 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 and adopted by CIM Council
    December 11, 2005

 
The economic parameters used to outline the mineral resources were
based on the nearby Fire Lake North National Instrument 43-101
Updated Resource Estimate technical report published by P&E Mining
Consultants in November 2011 under the then Champion Minerals Inc.
(www.sedar.com). They are comparable to similar projects in the
region and elsewhere in the world. For the Project exercise they
include:  


 
--  $1.90 per tonne mining of ore and waste 
--  $2.30 per tonne processing with an 82% process recovery 
--  $0.82 per tonne G&A 
--  $120 per tonne Iron ore price at 65% Iron (93% pure hematite) 
--  $4.85 per tonne transport cost

 
The Whittle Open-Pit Shells Study resulted in outlining two shells:
the first a smaller open-pit shell of 315 million tonnes at a grade
of 41.2% Fe2O3 (28.8% FeT); the second a larger open-pit shell of 520
million tonnes at a grade of 39.5% Fe2O3 (27.6% FeT). A comparison of
results demonstrates the amenability of the Inferred MRE to potential
open pit mining with 100% of Inferred MRE reporting within a
conceptual open-pit shell. 
Mr. Jean Lafleur, M. Sc., P. Geo., President and CEO of Fancamp
stated, "Fancamp has now reached the first milestone with these Iron
resources. We have clearly confirmed the potential of the Lac Lamelee
South Iron Project, the proximity of Iron resources to surface
infrastructure and the effectiveness in drilling mineral resources at
an all-inclusive cost of $200 per meter drilled. The iron formation
has been successfully drilled tested to a maximum depth of 600 meters
and remains open to the northwest, revealing an additional potential
to add Iron mineralization. The Project sits 10 km west/southwest of
Champion's Consolidated Fire Lake North project with reserves of
464.6 million tonnes at more than 32% Iron
(www.championironmines.com) and 10 km to the northwest of
ArcelorMittal's Fire Lake Mine with 341 million tonnes grading 33%
Iron (www.arcelormittal.com)."   
Mr. Lafleur added "Fancamp plans additional work in the near term at
Lamelee that will include metallurgy and a Preliminary Economic
Assessment ultimately setting the set the parameters for the future
development of the Project following the same path as the
Consolidated Fire Lake North, Bloom Lake and the Kami iron deposits." 
The Lac Lamelee South Iron Project 
The Project consists of 29 mineral claims covering 1,524 hectares or
15 km2 located in northeastern Quebec near the border with
Newfoundland and Labrador, approximately 50 km south of the city of
Fermont (Quebec). The Project is situated in the southern segment of
the Labrador Trough which consist of early Proterozoic sedimentary
and volcanic rocks highlighted by iron forma
tions that have been
mined since 1954. This segment of the Labrador Trough sits in the
Gagnon Terrain of the Grenville Geological Province. All the economic
iron concentrations in the Labrador Trough are located in the same
litho-stratigraphical package termed the Sokoman Formation also known
in Fermont as the Wabush Formation. The higher metamorphic grade
common throughout the Gagnon Terrain is responsible for
recrystallizing the iron oxides into coarse-grained magnetite and
specular hematite thus improving the quality of the iron ore for
processing.  
Quality Assurance and Quality Control 
All drill core logging and sample preparation within the Project was
conducted by qualified Company personnel under NI 43-101 guidelines
at the Company's core logging facilities at the project camp site.
All the assays were carried out at ALS-Chemex Laboratories in Val
d'Or (Quebec) and at Activation Laboratories in Ancaster (Ontario).
Certified reference standards and blank samples were inserted
regularly for Quality Assurance and Quality Control purposes. Details
of the QA/QC protocols are appended. As part of the independent
verification program, PJLGC validated the exploration methodology
which includes core logging, sampling, analytical procedures, and
quality analysis following the quality control protocol implemented
by Fancamp.  
Stock Options  
Fancamp granted stock options on September 4, 2012, to Michael
D'Amico for the purchase of up to 350,000 common shares at a price of
$0.25 per share, expiring September 4, 2017.  
About Fancamp Exploration Ltd. 
Fancamp Exploration Ltd., is a Canadian junior mineral exploration
company with an exceptional inventory of resource projects at various
stages of development covering more than 1,710 km2 in three
provinces. The commodities include hematite magnetite iron
formations, titaniferous magnetite and hematite, nickel/copper/PGM,
chromite, Volcanogenic Massive Sulphides and gold. The Company is
focused on enhancing shareholder value by identifying and acquiring
early-stage projects with excellent mineral potential; advancing them
to the next decision stage with efficient exploration; selling,
optioning or joint venturing them to solid partners for cash and
shares of the partnering companies and inheriting a significant
royalty on future production.  
The technical information in this news release was prepared, reviewed
and approved by Ali Ben Ayad, P. Geo., and Pierre-Jean Lafleur, P.
Eng., both of P. J. Lafleur Geo-Conseil Inc., and Jean Lafleur, M.
Sc., P. Geo., Fancamp's President and CEO. All individuals are
Qualified Persons under NI 43-101 Rules.  
S.E.C. Exemption: 12(g)3-2(b) 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release. 
Contacts:
Fancamp Exploration Ltd.
Jean Lafleur, M. Sc., P. Geo.
President and CEO
+1 514 975 3633
pjlexpl@videotron.ca 
Fancamp Exploration Ltd.
Michael D'Amico
Investor Relations
+1 647 500 6023
michaeldamico@rogers.com
www.fancampexplorationltd.ca
 
 
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