Fancamp Exploration Ltd. (“
Fancamp” or the
“
Corporation”) (TSX VENTURE EXCHANGE: FNC) is
pleased to share a preview of its exploration plans for 2021-22 and
other updates.
As discussed on the March 4, 2021 investor call,
the new management team of the Corporation recently conducted a
strategic review to reprioritize the project pipeline and develop
its resource base through a systematic and efficient approach to
exploration. Further, the management and the Board developed a
three-pronged strategy focused on:
-
Exploration Properties: Selecting quality
exploration targets to enhance value, combined with a disciplined
rigor when allocating funds.
-
Titanium Technology: Establishing new processes
and obtaining patents to become an active participant in a
$16-billion industry.
-
Strategic Alternatives: Acquiring projects that
have the potential for near-term cash flow.
Exploration Properties
Strategic Overview: Fancamp
holds an extensive land portfolio, comprising of more than 90
individual projects with a broad range of commodity targets. From
its recently completed strategic projects review, the Corporation
has chosen to focus on precious metal projects in the Archean
Superior Province and the precious metal-rich base metal projects
in the Quebec Appalachians.
Strategic Rationale: The
Superior Province is one of the most richly endowed precious and
base metal regions on Earth, while the Appalachians hosts some of
the highest-grade precious metal rich base metal systems globally.
Fancamp also intends to conduct exploration programs on two of its
REE-Li strategic metal projects in Quebec in its efforts to
participate in the critical and strategic minerals supply chain of
Quebec and Canada.
Rajesh Sharma, Interim CEO of Fancamp, said: “In
line with its new strategic direction, Fancamp plans to create
shareholder value by focusing on select high quality exploration
targets. We are pleased with the progress made by the Corporation
in its endeavors to advance its exploration activities in a focused
manner with capital allocation to the potentially value accretive
mineral properties.”
A Disciplined Approach to Fund
Allocation: Fancamp plans to spend approximately
$1.2 million for conducting exploration work in 2021-22.
In preparation for executing the exploration plan,
the Corporation raised $1 million through Quebec flow-through
financing in December 2020. The Corporation will
undertake data compilation and field work on nine projects,
eight of which are in Quebec. These projects
represent a portion of the higher priority
projects in Fancamp’s project pipeline, identified
in the strategic review. The work programs will involve
surface exploration in Q2 and Q3. Drill targets will be
further refined based on the results of data compilation and field
work. The diamond drilling programs are intended for Q3
and Q4 of 2021 and potentially extending to Q1 of 2022,
assuming certain project milestones are achieved in the earlier
parts of the exploration program. Re-prioritization of
project work may take place during the 2021-22 exploration
program, and work plans may be modified subject to the
findings of the compilation and field work.
High Potential Exploration
Opportunities: The 2021-22 exploration plan includes work
on the following priority projects:
-
Clinton project, an area of precious metal rich
base metal occurrences across a 15-kilometer trend. Located in the
Gaspe belt, the Clinton project may represent a structural window
into underlying Dunnage Zone rocks, an important host to precious
metal rich volcanogenic massive sulfide systems in the northern
Appalachians. The project area hosts the small, past-producing
Clinton mine, which reportedly mined an average grade of 2.65% Cu,
2.43% Zn, 30.03 gpt Ag, and 0.45 gpt Au [Groupe Minier Sullivan,
1973 Annual report] from 1973 to 1975. Five small sulfide lenses,
containing a non 43 -101 compliant historic resource of 1.52Mt at
2.02% Cu and 1.54% Zn remain on the property [MRNFQ Fiche de Gite
21E07-0007]. Fancamp has held the project since 2010 and has
completed drill programs in the past. The best intercepts returned
from Fancamp’s work was 1.79% Cu over 6.19m within a 14.58m wide
zone of 1.09% Cu (Fancamp press release July 16, 2012), and 1.27%
Cu, 1.14% Zn, and 11 gpt Ag over 11m (V3 zone, press release
October 14, 2014), and 2.78% Cu and 16.9 gpt Ag over 24.7m (V1
zone, Fancamp press release October 14, 2014). The intent of the
2021 work program is to evaluate the potential to expand these
zones of mineralization.
-
Stoke project, a precious metal vein system in the
Appalachians. The Stoke property occurs in an area of numerous
precious and base metal occurrences, and small past producers. At
least 10 mineral occurrences are recorded by SOQUEM on the
property. Fancamp has held the property since 2010. The Grand
Prix mineral showings are the focus of Fancamp’s current
exploration interest. At surface, Grand Prix is a 4.4m wide
zone of disseminated sulfide, traceable for at least 75m.
Fancamp’s 2011 drill program intersected 7.29% Cu over 6.4
meters (drillhole ST-2011-06, MRN Report GM 66485, 2012), 135
meters down-plunge of a copper zone identified by Phelps Dodge in
1997, and 56 meters below surface. This extends
mineralization identified by Phelps Dodge, of 6.3% Cu and 27.3 gpt
Ag over 5.1 meters at a depth of about 72 meters down-hole (MRN
Report GM 57994, 2000).
-
Mallard project in Ontario is a property which
lies in the southern part of the Swayze greenstone belt of the
Abitibi Subprovince. The Ridout fault, considered a lateral
equivalent to metallogenically important Cadillac-Larder Lake
deformation zone, occurs 1 to 2 kilometers south of the property.
The Ridout Fault host two significant gold deposits;
IAMGOLD’s Cote Gold project (171.9Kt containing 12.4Moz Au,
measured, indicated and inferred resources inclusive of reserves,
100% basis), 30 km to the southeast, and Newmont Goldcorp’s Borden
Lake project 90 km to the west, in addition to the small
past-producing Jerome Mine about 17 km the southeast. Fault splays
associated with the Ridout Fault are interpreted to transact the
central part of the property, and host gold mineralization
identified by Noranda and others.The River and Camp vein-hosted
gold occurrences lie on the NW portion of the Mallard concession
block. Drilling by Noranda in 1985 (MNDM assessment report
41O09NW0003) (results do not comply with National Instrument 43-101
- Standards of Disclosure for Mineral Projects) returned up to
0.193 opt. Au over 6 feet (drillhole BE-85-3) and 0.102 opt. Au
over 9.1 feet (drillhole BE-85-5). The best channel sample
from Noranda’s work was 0.93 opt. Au over 7 feet. Fancamp’s
prior work focused on exploring untested IP anomalies identified by
prior workers, and conductive zones from its own VTEM study.
The 2021 work program will test extensions of the Camp and
River zones, and interpreted fault splays of the Ridout Fault
system in the less well explored southeast part of the concession
group.
-
Boisbuisson, Robidoux, and St. Marguerite (Gaspe),
vein-related gold systems projects that have the potential to
present high gold grades, and work is intended to focus on
establishing continuity along strike, and down dip. At Robidoux,
auriferous quartz veins occur along the Grand Pabos fault, which
transects the property. Fancamp has
previously completed rock sampling, trenching and soil
sampling over portions of the property. Trench sampling
confirmed visible high gold grades of prior workers,
returning 92.0 gpt Au over 1.7 meters
(trench C14), 45.9 gpt Au/1.8 meters (trench C18),
13.93 gpt Au over 3.1 meters (trench C23),
18.6 gpt Au/1.5 meters (trench C15), and
13.1 gpt Au/ 1.2 meters (trench C10) (Fancamp press
release October 22, 2014). Drilling
by Fancamp in 2015 (Fancamp press release March 26,
2015) reported up to 2.406 gpt Au over 2.5 meters
(drillhole RBD-14-02). In 2015, a bulk sample of 657 tonnes
was sent to the Richmont Mines Inc at their Camflo mill in Abitibi
which gave an average grade of 12.024 gpt.
-
Wells and Lac Baude, work program is planned for
these projects which represent part of the Corporation’s strategic
minerals portfolio. Data compilation is also planned for the
Harvey Hill project, a past producing precious
metal rich base metal mine, which has received several exploration
campaigns by the Corporation. The intent of the
compilation exercise is to review opportunities to expand the
currently know areas of mineralization and evaluate the potential
for additional mineralized zones. In 2019 and
2020, Fancamp drilled 79 holes in two programs.
The scientific and technical content of this
news release has been read, verified and approved by Jean Bernard,
P. GEO., who is a Qualified Person as defined by NI 43-101.
Titanium Technology
Strategic Overview: The
Corporation filed patents covering agglomeration technology,
upgraded TiO2, vanadium and scandium recovery and titanium metal
and titanium metal 3D printing quality. Agglomeration technology
that was initially developed to recover Fancamp’s own fines has
continued to complement the fines from the chloride process and
other fines such as sands. The binder technology has evolved to be
able to handle 1,600 degrees centigrade which exceeds what is
required in the fluidized bed reactor of the chloride process. We
see this evolution as a natural complement to the existing
processes of the industry.
Strategic Rationale: The global
titanium dioxide market is over $16 billion and expected to grow at
8-10% rate. Titanium is used in paint, cosmetics, pulp, paper and
others. The use of Titanium in 3 D printing is expected to double
to $ 1 billion by 2026.
Well Positioned to Capitalize on
Opportunity: Upgraded TiO2 which originally was focused
only on the chloride process was confirmed to be a good feed for
both chloride and sulphate process. TiO2 above 80% was successfully
produced from the wholly owned Longpoint resource in the Havre St
Pierre region in Quebec. Main features of the results from Corem
Independent report are as follows:
-
83.6% TiO2, approximately 10% iron oxides, SiO2 0.6%, MgO <
0.45%
-
Sizing acceptable for the Chloride process
-
Testing confirmed that it is also acceptable for the sulphate
process. Higher than 97% recovery with the sulphate process.
Titanium metal technology has evolved from the
work initiated for upgraded TiO2 and agglomeration technologies.
Various titanium metal options sell for substantially more than
pigment and TiO2. Fancamp is working towards 3D printing titanium
metal which will realize substantially higher value in the market.
The Corporation is currently working with material rejected from
the pigment industry to make the titanium metal.
Strategic Alternatives
Strategic Overview: The
ScoZinc’s Scotia Mine is a high-quality asset that has the
potential to provide near-term cash flow, while Fancamp’s strong
balance sheet should enable the Corporation to secure financing of
the Scotia Mine to bring it to production. The cash flows expected
after the Scotia Mine restart should provide the combined company
with future funding for exploration and other activities.
Strategic Rationale: The global
demand for zinc is expected to double by 2050, and the current
global demand is running at 13.9 million tonnes per year. This will
likely increase to 28.8 million tonnes per year by 2050.
Unlocking Value for Fancamp
Shareholders: The Corporation is actively engaged with the
management of ScoZinc Mining Ltd. to fast track the financing
alternatives of Scotia Mine so that the mine can commence
production expeditiously subsequent to the business
combination.
Issuance of Stock Options
A total of 2 million stock options having an
exercise price of $0.10 and expiring on March 11, 2026 have been
granted to certain directors, officers and consultants of the
Corporation, the whole subject to the Corporation's stock option
plan and the policies of the TSX Venture Exchange.
About Fancamp Exploration
Ltd.
Fancamp is a growing Canadian mineral
exploration company dedicated to its value-added strategy of
advancing mineral properties through exploration and development.
The Company owns numerous mineral resource properties in Quebec,
Ontario and New Brunswick, including gold, rare earth metal,
strategic and base metal, zinc, chromium, titanium and more.
Fancamp is also building on the industrial possibilities inherent
in dealing with some of these materials, notable being the
development of its Titanium technology strategy. It has recently
announced the acquisition of ScoZinc, a Canadian exploration and
mining company that has full ownership of the Scotia Mine and
related facilities near Halifax, Nova Scotia, as well as several
prospective exploration licenses in surrounding regions. The
Company is managed by a new and focused leadership team with
decades of mining, exploration and complementary technology
experience.
Forward-looking StatementsThis
news release contains certain “forward-looking statements” or
“forward-looking information” (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable
securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Corporation. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential” and
similar expressions, or are events or conditions that “will”,
“would”, “may”, “could” or “should” occur or be achieved. This news
release contains forward-looking statements, pertaining to, among
other things, Fancamp’s expectations regarding future exploration
of its properties, its titanium technology strategy and its
strategic alternatives, are based upon certain material assumptions
that were applied in drawing a conclusion or making a forecast or
projection, including management's perceptions of historical
trends, past exploration work, current conditions, current
developments and market trends and expected future developments as
well as other considerations that are believed to be appropriate in
the circumstances.
Although Fancamp believes that the material
factors, expectations and assumptions informing such
forward-looking statements are reasonable based on information
available to it on the date such statements were made, no
assurances can be given as to future results of such statements.
Important factors that could cause actual results to differ
materially from Fancamp’s expectations include, among others,
political, economic, environmental and permitting risks, mining
operational and development risks, litigation risks, regulatory
restrictions, environmental and permitting restrictions and
liabilities, the inability of Fancamp and ScoZinc Mining Ltd. to
satisfy the conditions precedent to complete their combination, the
inability to start production at the Scotia Mine, the inability of
Fancamp to raise capital or secure necessary financing in the
future, as well as factors discussed in the section entitled “Risks
and Uncertainties” in Fancamp’s management’s discussion and
analysis of Fancamp’s financial statements for the period ended
October 31, 2020.
Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual events to differ materially from those anticipated in such
forward-looking statements.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Statements including forward-looking
statements are made as of the date they are given and, except as
required by applicable securities laws, Fancamp disclaims any
intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
For further information, please
contact
Rajesh Sharma, Interim CEO+1 (604) 434
8829info@fancamp.onmicrosoft.com |
Debra Chapman, Chief Financial Officer +1 (604)
434 8829 info@fancamp.onmicrosoft.com |
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.
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