Fancamp Announces 2021-22 Exploration Plan and Other Updates
FANCAMP EXPLORATION LTD.
7290 Gray Avenue, Burnaby, British Columbia, V5J 3Z2
Telephone: 604-434-8829 Facsimile: 604-434-8823 Web site:
www.fancampexplorationltd.ca
NEWS RELEASE
March 15, 2021 TSX-V Trading Symbol: FNC
FANCAMP ANNOUNCES 2021-22 EXPLORATION PLAN AND OTHER UPDATES
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:
1. Exploration Properties: Selecting quality exploration targets to enhance value,
combined with a disciplined rigor when allocating funds.
2. Titanium Technology: Establishing new processes and obtaining patents to
become an active participant in a $16-billion industry.
3. 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 r efined 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. Marg uerite (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 qua lity. 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 Position ed 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 p rocess. 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 min eral 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 a l s o 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 Statements
This 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 anticipa ted 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 8829
Debra Chapman, Chief Financial Officer
+1 (604) 434 8829
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.