Fancamp Exploration Ltd. (TSX VENTURE:FNC) (Pink Sheets:FNCJF) (Frankfurt:3F9) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors. FNC.V is a junior miner with ownership interests in several exceptional advanced-stage flagship properties that it originated and has since vended. FNC.V is positioned for potential extraordinary share price appreciation over the coming months and years as the reality of the large inherent value that the Company possesses is understood by the market and milestones by its partner companies are achieved.
The full Mining Journal review may be found at http://miningmarketwatch.net/fnc.htm online.
Fancamp Exploration has been around for 25 years advancing projects,
and the business plan management initiated a couple years back
appears about to yield results - sizeable open market insider
buying supports this. No capex is required by FNC.V to eventually
reap substantial potential revenue from vended properties, and
developments on multiple fronts are expected this 2014. A potential
near-term production decision scenario is developing at one partner
company, and it alone would entitle FNC.V eventually to sizeable
royalty payments.
Flagship assets involve properties that were originated by Fancamp,
in order to meaningfully advance the projects and maximize
shareholder value while avoiding share dilution, FNC.V sold the
flagships assets for cash and shares to capable entities it refers
to as 'partner companies', capable of raising money and taking
projects to the next decision point. FNC.V retains equity positions
in three public companies (partner companies), these shares can be
sold at Fancamp's discretion to raise cash for itself if needed.
Even more important for readers to understand is that FNC.V owns
royalties on ALL properties, and some of these royalties, in part,
hold staggering return potential for shareholders of FNC.V.
FNC.V has 139,189,153 shares outstanding (~171M fully diluted) and trades with a current market cap under $10 million. Tallying up the numbers, it appears FNC.V is dramatically undervalued and poised for upside revaluation; FNC.V owns over $15 million in with negotiable securities (listed below). FNC.V also has ~$1 million cash in the bank, and it does NOT have cash burn-rate issues as its best course of action on most everything is to monitor multiple partner company developments. Near-term cash availability (on top of current ~$1M cash position); FNC.V is due $500K from the Koper Lake (Ring of Fire) deal this year, and is due $100K from RGX this year for advanced royalty payment, plus it has 6 million shares of RGX currently valued at $4.1 million.
FNC.V is trading at a fraction of its negotiable securities and
cash value alone (FNC.V's market cap is under 2/3 the securities &
cash value), ignoring interests in multiple properties that are
significantly advanced, including potentially multi-millions per
annum in royalty payments on the horizon with Champion at
Feasibility, also ignoring the >$15 million earn-in payments due
from Bold (Koper Lake deal) if taken to completion, and ignoring the
inherent value of ~1 billion tonnes of iron ore at Magpie it will
likely spin-off, among others.
Flagship assets and key interests of Fancamp Exploration Ltd.:
1) FNC.V owns 18 million shares (representing ~10%) of Champion Iron
Mines Ltd. (TSX:CHM) + Royalty (CHM is trading at ~$0.335/share as of Feb
14, 2014). Champion has a preliminary feasibility study on its
Consolidated Fire Lake North (CFLN) project within its Fermont
Holdings in Quebec (delineated 5.1 Billion tonnes of NI43-101
compliant iron ore resources). FNC.V owns a 1.5% net smelter royalty
(NSR) on the Fermont Iron Holdings. Champion has recently entered
into agreement with Mamba Minerals to create a new iron ore company
to be named "Champion Iron Limited". It is believed this new entity
will be positioned to see projects through to fruition. An upcoming
CFLN Feasibility Study will evaluate the potential to produce 20
Mtpa of iron concentrate, and according to Champion that is more
than sufficient volume to economically support an independent
railway. Champion has also increased and upgraded the project's
Global Mineral Resource to 3.567 billion tonnes on the CFLN project
compared to the PEA; using a 15% FeT cut-off grade it sits at 746 Mt
at 31.1% FeT Measured & Indicated and 2,821 Mt at 28.8% FeT
Inferred. In short, it is conceivable we may see CFLN producing
within 5 years, assuming the upcoming feasibility and related
decisions unfold as many expects it to.
Eventual royalty -- near-term production scenario: FNC.V's 1.5% NSR
on Champion's CFLN project will translate to large royalty payments;
Mining MarketWatch Journal guesstimates that at 10 Mtpa it might
translate to somewhere in the neighborhood of ~$6.5 million to FNC.V
every year. The upcoming Feasibility Study is considering the
potential at 20 Mtpa.
2) FNC.V owns 6 million shares (representing 4.5%) of Argex Titanium
Inc. (TSX:RGX) + Royalty (RGX is trading at ~$0.69/share as of Feb 14,
2014). Argex has a patented and proprietary titanium extractive
technology it plans to take to industrial production, it is the only
TiO2 process that can effectively extract TiO2 from ores containing
different contaminates such as MgO, V, Cr, etc. Argex also has a
couple of properties that originated from FNC.V, including the La
Blache Fe-Ti-V property in Quebec where the current combined initial
NI 43-101 compliant mineral resource estimate totals 30.88 Mt
grading 18.78% TiO2, 63.29% Fe2O3 and 0.45% V2O5 in the measured and
indicated categories with an additional 2.87 Mt grading 18.67% TiO2,
63.06% Fe2O3 and 0.43% V2O5 in the inferred category. FNC.V had 9
million shares of RGX, and sold 3 million of its position last year
for $2.1 million. FNC.V owns a 2% NSR on La Blache, rising to 4% two
years after production. This 2014 FNC.V is entitled to, and expected
to receive, $100,000 in advanced royalty payments from RGX in 2014.
3) FNC.V owns 43 million shares (representing 59.4%) of Lamelee Iron
Ore Ltd. + Royalty (LIR.V is trading at ~$0.14/share as of Feb 14,
2014] (formerly Gimus Resources, the subject of recent a reverse
takeover performed by FNC.V). LIR.V is advancing the Lamelee South
Iron Property in Quebec. In Q2-2013 FNC.V released an initial
resource estimate on Lamelee South revealing Inferred Resources of
520Mt @ 39.5% Fe2O3 (27.6% FeT). The Lamelee South deposit is
interesting from an economic point of view as it has a lot of iron
formation squeezed into a relatively small area, a study indicates
100% of the Inferred Resources are in the pit shell (the area where
the mining is expected to take place) (Note: DDH LS-12-23 yielded
333 m @ 41.7% Fe2O3 (29.1% FeT)). The team tasked with advancing
Lamelee are the same individuals that started up the Consolidated
Thompson's iron ore operation at Bloom Lake, they advance that
project to buy-out, and in the process they brought the stock of
Consolidated Thompson up to where they sold it for $17 per share in
2011. The plan is to replicate that success at Lamelee Iron Ore Ltd.
The immediate plan for Lamelee is to delineate the deposit further,
conduct metallurgy, and conduct a PEA, which should lead toward
Feasibility in 2014, with a target of production in 36-48 months.
FNC.V has retained a royalty of 1.5% of the net sales price of
minerals extracted from the Lamelee Iron Property.
4) Koper Lake Project, Ring of Fire - Ontario, adjacent Noront
Resources Eagle's Nest Discovery (~400 metres to the southeast) +
Royalty. FNC.V is the original claimholder and is vendor to Bold
Ventures Inc. which has an earn-in option agreement for up to 100%
working interest on the Koper Lake Project. If Bold fulfills all its
requirements the deal will generate $16.5 million cash to FNC.V, and
a Gross Metal Royalty (GMR) on the project. The GMR entitles FNC.V
to 2% (scalable up to 4% under certain conditions) of total revenue
from the sale of all metals and mineral products. The Inferred
Mineral Resources sits at 46.5 million tonnes grading 38.8%
dichromium trioxide at 20% cut-off, and on-going metallurgical work
shows chromite amenable to reduction into metalized chrome and iron
using natural gas. Bold and its partner KWG Resources are advancing
the project having announced plans to spend $2M to drill down-dip
extension of the resources. FNC.V is owed $500K this year from Bold
and will have a remaining ~$15 million due as the deal progresses.
5) FNC.V has a 47% ownership interest in its private subsidiary
Magpie Mines Inc. (advancing toward spin-off). The Magpie
Iron-Titanium-Chromium-Vanadium deposit in Quebec is considered to
be among the world's largest undeveloped titaniferous magnetite
deposits. NI 43-101 Mineral Resource released in 2012 sits at 928.4
Mt @ 42.3% Fe(T), 11.2% TiO2, 2.6% Cr2O3, 0.3% V2O5. Resource growth
potential appears readily achievable as the current compliant
resource is only on one section of a larger historically-known
deposit. The deposit has significant relief (a mountain rising from
the ground) and appears ideal for an open-pit scenario. In Q4 2013
the Company signed a Memorandum of Understanding ("MOU") with the
Pangang Group of China which included the possibilities of
technology exchanges with respect to Pangang’s smelting and
beneficiation processes and their possible applications for the
Magpie deposit. Metallurgical work performed in 2013 by a scientific
group from China, interested in perusing the Magpie deposit, has
dramatically upgraded the economics of the project; Metallurgical
test work from SGS Lakefield and Sichuan Non-Ferrous Metallurgical
Institute of China has yielded a TiO2-grade to ~98%, and meets the
specifications for marketable synthetic rutile products. In
addition, a three-stage grinding/magnetic separation produced
acceptable results for Fe-concentrate with a grade of 55% Fe and
recovery rate of 89.5%. Further metallurgical test work will be
performed on Vanadium and Chrome in the pig iron, as well as
improvement on the aforementioned TiO2 beneficiation test results.
Magpie Mines Inc. is a private company right now, 47% owned by FNC.V
and another 47% is owned by the The Sheridan Platinum Group Ltd
which participated in its staking. FNC.V's objective is to spinout
the entity in the next 12 months, obtaining cash, shares, and
royalties as per its business model.
6) FNC.V owns NSR on Uracan Resources Ltd.'s Turgeon Lake Uranium
Deposit. The deposit also goes by the name 'North Shore Project' in
Quebec. The current NI 43-101 Mineral Resource sits at Indicated of
21.5Mt @ 0.014% U3O8 (3.1M Kg), Inferred of 140.7 Mt @ 0.012% U3O8
(16.8M Kg). FNC.V's owns a 1.5% NSR for the first two years of
commercial production, increasing to 2.5% thereafter.
7) Desolation Lake Polymetallic Project, Ontario (advancing toward
spin-off) (Ownership: 80% Fancamp, 20% The Sheridan Platinum Group).
The project hosts a 15 km magnetic trend located in James Bay
Lowlands and has potential of substantial mineralization. Recent
drilling has yielded impressive numbers, including 422 m @ 28.6%
Fe(T) or 40.9% Fe2O3. FNC.V has plans to perform further exploration
to delineate the size of the mineralized system and produce a NI
mineral resources on Iron, Limestone. FNC.V's objective is to
spinout the entity, obtaining cash, shares, and royalties as per its
business model.
The full Mining Journal review may be found at
http://miningmarketwatch.net/fnc.htm online.
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that these forward-looking statements are only predictions and may
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commentary and reviews herein are for information purposes and are
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Contact Information:
James O'Rourke, Editor
Mining MarketWatch Journal
[email protected]