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:
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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. |
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The internal rate of return for the project is 41.5 per cent and the payback period is 2.3 years. |
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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. |
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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. |
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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.
