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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 21, 2011) – Fjordland Exploration Inc. (TSX VENTURE:FEX) is pleased to announce that Xstrata Copper Canada, a business unit of Xstrata Canada Corporation, has entered into an option agreement to explore a number of Fjordland’s QUEST JV properties, currently held with Serengeti Resources Inc. (TSX VENTURE:SIR) in a 63.3% SIR/36.7% FEX joint venture. The agreement provides Xstrata the right to earn an initial 51% interest in the properties by funding $5 million in exploration expenditures and making firm and optional cash payments totaling $325,000 to the joint venture over four years. Xstrata has the right to earn an additional 14% interest for an aggregate 65% interest in the properties by completing a feasibility study or incurring no less than an additional $25 million in expenditures on the properties.
The six properties that are subject to this agreement (Rob, Ping, Reid Lake, ST, PG, MP) total approximately 27,690 hectares and are located in the Quesnel Trough porphyry gold-copper belt between the Mt. Milligan copper-gold deposits to south of Prince George in central British Columbia. All the properties are considered prospective for hosting porphyry copper-gold deposits and several have drill targets identified as a result of exploration by Fjordland and Serengeti of approximately $1.7 million. Xstrata Copper is familiar with the region as it holds a large claim package nearby where it has been active since 2007. This year, Xstrata is conducting a large exploration program in the area, including drilling.
Tom Schroeter, President and CEO of Fjordland, stated: “We’re very pleased and excited to have another major mining company join us in advancing these high quality porphyry prospects in a largely under explored region. Fjordland now has joint venture programs with Gold Fields, Capstone Mining and Xstrata Copper in one of North America’s leading copper and gold porphyry belts.”
The QUEST JV was originally formed in 2007 as a 50%/50% venture consisting of 18 properties covering approximately 115,000 hectares with the stated goal of identifying porphyry deposits in the central portion of the underexplored and highly prospective Quesnel Trough. Today, the QUEST JV portfolio consists of 12 properties covering approximately 56,670 hectares, located from south of Imperial Metals’ Mount Polley copper-gold mine to Thompson Creek Metals’ Mt. Milligan gold-copper deposits, which are under development for production.
Past exploration in this region has been hampered by the presence of extensive tracts of glacial overburden. Recent exploration successes in the province, for instance, the Woodjam project (and around the world), demonstrate that prospective mineral terranes under cover can be successfully explored. A property location map can be viewed on Fjordland’s website at www.fjordlandex.com.
Work completed to date on the QUEST JV properties includes airborne magnetic surveys (6,624 line- kilometres during 2007), follow-up ground induced polarization (IP) surveys (approximately 140 line-kilometres during 2008, 2009 and 2011) and magnetic surveys, as well as soil geochemical surveys and prospecting. In addition, a small diamond drilling program was completed on the Mil Property in 2009. The QUEST JV has identified six priority IP targets (Q, ST, MP, Copper, Ping and Mil); drilling may be conducted in late 2011.
Tom Schroeter, P.Eng./P.Geo., who is a qualified person within the context of National Instrument 43- 101, has read and takes responsibility for this news release.
About Fjordland Exploration Inc.
Fjordland Exploration is a mineral exploration company focused on the discovery of gold, copper and molybdenum deposits in British Columbia. Of the 28 properties Fjordland owns, the Woodjam North and Woodjam South properties (totaling 56,540 ha) are part of the Woodjam Joint Venture between Fjordland (60%) and Cariboo Rose Resources Ltd (40%); both properties are under separate option agreements to Gold Fields Horsefly Exploration Corporation. Fjordland also has a 100% interest in 7 properties known as “Tak” totaling 52,342 ha in the Woodjam area. Fjordland has a 100% interest in the 2,192 ha “Milligan” project, adjoining Thompson Creek Metals Company Inc.’s Mt. Milligan copper-gold deposits on the west. The Tak-Milligan properties have been optioned to Capstone Mining Corp.; Capstone has vested into a 49% interest in the properties. Fjordland and Serengeti Resources Inc. (TSX VENTURE:SIR) are 37%/63% partners exploring 12 properties (QUEST Project) totaling 56,670 ha in the Quesnel terrane north of Woodjam for precious and base metals. Fjordland has a 100% interest in 8 properties totaling 60,047 ha in the Iron Range area and has an option agreement on 7 properties totaling 21,222 ha with Kootenay Gold Inc. in southeastern BC. Fjordland has an option to acquire a 100% interest in the Dillard copper and gold property, north of Princeton, BC.
Fjordland’s shares trade on the TSX Venture Exchange under the symbol “FEX”. For more information visit Fjordland’s website atwww.fjordlandex.com.
Tom Schroeter, President & CEO
Neither TSX Venture Exchange nor its Regulation Services providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
