Re: News Releases - Thursday, July 12, 2012
First Point Minerals Updates Drilling Progress at Decar
Vancouver, July 12, 2012 -- First Point Minerals Corp. (FPX-TSX.V)
("First Point" or the "Company") is pleased to report that an
approximately 15,000-metre drilling program is currently underway at
the Decar nickel alloy project in central British Columbia. The Decar
project is currently in the Preliminary Economic Assessment ("PEA")
phase, and is managed and operated by Cliffs Natural Resources
Exploration Canada Inc., an affiliate of Cliffs Natural Resources Inc.
(NYSE: CLF) (Paris: CLF) ("Cliffs").
Camp mobilization to Decar started on June 18th. The first rig arrived
June 25th and started drilling June 26th. The second rig mobilized to
site on June 27th and collared June 28th. The third drill rig arrived
June 30th and began turning soon after.
Decar is a greenfield discovery of nickel mineralization in the form of
a naturally occurring nickel-iron alloy called awaruite. It represents
a promising target for bulk-tonnage, open-pit mining. This deposit
contains little or no sulphides, meaning it has little or no capacity
to generate acid mine drainage. Initial metallurgical test work
demonstrates the nickel-iron alloy is recoverable using conventional
two-stage grinding and magnetic separation, and does not require
chemical processing thereby significantly reducing environmental
As reported in First Point's April 16, 2012 news release, the Baptiste
zone at Decar is estimated to contain an inferred 1.3 billion tonnes of
Davis Tube magnetically-recoverable nickel grading 0.113%, equivalent
to almost 3 billion pounds nickel based on a 0.06% cut-off grade. The
geological model is 2.3 kilometres long, 350 to 600 metres wide and
extends up to 350 metres vertically. The Baptiste deposit is cut-off by
a fault in the southwest, but remains open in all other directions,
including along strike in both the east and west directions, and at
depth over the entire system.
The recommended 2012 drill program will attempt to extend the limits of
higher grade zones by stepping out in the south-central and northwest
areas, while additional step-out holes are also planned along the
northern boundary of the deposit to better define areas of higher grade
mineralization and to outline the limits of the deposit.
During the 2011 exploration program at Decar, a 250-tonne bulk sample
of mineralized host rock was collected from the surface of the Baptiste
deposit. This bulk sample is being used for further metallurgical test
Environmental baseline studies, which commenced in May 2011, continue
to assess surface and ground water quality, archeological significance,
vegetation, fish and wildlife habitats.
Both First Point and Cliffs are actively engaged in the community with
all stakeholders to provide social and economic benefits from
responsible mineral exploration and mining in a way that also
safeguards the health of people and the local environment. A Memorandum
of Understanding regarding exploration activities at the Decar project
was recently signed with the Tl'atz'en First Nation, which formalizes
protocols for continuing the working relationship between Cliffs, First
Point and the Tl'atz'en and Keyoh families. During the exploration
phase, the focus has been on local training, in partnership with the
College of New Caledonia, to maximize future employment opportunities.
Cliffs is advancing the Decar nickel project under a joint
venture/option agreement with First Point that was signed in November
2009. Under the original agreement, Cliffs could earn an initial 51%
interest in Decar by spending US$4.5 million over a period of four
years. In September 2011, Cliffs was deemed to have earned a 51% stake,
more than two years ahead of schedule. Cliffs has the right to increase
its ownership (i) to 60% by completing a NI 43-101 compliant PEA by
March 2013, (ii) to 65% by completing a NI 43-101 prefeasibility study,
and (iii) ultimately to 75% by completing a bankable feasibility study.
Should Cliffs earn a 75% interest in Decar, First Point would hold a
25% participating interest, plus a 1% net smelter return royalty
Dr. Ron Britten, P. Eng., First Point's Qualified Person under NI
43-101, has reviewed and approved the technical content of this news
About First Point
First Point Minerals Corp. is a Canadian base and precious metal
exploration company operating worldwide. For more information, please
view the Company's website at www.firstpointminerals.com or contact
Jim Gilbert, President and CEO, or Rob Robertson, VP Corporate
Development, at (604) 681-8600.
On behalf of First Point Minerals Corp.
Jim Gilbert, President and CEO - TSX Venture Exchange: FPX
Suite 906 -- 1112 West Pender Street
Vancouver, BC Canada V6E 2S1
Tel: 604.681.8600 Fax: 604.681.8799
Certain of the statements made and information contained herein is
considered "forward-looking information" within the meaning of
applicable Canadian securities laws. These statements address future
events and conditions and so involve inherent risks and uncertainties,
as disclosed in the Company's periodic filings with Canadian securities
regulators. Actual results could differ from those currently projected.
The Company does not assume the obligation to update any
Neither the TSX Venture Exchange nor its Regulation Services Provider
responsibility for the adequacy or accuracy of this release.
Copyright (c) 2012 FIRST POINT MINERALS CORP. (FPX) All rights
reserved. For more information visit our website at
http://www.firstpointminerals.com/ or send
Message sent on Thu Jul 12, 2012 at 9:17:47 AM Pacific Time