First Point Minerals Corp.

First Point Minerals Corp.

September 13, 2011 01:00 ET

Cliffs Commits to Scoping Study and Adds Third and Fourth Drill Rig to Decar Nickel Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - First Point Minerals Corp. (TSX VENTURE:FPX) ("First Point" or the "Company") is pleased to announce that Cliffs Natural Resources Exploration Canada Inc., an affiliate of Cliffs Natural Resources Inc. (NYSE:CLF)(PARIS:CLF) ("Cliffs"), has committed to completing a preliminary economic assessment, or scoping level study, on the Decar nickel-iron alloy project in central British Columbia.

By agreeing to complete a National Instrument 43-101 compliant preliminary economic assessment, or scoping study, within 18 months, Cliffs is deemed to have earned a 51% interest in the Decar property under the amended option agreement. Cliffs has increased its exploration and development budget for the Decar project to approximately US$7 million in 2011 and is in the process of hiring an engineering consultant group to conduct the scoping study.

"Under the original option agreement, if Cliffs had determined to exercise the second option to acquire an additional 9% interest in the Decar property, Cliffs would not have been required to complete a scoping study until early 2015," explained First Point's President, Peter Bradshaw. "The amended option agreement greatly shortens that timeframe. While Cliffs now has 18 months to deliver the scoping study, we are hopeful that Cliffs will have the study completed in about a year's time."

Cliffs is fast tracking the exploration and development at Decar by greatly expanding and accelerating this year's drilling campaign, with the addition of a third and fourth drill rig. The objectives of the 2011 drill program are to define an inferred resource estimate of the Baptiste mineralized zone and provide data for the scoping study.

With four rigs now drilling at Decar, the primary objective of the 2011 campaign is to drill off the Baptiste zone at 200-metre centres over a targeted 2,500-by-700-metre area. The holes are oriented to intersect the long axis of the Baptiste mineralization and most will be drilled to a 300-metre downhole length at a -50 degree angle, representing a vertical depth of 230 metres.

A total of 47 holes are proposed for the Baptiste zone, where seven widely-spaced holes were drilled in 2010 (see 2011 Baptiste drill hole location map at Fourteen of the holes have been completed to date, with assay results pending. A single, deeper hole was recently completed in the central part of Baptiste to test the extent of mineralization to a depth of 600 metres downhole. Results are pending.

Drilling at Decar may also test three distinct outlying targets – Sidney, Van and Target B. Four holes are planned for Sidney, where two drill holes completed last year intersected nickel-in-alloy mineralization to a downhole depth of 398 metres. Last year's drilling at Sidney demonstrated nickel-in-alloy grades comparable to that of Baptiste. Sidney is located on a ridge top 3 km north of Baptiste and at a 600-metre higher elevation.

Two holes are also planned for the Van target, located 6.2 km north of Baptiste, and one hole has already been completed into Target B, situated 4.6 km north-northwest from Baptiste, with assay results pending. This year's drill program is expected to continue until mid-to-late October, weather permitting.

Having earned a 51% interest in the Decar property under the amended option agreement, Cliffs now has the right to increase its property ownership (i) to 60% by completing a preliminary economic assessment within 18 months, (ii) to 65% by completing a 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 the remaining 25% participating interest, plus a 1% net smelter return royalty interest.

First Point is accelerating its investor relations program and has retained the services of Renmark Financial Communications Inc. to assist the Company with these activities. In consideration of the services to be provided, First Point has agreed to a minimum four-month contract to pay a monthly retainer of $7,000 starting September 1, 2011. Renmark Financial Communications does not have any interest, directly or indirectly, in First Point or its securities, or any right or intent to acquire such an interest.

Dr. Peter Bradshaw, P. Eng., First Point's Qualified Person under NI43-101, has reviewed and approved the analytical content of this news release.

About First Point

First Point Minerals Corp. is a Canadian base and precious metal exploration company. For more information, please view the Company's website at or contact Peter Bradshaw, President and CEO, or Rob Robertson, VP Corporate Development, at (604) 681-8600.

On behalf of First Point Minerals Corp.

Peter Bradshaw, Ph.D., P. Eng., President

Forward-Looking Statements

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 forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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