First Point Minerals Corp.

First Point Minerals Corp.

November 03, 2011 08:00 ET

First Point Minerals Corp.: 2011 Drill Program at Decar Completed in Preparation for 2012 Preliminary Economic Assessment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 3, 2011) - First Point Minerals Corp. (TSX VENTURE:FPX) ("First Point" or the "Company") is pleased to announce the successful completion of this year's delineation drilling campaign at the Decar nickel-iron alloy project in central British Columbia. The main objectives of the program were to complete a sufficient number of drill holes into the Baptiste zone in order to define an initial inferred resource estimate and to provide data for a preliminary economic assessment, or scoping level study.

By increasing its budget for the Decar project to approximately US$7 million in 2011, Cliffs Natural Resources Exploration Canada Inc., an affiliate of Cliffs Natural Resources Inc. (NYSE:CLF)(PARIS:CLF) ("Cliffs"), is fast tracking the exploration and development at Decar, which is currently held 51% by Cliffs and 49% by First Point. Cliffs can earn an additional 9% interest in Decar by completing a National Instrument 43-101 compliant preliminary economic assessment ("PEA") before March 2013. Cliffs has hired Tetra Tech WEI Inc., formerly known as Wardrop Engineering, to manage the Decar PEA.

During the 2011 drilling campaign at Decar, Cliffs tested the Baptiste zone with 35 core holes totalling 11,166 metres, before deteriorating weather conditions resulted in the suspension of drilling. Under the supervision of Caracle Creek International Consulting Inc. ("Caracle Creek"), the Baptiste zone was drilled on 200-metre centres over an area measuring roughly 2,300 by 700 metres. The holes were drilled at a -50 degree angle and were designed to test the Baptiste nickel-iron alloy mineralization to a depth of 300 metres downhole, representing a vertical depth of about 230 metres.

A single, deeper hole in the central part of Baptiste, inclined towards the north, tested the extent of mineralization to a depth of 600 metres downhole, or 460 metres vertically. Exploration drilling was limited, due to time constraints, to a single hole on Target B; a distinct, outlying, highly prospective nickel-iron alloy target located 4.6 km north-northwest from Baptiste.

Assay results are pending, and are expected over the next several weeks. Core samples were shipped in batches for analysis by Activation Laboratories in Ancaster, Ontario. The sample preparation procedure was established after reviewing metallurgical test work completed earlier this year. This protocol involves a timed grinding stage and a split of the sample, which will be processed using magnetic separation, followed by multi element analysis of the magnetic fraction. The analytical results will be reported as "recoverable" nickel (and other elements).

Following receipt of the core sample analyses from Activation Laboratories, Caracle Creek, at the direction of Cliffs, will evaluate whether there is sufficient data to establish an NI43-101 inferred mineral resource estimate at Decar. The preparation of a PEA is subject to Cliffs establishing a mineral resource estimate, and there is no guarantee that the work completed to date will be sufficient to establish a mineral resource estimate.

Environmental baseline studies are well underway at Decar and are being carried out by various natural and cultural resource management consultant companies under the direction of Caracle Creek. Studies include surface water quality and flow sampling at various monitoring stations, ground water quality sampling from select drill holes, a migratory bird survey, and an assessment of wildlife and fish habitats.

First Point has expanded the land position at the Decar project by recently staking an additional 5,288 hectares. The Decar project now totals 23,885 hectares in size.

If Cliffs earns a 60% interest in the Decar property by completing a PEA, it will then have the right to increase its property ownership (i) to 65% by completing a prefeasibility study, and (ii) 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.

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

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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