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First Point Minerals Corp. (TSX VENTURE:FPX) (“First Point” or the “Company”) is pleased to announce that Cliffs Natural Resources Exploration Inc., an affiliate of Cliffs Natural Resources Inc. (NYSE:CLF)(PARIS:CLF) (“Cliffs”), has assumed management of, and is starting the 2011 exploration program on the Decar nickel project in central British Columbia. Cliffs has hired Caracle Creek International Consulting (CCIC), a professional geological, geophysical and engineering services consulting company, to supervise the 2011 exploration program at Decar.
“It’s a strong vote of confidence for the Decar project,” said Ron Britten, First Point’s Vice-President of Exploration. “We believe that with Cliffs’ technical expertise and hands-on capability the project will progress forward more quickly.”
“More importantly, with Cliffs taking over the management of the Decar project, it frees up our geologists and allows us to focus on 100%-owned targets elsewhere around the world,” explained Ron Britten. Employing proprietary exploration expertise, First Point has embarked on a minimum $2 million exploration search for new nickel-iron alloy targets worldwide in 2011.
Decar is a greenfield discovery of nickel mineralization in the form of a “naturally occurring stainless steel” nickel-iron alloy, with no associated sulphides. First Point is the world leader in the exploration for nickel-iron alloy deposits.
This summer’s drill program at Decar is expected to evaluate the size of the Baptiste zone and test several nearby highly prospective targets. Cliffs has committed to at least 4,000 metres of drilling based on the positive preliminary metallurgical test work that has been completed to date (see First Point News Release of March 21, 2011). The full results of this metallurgical work are expected shortly.
The target at Decar is a bulk-tonnage, open-pittable nickel deposit on a mining scale equivalent to that of the large open-pit copper porphyry mines operating in British Columbia.
Field work at Decar has begun, with camp mobilization expected to be followed by the start of drilling. Environmental baseline studies commenced in May.
Cliffs is advancing the Decar nickel-iron alloy project under an option/joint venture agreement with First Point that was signed in November 2009. By spending US$4.5 million on exploration and development over a period of four years, Cliffs can earn an initial 51% interest in the Decar project. Cliffs is in the second year of the option agreement and has spent about US$2 million to date.
Once Cliffs has earned a 51% interest in Decar, it will then have the right to increase its property ownership (i) to 60% by completing a preliminary economic analysis, (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 also pleased to announce the appointment of Ron Britten to the board of directors effective immediately. Ron Britten is a founding member of First Point and has been Vice-President of Exploration since its inception.
Dr. Ron Britten, P. Eng., First Point’s Qualified Person under NI43-101, has reviewed and approved the technical content of this news release.
About First Point
First Point Minerals Corp. is a Canadian base and precious metal exploration company.
Read the full news release here.
