First Point Minerals Announces Substantial Increases in Nickel Resources at Decar Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/06/13 -- First Point Minerals Corp. (TSX: FPX) ("First Point" or the "Company") is pleased to report an updated independent National Instrument 43-101 compliant mineral resource estimate for the Decar nickel-iron alloy project in central British Columbia. The updated resource estimate will be incorporated into the Preliminary Economic Assessment ("PEA") currently being completed for the Decar project, which is managed and operated by Cliffs Natural Resources Exploration Canada Inc., an affiliate of Cliffs Natural Resources Inc. (NYSE: CLF)(Paris: CLF) ("Cliffs").
Updated Baptiste Deposit Mineral Resource Estimate(i) (Caracle Creek International Consulting Inc., January 23, 2013):
Category Tonnes Davis Tube Recoverable Nickel Content
---------------------------------------------
(% Ni) (Tonnes) (Pounds)
Indicated 1,159,510,000 0.124 1,437,800 3,169,700,000
Inferred 870,400,000 0.125 1,088,000 2,398,600,000
(i) Note: Reported at a cut-off grade of 0.06% DTR nickel. Mineral resources
are not mineral reserves and do not have demonstrated economic viability.
Tonnes have been rounded to the nearest 10,000. Grade has been rounded to
three significant digits .The mineral resources are constrained by a GEMCOM
Whittle pit, based on the reported cut-off grade.
The resource definition drilling and expansion program undertaken on the Baptiste deposit in 2012 has yielded substantially more tonnes and higher average grades, resulting in 1.159 billion tonnes being classified as an indicated resource at an improved grade of 0.124% Davis Tube magnetically-recovered ("DTR") nickel. Inferred resources now total 870 million tonnes grading 0.125% DTR nickel. This updated resource estimation compares very favourably to the initial inferred resource estimate reported in First Point's April 16, 2012 news release, which is shown below.
Initial Mineral Resource Estimate(i) (Caracle Creek, April 16, 2012):
Category Tonnes Davis Tube Recoverable Nickel Content
---------------------------------------------
(% Ni) (Tonnes) (Pounds)
Inferred 1,197,000,000 0.113 1,352,610 2,981,900,000
(i) Note: Reported at a cut-off grade of 0.06% DTR nickel. Mineral resources
are not mineral reserves and do not have demonstrated economic viability.
Tonnes have been rounded to the nearest 10,000. Grade has been rounded to
three significant digits.
"We are very pleased with the significant year-on-year growth of nickel resources at Decar," said First Point President and CEO Jim Gilbert. "The impressive increases reported in both overall tonnage and contained metal inventories, together with a material improvement in magnetically recoverable nickel grades, will enable Cliffs to incorporate an upgraded and enlarged resource in the PEA, which is due to be completed in March 2013."
The updated National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate was prepared by Caracle Creek International Consulting Inc. ("Caracle Creek"), which also prepared the April 2012 initial resource estimate. Caracle Creek supervised and managed the 2012 and 2011 drilling programs at Decar on behalf of Cliffs. The updated resource estimate adds an additional 32 core holes (16,347 metres) completed during the summer of 2012 to the initial resource estimate, bringing the total number of core holes in the data base to 74, representing 28,917 metres of drilling.
The average drill hole spacing in the Baptiste deposit is 200 metres. A total of 7,852 drill samples of core were used for the resource estimation.
Resource Estimate Details
The block model tonnage and grade for each of the indicated and inferred resource categories were calculated at various cut-off grades as shown in Table 1 and 2:
Table 1: IndicatedBlock Model tonnage and grades reported at
various cut-off grades.(i)
------------------------------------------------------------
Davis Tube
Cut-off Recoverable
Grade (%) Tonnes Nickel Grade (%)
------------------------------------------------------------
0.02 1,170,510,000 0.124
------------------------------------------------------------
0.04 1,169,130,000 0.124
------------------------------------------------------------
0.06 1,159,510,000 0.124
------------------------------------------------------------
0.08 1,121,810,000 0.126
------------------------------------------------------------
0.10 999,440,000 0.130
------------------------------------------------------------
0.12 691,870,000 0.139
------------------------------------------------------------
(i) Note: Tonnes have been rounded to the nearest 10,000. Grade has been
rounded to three significant digits. The base-case mineral resource was
estimated at a cut-off of 0.06 % DTR nickel. These figures are not to be
misconstrued as mineral resources as they are intended for the sole purpose
of demonstrating the sensitivity of the resource estimate with respect to
reporting cut-off grade. The mineral resources were also constrained with a
Whittle pit.
Table 2: InferredBlock Model tonnage and grades reported at
various cut-off grades.(i)
------------------------------------------------------------
Davis Tube
Cut-off Recoverable
Grade (%) Tonnes Nickel Grade (%)
------------------------------------------------------------
0.02 881,260,000 0.124
------------------------------------------------------------
0.04 877,900,000 0.124
------------------------------------------------------------
0.06 870,400,000 0.125
------------------------------------------------------------
0.08 842,610,000 0.126
------------------------------------------------------------
0.10 733,160,000 0.132
------------------------------------------------------------
0.12 503,790,000 0.141
------------------------------------------------------------
(i) Note: Tonnes have been rounded to the nearest 10,000. Grade has been
rounded to three significant digits. The base-case mineral resource was
estimated at a cut-off of 0.06 % DTR nickel. These figures are not to be
misconstrued as mineral resources as they are intended for the sole purpose
of demonstrating the sensitivity of the resource estimate with respect to
reporting cut-off grade. The mineral resources were also constrained with a
Whittle pit.
The geological resource model was constructed by Caracle Creek using composited drill hole data, drill core logs and down-hole survey data. The mineral resource estimation was evaluated using geostatistical block modeling methods constrained by mineralized wireframe. The mineral resources have been estimated in conformity with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") "Estimation of Mineral Resources and Mineral Reserves Best Practises" guidelines and were classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (November 2010) guidelines. The mineral resources are reported in accordance with the Canadian Securities Administrators NI 43-101.
The geological resource model consists of a large, curved volume, which is 3.0 kilometres long, 150 to more than 1,080 metres wide and extends up to 540 metres deep. The Baptiste deposit remains open along strike in both directions, to the southeast in the higher-grade central area and at depth over the entire system. It is covered by an average of 12 metres of overburden.
The mineralized serpentinized peridotite host rock at Baptiste is cut by several steeply-dipping, non-mineralized dykes, which in total comprise just approx. 4% of the rock mass in the mineralized domain. These dykes, mostly in the range of 2 to 5 metres thick, were incorporated by Caracle Creek in a zero grade domain. The dyke domain was subtracted from the mineralized domain in order to eliminate the zero grade assays from the mineralized domain.
Block models measuring 40 metres x 40 metres x 10 metres were interpolated for evenly distribution of 1,649 specific gravity ("SG") composites based on SG measurements on drill core pulp using the inverse distance method of interpolation.
The grade of the mineral resource was based on ordinary kriging using two passes, which was verified using the inverse distance squared method.
Davis Tube magnetically-recovered ("DTR") nickel is the nickel content recovered by magnetic separation using a Davis Tube, followed by standard assaying procedures to determine the nickel assay of the concentrate; in effect a mini-scale metallurgical test. Cliffs employs large scale magnetic separation methods in several of its operating iron ore mines, and the Davis Tube method is used to provide a more accurate measure of variability in recoverable nickel. The Davis Tube method is the global, industry standard geometallurgical test for magnetic recovery operations and exploration projects. Final recoveries of nickel using both magnetic and gravity separation processes are subject to confirmation in the PEA currently underway.
The mineral resource estimate for the Baptiste deposit was completed by Jason Baker, P. Eng., of Caracle Creek, an independent qualified person as defined by NI 43-101 Standards of Disclosure for Mineral Projects. An updated NI 43-101 Technical Report describing the details of the updated mineral resource estimate will be filed on SEDAR within 45 days of this news release.
Cliffs is advancing the Decar nickel project under an option/ joint venture 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 interest.
Dr. Ron Britten, P. Eng., First Point's Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release
About First Point
First Point Minerals Corp. is a Canadian base metal exploration company operating worldwide. For more information, please view the Company's website at www.firstpointminerals.com.
On behalf of First Point Minerals Corp.
Jim Gilbert, President and CEO
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.
Cautionary Note to U.S. Readers
Information concerning the properties and operations discussed in this press release has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms "Mineral Resource", "Indicated Mineral Resource" and" Inferred Mineral Resource" used in this press release are Canadian mining terms as defined in accordance with NI 43-101 guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission ("SEC"). Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this press release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "Inferred Mineral Resources" may not form the basis of feasibility or prefeasibility studies. Readers are cautioned not to assume that all or any part of "Indicated Mineral Resources" will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable. None of First Point's securities have been registered under the United States Securities Act of 1933, as amended.
Neither the TSX Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Contacts:
First Point Minerals Corp.
Jim Gilbert
President and CEO
(604) 681-8600
First Point Minerals Corp.
Rob Robertson
VP Corporate Development
(604) 681-8600
(604) 681-8799 (FAX)
info@firstpointminerals.com
www.firstpointminerals.com