First Point Minerals' Decar Nickel Project to Proceed to Prefeasibility Study
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/09/13 -- First
Point Minerals Corp. (TSX:FPX) ("First Point" or the "Company") today
announced that Cliffs Natural Resources Exploration Canada Inc., an
affiliate of Cliffs Natural Resources Inc. (NYSE:CLF) (PARIS:CLF)
("Cliffs"), has elected to proceed to the Prefeasibility Study phase
at the Decar nickel-iron alloy project in central British Columbia.
By sole funding completion of a NI 43-101 compliant Prefeasibility
Study by August 2015, Cliffs has the option to earn an additional 5%
interest in the Decar project. By making the election to proceed to
the Prefeasibility Study phase, Cliffs also maintains the right to
earn a further 10% interest in the Decar project by sole funding a
Bankable Feasibility Study.
Cliffs is currently engaged in the process of determining the scope
of work to be conducted at the Decar project in 2014, including
whether a drilling program aimed at resource extension and/or a bulk
sampling effort to support pilot plant testing will be undertaken.
The positive results of the Preliminary Economic Assessment ("PEA")
were previously announced in First Point's news release dated March
22, 2013. The PEA demonstrates the potential economic viability of
the Decar project as a standalone open-pit nickel mine and on-site
mill, using conventional magnetic separation and gravity
concentration processing methods to produce a marketable
"Cliffs' election to proceed to the Prefeasibility Study phase of the
Decar project is another significant milestone for First Point and
further confirmation of the project's potential as a significant
nickel deposit." said Jim Gilbert, President and CEO of First Point.
"We are very pleased to have Cliffs as our partner and by the
progress they have made to date, and we are confident they will
continue to add value to the project going forward."
The Decar project is the first of its kind. It represents a potential
new source for nickel that is neither sulphide nor laterite. The
nickel mineralization is in the form of a naturally occurring
nickel-iron alloy called awaruite.
Since optioning Decar from First Point in November 2009 as a
grassroots discovery without a single hole drilled, Cliffs has spent
approximately $21 million to date advancing the project through
completion of a positive PEA, more than two years ahead of the
original schedule contemplated by the Decar Option Agreement.
Decar Option Agreement
The Decar project is currently owned 60% by Cliffs and 40% by First
Point. Cliffs has the right to increase its ownership (i) to 65% by
completing a NI 43-101 compliant Prefeasibility Study by August 2015,
and (ii) 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
Dr. Peter Bradshaw, P. Eng., a First Point 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 metal exploration
company operating worldwide.
On behalf of First Point Minerals Corp.
Jim Gilbert, President and CEO
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 nor its Regulation Services Provider accepts
responsibility for the adequacy or accuracy of this release.
Jim Gilbert, President
Rob Robertson, VP Corporate Development
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