First Point Minerals Corporation has announced 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 USD 7 million in 2011, Cliffs Natural Resources Exploration Canada Inc, an affiliate of Cliffs Natural Resources Inc, 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 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 totaling 11,166 meters, before deteriorating weather conditions resulted in the suspension of drilling. Under the supervision of Caracle Creek International Consulting Inc, the Baptiste zone was drilled on 200 meter centers over an area measuring roughly 2,300 by 700 meters. 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 meters down hole, representing a vertical depth of about 230 meters.
A single, deeper hole in the central part of Baptiste, inclined towards the north, tested the extent of mineralization to a depth of 600 meters down hole or 460 meters 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 kilometers 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 to 65% by completing a pre feasibility study and 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.
