VANCOUVER, BRITISH COLUMBIA, Jun 16, 2010 — First Point Minerals Corp. (“First Point” or the “Company”) is pleased to provide an update of the exploration programme at its Decar Nickel-Iron alloy property in Central B.C., which is subject to an option agreement with Cliffs Natural Resources Exploration Inc (“Cliffs”).
Current exploration work at the Decar property includes metallurgical testing, an airborne magnetic survey, geological mapping and sampling, and line cutting. This work is being conducted in preparation for an IP survey and a drilling program scheduled for later this summer.
Metallurgical work is ongoing at both Cliffs facility in Michigan and at commercial labs in order to establish a provisional metallurgical flow sheet to test the drill core samples.
A detailed airborne magnetic study was completed last month and the data has recently been received. Initial interpretation fits with the known mineralized areas and indicates additional targets which will be the subject of reconnaissance geological mapping and sampling this summer. While the nickel-iron alloy that is the target of First Point’s exploration work is very magnetic; the host rock also contains magnetite associated with the nickel-iron alloy, the effects of which must be taken into account when interpreting the data. Detailed magnetic interpretation by First Point will include inversion of the magnetic data to be completed by Mira Geosciences, Vancouver.
In the field, line cutting has commenced which will be followed by an IP survey on both the Baptiste and Sidney targets. Detailed geological mapping and sampling is being undertaken on these same grids with reconnaissance work extending beyond the grids to areas not yet mapped, including the new magnetic anomalies.
Following completion of the IP survey and geological mapping and sampling program, a 2,000 metre diamond drill programme is scheduled to commence mid-summer.
The fieldwork is being undertaken by First Point under a services agreement with Cliffs and the metallurgical work is being supervised by Cliffs.
As announced previously under the terms of the option and joint venture agreements, Cliffs can earn an initial 51% interest in a joint venture on the Decar property by spending US$4.5million on the property in four years, of which US$1million is a firm commitment in the first year. Upon Cliffs exercising its option, the parties will form a joint venture, with Cliffs having an initial 51% participating interest and First Point holding a 49% participating interest plus a 1% net smelter return royalty interest in all products produced from the entire Decar property. Cliffs may increase its interest in the property to 60% by completing a scoping study, to 65% by completing a pre-feasibility study, and to 75% by completing a feasibility study in a form acceptable to lending institutions (refer to First Point news releases dated November 13, 2009 and December 2, 2009).
About First Point
First Point Minerals Corp. is a Canadian base and precious metal exploration company. The Company’s flagship Decar property hosts naturally formed nickel-iron alloy mineralization that is the subject of an exploration program being financed by Cliffs Natural Resources Exploration Canada Inc., a wholly-owned subsidiary of Cliffs Natural Resources Inc., an international mining and natural resources company. For more information, please view the Company’s website at www.firstpointminerals.com .
On behalf of First Point Minerals Corp.
Peter Bradshaw, Ph.D., P.Eng., President & CEO
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