Recommendations of the PEA
Following the positive outlook of the PEA, the Tetra Tech report recommends that further drilling should be undertaken to enhance the Project economics:
-- Additional infill drilling to increase the confidence of the Inferred resource such that the Inferred resource at the edges of the Whittle optimized pit can be classified as Indicated.
It is also recommended that future metallurgical test work conducted on the Decar Project include:
-- Further investigation into the effect of grind size on recovery;-- Determination of the optimum magnetic concentration conditions including magnetic separation intensity;-- Grindability tests with samples selected to determine the variability of the work index of the mineralized material;-- Investigation into variability of the Baptiste deposit block model;-- Environmental and Tailings Management testing; and-- Pilot-scale testing of an optimized beneficiation circuit including magnetic and gravity separation.
The PEA has been prepared in compliance with the standards of the NI 43-101 by Tetra Tech and Caracle Creek. Hatch Engineering produced a marketing study to evaluate the technical, economic and marketing of potential Decar concentrates into the existing nickel market.
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. Upon delivery of the NI 43-101 compliant PEA study, Cliffs will have earned an additional 9% interest in the Decar project to hold 60%. Cliffs will have 120 days from the date the PEA is delivered to First Point to elect to increase its ownership to 65% by completing a NI 43-101 prefeasibility study within a two-year time period. Absent such election, a joint venture will be formed, with Cliffs and First Point having initial participating interests of 60% and 40%, respectively.
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
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 Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
First Point Minerals Corp.
President and CEO
First Point Minerals Corp.
VP Corporate Development