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906-1112 W. Pender St.
Vancouver, B.C. V6E 2S1
Telephone: 604-681-8600
Toll Free: 1-866-FPM-8601
Fax: 604-681-8799
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  DECAR PROPERTY, BC
The Decar property is First Point's most advanced nickel-iron alloy property. The 132 square kilometer property covers an ultramafic belt located about 90 kilometers north northwest of Fort St. James in central BC. It is accessed by a major logging road and the BC rail line is less than 5 kilometers east of the property.
In November 2009 First Point entered into an option/Joint Venture agreement on the Decar Property with Cliffs Natural Resources Exploration Inc. ("Cliffs"). Cliffs' parent company is an international mining company that operates iron ore and coal mines in North America, South America and Australia. It has extensive operating experience with large scale magnetic and gravity processing that can be applied to the dense, highly magnetic nickel alloy identified at Decar. Cliffs also operates a major metallurgical testing facility and completed initial metallurgical testing of the Decar nickel alloy mineralization as part of its due diligence.
Under the terms of the option/Joint Venture agreement, Cliffs can earn an initial 51% interest by spending US$4.5 million on the property in four years, of which US$1 million is a firm commitment in year one. First Point will manage the initial exploration activities. 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 and a 1% net smelter return royalty interest in all products produced from the property. Cliffs may increase its interest in the joint venture 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. The feasibility study will include a full report that will conform to Canada's National Instrument 43-101 standards. Should either party's participating interest in the joint venture be reduced to less than 10%, its interest will automatically be converted to a 1% net smelter return royalty interest. If First Point is the converting party, it will have a total 2% net smelter return royalty interest.
Decar mineralization occurs as disseminated nickel-iron alloy in serpentinized ultramafic rocks. Rock samples range from 0.13% to 0.24% nickel alloy (or 0.10 to 0.18% nickel) as defined by quantitative scanning electron microscope (QEMScan), a method that can identify and quantify all the minerals present in a rock including nickel-iron alloys. The composition of the alloy can vary from 63% to 83% nickel and averages 75%, the remainder being iron and minor cobalt and copper. The proposed target for a large tonnage open-pit mine is a deposit greater than 300 million tonnes.
The widely disseminated coarse nickel-iron alloy grains at the Baptiste and Sidney Targets range in size from 100 microns to over 400 microns (or 0.1 to over 0.4 millimeters) and locally reach more than 1000 microns. Rock samples from outcrop taken at 50 to 200 meter intervals that represent over 600 meters of vertical relief. These samples were prepared and examined with the results of nickel-iron alloy grain size plotted shown below.
The Baptiste target was more than doubled in size to measure 1,750 meters long by 800 meters to 1,300 meters wide by mapping and sampling in 2009 compared to results in 2008. About 50% of this area is covered by overburden which masks the southern boundary of the Target. Additional mapping and sampling are planned in 2010 to define additional northwest extensions of the target.
The Sidney Target measures 500 by 400 meters where mineralization is open to the east and south and occurs on a broad ridge. The Sidney and Baptiste targets are located 2 kilometers apart and occur in a much broader area of finer grained alloy (<20 to 100 microns) based on visual results that have been confirmed by probe and scanning electron microscope data.
Fifty meter sample spacing at the Van Target indicates a sporadic distribution of coarse grained awaruite. A relatively narrow but significant zone of coarse grained alloy is obscured by overburden. This target is not as continuous or large as the Baptiste and Sidney Targets.
Near-term future work at Decar will include ongoing mineralogy, developing the best analytical method to quantify the amount of awaruite in any given sample as well as metallurgy testing to determine the best recovery of the alloy and the most cost effective extraction method. Detailed petrography of the rock samples and processed fractions from crushed, magnetic and gravity fractions are also planned.
In early 2010 a helicopter supported airborne magnetic survey is anticipated to cover most of the Decar Property. Grid controlled induced polarization, ground magnetic and detailed mapping and sampling on the Baptiste and Sidney Targets will be completed following spring breakup. The results of this work will help to design a drill program to test the continuity, grain size and grade of the nickel-iron alloy mineralization in the best areas within the Targets and to provide bulk samples for more extensive metallurgical tests later in the year.
FOUR PROPERTIES, BC
The Odgen, Bodine, Klow and Mesa Properties are 100% owned by First Point and are located north of the Decar property. The four properties and Decar form a semi-continuous130 kilometer northerly trend where portions of the properties are accessed by logging roads and are located within 30 kilometers of the BC rail line. Coincident ultramafic rocks, aeromagnetic high anomalies and regional stream silt geochemical anomalies are enclosed by the property boundaries and have been confirmed by First Point. Early stage exploration is warranted in 2010.
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Nickel Properties
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