A Game Changer for the Nickel Industry
Highlights
- Flagship Decar Project
A grassroots discovery. Represents a potential new source for nickel. Located northwest of Fort St. James in central British Columbia, Canada.
- Naturally Occurring Stainless Steel Mineralization
Nickel is in the form of a "naturally occurring stainless steel" nickel-iron alloy, called awaruite, with no associated sulphides. No smelting is required and no acid mine drainage issues.
- Senior Joint-Venture Partner
Cleveland-based Cliffs Natural Resources (CLF-NYSE), a major iron ore producer with 160 years servicing the steel industry, is our joint venture partner at Decar, with a 51% earned stake.
- Large Bulk-Tonnage Target
Our target is a large bulk-tonnage, open-pittable deposit. Mining and milling costs could be similar to a porphyry copper deposit in British Columbia.
- Physical Processing
Metallurgical test work demonstrates the nickel-iron alloy is recoverable using simple, low-risk, two-stage grinding and magnetic separation to produce a ferronickel concentrate that can be shipped directly to steel mills.
- Accelerated Exploration and Development
The Baptiste zone was drilled in 2011, with 35 core holes totaling 10,861 metres, on 200-metre centres over an area measuring roughly 2,300 by 700 metres. Results will be incorporated into a NI43-101 inferred resource estimate in early 2012.
- 100%-Owned New Discoveries
While Cliffs proves up Decar, First Point is exploring worldwide for other nickel-iron alloy targets, all 100% owned. This work has already resulted in the new Mich discovery in the Yukon and the Light discovery in Australia, as well as the drill-ready Klow prospect in British Columbia.
First Point Minerals currently has a portfolio of nine nickel-iron alloy properties; seven in British Columbia, one in the Yukon Territory and one in Australia. The most advanced is the Decar project in central British Columbia, managed by Cliffs Natural Resources under the amended option agreement of September 2011. The rest of the properties are owned 100% by First Point.
"Naturally Occurring Stainless Steel" Nickel-Iron Alloy Mineralization
The nickel-iron alloy mineralization at the Decar property is hosted in ultramafic rocks in a dismembered slice of oceanic crust. The crust originally formed at mid-ocean rifts and migrated long distances to collide with, or thrust over, continental margins, creating extensive geological terrains in the mountain ranges of not only British Columbia but around the world. Nickel and iron originally bound-up in rock-forming silicate minerals, were later liberated by invading sulphur-free hot water which altered the silicates and allowed the metals to recombine to form the mineral awaruite - a "naturally occurring stainless steel" nickel-iron alloy composed 75% nickel and 25% iron, with no associated sulphides.
Ultramafic rocks typically contain 0.2% to 0.3% nickel, but the nickel is locked in the silicate minerals and can't be recovered. The widely disseminated nickel-iron alloy mineralization at Decar consistently assays between 0.1% and 0.2% nickel-in-alloy. The metallurgical test work demonstrates the nickel-iron alloy is recoverable using two-stage grinding and magnetic separation process to produce a ferro-nickel concentrate. Decar is a low-grade but clean bulk-tonnage, open-pittable nickel target.
The absence of sulphides will result in a much lower environmental impact and associated mitigated costs due to no acid rock drainage issues. Furthermore, because there are no sulphides, the produced ferro-nickel concentrate requires no smelting and can be shipped directly to a steel mill. This will translate into potential lower capital, operating and closure costs.
While the mineral awaruite has been known for over a century, it has for the most part been mentioned only anecdotally in scientific research papers, and its economic importance had not been previously recognized. Decar is the first known large scale nickel-iron alloy target with sufficient grain-size to be explored and assessed economically.
Cliffs Natural Resources is fast tracking Decar towards a mineral resource estimate and, if positive, will undergo a preliminary economic assessment, which under the terms of the option agreement is to be completed no later than March 2013. At the same time, First Point is well positioned to capitalize on its 6-year head start of exclusive exploration experience to generate additional global discoveries of nickel-iron alloy targets. This could be a game changer for the nickel industry.
For more information, click '
About Nickel-Iron Alloy.'
