First Point adds to B.C. nickel portfolio

Vancouver – Since acquiring a pair of B.C. nickel projects in mid-2007 First Point Minerals (FPX-V, FPOCF-O) recently added to its holdings and picked up two more properties in a move to target potential large-tonnage, open pittable nickel deposits.

Last year the company grabbed the Azul and Letain early-stage projects near Dease Lake in northern B.C. – based on work undertaken several years previously examining the feasibility of metallurgically recovering naturally occurring non-silicate nickel-iron minerals and nickel sulphides.

First Point earlier demonstrated nickel could indeed be recovered by using a combination of leaching and physical separation from the ultramafic host rocks with “particular, and moderately unique, nickel mineralogy.”

The company notes that at the time of its initial studies nickel traded around the US$3.50 per lb. level negatively affecting potential economics. Nickel’s price rise over the past couple years prompted First Point’s management to reexamine the projects.

The latest acquisition sees the Decar project, located near Fort St. James in central B.C., and the Shulaps property near Lillooet in south-central B.C. added to the nickel portfolio.

First Point has completed a preliminary round of surface sampling taken at roughly 200-metre spacing along traverses – on all four projects. The company utilizes a portable field analyzer to ascertain nickel concentrations in the rock prior to sending a sample for assay.

Sampling on its 64-sq. km Shulaps property, which covers part of the Shulaps ultramafic complex, returned 19 surface samples averaging 0.23% nickel (ranging from 0.17%-0.31% nickel). Nickel-iron alloys were identified through petrographic and scanning electron microscope analysis.

At the 18-sq. km Decar project, covering part of the Mount Sydney Williams ultramafic complex west of Fort St. James, 42 samples assayed averaged 0.21% nickel (ranging from 0.12%-0.28% nickel).

The half dozen samples taken from the Letain property, which covers about 102-sq. km of the Cache Creek ultramafic complex east of Dease Lake, averaged 0.22% nickel (ranging from 0.17%-0.25% nickel). Nickel-iron alloys occur in streams draining a portion of the complex and the company is undertaking microscopic examinations to identify the extent and concentration of the alloy.

Sampling of its Azul project, covering 19-sq. km of the Blue River ultramafic complex north of Dease Lake, returned 65 samples averaging 0.22% nickel (ranging from 0.14%-0.29% nickel). Petrographic and scanning electron microscope analysis has identified disseminated millerite (a nickel sulphide) but no nickel-iron alloys. The company notes nickel-iron alloys are known to occur in the streams draining a portion of this complex and plans further work to locate its source.

Outside of its early-stage B.C. nickel projects the company also holds precious metal projects in Honduras and Nicaragua.

Shares of First Point have recently traded around the 14-level to give the company a $7.1-million market capitalization based on its 50.6-million shares outstanding. The stock has a 52-week trading range of 11-27.