First Point finds more gold at Filo Lapa (December 17, 2001)

Vancouver — First Point Minerals (FPX-V) has found higher gold grades during trenching at its Cacamuya project in Honduras.

The work was concentrated at the Filo Lapa zone and the recently discovered Hilo Libre vein zone.

At Filo Lapa, trenching across strike returned 0.97 gram gold per tonne over 74.5 metres. The company states that the results of 10 continuous channel samples ranged between 0.44 and 1.46 grams gold. Silver averaged 10.2 grams over the entire length of the trench and was as high as 59.8 grams in the southeastern section of the trench. The previously reported average grade was 0.75 gram gold over a maximum width of 50 metres.

At First Point’s recently discovered Hilo Libre prospect, 1.9 km north of Filo Lapa, trench sampling of the quartz-breccia vein returned 12.5 grams gold per tonne over a true width of 2.9 metres. The vein is exposed at the crest of a ridge and obscured by overburden to the north and south. This northerly vein trend runs parallel to and beneath the Filo Lapa zone.

Filo Lapa and Hilo Libre are hosted in a 3-km-long, north-south trend of soil geochemical anomalies and alteration. Neither has been drill-tested, though machine trenching, mapping and sampling are planned for early next year in preparation for drilling.

Exploration at Cacamuya has outlined a large mineralized system that measures 4 by 2 km. Two styles of mineralization have been identified: high-grade gold-silver epithermal veins at Cerro Chachagua and high-level disseminated sinter hosted mineralization at Filo Lapa.

Crews drilled 23 holes into the Cerro Chachagua target, 2 km east of Filo Lapa. Assays returned values as high as 104.7 grams gold per tonne and 743 grams silver per tonne over 6.2 metres.

Earlier this year, First Point entered into an agreement to buy Breakwater Resources‘ (BWR-T) 40% interest in the Cacamuya property in return for 500,000 shares. Breakwater retains a 0.4% net smelter return royalty (NSR), starting at US$325 per oz. gold and rising to a maximum of 1.2% at US$400 per oz. gold.

First Point also has an earlier option from Battle Mountain Gold, now merged with Newmont Mining (NEM-N), to earn the remaining 60% interest in the property by spending US$1 million on exploration and issuing 700,000 shares by July 2004. Newmont retains a 0.6% NSR.

First Point has also announced a non-brokered private placement of 1.25 million units priced at 20 each for gross proceeds of $275,000. Each unit comprises one share and one warrant. The warrant can be exercised for 25 during the first year after the agreement and 30 over the second year. The proceeds will be used for trenching and related work at Cacamuya.