First Point ups stake at Cacamuya

Vancouver — Breakwater Resources (BWR-T) has decided not to participate in the next exploration program on the Cacamuya low-sulphidation gold property in southern Honduras. As a result, First Point Minerals (FPX-V) is now free to acquire a 75% stake in the prospect.

First Point initially acquired a 60% stake in Cacamuya from Battle Mountain Gold (BMG-N) by issuing 700,000 shares and agreeing to spend US$1 million on exploration over five years. Battle Mountain retains a 0.6% net smelter return royalty.

Cacamuya measures 140 sq. km and occupies the northern extension of the large graben feature known as the Nicaraguan Depression. This year, First Point intends to conduct a US$500,000 program of surface mapping and trenching, followed by drill-testing, on the promising Filo Lapa target.

In the mid-1990s, the Battle Mountain-Breakwater joint venture drilled 14 holes over the anomaly, which measured 1.2 km long and ranged in width from 60 to 250 metres. The companies hoped to outline a deposit minable by open-pit methods. The program failed to outline a bulk-minable zone. However, at the Cerro Chachagua target, five of the holes cut a high-grade, gold-bearing structure over a 600-metre strike length to a vertical depth of 75 metres.

First Point first drill-tested Cerro Chachagua in 2000. Previous drilling there yielded up to 104.7 grams gold and 743 grams silver per tonne over 6.2 metres. Three of the six holes returned values greater than 1 gram gold. Results included the following:

– hole 16 — 2 grams gold and 182 grams silver over 2.1 metres (from 157 metres down-hole) and 2.4 grams gold and 16.2 grams silver over 3.6 metres (from 183 metres down-hole);

– hole 17 — 2.7 grams gold and 63.7 grams silver over 1 metre from 210 metres down-hole;

– hole 21 — 10.9 grams gold and 8.3 grams silver over 0.6 metre from 68.4 metres down-hole.

Southwest of Cerro Chachagua, mapping and sampling have outlined a gold/silver/lead/arsenic-in-soil anomaly that measures 650 by 350 metres. Subsequent chip sampling defined a northeast-trending zone that returned greater than 0.5 gram gold per tonne. The structure is 250 metres long and 10-50 metres wide. Twelve chip samples marking a 150-metre strike length averaged 0.71 gram gold.

First Point says the potentially bulk-minable area represents the near-surface impression of the mineralizing system that emplaced the deeper-seated epithermal veins at Cerro Chachagua.

Filo Lapa is now the company’s primary target.