Info and DD First Point - FPX.vI thought I would post some DD since there are 4 catalysts I think could move the share price. (Honduras mining law change due soon, news on now 4 Nickel properties in Canada, Gold/Silver numbers from Mexico, AQA.t share price movement). 5 commodites in 5 countries for $6.5 million seem cheap imho.
Market cap is $6.5 million - of that they own 2.1 million shares in AQA.to shares. They have close cash as of last report and land in 5 countries. Insiders bought at $0.18. There are some well known large shareholders.
Management/Board - current/former Placer Dome, Homestake, Sumitomo, Esso Minerals and Viceroy Resource, Orvana, Pegasus, Quadra Mining. They have recently added John Gammon to the board
First Point Minerals Corp. is a Canadian based mineral exploration company focused on acquisition of precious and base metal properties in the Americas. The company is currently concentrating its efforts in Canada, Mexico and Central America to advance properties to commercial production. Properties include: large nickel properties in Canada and precious metal (gold and silver) properties in Mexico and Central America. The management team with over 120 years of management experience in over 30 countries, is led by Dr. Peter M.D. Bradshaw and Dr. Ron Britten who collectively have been instrumental in the discovery, exploration and advancement of seven major mines containing over 25 million ounces of gold as well as several other mineral discoveries worldwide.
https://www.firstpointminerals.com/s/Home.asp
Nickel Properties (all properties 100% First Point)
First Point has recently acquired 100% of two large, early stage, nickel properties in British Columbia as part of an expanding nickel exploration program. These properties stem from work undertaken by First Point a number of years ago when the company investigated metallurgical recovery of naturally occuring nickel-iron minerals (not hosted in silicate minerals) and nickel sulphides. Bench scale metallurgical studies by First Point at that time demonstrated that the nickel could be extracted by a combination of leaching and physical separation from certain nickel ultramafic rocks with the particular, and moderately unique, nickel mineralogy. When this initial work was completed the price of nickel was US$3.50/lb and the economics of such a project did not appear attractive. With nickel currently trading in excess of US$20.00/lb these targets are much more attractive and First Point has renewed its interest in this project by acquiring properties.
The two properties are each part of large nickel rich ultramafic complexes. Historic work, done when nickel prices were very much lower, has been undertaken on these properties and is being compiled. Future work will be undertaken based on this compilation but will include initial mapping and sampling as well as additional metallurgical studies. First Point is also examining further properties with a view of acquisition.
Precious Metals Central America (all properties 100% First Point)
First Point Minerals is owner of 3 precious metal properties in Central America. The advanced Cacamuya low sulphidation epithermal gold/silver project in Honduras is host to 5 known zones of epithermal veins ocurring within six square kilometers of intense alteration. This property occurs in a "golden triangle" which defines an area with 4 gold mines which collectively, have produced more than 10 million ounces of gold. Three are also several active exploration drilling programs within this area by other companies, all of which will add to the ultimate number of ounces of gold produced from this quite small area. The best drill intersections include:
• Cerro Chachagua, 6.2 meters of 104.7 g/t gold & 743 g/t silver true width
• Cerro Chachagua, 4.1 meters of 8.4 g/t gold & 297 g/t silver true width
• Filo Lapa, 1.5 meters of 17.8 g/t gold
• D4/D5 area, 4.0 meters of 19.1 g/t gold
• D4/D5 area, 1.5 meters of 26.8 g/t gold
More details are available under "Projects" in particular on the interactive map. First Point is waiting for the Honduras government to pass the new mining law (which is very comerable to other mining laws in Latin America) before embarking on the next exploration phase.
Major Deposits and First Point Properties in Honduras and Nicaragua
Mesas de Cuapa is a large high sulphidation property, located in Nicaragua. Recent analytical results from widely spaced rock sampling, and mapping, completed on this large property have defined two targets, one silver and one gold, in the high sulphidation system. Seven rock panel samples over an area 3 by 3 metres carry from 6 to 26 grams/tonne (g/t) silver over a 75 metre distance in the Pedregal area. Similar sporadic silver values in rock samples occur along a trend extending 1,100 metres west of the 75 metre sample site noted above. Also rock samples or a ridge north of Cerro Quisaltepe range up to 0.42 g/t gold in a zone measuring 550 metres long and 150 metres wide. Soil sampling and trenches are planned in both target areas.
Mesas de Cuapa is similar to the high sulphidation style of system of the style that has hosted some of the largest gold and gold/silver mines in Latin America including: Pueblo Viejo (18 million ounces of gold and 95 million ounces of silver); Yanacocha (50 million ounces of gold); Pierina (10 million ounces of gold) and a number of other deposits from Mexico to Chile.
Tule intrusive hosted gold property and follow-up a number of gold and gold/silver targets from the joint exploration program with BHP Billiton which was completed in 2005, in which First Point now holds a 100% interest.
A First Point and BHP Billiton joint venture explored for giant porphyry copper-gold deposits in Honduras, Nicaragua and El Salvador from 2003 to March 2005. The joint venture collected and compiled a very large data base including a total of 3,349 stream sediment and 2,876 rock samples, plus geological and property data in some of the most prospective terrain in this part of Central America. Under the terms of the agreement with BHP Billiton all gold or gold-silver deposits discovered as a result of this work belong 100% First Point. This is a very valuable data base which First Point is now using to explore for gold and gold-silver deposits. A very early example of the success from the follow-up of this data is the discovery of the Tule intrusive hosted gold property in Honduras. Ten strongly oxidized mineralized float samples that range between 0.27 to 21.0 grams per tonne ("g/t") gold were collected in a 1,400 by 720 metre area. This mineralization is probably hosted by a deeply weathered intrusion.
Precious Metals in Mexico
First Point is actively examining precious metal mineral properties in Mexico.
2.1 Million Shares in Aquila Resources
In early 2004, First Point entered into a new base metal exploration arrangement with a private American company, Menominee River Exploration Corp. and formed Aquila Resources, First Point currently has 2.1 million shares in Aquila Resources, which has two massive sulphide zinc projects; the Cedros Project, a drill ready zinc-silver project in Honduras, and the Back Forty Project, an advanced stage zinc-gold project in Michigan.
Aquila Resources raised CAD$25 million in late 2006 and has recently calculated a resource estimate for the Back Forty Project. Aquila currently has an active drilling campaign to expand their resource and move towards a scoping study.
Other Activity
First Point continues to actively explore and evaluate new opportunities in North, Central and South America.
https://www.firstpointminerals.com/s/Home.asp
https://www.firstpointminerals.com/i/pdf/CorporatePresentation.pdf
Projects
https://www.firstpointminerals.com/s/RioLuna.asp
https://www.firstpointminerals.com/s/Cacamuya.asp
https://www.firstpointminerals.com/s/BHP-JV.asp
https://www.firstpointminerals.com/s/Aquila.asp
https://www.firstpointminerals.com/s/Nicaragua.asp
Photo Gallery
https://www.firstpointminerals.com/s/PhotoGallery.asp?reportID=96578
Shares Outstanding: 49,093,244
Head Office:
FIRST POINT MINERALS CP
1112 West Pender Street,Suite 906
Vancouver BC Canada V6E 2S1
Phone:604-681-8600
Fax:604-681-8799
Email:firstpoint@firstpointminerals.com
Website:
https://www.firstpointminerals.com
Management:
Dr. Peter M. D. Bradshaw, P.Eng.Position: Director, President and CEO
Geologist with 40 years international mineral exploration experience in over 30 countries with Barringer Research, Placer Dome and Orvana Minerals.
J. Christopher Mitchell, P.Eng.Position: Director
Business Consultant with more than 30 years experience in the mineral industry. Served as Executive Vice President of Viceroy Resource Corp., Senior Vice President and CFO of Orvana Minerals Corp. and Constellation Copper Corp.
Ron M. Britten
Position: Vice President Exploration
Geologist with more than 30 years international mineral exploration experience with Sumitomo, Esso Minerals and Homestake
Robert A. Watts, Position: Director
Chartered Accountant with 40 years experience in the mineral industry. Held senior executive positions in a number of companies including Placer Dome, Pegasus and Orvana Minerals.
William H. Myckatyn, P. Eng.Position: Director
Over 35 years experience in the Mining industry.
Currently founder, CEO and Director of Quadra Mining Ltd.
Report
https://www.firstpointminerals.com/s/QwikReport.asp
Head Office:
FIRST POINT MINERALS CP
1112 West Pender Street,Suite 906
Vancouver BC Canada V6E 2S1
Phone:604-681-8600
Fax:604-681-8799
Email:firstpoint@firstpointminerals.com
Website:
https://www.firstpointminerals.com
First Point Minerals Corp. is a Canadian based mineral exploration company focused on acquisition of precious and base metal properties in the Americas. The company is currently focusing its efforts in Central America to develop reserves on the Rio Luna gold property in Nicaragua and the Cacamuyá gold/silver property in Honduras. The management team with over 120 years of management experience in over 30 countries, is led by Dr. Peter M D Bradshaw and Dr. Ron Britten who collectively have been instrumental in the discovery, exploration and advancement of seven major mines containing over 25 million ounces of gold as well as several other mineral discoveries worldwide.
Advanced Projects
First Point Minerals is 100% owner of two advanced gold projects, Rio Luna in Nicaragua and Cacamuyá in Honduras. These two projects occur in a "golden triangle" as shown in the map below. This triangle defines an area with 4 gold mines which collectively, have produced more than 10 million ounces of gold. Three of these mines are still operating and continue to add reserves by further exploration. There are also several active exploration drilling programs within this area by other companies, all of which will add to the ultimate number of ounces of gold produced from this quite small area.
At the 100% owned Rio Luna Gold Property in Nicaragua, First Point Minerals has completed a 32 hole diamond drill program on three separate targets along the El Paraiso Vein System and one target area in the El Rodeo Vein System. This program totaled 3,400 meters. Gold values were encountered in all 32 holes, with the best values being found in 3 of the 4 zones tested. The most significant drill intersects to date are:
• Balsamo East, RL-21, 3.2 meters of 15.8 grams per tonne (g/t) gold
• Balsamo East, RL-22, 5.2 meters of 13.5 g/t gold
• Balsamo, RL-3, 2.6 meters of 19.4 g/t gold.
• Santa Rita, RL-9, 1.3 meters of 19.0 g/t gold.
The vein system has been drilled at 3 locations over less than 2.5 kilometers of the known 18 kilometers of quartz veining, which is still open.
Management is extremely encouraged by the results and the Company is currently completing an extensive surface program of soil sampling, augering and trenching prior to selecting further drill targets. This work has led to the discovery of a whole new vein system, the San Andreas Vein System with values up to 57.7 g/t gold and 59.2 g/t silver over 2.6 meters. More details including maps are available under "Projects".
The 100% owned Cacamuyá gold/silver property in Honduras is host to 5 known zones of epithermal veins occurring within six square kilometers of intense alteration. Some of the best drill intersections include:
• Cerro Chachagua, 6.2 meters of 104.7 g/t gold
• Cerro Chachagua, 4.1 meters of 8.4 g/t gold
• Filo Lapa, 1.5 meters of 17.8 g/t gold
• D4/D5 Area, 4.0 meters of 19.1 g/t gold
• D4/D5 Area, 1.5 meters of 26.8 g/t gold
More details including maps are also available for this property under "Projects". The Company is actively seeking a joint venture partner in order to undertake a recommended aggressive exploration and drill program on this property.
Earlier Stage Projects
First Point has applied for three new concessions in Nicaragua. The Boaco Viejo (already granted) and Mesas de Cuapa concessions are located immediately east and south of the Rio Luna Project. The Wasayama concession is situated between Natividad (Pavon) and San Pedro, both currently being drilled by Meridian Gold and Radius Gold respectively. First Point now has one of the largest land positions in Nicaragua totaling 1,260 square kilometers.
The recently announced agreement between Radius Gold and Meridian Gold confirms the acceleration of exploration efforts seeking gold in Nicaragua. Management believes that the mining and investment communities will be focusing more resources on exploration in Nicaragua, and companies with large land positions and favourable geology will be the greatest beneficiaries of this trend.
A strategic joint venture agreement to explore for giant porphyry copper-gold deposits in Honduras, Nicaragua and El Salvador between First Point and BHP Billiton was extended from February 2003 until March 2005. The joint venture collected and compiled a very large data base including a total of 3,349 stream sediment and 2,876 rock samples, plus geological and property data in some of the most prospective terrain in this part of Central America. Under the terms of the agreement with BHP Billiton all gold or gold-silver deposits discovered as a result of this work belong 100% to First Point. This is a very valuable data base which First Point is now using to explore for gold and gold-silver deposits.
A very early example of the success from the follow-up of this data is the discovery of the Tule property in Honduras as announced in the news release on June 14, 2005. Ten strongly oxidized mineralized float samples that range between 0.27 to 21.0 grams per tonne ("g/t") gold were collected in a 1,400 by 720 meter area. This mineralization is probably hosted by a deeply weathered intrusion.
2.4 Million Shares in Aquila Resources
In early 2004, First Point entered into a new base metal exploration arrangement with a private American company, Menominee River Exploration Corp. and formed Aquila Resources. First Point currently has 2.4 million shares in Aquila Resources, which has two massive sulphide zinc projects; the Cedros Project, a drill ready zinc-silver project in Honduras, and the Back Forty Project, an advanced stage zinc-gold project in Michigan.
Aquila Resources is currently calculating a resource estimate for the Back Forty Project. Aquila Resources has announced a merger with JML Resources which trades on the TSX - Venture Exchange. It is anticipated that this merger will be completed in the first quarter of 2006 and Aquila's shares will begin trading during that period.
Other Activity
First Point continues to actively explore and evaluate new opportunities in North, Central and South America.
Property Overview
First Point's exploration activities are focused on the Central American Gold Belt where it has two advanced properties and several earlier stage properties.
The Central American Gold Belt
The Central American Gold Belt stretches from Costa Rica in the south to Guatemala in the north. Within this area (less than ¼ the size of B.C.) there are 7 producing gold mines with more than 20 million ounces of past production and known reserves, plus several past producers and several new properties in advanced exploration. These are typically vein gold deposits being mined underground over a typical width of 1.5 to 6m and a grade of 5 to 10 g/t gold. The median size of the operating mines is 3 million ounces of gold and still growing.
First Point's Properties in Central America
The company has a number of gold, gold/silver and gold/copper properties in Central America. The two most advanced are the Cacamuyá gold/silver property in Honduras and the Rio Luna gold property in Nicaragua. These are situated in the centre of the Central American Gold Belt within a smaller triangle that contains 10 million ounces of gold, current reserves plus past production.
Both Rio Luna and Cacamuya are low to intermediate sulphidation veins. Within these veins there is a "productive horizon" where gold, at the time of formation, due to boiling, is typically 300 - 500m below the earth's surface. When the deposit if formed however, due to subsequent erosion, this productive horizon can now be found closer to the surface, or, indeed, eroded away and lost. The top and bottom of the productive horizon is generally close to horizontal. Above the productive horizon the quartz vein continues to surface but gold grades drop off very rapidly. Where there is one vein with ore grade material on any of the many properties around the Pacific Rim of this type, without exception, there will be more. A typical ore shoot in the this gold belt is 1-2km long and contains 0.5 to 1.5 million ounces of gold.
In addition to the 2 advanced properties the company has several earlier stage properties and a very large data set from the BHP Billiton joint venture with several gold and gold/silver anomalies that will be followed-up.
Details on these properties are in other folders in this "property" section of the web site.
Rio Luna Gold Property, Nicaragua
First Point's Option to purchase 100%
Location and Access
The property is 10 kilometers north of the town of Boaco, Nicaragua. Boaco is a regional center with stores, banks, fuel and other facilities. A 75-kilometer paved road from Managua to Boaco with good gravel roads northeast from Boaco leading to various parts of the property provide excellent access. The property itself is largely rolling grassland and scrub vegetation.
Property Status
The Company has completed it's Option to Purchase 100% of the property from Terra Nova Resources Inc. The property is a relatively large 90 square kilometers.
Previous Exploration
Very little previous exploration has been conducted on the property. There are a number of historic shallow trenches and a single shaft approximately ten meters deep, but there is no indication of past production and the property has never been systematically explored or drill tested. While the veins are poorly exposed there are numerous mineralized quartz vein boulders and the soil cover is quite shallow in many areas so boulder tracing and hand trenching is a very effective method of exploring for many of the veins.
Geology and Mineralization
The Rio Luna project hosts a large scale epithermal gold quartz vein system of the same style as many gold mines in a belt in southern Nicaragua and Honduras including: El Limon - 2.9 million ounces gold (Moz Au); La Libertad - 2.6 (Moz Au); and La India - 0.8 Moz Au. The host rock is mainly andesitic volcanics of Tertiary age.
Exploration
Initial Exploration
Initial exploration identified a poorly exposed principal mineralized structure 5 kilometers long and 2 to 10 meters wide. Wide spread rock sampling from float and trenches returned values up to 10.9 grams/tonne (g/t)gold and 15.5 grams/tonne silver (g/t silver) over 2 meters and up to 18.4 g/t gold and 213 g/t silver in grab samples with key values in 4 principal zones along the 5 kilometer structure.
Trenching
Systematic hand trenching has expanded the length of the known epithermal gold vein system, consisting of a number of veins as shown in the accompanying figure, to a combined length of 12 kilometers. There are still many mineralized float trains yet to be followed-up. The trenching consistently returned broader mineralized widths than anticipated owing to the presence of mineralized halos that extended for several meters away from the veins. Of the 65 hand trenches which intersected the target, 35 returned values greater than 0.5 g/t gold over mineralized widths, the average of which was 2.5 g/t gold over 2.6 meters with values as high as 21.1 g/t gold over 2 meters.
Cacamuyá Gold-Silver Property, Honduras
Interactive Map
Interactive Map
click to view
Cacamuyá is a volcanic-hosted, low sulphidation, epithermal, gold/silver prospect that combines two distinct, but unrelated styles of mineralization. Cerro Chachagua and D4/D5-Carmen/Esperanza are a series of east-west trending veins similar to Meridian Gold's El Peñón gold mine in Chile. Filo Lapa represents a high-level, potentially bulk mineable expression of this large-scale mineralization system.
The 23 diamond drill holes to date in this large property have values as high as 104.7 grams/tonne (g/t) gold and 743 g/t silver over 6.2 meters (m)apparent true widths. Historic mining at Carmen-Esperanza had grades of 15 to 30 g/t gold over less than one meter width. The continuity of bonanza grades has yet to be established.
Location
The Cacamuyá Property is located in southern Honduras in the Department of Choluteca and the Municipality of San Marcos de Colón. The Cacamuya property covers 4,741 hectares. The town of San Marcos de Colón, located on the Pan American Highway, is the field base for exploration and is located about 15 kilometers north of the center of the property.
Access to the main areas of mineralization on the property is via gravel roads.
Property Status
* On July 2nd 1999 First Point, and FPH entered into a Mining Option Agreement with Newmont Mining Corp. ("Newmont"), formerly Minera BMG, a subsidiary of Battle Mountain Gold Corp. ("Battle Mountain") to earn Minera BMG's 60% interest in the Cacamuyá Project. The option was exercised in July 2004. Under the terms of the agreement Newmont retains a 0.6% net smelter return ("NSR") royalty
* Under a separate agreement, First Point has agreed to purchase Breakwater's 40% interest in the property for 500,000 First Point shares, at such a time as the Honduran government enacts the regulations to the new Honduran mining code and converts title to the property. Breakwater Resources will retain a sliding scale royalty of 0.4% of the gross sale proceeds starting at US$325 per ounce of gold and rising to a maximum of 1.2% of the gross sale proceeds at US$400 per ounce of gold for all gold production, and 0.4% of the gross sale proceeds starting at US$5.25 per ounce of silver and rising to a maximum of 1.2% of the gross proceeds at US$7.00 per ounce of silver production.
Previous Exploration
The earliest recorded activity on the Cacamuyá Property dates back to 1900, when the Central American Mining Company mined the Carmen and Esperanza veins and to a lesser extent the Cerro Chachagua and Hilo Libre veins. Incomplete records indicate that mining of the Carmen and Esperanza veins exploited grades of 0.5 to 1.0 oz/ton gold over vein widths of from less than a metre to up to four metres.
Rosario Mining held the property from 1939 to 1940. During this period many of the previously mined workings were mapped and sampled and a number of maps from the 1920's were redrafted. These maps, which are the only record of activity prior to 1939, have been reproduced by Battle Mountain and appear reliable (Mashburn, 1995).
Modern exploration activities at Cacamuyá began in December 1990 by Breakwater through its Honduran subsidiary American Pacific Honduras. Breakwater targeted the Cacamuyá property as a potential bulk tonnage target and carried out an exploration program in 1991. The soil sampling outlined an anomaly of 2 kilometers square of >100 ppb gold, with several contiguous samples containing >1,000 ppb gold. Gold in soil anomalies are coincident with strong arsenic and molybdenum anomalies in the west half of the Target Area
Geology & Mineralization
Cacamuyá is a volcanic-hosted, low sulphidation, epithermal, gold/silver prospect that combines two distinct, but related, styles of mineralization that are represented by the Filo Lapa and Cerro Chachagua targets. These occur within a two kilometre wide by more than four kilometre long, north-trending zone of intense alteration and coincident strong multi-element soil anomalies.
The Filo Lapa Target, represents a high-level, potentially bulk mineable expression of this large-scale mineralized system. It exhibits characteristics similar to Glamis Gold's San Martin gold deposit in Honduras and contains disseminated mineralization in typically oxidized or leached outcrops.
Deeper-seated, high-grade, epithermal vein mineralization at the Cerro Chachagua and related targets are classic bonanza epithermal veins similar to Meridian Gold's El Peñón gold mine in Chile.
Exploration at Cacamuyá has improved the understanding of the controls of gold mineralization on the property. While Filo Lapa and Cerro Chachagua and their extensions are primary exploration targets, the Cerro Chachagua veins are important not only as a target themselves, but because they also indicate potential for higher grades below the Filo Lapa surface showing. The Sleeper Mine in Nevada, which contained 2.5 million ounces of gold, is probably the best example of a low sulphidation disseminated bulk mineable system that encloses a very high grade core of vein-controlled mineralization. Mineralization at Cacamuyá is within a much larger envelope of sericite-quartz alteration and anomalous gold, arsenic and other indicator elements. The broad zones of alteration and soil geochemical anomalies, which envelop the main targets at Cacamuyá, are directly comparable in size and intensity to those at the Sleeper mine and other major deposits of this class.
Exploration
Cerro Chachagua
From 1995 to 2003 a total of 21 diamond drill holes and five RC holes with diamond tails (totaling 3,836 metres of core and 291 metres of chips) were drilled along 700 metres strike length and to a depth of 150 metres on the Cerro Chachagua structure. A total of nine of these holes have intersected the vein and a further two (DH11-96 and DH03-95) are interpreted to have intersected footwall mineralization and veining associated with the main Cerro Chachagua structure. Drill highlights, which include cutting 104.7 g/t Au and 743 g/t Ag over 6.2 metres in DH06-96, are summarized in Table III.
https://www.firstpointminerals.com/s/Cacamuya.asp
Chachagua Longitudinal Section
Along the known 700 metre strike extent, the Cerro Chachagua vein system is developed at or near the contact of a strongly silicified felsic intrusion. Strain along this contact and competency contrast between the intrusion and host rock promoted the development of fracturing and development of the vein system. Quartz textures in the veins are characteristic of high level veins and the alteration assemblage, which includes sericite+chlorite within the vein structure, suggest that the vein exposed in this area is high level and above the level of gold mineralization.
The Cerro Chachagua structure is a classic high- to bonanza-grade epithermal vein system with similarities to Meridian's El Peñon Mine in Chile. The structure, which has a minimum strike length of 700 metres and down dip extent of 150 metres, is open both along strike and down dip. Drilling to date has focused on the western and eastern ends of the known strike length, with little drill testing of the central portion of the vein. The intersection of high- to bonanza-grades over significant widths has begun to establish the tenor of mineralization and define the upper extent of the productive horizon within the system.
Excellent exploration potential exists within the central portion of the vein, along strike and down dip for the discovery of significant zones of mineralization and ore shoots.
D4/D5 -- Carmen/Esperanza Veins
The D4/D5 area is a relatively flat-lying zone with scant outcrop and abundant quartz vein float centered approximately 350 metres north of the Cerro Chachagua structure and measuring approximately 350 by 400 metres. The East Zone is located 200 metres southeast of the D4/D5 area. The D4/D5 area was initially identified by a multi-element soil geochemical anomaly; diamond drill holes DH04-95 and DH05-95 subsequently cut significant mineralization in this zone (DH04-95: 18.1 g/t Au over 1.13m and 19.2 g/t Au over 3.96m ; DH05-95: 1.2 g/t Au over 7.6m). The D4/D5 area is underlain by red saprolite, thin bedded siliceous siltstone of the sedimentary sequence and heterolithic andesitic volcanic breccia of the lower volcanic sequence. Hole DH05-95 was collared along a north-northeast trending ridge of silicified and quartz vein material which may be bounded by a fault to the east. Patches of silicification, abundant vein float and narrow south-dipping quartz veins occur in red saprolite and minor heterolithic lapilli tuff of the lower volcanic sequence throughout this zone.
Some 800 metres to the west-northwest, the Carmen/Esperanza area is host to a series of subparallel southeast striking, moderately southwest dipping high-grade gold-bearing quartz veins which were mined to the water table by the Central American Mining Company in the first part of the 20th century. The Carmen/Esperanza veins are exposed for 250 metres along strike and 50 metres vertical extent in underground workings and surface exposures north of the Rio Iguazala. The veins are hosted within rhyolite tuff of the upper volcanic sequence that has been pervasively sericite altered. The veins exhibit breccia textures and multi-phase quartz and chalcedony and are locally sheared, possibly as a result of post-mineral displacement.
Work by First Point suggests that the Carmen/Esperanza area represent the western continuation of the D4/D5 mineralized trend. Together the D4/D5 and Carmen/Esperanza zones have a strike length on the order of 1.5 kilometres.
Figure 2.
A total of 536 metres of core and 735 metres of RC chips have been drilled in 18 holes in the D4/D5 area since 1995. Initial drilling by Minera BMG in the D4/D5 area cut 19.2 g/t gold and 89 g/t silver over 3.96 metres, as well as a narrower hangingwall zone with 18.1 g/t gold and 10.7 g/t silver over 1.13 metres in DH04-95. Approximately 230 metres to the west-southwest, DH05-95 intersected 1.2 g/t gold over 7.6 metres. Highlights of follow-up drilling in the D4/D5 area by First Point in 2003 includes:
* 37.5m of 1.0 g/t Au in RC22-03 (including 3.0m of 6.7 g/t Au),
* 27.0m of 2.0 g/t Au in RC25-03 (including 1.5m of 26.8 g/t Au),
* 6.0m of 2.7 g/t Au and 3.0m of 7.5 g/t Au (including 1.5m of 10.5 g/t Au) in RC26-03.
Filo Lapa, El Manglar Trend & Henry's Vein
The Filo Lapa Target Area lies at the southern end of the El Manglar trend, west of the Cerro Chachagua vein and immediately south of the southern boundary of the 1991 soil grid. In 2000 First Point discovered disseminated gold and silver mineralization at Filo Lapa associated with zones of pervasive sericite alteration containing variable limonite staining, hosted within altered flow dome intrusions and related volcanic and sedimentary strata of the upper volcanic sequence. Locally, sinter and zones of hydrothermal breccia are developed.
The El Manglar trend lies southwest of the Carmen/Esperanza workings and extends southward to Filo Lapa and northeast to Henry's vein, over a strike length of some 800 metres. The trend is primarily based on a well defined coincident multi-element soil geochemical anomaly and by the presence of zones of siliceous breccia and rhyolite flow domes hosted within upper volcanic strata. The trend is also the southern continuation of the Guayape Fault, a continental scale strike slip fault.
Alteration in the southern part of the trend comprises of pervasive sericite and local zones of silicification. In the northern part of the trend alteration comprises pervasive sericite and chlorite mixed clay assemblages.
Henry's vein, located at the northeast end of the El Manglar Trend and approximately 250 metres southwest of the old workings at the Carmen and Esperanza veins, is a new showing discovered by First Point in 2000. Henry's vein is hosted by strata of the upper volcanics, south of the Rio Iguazala where it is exposed along one of the main access road on the property. The veins comprises massive to colloform milky white to locally drusy amethyst quartz, which ranges from a few centimetres to over a metre wide as subparallel or en echelon veins. Veining occurs over a 10 metre wide zone and has been traced along surface for 240 metres. Initial rock sampling by First Point returned values of 2.4 g/t gold over 1 metre (sample 00RMB338) and 0.59 g/t gold over 1 metre (sample 00RMB336). Henry's vein is hosted within biotite bearing lapilli tuff of the upper volcanic sequence that has been variably altered to sericite and locally chlorite mixed clay assemblages.
In 2002 First Point drilled five RC holes at Filo Lapa (RC01-02 to RC05-02). The holes were oriented perpendicular to the north-northeast trending multi-element rock and soil geochemical anomalies. The five angled holes penetrated to a maximum vertical depth of 65 metres over a 160 metre strike length.
Holes RC01-02 and RC03-02 to RC05-02, collared in the core of the Filo Lapa zone all intersected long intervals of disseminated mineralization, including 103.5 metres of 0.26 g/t Au in RC04-02. In contrast to the broad intervals of lower grade mineralization encountered in drill chips and trenches, RC03-02 also cut a high-grade intersection, yielding 17.9 g/t Au over 1.5 metres.
Subsequent to trenching at Filo Lapa First Point drilled 299 metres in three widely spaced RC holes (RC06-02 to RC08-02) over a 250 x 550 metre area on the El Manglar Trend (Fig. 23). Hole RC07-02 tested a zone of strongly oxidized and altered volcanics in the area of Trench FL-61 (1.31 g/t Au and 14.1 g/t Ag over 12.7 metres, including 3.2 g/t Au and 43.7 g/t Ag over 4 metres). Hole RC07-02 cut 0.47 g/t Au over 10 metres, including 1.4 g/t Au over 1.5 metres within a broad zone of intense hematitic alteration. The potential downdip extension of mineralization in Trench FL-61 remains untested.
Holes RC06-02 and RC08-02 tested the down-dip extent of two separate vein systems exposed on surface in the northern part of the El Manglar Trend (Fig. 24). Hole RC08-02, which represents the only drill test of Henry's vein, intersected quartz vein material grading 1.02 g/t Au and 9.8 g/t Ag over 3.0 metres. Hole RC06-02, which tested a series of quartz veins exposed in trench CC-86, along the El Manglar trend, returned geochemically anomalous intersections of up to 0.20 g/t Au over 1.5 metres.
Surface exploration to date at Filo Lapa has defined a broad, low-grade northeast trending multi-element rock and soil geochemical anomaly associated with zones of pervasive sericite alteration with variable limonite staining hosted within altered flow dome intrusions and associated with local zones of silica sinter.
Based on surface work the initial target at Filo Lapa was interpreted to be a high-level bulk mineable deposit. However, drilling of the core zone in 2002 and trenching to the north along the El Manglar trend has revealed the presence of high-grade zones of veining and silicification. As such, the principal target appears to be deeper seated, structurally controlled high-grade feeder-type mineralization such as those found at El Peñón in Chile or Sleeper in Nevada.
Hilo Libre Zone
Hilo Libre is a north trending zone of quartz breccia veining and sinter, the center of which is located 800 metres north of Carmen/Esperanza workings. Three old adits have been located in the Hilo Libre area: the Hilo Libre adit, the Loma adit (located 165 metres to the west) and an unnamed adit (located 235 metres to the south).
In 2002 First Point drilled 449.75 metres in four RC holes (RC09-02 to RC12-02) over a 425 metre strike length at Hilo Libre. The widely spaced holes were designed as preliminary tests of the down dip extent of mineralization encountered in trenches and old workings in this area.
The northernmost of the four holes, RC11-02, cut 7.9 g/t Au over the final 4.5 metres of the hole. This hole targeted a north-trending quartz vein which yielded 0.4 g/t Au over 2.4 metres in trench HL-24. Approximately 80 metres west-southwest and uphill of the collar of RC11-02 a composite grab sample of quartz vein yielded 4.4 g/t Au (sample 02PXB270).
Preliminary exploration at Hilo Libre, which includes trenching and four widely spaced drill holes, has lead to the discovery of several high-grade gold intersections over mineable widths in an area of north-trending mineralization and a 450 metre strike length. Lack of surface exposure within this zone has hampered the understanding of the continuity and relationship between sub-zones of mineralization exposed at Hilo Libre.
Variability in assay results from high-grade samples at Hilo Libre highlights the coarse nature of the precious metal mineralization and suggests the need for large sample size in future sampling at Hilo Libre.
DEPOSIT TYPE & ANALOGUES
Gold-silver mineralization on the Cacamuyá Property is characteristic of a low-sulphidation epithermal system. Drilling and surface exposures within the Target Areas have exposed several styles of low-sulphidation epithermal mineralization, including high- to bonanza-grade quartz+adularia veins and lower-grade disseminated, hot-spring style mineralization. Chimneys and sinter within zones of lower grade mineralization provide clear evidence of exhalative activity. Bladed quartz textures observed in float below the Cerro Chachagua zone indicate boiling of the mineralized fluids and by inference gold deposition.
Table VII lists key characteristics of several significant epithermal gold deposits in the Circum-Pacific region, such as size, average grade, aerial extent of the footprint to mineralization, style of mineralization and where available, average mining cost per ounce of gold. Based on this data the mineralized system at Cacamuyá compares favourably to major gold deposits such as the Sleeper deposit in Nevada and Porgera (Zone VII) in Papua New Guinea, with respect to grade, size of the mineralized system and style of mineralization.
Lower-grade zones of disseminated and hot spring style precious metal mineralization at Cacamuyá, including the surface expression of Filo Lapa, portions of the D4/D5 area and possibly the El Manglar trend represent the upper levels of vein systems. These systems have the potential to coalesce into high-grade veins of significant width at depth.
In addition to vein style mineralization, the project holds the potential to host disseminated gold mineralization similar to the Filo Lapa zone, either along the El Manglar trend or further to the west where the property has received only cursory exploration. A realistic target would be several tens of millions of tonnes of plus 1 g/t gold equivalent with good metallurgy and a low strip ratio amenable to open pit mining similar to the San Martin deposit in Honduras (42 million tonnes grading 0.87 g/t gold). A series of high-grade structures within broader, bulk tonnage targets, similar to the Sleeper deposit in Nevada, is another possibility at Cacamuyá.
Data Base from the BHP Billiton-First Point Joint Venture in Honduras and Nicaragua
In early 2003 First Point commenced a one year strategic exploration agreement with BHP Billiton which was managed by First Point. This was expanded in 2004 and continued until March 2005. The purpose of the agreement was to explore for large porphyry copper-gold deposits in three Central American countries, Honduras, Nicaragua and El Salvador. Under the terms of the agreement any gold or gold-silver targets which are discovered as a result of this work belong 100% to First Point. The Joint Venture accumulated a very large data base including a total of 3,349 stream sediment and 2,876 rock samples, plus geological and property data in some of the most prospective terrain in this part of Central America. This very valuable data base is being used by First Point to explore for gold and gold-silver deposits.
A very early example of the success from the follow-up of this data is the discovery of the Tule mineralization in Honduras as announced in the news release on June 14, 2005. Ten strongly oxidized mineralized float samples that range between 0.27 to 21.0 grams per tonne ("g/t") gold were collected in a 1,400 by 720 meter area. This mineralization is probably hosted by a deeply weathered intrusion. Further details are available in the news release of June 14, 2005.
First Point's interest in Aquila Resources Corp.
First Point has entered into an agreement with Menominee River Exploration Co. LLC, a private company based in Michigan, ("MREC") for the purposes of advancing First Point's Cedros property in Honduras, and MREC's Back Forty property in Menominee County in the Upper Peninsula of Michigan.
Pursuant to the terms of the agreement, First Point and its wholly-owned subsidiary, First Point Honduras S.A. de C.V. will contribute the Cedros property to Aquila Resources Corp., a company recently incorporated under the Canada Business Corporations Act ("Aquila"), and MREC will contribute the Back Forty property. Aquila's principal focus will be on zinc and copper deposits with commercially important gold and/or silver credits. Other classes of deposits, such as nickel with associated platinum group metals, will also be targeted. Initially, First Point holds 2.4 million shares in Aquila. First Point intends to hold this as an investment and does not plan to contribute to further financing. Aquila is merging with JML Resources Ltd. in order to go public and advance the Back Forty. Details can be found on the JML website at
https://www.jmlresources.com..
he Back Forty Zinc-Gold Project, Michigan
The Back Forty is an advanced stage exploration project focusing on gold and massive sulphide targets in early Proterozoic rocks. Early in 2002, drill testing of a geophysical anomaly resulted in the discovery of the LK massive sulphide zinc/gold deposit. Subsequent drilling in 2003 defined a potentially economic resource of zinc and gold rich massive sulphide mineralization, plus adjacent gold rich sections low in sulphides. The massive sulphide lenses (see Table I
https://www.firstpointminerals.com/s/Aquila.asp ) show impressive widths and continuity.
The potential to expand the three massive sulphide zones is excellent. The Main Zone massive sulphides remain open down plunge to the west, and ground geophysical surveys indicate probable extension in this direction for at least another 425 meters. The Tuff Zone massive sulphide is open at depth and along strike to the east, and has not been drilled along its surface projections where there is potential for enriched gossans similar to the East Zone.
Impressive gold intercepts in a variety of host rocks peripheral to massive sulphide mineralization suggest strong potential for "gold only" style mineralization, as shown in Table II
https://www.firstpointminerals.com/s/Aquila.asp . The fact that these intercepts were random "hits" in holes targeting massive sulphide mineralization suggests good potential for expansion.
n 2004, First Point Minerals entered into an agreement with Aquila Resources whereby Aquila acquired the Cedros property and First Point receiving 22% of Aquila Resources.
The Cedros property is located at the southern end of a belt of world-class, carbonate-hosted silver-zinc-lead deposits that extend from Mexico to central Honduras. The Spaniards mined the tops of high-grade, probably oxidized, massive sulfhide replacement zones along a two kilometer trend in the 1600 and 1700s. The Spaniards halted mining at relatively shallow depths when they encountered the water table.
First Point's exploration has focused on geological mapping and trenching within a very strong silver-zinc-lead soil geochemical anomaly measuring approximately two by three kilometers. Within this area the geology changes from large intrusions of intermediate to acid composition in the south, hosted in carbonate rocks, to a series of small stocks, dykes and sills of similar composition to the north. The carbonate rocks are generally more arenacous in the south and grade to more pure limestone in the north. The styles of mineralization also change from broader, disseminated bulk mineable silver-zinc at Carmelo Sur and Cedros Abajo in the south to the historically mined massive sulfhide replacement styles at Belen, Azul and El Carmelo in the north. Trenches in the south, in strongly oxidized and leached outcrop, have encouraging values as detailed in the table. These are prime targets for bulk-mineable silver-zinc in carbonates and other sediments adjacent to the major intrusions. Trenches to the north have encountered much higher grades related to massive sulfhide style carbonate replacement mineralization.
BOACO VIEJO CONCESSION
* Location Bounds the east margin of the Rio Luna project approximately 80 kilometers northeast of Managua, the capital of Nicaragua.
* Access Asphalt or all-weather gravel roads and other 4 wheel drive roads are accessible to portions of the concession. High elevations in the central region of the concession have 4 wheel drive road access during the dry season.
* Ownership 100% mineral title is owned by First Point Minerals de Nicaragua S.A., a subsidiary of First Point Minerals Corp.
* Geology The La Libertad unit consists mainly andesite lava and breccia of Tertiary Age that cover most of the Concession. This unit hosts the 2.8 million ounce gold La Libertad Mine located about 40 km to the southeast. A 10 kilometer wide caldera in the northeast margin of the Boaco Viejo concession contains a large zone of alteration of 5 kilometers long, which was defined by the Swedish-Nicaraguan government joint project. Intermittent alteration zones extend 23 kilometers to the southwest to the east boundary of the Mesas de Cuapa Concession. The long axis of several calderas are parallel to the alteration pattern in the central portion of the volcanic pile. Silicified boulders adjacent to some roads are related to high-level epithermal precious metal targets on this concession.
* Previous Exploration First Point Minerals Corp or other groups have not explored in this area. The Swedish and Nicaraguan governments completed a joint project during the period of 1981 to 1991, and the results were published in 1998 as a book called Geoscientific Research in Nicaragua. The compilation of this work was published including the Boaco Viejo Concession and the long northeast trend of calderas and alteration.
MESAS DE CUAPA CONCESSION
* Location The Concession is 5 km south of the Rio Luna project and about 60 kilometers northeast of Managua, the capital of Nicaragua.
* Access Asphalt or all-weather gravel roads and other 4 wheel drive roads provide access to parts of the concession.
* Ownership 100% mineral title is owned by First Point Minerals de Nicaragua S.A., a subsidiary of First Point Minerals Corp.
* Geology The La Libertad unit consists of mainly andesite lava and breccia of Tertiary age and covers the east side of the Concession. The west side of the concession consists of the Santa Lucia unit which is the same host of the Rio Luna vein system. Intermittent alteration zones extend an additional 13 kilometers to the southeast into the west margin of the Mesas de Cuapa Concession although an internal Concession owned by another company covers some of this alteration. Silicified boulders and pervasive alteration indicate a total of 35 kilometers of alteration related to epithermal precious metal targets on the Mesas de Cuapa and the Boaco Viejo Concessions.
* Previous Exploration No previous exploration by First Point Minerals Corp or other exploration groups have worked in this area. Geoscientific Research in Nicaragua, completed a Swedish-Nicaraguan joint project during the period of 1981 to 1991 who mapped and published the results in 1998, including the Mesas de Cuapa Concession.
RIO SOMBRERO NEGRO CONCESSION
* Location The concession is located 120 kilometers southeast of Rio Luna and approximately 180 kilometers east of Managua, the capital of Nicaragua.
* Access All-weather gravel or asphalt roads and other 4 wheel drive roads provide access to many portions of the concession. The Rio Seco, a major river, which flows to the Caribbean Sea, bisects the Concession. The northern half of the Concession is accessible in the dry season, only from November to May.
* Ownership 100% mineral title is owned by First Point Minerals de Nicaragua S.A., a subsidiary of First Point Minerals Corp.
* Geology Andesite breccias and other volcanics of uncertain age or units have been noted in the southern half of the Concession. Zones of silicification occur in the south showing and epithermal veins are probably related to a felsic dome hosting andesites. The northern showing, Minas de Oro, on the north end of the concession has epithermal characteristic veins and evidence of small-scale mining.
* Previous Exploration No previous exploration work is noted although the two showings in the north and south ends of the concession have been noted in the Nicaragua Government data base. The Minas de Oro, was located on the Topographic map in 1980
JMHO TIA