First Point Minerals Options High-Grade Cacamuya Gold-Silver Property in Honduras
VANCOUVER, March 11 /CNW/ - Peter Bradshaw, President of First Point
Minerals Corp., is pleased to announce that the company has entered into an
option agreement with Battle Mountain Gold to purchase Battle Mountain's 60%
interest in the high-grade Cacamuya Gold-Silver Property in southern Honduras.
Breakwater Resources, the most experienced mining company in Honduras, holds
the remaining 40% interest in the property.
Diamond drilling on the property by the Battle Mountain/Breakwater joint
venture intersected up to 104.7 grams/tonne gold (3.05 ounces/ton) and 743
grams/tonne silver (21.7 ounces/ton) over a 6.2 meter (20.5 foot) apparent
true width of epithermal mineralization at the property's main known target,
Cerro Chachagua. This target strikes west, dips steeply south and is open in
all directions. It is at least 600 meters long and has been tested to a depth
of about 75 meters with five diamond core holes and limited surface trenching.
Four out of the five drill holes that appear to have intersected the target
returned significant grades as noted in the table below. None of the other
nine holes drilled on the property, tested the Cerro Chachagua target.
<<
Cerro Chachagua Target, Cacamuya Property
-----------------------------------------
Hole From To Interval Estimated Gold Silver
True Width
---------------------------------------------------------------
meters meters grams/tonne grams/tonne
---------------------------------------------------------------
DH96-06 144.8 164.3 19.5 6.2 104.7 743
Includes 144.8 152.7 7.9 2.5 186.9 1017
And 161.0 162.2 1.2 0.4 454.5 4400
DH96-07 142.4 146.6 4.3 4.1 8.4 297
DH96-09 170.1 179.1 9.0 2.9 6.8 84
DH96-14 65.5 69.2 3.7 1.2 8.0 64
>>
A second zone of mineralization is located 150 to 400 meters north of the
Cerro Chachagua target, where one of two drill holes intersected 19.2
grams/tonne gold (0.56 ounces/ton) and 89 grams/tonne silver (2.6 ounces/ton)
over 3.96 meters (13 feet) core length and 9.6 grams/tonne gold (0.53
ounces/ton) over 1.13 meters (3.7 feet) core length in two separate intervals.
Trench assays in this area of relatively flat lying topography and shallow
dipping stratigraphy range between 1.2 to 13.7 grams/tonne gold. A broad
northeast-trending, 1,200 meter long soil anomaly links the Cerro Chachagua
and this northern target area. Several other gold soil anomalies, measuring
between 60 and 250 meters on a side, lie to the northwest of Cerro Chachagua
and represent distinct targets.
The next phase of work will include mapping and trenching followed by
diamond drilling to define the extent and grade of the mineralization at the
Cerro Chachagua target and test the other target areas to the north and
northwest.
First Point has the option to purchase Battle Mountain's 60% interest in
the property by spending US$1 million for exploration work on the property and
paying 700,000 shares to Battle Mountain over five years. Battle Mountain
will retain a 0.6% NSR in the property. Breakwater Resource's 40% interest
will be carried for the first US$400,000 of First Point's work expenditures.
Thereafter Breakwater must elect to participate at a 40% level or dilute.
Breakwater's current exploration focus is on base metals. It has operated the
El Mochito zinc-lead-silver underground mine in Honduras since 1990.
First Point's shares trade on the Alberta Stock Exchange under the symbol
FPX.
First Point is an international mineral exploration company with offices
in Canada, USA and Peru, using its technical expertise to acquire properties
at an early stage and advance them through exploration to discovery of
significant deposits.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
%SEDAR: 00004553E
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For further information: Peter Bradshaw, President and CEO, (604)
681-8600; Bill Trenaman, Investor Relations, at 604-681-8600 |
