First Point Minerals (CVE:FPX) announced Cliffs Natural Resources (NYSE:CLF) will do a scoping level study on the Decar nickel-iron alloy project.
First Point Minerals (TSXV:FPX) announced Cliffs Natural Resources (NYSE:CLF) will do a scoping level study on the Decar nickel-iron alloy project.
The press release is quoted as saying,
By agreeing to complete a National Instrument 43-101 compliant preliminary economic assessment, or scoping study, within 18 months, Cliffs is deemed to have earned a 51% interest in the Decar property under the amended option agreement. Cliffs has increased its exploration and development budget for the Decar project to approximately US$7 million in 2011 and is in the process of hiring an engineering consultant group to conduct the scoping study.
First Point’s President, Peter Bradshaw said,
Under the original option agreement, if Cliffs had determined to exercise the second option to acquire an additional 9% interest in the Decar property, Cliffs would not have been required to complete a scoping study until early 2015. The amended option agreement greatly shortens that timeframe. While Cliffs now has 18 months to deliver the scoping study, we are hopeful that Cliffs will have the study completed in about a year’s time.