Cliff affirmation of Decar

Cliffs Natural Resources Inc has made an earlier than required commitment to completing a preliminary economic assessment (scoping study) on the optioned Decar nickel-iron alloy project in central British Columbia.

Decar represents an unusual type of nickel mineralisation, being a naturally-occurring nickel-iron alloy (awaruite), with no associated sulphides. No smelting is required, and the deposit is stylised as a 'stainless steel porphry'.

The project is owned by Vancouver-based First Point Minerals Corp, which was the first company to identify the potential of this unique type of deposit. First Point has seven other, 100%-owned, nickel-iron projects in British Columbia and is extending the search worldwide. None of these properties are subject to any 'back-in' rights.

First Point's chief executive officer, Peter Bradshaw, told Mining Journal that the company expects to spend US$2 million in its own right this year, with US$8 million "in the kitty" to expand the exploration effort.

Cliffs' senior vice-president of business development, Clifford Smith, told analysts recently that the company was "very excited" about Decar, and that he expects it to be "our first major discovery". Cliffs owns 15% of First Point (a stake that is subject to a standstill agreement until December 2013).

Cliffs Natural Resources Exploration Canada Inc announced that it will complete a NI 43-101-compliant assessment within 18 months to earn a 51% interest in Decar.

Under the original option agreement (agreed in November 2009 without a single hole having been drilled), Cliffs had until early 2015 to complete a scoping study. The company can increase its property ownership ultimately to 75% by completing a bankable feasibility study. First Point would hold the remaining 25% participating interest, plus a 1% net smelter return royalty interest.