The resource definition drilling and expansion program undertaken on the Baptiste deposit in 2012 yielded substantially more tonnes and higher average grades. An updated NI 43-101 compliant mineral resource estimate was completed by Caracle in early 2013.

Updated Baptiste Deposit Mineral Resource Estimate* (Caracle Creek International Consulting Inc., January 23, 2013):

Category Tonnes Davis Tube Recoverable Nickel Content
(% Ni) (Tonnes) (Pounds)
Indicated 1,159,510,000 0.124 1,437,800 3,169,700,000
Inferred 870,400,000 0.125 1,088,000 2,398,600,000

*Note: Reported at a cut-off grade of 0.06% DTR nickel. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Tonnes have been rounded to the nearest 10,000. Grade has been rounded to three significant digits .The mineral resources are constrained by a GEMCOM Whittle pit, based on the reported cut-off grade.

The updated January 23, 2013 NI 43-101 compliant mineral resource estimate was prepared by Jason Baker, P. Eng., of Caracle Creek, an independent qualified person as defined by NI 43-101 Standards of Disclosure for Mineral Projects. Caracle Creek supervised and managed the 2012 and 2011 drilling programs at Decar on behalf of Cliffs. The updated resource estimate adds an additional 32 core holes (16,347 metres) completed during the summer of 2012 to the initial resource estimate, bringing the total number of core holes in the data base to 74, representing 28,917 metres of drilling. The average drill hole spacing in the Baptiste deposit is 200 metres. A total of 7,852 drill samples of core were used for the resource estimation.

Resource Estimate Details

The block model tonnage and grade for each of the indicated and inferred resource categories were calculated at various cut-off grades as shown in Table 1 and 2:

Table 1: Indicated Block Model tonnage and grades reported at various cut-off grades.*

Cut-off Grade (%) Tonnes Davis Tube Recoverable Nickel Grade (%)
0.02 1,170,510,000 0.124
0.04 1,169,130,000 0.124
0.06 1,159,510,000 0.124
0.08 1,121,810,000 0.126
0.10 999,440,000 0.130
0.12 691,870,000 0.139

*Note: Tonnes have been rounded to the nearest 10,000. Grade has been rounded to three significant digits. The base-case mineral resource was estimated at a cut-off of 0.06 % DTR nickel. These figures are not to be misconstrued as mineral resources as they are intended for the sole purpose of demonstrating the sensitivity of the resource estimate with respect to reporting cut-off grade. The mineral resources were also constrained with a Whittle pit.

Table 2: Inferred Block Model tonnage and grades reported at various cut-off grades.*

Cut-off Grade (%) Tonnes Davis Tube Recoverable Nickel Grade (%)
0.02 881,260,000 0.124
0.04 877,900,000 0.124
0.06 870,400,000 0.125
0.08 842,610,000 0.126
0.10 733,160,000 0.132
0.12 503,790,000 0.141

*Note: Tonnes have been rounded to the nearest 10,000. Grade has been rounded to three significant digits. The base-case mineral resource was estimated at a cut-off of 0.06 % DTR nickel. These figures are not to be misconstrued as mineral resources as they are intended for the sole purpose of demonstrating the sensitivity of the resource estimate with respect to reporting cut-off grade. The mineral resources were also constrained with a Whittle pit.

The geological resource model was constructed by Caracle Creek using composited drill hole data, drill core logs and down-hole survey data. The mineral resource estimation was evaluated using geostatistical block modeling methods constrained by mineralized wireframe. The mineral resources have been estimated in conformity with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “Estimation of Mineral Resources and Mineral Reserves Best Practises” guidelines and were classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (November 2010) guidelines. The mineral resources are reported in accordance with the Canadian Securities Administrators NI 43-101.

The geological resource model consists of a large, curved volume, which is 3.0 kilometres long, 150 to more than 1,080 metres wide and extends up to 540 metres deep. The Baptiste deposit remains open along strike in both directions, to the southeast in the higher-grade central area and at depth over the entire system. It is covered by an average of 12 metres of overburden.

The mineralized serpentinized peridotite host rock at Baptiste is cut by several steeply-dipping, non-mineralized dykes, which in total comprise just ~4% of the rock mass in the mineralized domain. These dykes, mostly in the range of 2 to 5 metres thick, were incorporated by Caracle Creek in a zero grade domain. The dyke domain was subtracted from the mineralized domain in order to eliminate the zero grade assays from the mineralized domain.

Block models measuring 40 metres x 40 metres x 10 metres were interpolated for evenly distribution of 1,649 specific gravity (“SG”) composites based on SG measurements on drill core pulp using the inverse distance method of interpolation. The grade of the mineral resource was based on ordinary kriging using two passes, which was verified using the inverse distance squared method.

The above technical information and all the other technical information on this website pertaining to geology and drill hole data was prepared under the supervision of First Point’s Chairman Dr. Peter Bradshaw., P. Eng., a Qualified Person as defined in National Instruments 43-101 – Standards of Disclosure for Mineral Projects.