MEDIA RELEASE PR36862
Duluth Metals confirms 12 million Indicated ounces and 6 million Inferred ounces of contained palladium,
platinum and gold
Toronto, Ontario, Oct. 30 /CNW-AsiaNet/ --
TORONTO, Oct. 30 /CNW/ - Duluth Metals Limited ("Duluth") (TSX: DM)
(TSX:DM.U) today confirms 12 million Indicated ounces and 6 million Inferred
ounces of contained platinum, palladium and gold (Total Precious Metal or TPM)
in the Nokomis Deposit as reported by Scott Wilson RPA's latest NI 43-101
Resource Estimate (see Duluth Metals press release dated October 26, 2009).
This 3 million ounce increase in Indicated Resources represents a 34% increase
in the TPM ounces over the Scott Wilson RPA June 2008 NI 43-101 Resource
Estimate.
Contained Precious Metals
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June 2008 October 26, 2009
Metal(1) Indicated Resources Indicated Resources Incremental Change(2)
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Palladium 5.17 million ounces 6.93 million ounces +1.76 million ounces
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Platinum 2.30 million ounces 3.11 million ounces +0.81 million ounces
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Gold 1.21 million ounces 1.63 million ounces +0.42 million ounces
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TPM 8.68 million ounces 11.67 million ounces +2.99 million ounces
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June 2008 October 26, 2009
Metal(1) Inferred Resources Inferred Resources Incremental Change(2)
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Palladium 3.94 million ounces 3.60 million ounces -0.34 million ounces
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Platinum 1.75 million ounces 1.63 million ounces -0.12 million ounces
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Gold 0.88 million ounces 0.80 million ounces -0.08 million ounces
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TPM 6.57 million ounces 6.03 million ounces -0.54 million ounces
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(1) Silver has not been included in this analysis
(2) The decrease in the Inferred Resources represents a net tonnage
conversion to the Indicated Resource category.
"The overall contained precious metals increase confirms that Duluth
Metals has a significant stake in precious metals as well as base metals and
should be viewed in the context of having only explored approximately 60% of
the Nokomis Property" said Christopher Dundas, Chairman of Duluth Metals. "We
have the potential to separate and monetize the precious metal revenue stream
from our substantial base metal revenue stream. This potential for separation
is enhanced by the proposed utilization of Platsol(TM) or other similar
hydromet processes which separate the precious metal concentrate prior to
marketing to precious metal refineries."
This significant increase in the total precious metals content of the
deposit is due to the 2008-2009 drilling that filled-in and expanded multiple
higher grade zones within the overall deposit particularly in three areas -
known as the Eastern, Central and Western Higher Grade Areas. These three
Higher Grade Areas have a cumulative total of 92 million Indicated tonnes of
1.023 g/t TPM (1.80 CuEq% at a 1% CuEq cut-off grade) and 22 million Inferred
tonnes of 1.005 g/t TPM (1.81 CuEq% at a 1% CuEq cut-off grade). Cumulatively,
the Eastern, Central and Western Higher Grade Areas exhibit 55% higher TPM
grades in the Indicated Resource category compared to the global Indicated
Resource TPM grades, and 47% higher TPM grades in the Inferred Resource
category compared to the global Inferred Resource TPM grades. In addition,
there are three other higher grade areas that have been identified to date in
the Nokomis Deposit, known as Areas A, B and C. The combined resource for
these additional areas totals 48 million tonnes of 0.802 g/t TPM (1.75% CuEq
at a 1.0% CuEq cutoff grade) and an additional 12 million tonnes of 0.972 g/t
TPM (1.68% CuEq at a 1.0% CuEq cutoff grade).
All of these higher grade areas are important for future mine planning
and initial operations in order to enhance rapid payback of capital
investment. As the 40,000 tonne per day operation featured in the NI 43-101
January 2009 Preliminary Assessment utilizes 14 million tonnes of feed per
year, the higher grade areas need to be studied carefully during
pre-feasibility in order to enhance and optimize cash flow in the initial
years of operation. The combined resource estimates for the Eastern, Central
and Western Higher Grade Areas are highlighted in the Table below.
RESOURCE ESTIMATES FOR THE COMBINED EASTERN, CENTRAL AND WESTERN
HIGHER GRADE AREAS
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Indicated Resources(1-10)
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Cut-off Tonnes Cu Ni Co Au Pt Pd TPM CuEq
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Grade (000's) % % % g/t g/t g/t g/t %
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1.0% CuEq 91,548 0.754 0.213 0.010 0.137 0.272 0.614 1.023 1.80
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0.5% Cu 90,419 0.757 0.213 0.010 0.138 0.273 0.617 1.028 1.81
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0.6% Cu 81,234 0.780 0.218 0.010 0.140 0.283 0.639 1.062 1.86
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0.7% Cu 57,728 0.832 0.228 0.010 0.148 0.305 0.682 1.135 1.97
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0.8% Cu 32,404 0.899 0.237 0.010 0.158 0.326 0.728 1.212 2.10
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Inferred Resources(1-10)
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Cut-off Tonnes Cu Ni Co Au Pt Pd TPM CuEq
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Grade (000's) % % % g/t g/t g/t g/t %
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1.0% CuEq 22,002 0.760 0.216 0.010 0.126 0.272 0.607 1.005 1.81
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0.5% Cu 21,894 0.763 0.216 0.010 0.126 0.273 0.610 1.009 1.82
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0.6% Cu 20,101 0.780 0.220 0.010 0.130 0.284 0.629 1.043 1.86
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0.7% Cu 15,440 0.817 0.229 0.011 0.134 0.305 0.660 1.099 1.95
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0.8% Cu 8,431 0.868 0.237 0.011 0.139 0.331 0.696 1.166 2.05
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1. CIM definitions were followed for Mineral Resource estimation and
classification.
2. Mineral Resources are estimated at a zone definition (wireframe) cut-
off grade of approximately 1.0% Cu equivalent grade (CuEq).
3. The approximately 1.0% CuEq cut-off grade includes all material in
the wireframed zones.
4. Bulk density is 3.01 t/m(3).
5. Resources were estimated to a maximum depth of approximately 1,350 m.
6. Copper equivalent (CuEq%) is based on Net Smelter Return Factors as
determined for the Preliminary Economic Assessment by Scott Wilson
RPA dated January 18, 2008.
7. Metal Prices used were $1.75/lb copper, $7.00/lb nickel,
$10.00/lb Co, $600/oz Au, $1100/oz Pt and $350/oz Pd.
8. Copper equivalent (CuEq%) (equal sign) Cu% + 3.03 x Ni% + 0.63 x Co%
+ 0.30 x Au g/t + 0.76 x Pt g/t + 0.24 x Pd g/t based on expected
metal prices and process recovery and refining charges.
9. TPM is Au g/t + Pt g/t + Pd g/t.
10. Co, Au, Pt, Pd grades, that are lacking in historic drill holes, have
been entered in the resource database based on regression of assay
grades from DML drill hole assays.
A map showing the Eastern, Central and Western Higher Grade Areas within
the Nokomis Deposit can be found on the Company website at
The resource estimate for each of the Eastern, Western and Central higher
grade areas at a 1.0% CuEq cut-off grade is as follows:
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Indicated Resources(1-10)(x)
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Higher Tonnes Cu Ni Co Au Pt Pd TPM CuEq
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Grade Area (000's) % % % g/t g/t g/t g/t %
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Eastern 62,509 0.750 0.214 0.010 0.146 0.282 0.651 1.079 1.82
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Western 15,740 0.707 0.203 0.010 0.106 0.203 0.456 0.765 1.63
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Central 13,298 0.829 0.217 0.010 0.134 0.305 0.621 1.060 1.91
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Inferred Resources(1-10)(x)
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Higher Tonnes Cu Ni Co Au Pt Pd TPM CuEq
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Grade Area (000's) % % % g/t g/t g/t g/t %
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Eastern 7,939 0.731 0.213 0.010 0.131 0.272 0.634 1.037 1.78
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Western 5,642 0.714 0.208 0.010 0.112 0.200 0.494 0.806 1.65
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Central 8,502 0.819 0.225 0.011 0.130 0.320 0.657 1.107 1.95
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(x)Footnotes 1-10 as listed under previous table.
Christopher Moreton, Ph.D., P.Geo., of Scott Wilson RPA, Toronto, Canada,
is the Independent Qualified Person who prepared the Interim Resource Estimate
dated October 26, 2009, and reviewed this press release. A NI 43-101 compliant
Technical Report will be delivered by Scott Wilson RPA and filed on SEDAR
within 45 days from October 26, 2009.
The Resource Estimate contains all of Duluth Metals in-fill and step-out
drill holes (155) as well as all (67) of its wedge holes from the 2006-2009
drill programs. Half core samples were prepared at ALS Chemex Ltd.
Laboratories in Thunder Bay and then shipped to its analytical facilities in
Vancouver. Samples were analyzed for Au, Pt, and Pd using a standard fire
assay with an ICP finish and for 27 other elements using a four acid (near
total) digestion and a combination of ICPMS and ICPAES. ICP over limits were
re-analyzed using sodium peroxide fusion, acid dissolution followed by ICPAES.
The remaining half core samples are being stored in Minnesota.
David Oliver, P. Geo. is the Qualified Person and Project Manager for
Duluth, in accordance with NI 43-101 of the Canadian Securities
Administrators, and is responsible for the technical content of this press
release and quality assurance of the exploration data and analytical results.
About Duluth Metals
Duluth is committed to acquiring, exploring and developing copper, nickel
and platinum group metal (PGM) deposits. Duluth's principal property is the
Nokomis Property located within the rapidly emerging Duluth Complex mining
camp in northeastern Minnesota. The Duluth Complex hosts one of the world's
largest undeveloped repositories of copper, nickel and PGMs, including the
world's third largest accumulation of nickel sulphides, and one of the world's
largest accumulations of polymetallic copper and platinum group metals.
This document may contain forward-looking statements (including
"forward-looking statements" within the meaning of the US Private Securities
Litigation Reform Act of 1995) relating to Duluth's operations or to the
environment in which it operates. Such statements are based on operations,
estimates, forecasts and projections. They are not guarantees of future
performance and involve risks and uncertainties that are difficult to predict
and may be beyond Duluth's control. A number of important factors could cause
actual outcomes and results to differ materially from those expressed in
forward-looking statements, including those set forth in other public filings.
In addition, such statements relate to the date on which they are made.
Consequently, undue reliance should not be placed on such forward-looking
statements. Duluth disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, save and except as may be required by applicable
securities laws.
SOURCE: Duluth Metals Limited
CONTACT: please contact Mara Strazdins, Director of Corporate Communications, at mstrazdins(at)duluthmetals.com
or at (416) 369-1500; or
Henry Sandri, President and CEO, at hsandri(at)duluthmetals.com. The telephone
number for the Minnesota corporate office is (651) 389-9990; Web Page:
(DM. DM.U.)
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