Duluth Metals Confirms 12 Million Indicated Ounces And 6 Million Inferred Ounces Of Contained Pallad

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30th October 2009, 11:21pm - Views: 581






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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


     -------------------------------------------------------------------------

                    June 2008         October 26, 2009

     Metal(1)  Indicated Resources  Indicated Resources  Incremental Change(2)

     -------------------------------------------------------------------------

     Palladium 5.17 million ounces  6.93 million ounces  +1.76 million ounces

     -------------------------------------------------------------------------

     Platinum  2.30 million ounces  3.11 million ounces  +0.81 million ounces

     -------------------------------------------------------------------------

     Gold      1.21 million ounces  1.63 million ounces  +0.42 million ounces

     -------------------------------------------------------------------------

     TPM       8.68 million ounces 11.67 million ounces  +2.99 million ounces

     -------------------------------------------------------------------------



     -------------------------------------------------------------------------

                    June 2008         October 26, 2009

     Metal(1)   Inferred Resources   Inferred Resources  Incremental Change(2)

     -------------------------------------------------------------------------

     Palladium 3.94 million ounces  3.60 million ounces  -0.34 million ounces

     -------------------------------------------------------------------------

     Platinum  1.75 million ounces  1.63 million ounces  -0.12 million ounces

     -------------------------------------------------------------------------

     Gold      0.88 million ounces  0.80 million ounces  -0.08 million ounces

     -------------------------------------------------------------------------

     TPM       6.57 million ounces  6.03 million ounces  -0.54 million ounces

     -------------------------------------------------------------------------


     (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


     -------------------------------------------------------------------------

                           Indicated Resources(1-10)

     -------------------------------------------------------------------------

      Cut-off   Tonnes   Cu     Ni     Co     Au     Pt     Pd     TPM   CuEq

     -------------------------------------------------------------------------

       Grade    (000's)   %      %      %     g/t    g/t    g/t    g/t    %

     -------------------------------------------------------------------------

     1.0% CuEq  91,548  0.754  0.213  0.010  0.137  0.272  0.614  1.023  1.80

     -------------------------------------------------------------------------

     0.5% Cu    90,419  0.757  0.213  0.010  0.138  0.273  0.617  1.028  1.81

     -------------------------------------------------------------------------

     0.6% Cu    81,234  0.780  0.218  0.010  0.140  0.283  0.639  1.062  1.86

     -------------------------------------------------------------------------

     0.7% Cu    57,728  0.832  0.228  0.010  0.148  0.305  0.682  1.135  1.97

     -------------------------------------------------------------------------

     0.8% Cu    32,404  0.899  0.237  0.010  0.158  0.326  0.728  1.212  2.10

     -------------------------------------------------------------------------

                            Inferred Resources(1-10)

     -------------------------------------------------------------------------

      Cut-off   Tonnes   Cu     Ni     Co     Au     Pt     Pd     TPM   CuEq

     -------------------------------------------------------------------------

       Grade    (000's)   %      %      %     g/t    g/t    g/t    g/t    %

     -------------------------------------------------------------------------

     1.0% CuEq  22,002  0.760  0.216  0.010  0.126  0.272  0.607  1.005  1.81

     -------------------------------------------------------------------------

     0.5% Cu    21,894  0.763  0.216  0.010  0.126  0.273  0.610  1.009  1.82

     -------------------------------------------------------------------------

     0.6% Cu    20,101  0.780  0.220  0.010  0.130  0.284  0.629  1.043  1.86

     -------------------------------------------------------------------------

     0.7% Cu    15,440  0.817  0.229  0.011  0.134  0.305  0.660  1.099  1.95

     -------------------------------------------------------------------------

     0.8% Cu     8,431  0.868  0.237  0.011  0.139  0.331  0.696  1.166  2.05

     -------------------------------------------------------------------------

     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

www.duluthmetals.com under press releases.


     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:


     -------------------------------------------------------------------------

                          Indicated Resources(1-10)(x)

     -------------------------------------------------------------------------

      Higher    Tonnes   Cu     Ni     Co     Au     Pt     Pd     TPM   CuEq

     -------------------------------------------------------------------------

     Grade Area (000's)   %      %      %     g/t    g/t    g/t    g/t    %

     -------------------------------------------------------------------------

     Eastern    62,509  0.750  0.214  0.010  0.146  0.282  0.651  1.079  1.82

     -------------------------------------------------------------------------

     Western    15,740  0.707  0.203  0.010  0.106  0.203  0.456  0.765  1.63

     -------------------------------------------------------------------------

     Central    13,298  0.829  0.217  0.010  0.134  0.305  0.621  1.060  1.91

     -------------------------------------------------------------------------

                          Inferred Resources(1-10)(x)

     -------------------------------------------------------------------------

      Higher    Tonnes   Cu     Ni     Co     Au     Pt     Pd     TPM   CuEq

     -------------------------------------------------------------------------

     Grade Area (000's)   %      %      %     g/t    g/t    g/t    g/t    %

     -------------------------------------------------------------------------

     Eastern     7,939  0.731  0.213  0.010  0.131  0.272  0.634  1.037  1.78

     -------------------------------------------------------------------------

     Western     5,642  0.714  0.208  0.010  0.112  0.200  0.494  0.806  1.65

     -------------------------------------------------------------------------

     Central     8,502  0.819  0.225  0.011  0.130  0.320  0.657  1.107  1.95

     -------------------------------------------------------------------------


     (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.

Conservation Natural Resources Duluth Metals Limited 3 image


     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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