Duluth Metals Expands Nokomis Resource To 550 Million Indicated Tonnes And 274 Million Inferred Tonn

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26th October 2009, 10:40pm - Views: 562






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MEDIA RELEASE PR36759


Duluth Metals expands Nokomis resource to 550 million indicated tonnes and 274 million inferred

tonnes


TORONTO, Oct. 26 /CNW-AsiaNet/ --


     Duluth Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) today announces a 101 million tonne expansion in

Indicated Resources of the Nokomis Deposit. This represents a 22% increase from the Scott Wilson Roscoe

Postle Associates Inc., ("Scott Wilson RPA") June 2008 NI 43-101 Resource Estimate. The new NI 43-101

Resource Estimate has increased to 550 million tonnes of Indicated Resources with an additional 274 million

tonnes of Inferred Resources. The global resource grade also increased by 3% for the Indicated Resources

and by 2% for the Inferred Resources compared to the June 2008 estimate. This new Resource Estimate

incorporates assay data from 96 additional holes from what was largely an infill drilling program completed

during the 2008-2009 period. All vertical and wedge holes drilled in the Nokomis Deposit were used in this

analysis.


     The new Nokomis Resource Estimate now contains 550 million tonnes of Indicated Resources grading

0.639% copper, 0.200% nickel, 0.660 grams per tonne TPM (TPM (equal sign) Pt + Pd + Au) for a copper

equivalent (CuEq) grade of 1.51%, plus an additional 274 million tonnes of Inferred Resources grading

0.632% copper, 0.207% nickel, 0.685 grams per tonne TPM for a CuEq grade of 1.53% (see Table footnotes

for an explanation of the copper equivalent formula).


     This Scott Wilson RPA Estimate also includes multiple higher grade areas. The three highest grade areas

have a cumulative total of 92 million Indicated tonnes of 1.80 CuEq% (at a 1% CuEq cut-off grade) and 22

million Inferred tonnes of 1.81 CuEq% (also at a 1% CuEq cut-off grade). Duluth Metals notes that definition of

these higher grade areas is important for mine planning and initial operations in order to enhance rapid

payback of capital investment.


     Furthermore, Scott Wilson RPA has reported on silver in this estimate, and the Nokomis Deposit contains

37 million ounces of silver within the Indicated Resource outline (550 million tonnes at 2.116 g/t Ag) and 18

million ounces of silver within the Inferred Resource outline (274 million tonnes at 2.056 g/t Ag).


     The updated Resource Estimate used a 1% copper equivalent cut-off grade to define the resource model.

A table of the new tonnes and grades for various cut-offs is shown below. Based on Scott Wilson RPA's

review of metal prices, process recoveries, refining costs and underground mine operating costs likely to apply

at the Nokomis deposit site, the 1.0% copper equivalent cut-off grade (highlighted) is reasonable for the

statement of Indicated and Inferred Resources at this time.


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

                Duluth Metals Limited Nokomis Deposit, Minnesota

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

                           Indicated Resources(1-11)

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

      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  550,038  0.639  0.200  0.010  0.092  0.176  0.392  0.660  1.51

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

     0.5% Cu    482,438  0.666  0.206  0.010  0.098  0.188  0.420  0.706  1.57

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

     0.6% Cu    327,847  0.719  0.216  0.011  0.110  0.216  0.482  0.808  1.69

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

     0.7% Cu    157,803  0.797  0.231  0.011  0.127  0.256  0.567  0.950  1.87

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

     0.8% Cu     59,958  0.886  0.242  0.011  0.149  0.307  0.676  1.132  2.07

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



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

                            Inferred Resources(1-11)

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

      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  273,835  0.632  0.207  0.010  0.091  0.185  0.409  0.685  1.53

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

     0.5% Cu    252,000  0.648  0.210  0.010  0.094  0.192  0.424  0.710  1.57

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

     0.6% Cu    158,651  0.700  0.218  0.010  0.109  0.227  0.499  0.835  1.69

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

     0.7% Cu     63,846  0.785  0.229  0.010  0.131  0.278  0.601  1.010  1.88

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

     0.8% Cu     20,275  0.865  0.239  0.010  0.134  0.307  0.657  1.098  2.03

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


     1.  CIM definitions were followed for Mineral Resource estimation and classification.

     2.  Mineral Resources are estimated at a zone definition (wireframe) cut- 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.

     11. There is no information available on silver recoveries for the Nokomis Deposit; these recoveries would

be needed to include silver in the CuEq determination.


     On a contained metal basis, Duluth Metals currently holds one of the largest Copper-Nickel-PGM sulphide

deposits in the world with the Nokomis Deposit. The seven contained metals in the expanded resource are as

follows:


                CONTAINED METALS IN EXPANDED NOKOMIS RESOURCE(x)

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


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

            METAL         INDICATED RESOURCE      INFERRED RESOURCE

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

            Copper         7.75 Billion lbs.       3.82 Billion lbs.

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

            Nickel         2.43 Billion lbs.       1.25 Billion lbs.

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

            Cobalt        121.26 Million lbs.     60.37 Million lbs.

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

            Platinum       3.11 Million ozs.       1.63 Million ozs.

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

            Palladium      6.93 Million ozs.       3.60 Million ozs.

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

            Gold           1.63 Million ozs.       0.80 Million ozs.

          

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

            Silver        37.42 Million ozs.      18.10 Million ozs.

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

           (x) Based on resources estimated at 1.0% copper equivalent cut-off grade.


     "This new Resource Estimate on Nokomis has significantly increased the grade, tonnage, and contained

metal in the deposit. The infill and step-out drilling confirm the continuous nature of the mineralization within

the deposit and there is definite potential for the mineralization to extend outside of the currently defined

resource block", stated Dr. Henry J. Sandri, President and CEO of Duluth Metals. "The incremental increase of

101 million tonnes in Indicated Resources is remarkable in terms of size and dimension, principally because

the increase, by itself, is larger than the majority of the world's copper-nickel-PGM deposits and mines.

Nokomis has demonstrated a unique characteristic - for each of the past three resource estimates – grades

and tonnages have significantly continued to improve. In addition, there is considerable upside opportunity to

find additional tonnes since approximately 40% of the property has yet to be drilled."


     A map showing the Indicated and Inferred resource regions for the third Nokomis Deposit Resource



     Christopher Moreton, Ph.D., P.Geo., of Scott Wilson RPA, Toronto, Canada, is the Independent Qualified

Person who prepared this Interim Resource Estimate 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 today's date.


     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: 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: www.duluthmetals.com

     (DM. DM.U.)




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