Duluth Metals Receives NI 43-101 Report and Updated Resource Estimate for the Nokomis Deposit
By Duluth Metals Limited, PRNEThursday, December 10, 2009
TORONTO, December 11 - Duluth Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) today announces
the receipt of an independent NI 43-101 compliant report completed by
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) entitled
"Technical Report on the Resource Estimate for the Nokomis Deposit on the
Nokomis Property, Minnesota, USA". The report, which has been filed on
SEDAR (www.sedar.com), updates the previous NI 43-101
compliant resource estimate and defines six higher-grade areas within this
expanded resource. These higher-grade areas will be the focus of future mine
planning, including any potential early sequencing that could improve the
payback of the capital investment.
The six higher-grade areas are all contained within the current mineral
resource. The three highest grade areas (Western, Eastern and Central) have a
cumulative total of 92 million tonnes of Indicated Resources at an average
grade of 1.80 CuEq%(copper equivalent grade) using a 1.0% CuEq cut-off grade.
In addition, these three areas contain a combined 22 million tonnes of
Inferred Resources at an average grade of 1.81 CuEq%, also using a 1.0% CuEq
cut-off grade. The other higher grade areas (A, B and C) have a combined
total of approximately 48 million tonnes of Indicated Resources at an average
grade of 1.75% CuEq using a 1.0% CuEq cutoff grade and an additional 12
million tonnes of Inferred Resources at an average grade of 1.68% CuEq using
a 1.0% CuEq cutoff grade. Together, the six higher-grade areas total
approximately140 million tonnes of Indicated Resources and an additional 34
million tonnes of Inferred Resources. These totals are significant in
relation to the projected 14 million tonnes per year (40,000 tonnes per day)
of annual throughput contemplated in the Scott Wilson RPA NI 43-101
Preliminary Assessment dated January 2009.
The six higher-grade areas can also be viewed at
www.duluthmetals.com by navigating to this press release.
Christopher Moreton, Ph.D., P.Geo. and Richard Routledge M.Sc., P.Geo,
both of Scott Wilson RPA, Toronto Canada, are the Independent Qualified
Persons who prepared the report which is available on both SEDAR and on the
Company website (www.duluthmetals.com). A previous press release
(October 26,2009) also summarized these results.
"This new Resource Report prepared by Scott Wilson RPA confirms Nokomis
as one of the largest valuable mineral assets in the world" stated Henry J.
Sandri, President and CEO. "We look forward to entering 2010 with a strong
program to move this deposit forward towards production. We will certainly be
focusing on the potential expansion and mine sequencing of the higher grade
zones which will be studied carefully during pre-feasibility in order to
enhance and optimize cash flow in the initial years of operation."
The Scott Wilson RPA report states that the updated 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 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 further in
this press release for an explanation of the copper equivalent formula).
The Scott Wilson RPA report provides a detailed summary of the Resource
Estimate, at various cut-off grades, as follows:
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Duluth Metals Limited Nokomis Deposit, Minnesota
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Indicated Resources(1-11)
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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 550,038 0.639 0.200 0.010 0.092 0.176 0.392 0.660 1.51
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0.5% Cu 482,438 0.666 0.206 0.010 0.098 0.188 0.420 0.706 1.57
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0.6% Cu 327,847 0.719 0.216 0.011 0.110 0.216 0.482 0.808 1.69
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0.7% Cu 157,803 0.797 0.231 0.011 0.127 0.256 0.567 0.950 1.87
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0.8% Cu 59,958 0.886 0.242 0.011 0.149 0.307 0.676 1.132 2.07
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Inferred Resources(1-11)
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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 273,835 0.632 0.207 0.010 0.091 0.185 0.409 0.685 1.53
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0.5% Cu 252,000 0.648 0.210 0.010 0.094 0.192 0.424 0.710 1.57
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0.6% Cu 158,651 0.700 0.218 0.010 0.109 0.227 0.499 0.835 1.69
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0.7% Cu 63,846 0.785 0.229 0.010 0.131 0.278 0.601 1.010 1.88
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0.8% Cu 20,275 0.865 0.239 0.010 0.134 0.307 0.657 1.098 2.03
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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 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.
CONTAINED METALS IN EXPANDED NOKOMIS RESOURCE(x)
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METAL INDICATED RESOURCE INFERRED RESOURCE
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Copper 7.75 Billion lbs. 3.82 Billion lbs.
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Nickel 2.43 Billion lbs. 1.25 Billion lbs.
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Cobalt 121.26 Million lbs. 60.37 Million lbs.
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Platinum 3.11 Million ozs. 1.63 Million ozs.
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Palladium 6.93 Million ozs. 3.60 Million ozs.
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Gold 1.63 Million ozs. 0.80 Million ozs.
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Silver 37.42 Million ozs. 18.10 Million ozs.
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(x) Based on resource estimated at 1.0% copper equivalent
cut-off
The proposed 2010 program will focus on moving the property towards
production and will include additional definition and step-out drilling,
metallurgical tests, mine planning, pre-feasibility studies and continued
environmental baseline studies.
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.
For further information: Mara Strazdins, Director of Corporate
Communications, at mstrazdins@duluthmetals.com or at +1-416-369-1500; or
Henry Sandri, President and CEO, at hsandri@duluthmetals.com; The
Minnesota corporate office is telephone +1-651-389-9990; Web Page:
www.duluthmetals.com
For further information: Mara Strazdins, Director of Corporate Communications, at mstrazdins at duluthmetals.com or at +1-416-369-1500; or Henry Sandri, President and CEO, at hsandri at duluthmetals.com; The Minnesota corporate office is telephone +1-651-389-9990
