Duluth Metals Announces SEDAR filing of updated AMEC Resource Study on Twin Metals

April 11, 2014
        --  Confirms very large tonnages and contained metal on the first
            13% of the Twin Metals contiguous property block
        --  Significant conversion to 295 Million Tons of Measured Resource
            from Indicated classification
        --  New Maturi Southwest Deposit defined
        --  Study highlights a contained nickel resource of 4.7 billion
            pounds Measured + Indicated and 4.2 billion pounds Inferred
        --  Platinum and palladium resources are growing in size and
        --  Contiguous exploration target areas confirm significant upside
            to Twin Metals deposit
        --  Pre-feasibility Study expected to be completed by mid-year 2014

TORONTO, April 11, 2014 /PRNewswire/ – Duluth Metals Limited (“Duluth”, “Duluth Metals”) (TSX: DM) (TSX:DM.U) today announces that the updated independent NI 43-101 Technical Report
completed by AMEC E&C Services Inc. (“AMEC”) by a team led by Dr. Harry
Parker entitled “Maturi, Maturi Southwest, Birch Lake, and Spruce Road
Cu-Ni-PGE Projects, Ely, Minnesota, USA NI 43-101 Technical Report”
with an effective date of January 2, 2014 has now been filed on SEDAR (www.sedar.com). The latest Technical Report confirms very large tonnages and
contained metal on the first 13% of the property which has been
drilled. These updated resource estimate studies are supporting the
ongoing Pre-feasibility Study, which is expected to be completed by
mid-year 2014.

This updated study utilizes 922 drill holes and 312 wedge offsets, and
reports a significant portion of the Maturi deposit upgraded to the
Measured Resource category. Furthermore, AMEC has featured significant
expansion potential to the deposit in its section on Exploration Target
Areas. The mineral resources have been estimated using CIM Definition
Standards for Mineral Resources and Reserves dated November 2010.

The majority of the increase in total contained metals in the 2014
resource estimates reflects the addition of the Maturi Southwest
Deposit. The updated mineral resources estimate has 295 million tons in
the Measured category at a 0.3% copper cut-off in the Maturi Deposit,
which may potentially provide an early start-up area for future
mining. The change in category for a significant portion of the
Indicated Resource to Measured Resource reflects the excellent
continuity of the resource demonstrated by the close spaced fence
drilling completed at Maturi. The updated contained metals by category
are shown in the following table:

Table 1 – Contained Metals in the TMM Resource (effective date October
8, 2013)*

    |Metal    |Measured   |Indicated   |Measured+Indicated|   Inferred |
    |         |Resource   |Resource    |Resource          |   Resource |
    |Copper   |3.7 billion|11.0 billion|14.7 billion lbs. |12.3 billion|
    |         |lbs.       |    lbs.    |                  |    lbs.    |
    |Nickel   |1.2 billion|3.5 billion | 4.7 billion lbs. |4.2 billion |
    |         |lbs.       |    lbs.    |                  |    lbs.    |
    |Platinum |1.3 million|4.5 million | 5.8 million ozs. |3.6 million |
    |         |ozs.       |    ozs.    |                  |   ozs.**   |
    |Palladium|3.0 million|10.2 million|13.2 million ozs. |8.0 million |
    |         |ozs.       |    ozs.    |                  |   ozs.**   |
    |Gold     |0.7 million|2.5 million | 3.2 million ozs. |1.8 million |
    |         |ozs.       |    ozs.    |                  |   ozs.**   |

* Based on mineral resources estimated at base case 0.3% Cu cut-off grade; for tons and grade see Tables 2 further below.

**Contained ounces of platinum, palladium, and gold in the Inferred
category do not include the Spruce Road deposit.

Vern Baker, President of Duluth Metals, commented: “This resource update
serves to demonstrate the scale of metallic resource that TMM is
working to develop. This resource has size, grade, continuity,
proximity to infrastructure, and a supportive community; all which will
be part of developing an outstanding potential future mine in northern

Twin Metals Minnesota LLC, is the joint venture company between Duluth
Metals Limited (60% ownership interest) and Antofagasta plc (40%
ownership interest). In 2011, Twin Metals Minnesota LLC acquired
Franconia Minerals Corporation. Franconia`s principal assets are a 70%
interest in the Birch Lake, “old Maturi” (not including former Nokomis
property), Maturi Southwest, and Spruce Road deposits through the Birch
Lake Joint Venture, with Beaver Bay, Inc., owning the remaining 30%.
Franconia announced in November, 2010 its intention to increase its
ownership at the Birch Lake Joint Venture to 82% upon commencement of
production. In this press release, all of the Measured, Indicated and
Inferred Mineral Resources, and Exploration Target tonnages are
expressed as a 100% ownership position.

Key outcomes

The AMEC January 2014 Technical Report provides updated mineral resource
estimates for the Maturi, Maturi Southwest, Birch Lake and Spruce Road
deposits on the Twin Metals Minnesota Project (“Twin Metals”). These
resources represent drilling on only 13% of the Twin Metals contiguous
property block. The Maturi Deposit resource estimate does not
incorporate new assay or geological data from drilling results received
after September 15, 2012. Drilling data received after that date will
be used to update the resource in support of the Pre-feasibility Study
which is scheduled for completion by mid-year 2014. The Maturi
Southwest Deposit is a newly classified resource which was defined by
drilling in 2013. The Mineral Resource estimates for the four deposits
are as follows:

Table 2 – Mineral Resource Estimates for the Maturi, Maturi Southwest,
Birch Lake and Spruce Road Deposits

    |Deposit    |   Class |Cutoff (%|Million| Cu |Ni  | Pt  | Pd  | Au  |
    |           |         |   Cu)   | Tons  |(%) |(%) |(ppm)|(ppm)|(ppm)|
    |Maturi     |Measured |    0.3  |   295 |0.63|0.20|0.148|0.345|0.084|
    |Maturi     |Indicated|    0.3  |   774 |0.58|0.19|0.160|0.360|0.085|
    |Maturi     |Inferred |    0.3  |   562 |0.51|0.17|0.138|0.317|0.071|
    |Maturi     |Indicated|    0.3  |   103 |0.48|0.17|0.080|0.185|0.048|
    |Southwest  |         |         |       |    |    |     |     |     |
    |Maturi     |Inferred |    0.3  |   32  |0.43|0.15|0.065|0.157|0.041|
    |Southwest  |         |         |       |    |    |     |     |     |
    |Birch Lake |Indicated|    0.3  |   100 |0.52|0.16|0.233|0.511|0.114|
    |Birch Lake |Inferred |    0.3  |   239 |0.46|0.15|0.180|0.370|0.087|
    |Spruce Road|Inferred |    0.3  |   480 |0.43|0.16|     |     |     |

Note 1- all tonnages are in million short tons (Mst)

Note 2 – The Spruce Road resource was estimated using Inco legacy assay data.
Platinum, palladium, and gold were not assayed by Inco, and the core is
not available for re-assay.

Note 3- These mineral resource estimates include 100% of the estimated
resource in each deposit, and include interests in mineral resources
held by Franconia Minerals (US) LLC (f.k.a. Franconia Minerals
Corporation), a wholly-owned subsidiary of Twin Metals. Twin Metals
acquired 100% of the ownership units of Franconia in 2011.
Franconia’s principal assets are a 70% interest in the Birch Lake,
‘old’ Maturi, Maturi Southwest, and Spruce Road deposits in
northeastern Minnesota through the Birch Lake Joint Venture. Franconia
announced in November, 2010 its intention to increase its ownership at
the Birch Lake Joint Venture to 82%; see Franconia’s company profile at
www.SEDAR.com for Technical Reports. TMM’s ownership of the resource will be factored
by these percentages where applicable.

Detailed resource tabulations are shown in Duluth Metals February 26,
2014 press release entitled “Duluth Metals Announces Increased Tonnage,
Metal Content and an Upgraded Measured Classification in new updated
AMEC Resource Study on the Twin Metals Project”. The Qualified Person
for the four resource estimates is Dr. Harry Parker, Registered Member,
Society for Mining, Metallurgy and Exploration (RM SME). Based on
closure of the estimation database and completion of the geological
models Mineral Resource estimates have the following effective dates:
October 8, 2013 for Maturi, June 15, 2013 for Maturi Southwest, and
September 15, 2012 for Birch Lake and Spruce Road Mineral Resource

A Growing Platinum Group Metal (PGM) Resource

The AMEC updated mineral resource estimate highlights a growing Platinum
Group Metal (PGM) and gold resource of 5.0 million ozs Measured, 17.2
million ozs Indicated and 13.4 million ozs Inferred in the Maturi,
Maturi Southwest and Birch Lake deposits. Of significance, these PGM
resources represent drilling on only 13% of the TMM property and may
increase substantially with additional drilling on the remaining 87% of
the property. The TMM project has one of the world’s largest palladium
and platinum resources outside of South Africa. Figure 1 below is a
cross-section illustrating palladium mineralization in the Maturi
Deposit with the cross-section orientation shown in Figure 2.

Exploration Target Area Tonnage and Grade Ranges

Additional exploration potential highlighted by AMEC outside of the four
mineral resources (Maturi, Maturi Southwest, Birch Lake and Spruce Road
deposits) and in addition to the TMM defined mineral resource are
considered targets for further exploration. These exploration target
areas occur on another 13% (approximately) of the footprint of the
prospective portion of the TMM property block.

An estimate of the exploration potential is between 1.3 to 2.1 billion
tons contiguous to the boundaries of the four deposits. Detailed
exploration target potential estimates are provided in Duluth Metals
February 26, 2014 press release entitled “Duluth Metals Announces
Increased Tonnage, Metal Content and an Upgraded Measured
Classification in new updated AMEC Resource Study on the Twin Metals
Project”. The grade and tonnage ranges of the four exploration targets
are based on limited drill hole results and location within the
favourable host rocks. The potential quantity and grade of the
exploration target areas are conceptual in nature, and there has been
insufficient exploration to define the target as a mineral resource,
and it is uncertain if further exploration will result in the target
being delineated as a mineral resource. Figure 2 shows exploration
target potential in pale yellow.

Higher Grade S3 Subunit Provides Potential Earlier Economic Mining

One geological subunit within the Maturi Deposit, known as the S3, hosts
a higher-grade area that is a subset of the base case mineral resource
estimate that may have potential as an early start-up area. The AMEC
2014 Technical Report provides an update on the S3 Subunit in the
Measured, Indicated and Inferred categories as follows:

Table 3: Maturi S3 Measured Mineral Resources by Copper Cutoff
(base-case is highlighted)

    |Cutoff Cu (%)|Tons (Mst)|Cu (%)|Ni (%)|Pt (ppm)|Pd (ppm)|Au (ppm)|
    |       0.2   |     172  | 0.72 |  0.23|  0.188 |  0.438 |  0.104 |
    |       0.3   |     172  | 0.72 |  0.23|  0.188 |  0.438 |  0.104 |
    |       0.4   |     172  | 0.72 |  0.23|  0.188 |  0.438 |  0.104 |
    |       0.5   |     169  | 0.72 |  0.23|  0.189 |  0.439 |  0.104 |
    |       0.6   |     146  | 0.75 |  0.24|  0.191 |  0.447 |  0.107 |

    Notes:     --  Figures have been rounded and may not sum.
               --  Mst = million short tons

Table 4: Maturi S3 Indicated Mineral Resources by Copper Cutoff
(base-case is highlighted)

    |Cutoff Cu (%)|Tons (Mst)|Cu (%)|Ni (%)|Pt (ppm)|Pd (ppm)|Au (ppm)|
    |       0.2   |     475  | 0.67 | 0.21 |  0.201 |  0.452 |  0.105 |
    |       0.3   |     474  | 0.67 | 0.21 |  0.201 |  0.452 |  0.105 |
    |       0.4   |     472  | 0.67 | 0.21 |  0.201 |  0.452 |  0.105 |
    |       0.5   |     457  | 0.68 | 0.22 |  0.202 |  0.454 |  0.106 |
    |       0.6   |     357  | 0.71 | 0.23 |  0.211 |  0.475 |  0.110 |

    Notes:     --  Figures have been rounded and may not sum.
               --  Mst = million short tons

Table 5: Maturi S3 Inferred Mineral Resources by Copper Cutoff
(base-case is highlighted)

    |Cutoff Cu (%)|Tons (Mst)|Cu (%)|Ni (%)|Pt (ppm)|Pd (ppm)|Au (ppm)|
    |       0.2   |     243  | 0.62 | 0.20 |  0.203 |  0.457 |  0.099 |
    |       0.3   |     241  | 0.62 | 0.20 |  0.204 |  0.459 |  0.100 |
    |       0.4   |     234  | 0.63 | 0.20 |  0.207 |  0.465 |  0.101 |
    |       0.5   |     205  | 0.65 | 0.21 |  0.219 |  0.489 |  0.106 |
    |       0.6   |     134  | 0.70 | 0.22 |  0.244 |  0.547 |  0.119 |

    Notes:     --  Figures have been rounded and may not sum.
               --  Mst = million short tons

Significant Resource in an Emerging Mining District

A simplified map of regional geology and Cu-Ni-PGE mineralization in the
northwestern portion of the Duluth Complex is presented in Figure 3.
The Twin Metals Project’s Maturi, Maturi Southwest, Birch Lake and
Spruce Road deposits occur in the northern portion of this emerging
district. The mineralized areas and compliant resources to the south
are held by other operators.

About the Resource Estimates

The figures for resources presented herein, including the anticipated
tonnages and grades that may be achieved or the indicated level of
recovery that may be realized, are estimates, and no assurances can be
given that they will be realized during production. Such estimates are,
in large part, based on interpretations of geological data obtained
from drill holes and other sampling techniques. Actual mineralization
or favourable host rock units may be different from those predicted. It
may also take many years from the initial phase of drilling before
production is possible, and during that time the economic feasibility
of exploiting a deposit may change.

Duluth’s business of mineral exploration has a high level of inherent
risk. Although Duluth is optimistic about the potential of many of its
projects, there is no guarantee that any mineral deposits will be
economically feasible and that these deposits will be put into
production. Duluth’s exploration and development activities may also be
affected by a number of risks, including environmental, metallurgical,
financing, permitting, approval, legislative and other government risks
which are common to the industry and are referenced in greater detail
in the Company’s Annual Information Form.

For the non-legacy assay data utilized in these resource estimates, half
core samples were prepared at ALS Minerals laboratories in Thunder Bay
and then shipped to the ALS analytical facilities in Vancouver. Samples
were analyzed for Au, Pt, and Pd using a 30g standard fire assay with
an ICP-AES finish. An additional 33 elements were analyzed for using a
four acid (near total) digestion and a combination of ICP-MS and
ICP-AES. ICP over-limits for copper and nickel are re-analyzed using
dissolution four acid (near total) digestion followed by ICP-AES or
AAS. The remaining half core samples are being stored in Minnesota. A
system of blanks, standards and quarter-core duplicates were added to
the sample stream by Twin Metals Minnesota LLC to verify accuracy and
precision of assay results, supplementing and verifying a variety of
internal QA/QC tests performed by ALS Minerals.

For Maturi and Maturi Southwest, AMEC Assumed that mining, process and
G+A costs would be approximately $15/t, $8/t and $2.50/t respectively
for a total of $25.50/t. At Birch Lake and Spruce Road, AMEC assumed
that mining, process and G+A costs would be approximately $16/t, $12/t
and $2/t respectively for a total of $30/t. This indicates a breakeven
NSR of approximately $30 per ton. Resources meeting an NSR cutoff of
$30/t approximately equate to a copper cutoff of 0.3%. Above a global
0.6% Cu cutoff at Maturi and Maturi Southwest or 0.55% Cu cutoff at
Birch Lake/Spruce Road the mineralization outside the higher-grade
units can break up into discontinuous bodies that may not support the
mining method assumptions used to assess reasonable prospects for
economic extraction. The prices, recoveries, and payabilities for the
Maturi, Maturi Southwest and Birch Lake Deposits are shown in the three
tables below. The metal prices used in the NSR calculation were
mutually agreed upon by Duluth, TMM, Antofagasta plc and AMEC on
December 7, 2011 and have not changed for this estimate. The metal
prices and metallurgical recoveries shown for this April 11, 2014 press
release are amended from the reported metal prices and recoveries shown
in the previous February 26, 2014 press release. In addition to new
drilling data, updated optimized metallurgical recoveries and updated
metal prices will be applied to the final Pre-feasibility resource
estimate scheduled to be released in mid-2014.

2012 Maturi and Maturi Southwest NSR Parameters

    |   Metal |  Price (US$) |Recovery to|Payable|
    |         |              |Concentrate|       |
    |Copper   |    $3.00/lb  |    94.0%  | 76.4% |
    |Nickel   |    $9.38/lb  |    60.8%  | 70.8% |
    |Platinum |$1,840/troy oz|    42.5%  | 69.3% |
    |Palladium| $805/troy oz |    36.1%  | 68.6% |
    |Gold     |$1,050/troy oz|    82.3%  | 45.0% |

* Net Payables are after treatment and refining costs, transportation,
and royalties.

2012 Birch Lake NSR Parameters (US$)

    |   Metal |  Price (US$) |Recovery to| Recovery  |Recovery|Payable|
    |         |              |Concentrate|CESL(TM)| Global |       |
    |Copper   |    $3.00/lb  |    94.3%  |    96.3%  |  90.8% |100.0% |
    |Nickel   |    $9.38/lb  |    60.0%  |    95.6%  |  57.4% | 80.0% |
    |Platinum |$1,840/troy oz|    93.0%  |    59.4%  |  55.2% | 80.0% |
    |Palladium| $805/troy oz |    90.0%  |    70.7%  |  63.6% | 80.0% |
    |Gold     |$1,050/troy oz|    85.0%  |    74.5%  |  63.3% | 80.0% |

* Net Payables are after treatment and refining costs, transportation,
and royalties.

All data verification and quality assurance/quality control procedures
of Twin Metals Minnesota LLC were applied specifically to the results
contained in this press release, and the data herein have been verified
by Phillip Larson, P. Geo., Senior Geologist with Duluth Metals and a
Qualified Person under NI 43-101, in accordance with the procedures of
the Company. The data verification procedures and quality
assurance/control procedures adopted by Duluth Metals and applied to
the work being reported in this press release can be found in Section
11 of the “NI 43-101 Technical Report on the Maturi, Birch Lake, and
Spruce Road Copper-Nickel-PGE Projects, Ely, Minnesota, USA”, with an
effective date of June 15, 2012, and dated July 27, 2012. The Technical
Report was filed on SEDAR under Duluth Metal’s profile on July 27, 2012

Dr. Harry Parker, SME, Registered Member, Technical Director of AMEC, is
the Independent Qualified Person who prepared the Resource Estimate and
is responsible for the mineral resource estimates summarized in this
press release. Dr. Parker is a licensed Professional Geologist in the
State of Minnesota. Phillip Larson, P. Geo. is the Qualified Person for
Duluth Metals and Senior Geologist for Duluth Metals, in accordance
with NI 43-101 of the Canadian Securities Administrators, and reviewed
and approved the technical content of this press release.

About Duluth Metals Limited

Duluth Metals Limited is committed to acquiring, exploring and
developing copper, nickel and platinum group metal (PGM) deposits.
Duluth Metals has a joint venture with Antofagasta plc on the Twin
Metals Project, located within the rapidly emerging Duluth Complex
mining camp in north-eastern 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. Aside from the Twin Metals Minnesota
joint venture, Duluth Metals retains a 100% position on over 40,000
acres of mineral interests on exploration properties adjacent to and
nearby the Twin Metals Minnesota LLC joint venture.

About Twin Metals Minnesota LLC

Twin Metals Minnesota, LLC, is a joint venture company, 60 percent owned
by Duluth Metals Limited and 40 percent by Antofagasta. Twin Metals was
formed in 2010 to pursue the development and operation of a copper,
nickel and platinum group metals (strategic metals) underground mining
project within the Duluth Complex in northeastern Minnesota. Twin
Metals holds mineral and land assets of approximately 40,000 acres of
leased, leased applications and permitted land.

This press release contains forward-looking statements (including
“forward-looking information” within the meaning of applicable Canadian
securities legislation and “forward-looking statements” within the
meaning of the US Private Securities Litigation Reform Act of 1995)
relating to, among other things, the results of drilling operations of
Duluth Metals and exploration and mine development. Generally,
forward-looking statements can be identified by the use of words such
as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words and
phrases or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Duluth Metals has relied on a number of assumptions and estimates in
making such forward-looking statements, including, without limitation,
the prices of copper, nickel and platinum group metals (PGMs) and the
costs associated with continuing exploration and mining development.
Such assumptions and estimates are made in light of the trends and
conditions that are considered to be relevant and reasonable based on
information available and the circumstances existing at this time. A
number of risk factors may cause actual results, level of activity,
performance or outcomes of such exploration and/or mine development to
be materially different from those expressed or implied by such
forward-looking statements including, without limitation, whether such
discoveries will result in commercially viable quantities of such
mineralized materials, the possibility of changes to project parameters
as plans continue to be refined, the ability to execute planned
exploration and future drilling programs, possible variations of
copper, nickel and PGM grade or recovery rates, the need for additional
funding to continue exploration efforts, changes in general economic,
market and business conditions, and those other risks set forth in
Duluth Metals’ most recent annual information form under the heading
“Risk Factors” and in its other public filings. Statements related to
“reserves” and “resources” are deemed forward-looking statements as
they involve the implied assessment, based on realistically assumed and
justifiable technical and economic conditions, that an inventory of
mineralization will become economically extractable. Forward-looking
statements are not guarantees of future performance and such
information is inherently subject to known and unknown risks,
uncertainties and other factors that are difficult to predict and may
be beyond the control of Duluth Metals. Although Duluth Metals has
attempted to identify important risks and factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors and
risks that cause actions, events or results not to be as anticipated,
estimated or intended. Consequently, undue reliance should not be
placed on such forward-looking statements. In addition, all
forward-looking statements in this press release are given as of the
date hereof. Duluth Metals 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. The forward-looking statements
contained herein are expressly qualified by this disclaimer.

Cautionary Note to United States Investors Concerning Estimates of
Indicated and Inferred Mineral Resources

This press release uses the terms “Indicated Mineral Resources” and
“Inferred Mineral Resources” in accordance with the Canadian Institute
of Mining, Metallurgy and Petroleum (CIM) Definition Standards. While
such terms are recognized under Canadian securities legislation, the
United States Securities and Exchange Commission does not recognize
these terms. The term “Inferred Mineral Resource” refers to a mineral
resource for which quantity and grade or quality can be estimated on
the basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity. These
estimates are based on limited information and it cannot be assumed
that all or any part of an “Inferred Mineral Resource” will be upgraded
to a higher classification resource, such as “Indicated” or “Measured”,
as a result of continued exploration. Accordingly, an estimate relating
to an “Inferred Mineral Resource” is insufficient to allow meaningful
application of technical and economic parameters or to enable an
evaluation of economic viability. Under Canadian securities
legislation, estimates of an “Inferred Mineral Resource” may not form
the basis of feasibility or other economic studies. Investors are
cautioned not to assume that all or any part of an “Inferred Mineral
Resource” is economically or legally mineable. Investors are also
cautioned not to assume that all or any part of “Indicated” will ever
be converted into “Mineral Reserves” (being the economically mineable
part of an “Indicated” or “Measured Mineral Resource”).

SOURCE Duluth Metals Limited

Source: PR Newswire

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