Duluth Metals geologic model targets higher grade base & precious metal zones in Nokomis deposit

TORONTO, March 31 /PRNewswire-FirstCall/ – Duluth Metals Limited (“Duluth Metals”) (TSX: DM) (TSX:DM.U) today announced that the results of advanced geological modelling and analysis of the Nokomis base and precious metal deposit, are beginning to identify and characterize higher grade copper, nickel, platinum, palladium and gold zones within the deposit, and potentially define contiguous, large tonnage – higher grade zones that will be important in the evaluation of future mining scenarios. This geological analysis forms part of the Company’s current work program on the combined base and precious metal Nokomis Deposit, which also includes mine planning, metallurgical studies, infrastructure analysis, project optimization, and environmental baseline studies required for future permitting.

The modeling currently led by Dean Peterson, Duluth Metals Senior VP Exploration and Duluth Metals staff is providing a new understanding of the origin of and the controls on grade distribution within the Nokomis Deposit. The geologic models provide confidence in the search parameters and variography of the block models and subsequent grade – tonnage estimates. Duluth Metals is commissioning a new 43-101 resource estimate which will include 155 drill holes and 63 wedges as part of its higher grade zone targeting effort.

“This work has gone a long way to explaining why we have much higher than typical Duluth Complex grades in many areas within our very large deposit,” stated Duluth Metals’ President and CEO, Dr. Henry J. Sandri. “This kind of understanding of the origin of, and the spatial distribution of our higher grade material will be key not only in defining new high grade areas, but will also be instrumental in assisting us to optimize the economics of our current resource.”

The modeling has identified and provided an understanding of the origin of and controls on the distribution of four distinct types of higher-grade Copper-Nickel-Platinum-Palladium-Gold mineralization within the Nokomis Deposit mineralized system.

    -   Platinum Group Element- rich disseminated mineralization within the
        SKI on the Eastern side of the Nokomis Property. This area is known
        as the Eastern High Grade Corridor (21 drill holes as press released
        October 27, 2008). This large coherent zone of significantly higher
        grade PGE mineralization is the result of the initial constriction of
        the magma channel beneath a large block of older rocks within the
        Nokomis Deposit. Such a blockage impedes the flow of crystals and
        sulfide droplets. However, the liquid portion of the magma continues
        to flow along with its dissolved Platinum Group Elements ("PGE").
        Once these dissolved and flowing PGE's come in contact with a stuck
        sulfide droplet, they instantly dissolve into the sulfide and
        increase the PGE grade of the sulfide.

    -   Nickel-Cobalt enriched semi-massive sulfide mineralization at the
        base of the SKI (or immediately below) the main magma channelway
        through the Nokomis Deposit. This mineralization is believed to have
        formed by continuous flushing of hot magma through the channelway
        which melted footwall granitic rocks. These granitic melts were
        incorporated into the magma and induced the formation of new sulfide
        minerals beneath a crystal slurry. These new sulfides scrubbed the
        melt of nickel and cobalt and settled to the bottom of the system.

    -   Copper-PGE enriched disseminated mineralization deep in the footwall
        below the magma channel. The ever-deepening (into the melting
        footwall) magma channel induced and pinned hydrothermal convection
        cells in the footwall beneath the magma channel. The water in the
        system was released from the footwall granitoids by thermal
        metamorphism and circulated Cu-PGE downwards beneath the channel way.

    -   Top-Loaded Cu-PGE enriched disseminated mineralization in the SKI. To
        the sides of the magma channel way, the sulfide-bearing crystal-
        liquid slurry was intruded as batches of magma out and to the sides
        of the channel. Since these highly crystalline magmas are distal to
        the very hot main magma channel, they solidified quickly into
        sulfide-bearing troctolite. Once the silicates (olivine+plagioclase)
        are solid, buoyant fractionated sulfide (Cu-PGE) liquid and magmatic
        waters moved upwards through the solidifying crystal pile and
        precipitated Cu-PGE sulfide and hydrous silicate minerals beneath the
        overlying crystal-poor, liquid silicate magma.

A schematic model of the higher grade zones within the Nokomis Deposit can be viewed on the Company’s website at www.duluthmetals.com within this press release.

David Oliver, P. Geo. and Duluth Project Manager is the Qualified Person, 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 Deposit 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