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

October 26, 2009

TORONTO, Oct. 26 /PRNewswire-FirstCall/ – 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 = 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.

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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 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%) = 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*
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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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          * 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 Estimate can be found on the Company website at www.duluthmetals.com under this press release.

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


Source: newswire



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