Duluth Metals Increases Nokomis Resource to 449 Million Tonnes Indicated and 284 Million Tonnes Inferred
TORONTO, Canada, June 4/PRNewswire/ -- Duluth Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) today announced a
30 percent increase to 449 million tonnes for the Indicated Resource and a
162 percent increase to 284 million tonnes for the Inferred Resource
categories of the NI 43-101 Nokomis Deposit Resource Estimate Update as
prepared by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA). Of
particular note is the significant increase in tonnes at the higher grade Cu
cut-offs. The Updated Resource Estimate includes two recently discovered high
grade areas containing, at a 0.7% Cu cut-off, 17 M Tonnes of Indicated
Resource grading 0.823% Copper, 0.25% Nickel, and 1.11g/t TPM (TPM (equal
sign) Platinum+Palladium+Gold) and 20 M Tonnes of Inferred Resource grading
0.833% Copper, 0.22% Nickel, and 1.25g/t TPM. The Updated Nokomis Resource is
based on drilling completed to April 2008. Since drilling began, Duluth
Metals has drill tested about 50% of the Maturi Extension Properties land
position in northeastern Minnesota.
CONTAINED METALS IN EXPANDED NOKOMIS RESOURCE(x):
------------------------------------------------- ------------------------------------------------------------------------- INDICATED RESOURCE INFERRED RESOURCE
------------------------------------------------------------------------- Copper 6.18 Billion lbs. 3.93 Billion lbs.
Nickel 1.97 Billion lbs. 1.21 Billion lbs.
Cobalt 103.00 Million lbs. 62.8 Million lbs.
Platinum 2.30 Million ozs. 1.75 Million ozs.
Palladium 5.17 Million ozs. 3.94 Million ozs.
Gold 1.21 Million ozs. 0.88 Million ozs.
------------------------------------------------------------------------- (x) Based on resource estimated at 1.0% copper equivalent cut-off
The Updated Nokomis Resource Estimate defines 449 million tonnes
Indicated Resources grading 0.624% copper, 0.199% nickel, 0.600 grams per
tonne TPM (copper equivalent grade of 1.46%), plus an additional 284 million
tonnes of Inferred Resources grading 0.627% copper, 0.194% nickel, 0.718
grams per tonne TPM (copper equivalent grade of 1.50%). (Note - Copper
Equivalent is based on US metal prices of: Copper - US$1.75/lb, Nickel -US$7.00/lb, Cobalt - US$10.00/lb, Gold - US$600/oz, Platinum - US$1,100/oz,
Palladium - US$350/oz and Silver - US$8.50/oz, and the methodology with
metallurgical recoveries, refining costs and other charges being considered
for all metals in accordance with the Net Smelter Return Factors contained in
the January 22, 2008, NI 43-101 Scoping Study produced by Scott Wilson RPA.)
The Scoping Study recommends optimizing grade in order to positively
impact the project's robust economics. Our press releases of Dec. 10, 2007
and May 22, 2008, and the results of this Updated Resource Estimate confirm
significant resource blocks containing higher grade mineralization. A graphic
showing the two new higher grade zones and the composite solid is shown on
the Company website at http://www.duluthmetals.com.
The increased Resource Estimate Update at a 1% copper equivalent cut-off
and various copper cut-off grades 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 is reasonable for the statement of Indicated
and Inferred Resources at this time.
------------------------------------------------------------------------- DULUTH METALS LIMITED NOKOMIS DEPOSIT, MATURI EXTENSION PROPERTY,
MINNESOTA
------------------------------------------------------------------------- ------------------------------------------------------------------------- INDICATED RESOURCES
------------------------------------------------------------------------- CuEq
Cut-off Tonnes Cu Ni Co Au Pt Pd TPM (6)(8)
Grade (000's) % % % g/t g/t g/t g/t %
------------------------------------------------------------------------- 1.0% CuEq 449,413 0.624 0.199 0.010 0.084 0.159 0.358 0.600 1.46
------------------------------------------------------------------------- 0.5% Cu 376,306 0.658 0.206 0.011 0.090 0.172 0.390 0.653 1.54
------------------------------------------------------------------------- 0.6% Cu 247,149 0.714 0.216 0.011 0.103 0.199 0.452 0.753 1.66
------------------------------------------------------------------------- 0.7% Cu 112,035 0.794 0.233 0.011 0.123 0.240 0.549 0.912 1.86
------------------------------------------------------------------------- 0.8% Cu 41,078 0.883 0.255 0.011 0.152 0.293 0.679 1.124 2.09
------------------------------------------------------------------------- ------------------------------------------------------------------------- INFERRED RESOURCES
------------------------------------------------------------------------- CuEq
Cut-off Tonnes Cu Ni Co Au Pt Pd TPM (6)(8)
Grade (000's) % % % g/t g/t g/t g/t %
------------------------------------------------------------------------- 1.0% CuEq 284,230 0.627 0.194 0.010 0.096 0.191 0.431 0.718 1.50
------------------------------------------------------------------------- 0.5% Cu 236,102 0.667 0.198 0.010 0.105 0.210 0.475 0.790 1.58
------------------------------------------------------------------------- 0.6% Cu 155,743 0.725 0.201 0.010 0.120 0.239 0.542 0.902 1.69
------------------------------------------------------------------------- 0.7% Cu 72,418 0.817 0.214 0.010 0.144 0.280 0.640 1.065 1.88
------------------------------------------------------------------------- 0.8% Cu 33,292 0.900 0.215 0.010 0.173 0.320 0.739 1.231 2.03
-------------------------------------------------------------------------
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 US$1.75/lb copper, US$7.00/lb nickel,
US$10.00/lb Co, US$600/oz Au, US$1100/oz Pt and US$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.
"Nokomis has already established itself as one of the world's largest
copper, nickel and PGM deposits, and the Updated Resource Estimate is
confirming that it is continuing to grow. To date about 97 percent of the
holes have intersected mineralization that would be included in the Updated
Resource Estimate. The Nokomis Deposit only encompasses about fifty percent
of the Maturi Extension Properties, and we fully expect that our continued
aggressive drill program, with 5 rigs working on the property, will expand
the deposit further", stated Henry J. Sandri, President and CEO of Duluth
Metals.
Richard E. Routledge, M.Sc., P.Geo., of Scott Wilson RPA, Toronto,
Canada, is the Independent Qualified Person who prepared the 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.
For the 2007-2008 winter drill program, 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
Maturi Extension 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:
http://www.duluthmetals.com
Source: Duluth Metals Limited
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: http://www.duluthmetals.com
2008-06-04 06:02:50 0376880 PRNEWSWIRE