TORONTO, Ontario, October 30, 2009 – Duluth Metals Limited (“Duluth”) (TSX: DM) (TSX:DM.U) today confirms 12 million Indicated ounces and 6 million Inferred ounces of contained platinum, palladium and gold (Total Precious Metal or TPM) in the Nokomis Deposit as reported by Scott Wilson RPA’s latest NI 43-101 Resource Estimate (see Duluth Metals press release dated October 26, 2009). This 3 million ounce increase in Indicated Resources represents a 34% increase in the TPM ounces over the Scott Wilson RPA June 2008 NI 43-101 Resource Estimate.
Contained Precious Metals
1.Silver has not been included in this analysis
2.The decrease in the Inferred Resources represents a net tonnage conversion to the Indicated Resource category.
“The overall contained precious metals increase confirms that Duluth Metals has a significant stake in precious metals as well as base metals and should be viewed in the context of having only explored approximately 60% of the Nokomis Property” said Christopher Dundas, Chairman of Duluth Metals. “We have the potential to separate and monetize the precious metal revenue stream from our substantial base metal revenue stream. This potential for separation is enhanced by the proposed utilization of PlatsolTM or other similar hydromet processes which separate the precious metal concentrate prior to marketing to precious metal refineries.”
This significant increase in the total precious metals content of the deposit is due to the 2008-2009 drilling that filled-in and expanded multiple higher grade zones within the overall deposit particularly in three areas — known as the Eastern, Central and Western Higher Grade Areas. These three Higher Grade Areas have a cumulative total of 92 million Indicated tonnes of 1.023 g/t TPM (1.80 CuEq% at a 1% CuEq cut-off grade) and 22 million Inferred tonnes of 1.005 g/t TPM (1.81 CuEq% at a 1% CuEq cut-off grade). Cumulatively, the Eastern, Central and Western Higher Grade Areas exhibit 55% higher TPM grades in the Indicated Resource category compared to the global Indicated Resource TPM grades, and 47% higher TPM grades in the Inferred Resource category compared to the global Inferred Resource TPM grades. In addition, there are three other higher grade areas that have been identified to date in the Nokomis Deposit, known as Areas A, B and C. The combined resource for these additional areas totals 48 million tonnes of 0.802 g/t TPM (1.75% CuEq at a 1.0% CuEq cutoff grade) and an additional 12 million tonnes of 0.972 g/t TPM (1.68% CuEq at a 1.0% CuEq cutoff grade).
All of these higher grade areas are important for future mine planning and initial operations in order to enhance rapid payback of capital investment. As the 40,000 tonne per day operation featured in the NI 43-101 January 2009 Preliminary Assessment utilizes 14 million tonnes of feed per year, the higher grade areas need to be studied carefully during pre-feasibility in order to enhance and optimize cash flow in the initial years of operation. The combined resource estimates for the Eastern, Central and Western Higher Grade Areas are highlighted in the Table below.
RESOURCE ESTIMATES FOR THE COMBINED EASTERN, CENTRAL AND WESTERN HIGHER GRADE AREAS
- CIM definitions were followed for Mineral Resource estimation and classification.
- Mineral Resources are estimated at a zone definition (wireframe) cut-off grade of approximately 1.0% Cu equivalent grade (CuEq).
- The approximately 1.0% CuEq cut-off grade includes all material in the wireframed zones.
- Bulk density is 3.01 t/m3.
- Resources were estimated to a maximum depth of approximately 1,350 m.
- 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.
- 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.
- 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.
- TPM is Au g/t + Pt g/t + Pd g/t.
- 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.
A map showing the Eastern, Central and Western Higher Grade Areas within the Nokomis Deposit can be found on the Company website at www.duluthmetals.com under press releases.
The resource estimate for each of the Eastern, Western and Central higher grade areas at a 1.0% CuEq cut-off grade is as follows:
*Footnotes 1-10 as listed under previous table.
Christopher Moreton, Ph.D., P.Geo., of Scott Wilson RPA, Toronto, Canada, is the Independent Qualified Person who prepared the Interim Resource Estimate dated October 26, 2009, 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 October 26, 2009.
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.