DNI announces a new 548 million ton maiden resource from the Buckton South Zone, on its Alberta polymetallic black shale project

(DNI : TSX-Ven)(DG7 : Frankfurt)

TORONTO, Feb. 28, 2013 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven)(DG7:FSE) is pleased to announce a 548 million short ton NI-43-101 compliant initial maiden inferred resource from the Buckton South Zone on its Alberta polymetallic black shale project. This Zone, located approximately seven kilometres to the south of the Buckton Zone, is one of six zones identified on DNI's 2,720 square kilometre Property in northeast Alberta.

The inferred resource being announced is the first delineated over the Buckton South Zone. A 3.49 billion ton inferred resource was previously announced from the Buckton Zone to the north of the Buckton South Zone (press January 11, 2013), and it is possible that the two Zones are connected.

The Buckton South maiden inferred resource extends over approximately 3.3 square kilometres, and is hosted in two near-surface stacked shale and black shale horizons which are mineralized with recoverable Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc and are partly exposed on surface. The resource is based on a US$10/tonne base cut-off and represents all mineralized tonnages that are under less than 75m of overburden cover, consisting of a lower-grade upper horizon hosted in the Labiche Formation, and a higher-grading horizon beneath it hosted in the Second White Speckled Shale Formation.

The Buckton South maiden resource study (or "the Resource Study") was prepared by Apex Geoscience Ltd ("Apex"), Edmonton, under the supervision of Mr.Roy Eccles PGeol, Mr.Michael Dufresne PGeol and Mr.Steven Nicholls MAIG, who are the Qualified Persons in connection with its preparation and are independent of DNI. The Resource Study relies on DNI's 2012 Summer drilling over the Zone, supported by other historic exploration information from the area. The Resource Study complies with National Instrument 43-101 and CIM resource estimation guidelines.

This press release is a summary of salient conclusions from the Buckton South mineral resource study report which is being filed to SEDAR and will be available shortly. The report, "National Instrument 43-101 Technical Report, Maiden Inferred Resource Estimate For The Buckton South Zone, SBH Property, Northeast Alberta", with effective date of March 1, 2013, will also be available from DNI's website www.dnimetals.com.

The Buckton South maiden resource is classified as an inferred resource consisting of 548 million short tons (497 million metric tonnes) of mineralized black shale extending over 3.3 square kilometres beneath less than 75m of overburden cover. This resource is hosted in the Labiche Formation and underlying Second White Speckled Shale Formation, which are two flat-lying Formations that are stacked to comprise a continuous thick zone of mineralized shale. The inferred resource is mineralized with recoverable Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th) and Rare Earth Elements Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y). The Resource Study estimates that the maiden inferred resource is overlain by 122 million short tons (110 million metric tonnes) of glacial till overburden cover. The inferred resource reported by the Buckton South maiden resource study is tabulated below combining the upper and lower portions of the resource on a weighted basis.

Buckton South Initial Maiden Inferred Mineral Resource
Upper (Labiche Formation) and Lower (Second White Speckled Shale) Portions Combined
Mineralized Shale (tons) 547,516,000
  MoO3 Ni U3O8 V2O5 Zn Cu Co Li2CO3
Raw Grade (ppm) 25.9 71.3 11.8 720.6 184.7 47.2 15.2 370.3
Recoverable Grade (ppm) 13.1 60.5 10.1 178.2 149.2 29.6 12.7 157.4
Metal/Oxide Price* (US$/lb) 17.63 9.07 68.99 7.67 0.90 3.29 22.39 2.68
Recoverable metal/oxide (kg) 6,490,000 30,034,000 4,993,000 88,489,000 74,095,000 14,700,000 6,299,000 78,204,000
Recoverable metal/oxide (lbs) 14,308,000 66,214,000 11,008,000 195,085,000 163,351,000 32,408,000 13,887,000 172,410,000
 
  La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3
Raw Grade (ppm) 46.6 81.5 10.5 39.4 7.7 1.7 6.7 1.1
Recoverable Grade (ppm) 14.8 30.8 4.3 18.2 4.8 1.1 4.6 0.7
Metal/Oxide Prices** US$/kg) 42.84 47.40 114.98 128.61 58.66 1,872.65 83.70 1,551.08
Recoverable Oxide (kg) 7,353,000 15,292,000 2,128,000 9,056,000 2,372,000 540,000 2,305,000 372,000
Recoverable Oxide (lbs) 16,211,000 33,713,000 4,691,000 19,965,000 5,229,000 1,190,000 5,082,000 820,000
 
  Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Sc2O3 ThO2
Raw Grade (ppm) 6.2 1.2 3.5 0.5 3.5 0.7 39.3 21.9 11.8
Recoverable Grade (ppm) 4.4 0.8 2.2 0.3 1.9 0.4 26.7 7.7 5.0
Metal/Oxide Prices** US$/kg) 864.09 205.82 197.35 $97.00 100.63 1,024.09 81.73 3,881.39 252.00
Recoverable Oxide (kg) 2,179,000 388,000 1,109,000 153,000 950,000 204,000 13,273,000 3,828,000 2,497,000
Recoverable Oxide (lbs) 4,804,000 855,000 2,445,000 337,000 2,094,000 450,000 29,262,000 8,439,000 5,505,000
*Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the five year trailing average to Oct/2012.
**Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the three year trailing average to Oct/2012 for La Ce Pr Nd Sm Eu Gd Tb Dy Y; three year trailing average to Aug/2011 for Tm; Th per USGS  Mineral Commodity Summaries 2009-2011, the two year trailing average to Oct/2012 for Ho Er Yb Lu Sc. Metal prices vary among various commodity information sources and, in all conflicting instances, the lower pricing was used. The 2012 drilling included an appropriate number of analytical standards, blanks and duplicates, and no analytical issues were identified. ton=short ton; lb=pound; kg=Kilogram; Recoverable metal/oxide stated to nearest 1000kg or 1000lb. Figures may not add exactly due to rounding.

 

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource reported herein will be converted into a mineral reserve. An 'Inferred Mineral Resource' is that part of 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. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The metal recoveries reported represent preliminary mineral recovery testing results collated from the collective bench scale laboratory testwork completed by DNI to date and may not reflect actual process recoverability that might be achieved in a mineral production operation, all of which is the subject of ongoing studies.

This Buckton South maiden resource has been classified as an inferred resource according to CIM standards, based on a number of factors, namely; limited number of drill holes and their wide spacing, good continuity of mineralization and geological control between drill holes and from section to section along approximately six kilometres of strike. The inferred resource is open to the north, northeast and south, and eastward to the erosional edge of the Birch Mountains over a large area with thin overburden cover where mineralization intermittently outcrops at surface or is intermittently exposed throughout several kilometres of valley walls.

The Resource Study concludes that the Buckton South maiden inferred resource is mineralization which has a reasonable prospect for extraction in the future. This resource comprises all Labiche and Second White Speckled Shale resource blocks which are beneath less than 75m of overburden cover, and for which the combined gross value of recoverable contained Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc exceeds the base cut-off of US$10 per tonne relying on the best achieved metals recoveries as reported from the collective of DNI's leaching testwork. Metal prices used are the trailing 2yr, 3yr and 5yr year commodity price averages as tabulated below. The inferred resource is distributed between the upper and lower portions of the Buckton South Zone as follows (also tabulated separately below): 407 million short tons (369 million metric tonnes) in the lower grade portion hosted in the Labiche Formation ranging 16m-62m in thickness, and 141 million short tons (128 million metric tonnes) in the higher grade portion beneath it hosted in the Second White Speckled Shale Formation which ranges 11m-18m in thickness.

Buckton South Initial Maiden Inferred Mineral Resource
Upper Portion - in Labiche Formation
Mineralized Shale (tons) 406,755,000
  MoO3 Ni U3O8 V2O5 Zn Cu Co Li2CO3
Raw Grade (ppm) 2.6 50.3 5.1 494.0 153.2 33.9 13.3 373.1
Recovery    % 55 80 75 10 75 65 80 40
Recoverable Grade (ppm) 1.4 40.3 3.8 49.4 114.9 22.0 10.6 149.2
Metal/Oxide Price* (US$/lb) 17.63 9.07 68.99 7.67 0.90 3.29 22.39 2.68
Recoverable metal/oxide (kg) 531,000 14,852,000 1,415,000 18,227,000 42,393,000 8,135,000 3,925,000 55,071,000
Recoverable metal/oxide (lbs) 1,171,000 32,743,000 3,120,000 40,184,000 93,460,000 17,935,000 8,653,000 121,411,000
 
  La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3
Raw Grade (ppm) 43.7 78.6 9.7 35.9 6.9 1.5 5.7 0.9
Recovery    % 15 25 30 35 50 55 60 60
Recoverable Grade (ppm) 6.6 19.6 2.9 12.6 3.5 0.8 3.4 0.5
Metal/Oxide Prices** US$/kg) 42.84 47.40 114.98 128.61 58.66 1,872.65 83.70 1,551.08
Recoverable Oxide (kg) 2,418,000 7,247,000 1,074,000 4,641,000 1,277,000 299,000 1,261,000 202,000
Recoverable Oxide (lb) 5,331,000 15,977,000 2,368,000 10,232,000 2,815,000 659,000 2,780,000 445,000
 
  Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Sc2O3 ThO2
Raw Grade (ppm) 5.4 1.1 3.2 0.5 3.2 0.7 33.2 23.4 11.9
Recovery    % 60 60 50 50 45 55 55 30 30
Recoverable Grade (ppm) 3.2 0.6 1.6 0.2 1.4 0.4 18.2 7.0 3.6
Metal/Oxide Prices** US$/kg) 864.09 205.82 197.35 $97.00 100.63 1,024.09 81.73 3,881.39 252.00
Recoverable Oxide (kg) 1,195,000 234,000 585,000 90,000 535,000 142,000 6,728,000 2,591,000 1,312,000
Recoverable Oxide (lb) 2,635,000 516,000 1,290,000 198,000 1,179,000 313,000 14,833,000 5,712,000 2,892,000
*Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the five year trailing average to Oct/2012.
**Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the three year trailing average to Oct/2012 for La Ce Pr Nd Sm Eu Gd Tb Dy Y; three year trailing average to Aug/2011 for Tm; Th per USGS  Mineral Commodity Summaries 2009-2011, the two year trailing average to Oct/2012 for Ho Er Yb Lu Sc. Metal prices vary among various commodity information sources and, in all conflicting instances, the lower pricing was used. The 2012 drilling included an appropriate number of analytical standards, blanks and duplicates, and no analytical issues were identified. ton=short ton; lb=pound; kg=Kilogram; Recoverable metal/oxide stated to nearest 1000kg or 1000lb. Figures may not add exactly due to rounding.

 

Buckton South Initial Maiden Inferred Mineral Resource
Lower Portion - in Second White Speckled Shale Formation
Mineralized Shale (tons) 140,761,000
  MoO3 Ni U3O8 V2O5 Zn Cu Co Li2CO3
Raw Grade (ppm) 93.3 132.1 31.1 1375.6 275.8 85.7 20.7 362.3
Recovery    % 50% 90% 90% 40% 90% 60% 90% 50%
Recoverable Grade (ppm) 46.7 118.9 28.0 550.2 248.3 51.4 18.6 181.2
Metal/Oxide Price* (US$/lb) 17.63 9.07 68.99 7.67 0.90 3.29 22.39 2.68
Recoverable metal/oxide (kg) 5,959,000 15,182,000 3,578,000 70,262,000 31,702,000 6,565,000 2,374,000 23,133,000
Recoverable metal/oxide (lbs) 13,137,000 33,471,000 7,888,000 154,901,000 69,891,000 14,473,000 5,234,000 50,999,000
 
  La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3
Raw Grade (ppm) 55.2 90.0 12.7 49.4 10.1 2.2 9.6 1.5
Recovery    % 70% 70% 65% 70% 85% 85% 85% 90%
Recoverable Grade (ppm) 38.6 63.0 8.3 34.6 8.6 1.9 8.2 1.3
Metal/Oxide Prices** US$/kg) 42.84 47.40 114.98 128.61 58.66 1,872.65 83.70 1,551.08
Recoverable Oxide (kg) 4,935,000 8,045,000 1,054,000 4,414,000 1,095,000 241,000 1,044,000 170,000
Recoverable Oxide (lb) 10,880,000 17,736,000 2,324,000 9,731,000 2,414,000 531,000 2,302,000 375,000
 
  Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Sc2O3 ThO2
Raw Grade (ppm) 8.6 1.6 4.6 0.7 4.3 0.6 57.0 17.6 11.6
Recovery    % 90% 75% 90% 75% 75% 75% 90% 55% 80%
Recoverable Grade (ppm) 7.7 1.2 4.1 0.5 3.3 0.5 51.3 9.7 9.3
Metal/Oxide Prices** US$/kg) 864.09 205.82 197.35 $97.00 100.63 1,024.09 81.73 3,881.39 252.00
Recoverable Oxide (kg) 984,000 154,000 524,000 64,000 416,000 62,000 6,545,000 1,237,000 1,185,000
Recoverable Oxide (lb) 2,169,000 340,000 1,155,000 141,000 917,000 137,000 14,429,000 2,727,000 2,612,000
*Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the five year trailing average to Oct/2012.
**Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the three year trailing average to Oct/2012 for La Ce Pr Nd Sm Eu Gd Tb Dy Y; three year trailing average to Aug/2011 for Tm; Th per USGS  Mineral Commodity Summaries 2009-2011, the two year trailing average to Oct/2012 for Ho Er Yb Lu Sc. Metal prices vary among various commodity information sources and, in all conflicting instances, the lower pricing was used. The 2012 drilling included an appropriate number of analytical standards, blanks and duplicates, and no analytical issues were identified. ton=short ton; lb=pound; kg=Kilogram; Recoverable metal/oxide stated to nearest 1000kg or 1000lb. Figures may not add exactly due to rounding.

 

Modeling and estimation of the Buckton South maiden resource was carried out using 3-dimensional block model based on geostatistical applications using commercial mine planning software MICROMINE (v12.5.4). The model relies on an aggregate of three vertical core holes drilled by DNI in 2012 which are spaced approximately 860m to 1.8km (averaging 1.3 km). Most of the mineralized black shale within the area drilled lies beneath less than 75m of overburden till and meet cut-off threshold criteria for classification as an inferred resource. The mineralized black shale in the area also shows good lateral uniformity for many of the contained metals over large distances across the Property. The spacing and number of holes are considered sufficient for the determination of inferred resources, and extrapolation of grades between the drill holes is supported by statistical variography examined during the Resource Study.

Considering that bench scale leaching tests completed by DNI to date on samples from the Labiche and Second White Speckled Shale formations report different recoveries for the metals of interest, the resource modeling treated the two shale units separately. According to the foregoing scheme, the Buckton South Zone assay file was composited using MICROMINE into separate sub-domains where the analytical data were assigned to composite sample files comprising 99 composite samples for the Labiche sub-domain (at 1.0m intervals) and 41 composite samples for the Second White Speckled Shale sub-domain (at 1.0m intervals).

Due to the limited number of drill holes over the Buckton South Zone, variography was not performed to determine the orientation and continuity of mineralization. A nominal range of 600mx600mx5m, which was based on the existing drill hole spacing and the observed grade continuity documented from the Buckton Zone was instead applied to the first pass search ellipsoid. As a result of the wide drill hole spacing, a parent model block size of 250mx250mx2m was chosen for the resource estimate. The block size emulates those that were used in the most recent resource study for the Buckton Zone, and the block model extents were extended far enough past the mineralized wireframe to encompass the entire domain. The recoverable grades for the metals were translated into a US$ value for each block and sub-block relying on the best metals recoveries achieved per DNI's leaching tests and trailing average metal/oxide prices as noted in footnotes to the above tables, and the values were aggregated into a collective gross recoverable value for each block and sub-block to enable testing against a block value base case cut-off of US$10 per tonne.

While the collective work from the Buckton South Zone indicate that none of the metals contained in the Zone occurs in sufficiently high enough concentration to be of economic merit by itself, the metals of interest collectively represent sufficient recoverable gross value on a combined basis to place the mineral resource identified at the Zone within reach of economic viability provided the metals are efficiently recovered on a combined basis. DNI's leaching testwork has already demonstrated that the metals can be collectively extracted from the shale but clear communication of overall bulk grade has been a challenge considering the polymetallic nature of the mineralization of merit. In the foregoing regard, the Resource Study notes, with concurrence from DNI, that given the absence of a single metal to represent bulk of the overall recoverable value of the mineralized shale, reporting of its overall grade as a traditional "metal equivalent" would be arbitrary and misleading.

Of necessity, the Resource Study has, accordingly, opted instead to communicate overall grade by aggregating the individual gross recoverable values represented by each of the metals of interest into a single gross recoverable total per tonne value to characterize the resource and enable its discussion and testing against a base cut-off for the purposes of resource estimation. The reader is cautioned that disclosure of gross values discussed in this announcement and in the Resource Study does not comply with Section 2.3(1c) of National Instrument 43-101 since the figures are gross and the term may be misleading in the absence of proven production costs. The recoverable gross values are quoted for convenience of communicating overall grade and are otherwise conceptual in nature and do not represent economic worth of the resource being reported from the Buckton South Zone. The reader is also reminded that the values are based on recoverable metal grades per bench scale leaching tests and do not imply that economic viability of the recoveries has been determined and they may not reflect actual recoveries which might be achieved in an ultimate mineral production operation.

Polymetallic black shale is an emerging deposit type which has gained recognition over the past decade mainly due to advances in application of bioleaching procedures to extract low grade metals from shale by bulk heapleaching. Worldwide, there is one active mining operation extracting polymetals via bio-heapleaching and two other scoping stage projects that are exploring/developing polymetallic deposits in black shale. These operations provide the only resource estimation and operating cost guidelines, particularly with respect to base cut-off values, that are relevant to evaluating the mineral resource hosted in the Buckton South Zone.

The US$10 per tonne base cut-off used by the Resource Study is considered to be a reasonable benchmark which is higher than cut-offs utilized by recent mineral resource estimates and a scoping study for other open pit mineable poly-metallic black shales in Sweden and Finland as the break-even point and lower cut-off. This base cut-off incorporates operating costs from the only available operation worldwide of bulk mining and bioheapleaching exploitation of a polymetallic black shale deposit, and includes a nominal cost for refining of REEs into final saleable products relying on estimates from other REE projects. Considering a scenario of possible open pit mining in northeast Alberta along the eastern edge of the Birch Mountains, with potential for a low strip ratio at startup, the likely free-dig nature of the poorly consolidated shale bedrock, the potential for easy access to multiple working faces, the location of the project with respect to access, power and other important infrastructure, the US$10 per tonne base lower cut-off value is considered reasonable for the purposes of mineral resource estimation as a base case cut-off threshold which also captures a relatively continuous mineralized zone with favourable bulk mining configuration.

DNI's bench scale leaching testwork demonstrated that mineralization contained in the black shales at the Buckton and Buckton South Zones is recoverable by a single bulk leaching method from the shale and that REEs and Specialty Metals are incidentally leached from the shale as co-products of leaching of base metals. The Resource Study notes that REEs account for a significant proportion of the recoverable gross value of the resource, especially for mineralization in the Labiche shale, and concludes that ultimate economics of the resource are, accordingly, subject to uncertainties of long term REE pricing and viability of demand, the unknown effect of new production on REE markets, and the cost of separating REEs from pregnant leaching solutions once they have been leached from the shale and their refinement into saleable final products. Although the base cut-off of US$10 per tonne used in the Resource Study includes a nominal cost for separation of REEs relying on estimates from other REE projects, a sensitivity analysis was, nonetheless, conducted in the Resource Study to investigate sensitivity of the inferred resource to cost fluctuations by testing the resource model against progressively higher arbitrary base cut-offs.

The resource model was iterated and tested at progressively higher arbitrary base cut-offs to determine the commensurate tonnages that can be classified as mineral resources against any given base cut-off. The entire shale package resource model was, accordingly, tested at base cut-offs of US$12, US$14, US$16, US$18, US$19, US$20 and US$21 per tonne. The sensitivity analysis demonstrated that the tonnage and distribution of the shale package is virtually intact between base cut-offs of US$10 per tonne and approximately US$14 per tonne, and that the aggregate gross recoverable value of contained metals exceeds the base cut-off, but that at higher base cut-offs the tonnage of the upper zone hosted in the Labiche Shale rapidly decreases and distribution of resource blocks lose cohesion such that at a base cut-off of US$19 per tonne virtually none of the upper portion of the resource hosted entirely in Labiche Shale can continue to be classified as a mineral resource since aggregate gross recoverable value of the contained metals is less than the cut-off.

The sensitivity analysis successfully demonstrates that as the spatial distribution of resource within the upper zone hosted in Labiche Shale decreases, progressively larger portions of Labiche Shale would be regarded as cover waste material to be removed for the purposes of any mining operations to extract the underlying resource in the Second White Speckled Shale Formation. Considering that distribution of the upper portion of the resource hosted in Labiche shale will affect distribution and tonnage of what might be realistically mined from the lower portion of the resource beneath it hosted in the Second White Speckled Shale, the resource model was tested at yet higher base cut-offs of US$40, US$45, US$50, US$54, US$55, US$56, US$57, US$58, US$59 and US$60 per tonne, to simulate a scenario for which the upper portion of the resource is deemed to be waste and would have to be removed together with the overburden to gain access to the underlying higher grade mineralization in the Second White Speckled Shale. In these iterative scenarios, the lower portion of the resource hosted in the Speckled Shale is the only mineralization of interest and the resource identified within it remains intact between base cut-offs of US$10 per tonne and US$45 per tonne at which cut-off it comprises 132 million short tons (126 million metric tonnes) extending over 3.3 square kilometres. At a base cut-off of US$50 per tonne the resource comprises 112 million short tons (107 million metric tonnes) extending over 3.3 square kilometres, but gradually loses cohesion at base cut-offs higher than US$50 per tonne such that at a base cut-off of US$60 per tonne virtually none of it can be classified as a mineral resource since the aggregate gross recoverable value of contained metals is less than the base cut-off.

The Resource Study overall concludes that the per tonne of recoverable gross value represented by the Labiche and Second White Speckled Shale resource is sufficiently higher than the US$10 per tonne base cut-off used by the Resource Study, and sufficiently higher than the related iteration of the resource model at higher cut-offs up to US$14 per tonne, to reasonably conclude that the Buckton South initial maiden inferred resource is mineralization that has a reasonable prospect for extraction in the future.

The Buckton and Buckton South Zones together dominate the east-central portion of the SBH Property, with a combined inferred resource of approximately 3.7 billion tonnes containing recoverable Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc. In the absence of drilling over the approximately seven kilometres separating the two Zones, the information on hand does not enable clear conclusion of whether the Buckton South Zone is a southerly extension of the Buckton Zone or whether it is a separate stand-alone Zone by itself. The presence of many surface geochemical anomalies and mineralized exposures throughout the area separating the two Zones, and similarity of aggregate gross recoverable values of resources at the two Zones do, however, suggest a likely connection between the two Zones which has not yet been confirmed by drilling.

The Resource Study concludes that the Buckton South Zone maiden inferred resource has excellent potential for expansion with further drilling, and recommends implementation of additional drilling with primary emphasis on expanding the Buckton South maiden inferred resource and upgrading a portion of it to the indicated resource class, while also testing the area between the Buckton and Buckton South Zones to determine whether the two Zones are connected. The Study also recommends that DNI continue its work to revise the Buckton Zone mineral resource to expand it by incorporating recently received assays from the 2012 summer drilling program.

In a statement Mr. S.Sabag, DNI's president & CEO, commented: "… we are excited to announce this second mineral resource from our Property and look forward to further expansion of the Buckton Zone and the Buckton South Zone resources. We are continuing to advance the project toward a pilot demonstration stage as planned, and look forward to concluding preliminary economic assessment of the Buckton Zone in the months to come".

The Qualified Persons in connection with the preparation of the Buckton South mineral resource study are Mr. Roy Eccles PGeol, Mr. Michael Dufresne PGeol and Mr. Steven Nicholls MAIG who are independent of DNI. The Qualified Person in connection with this press release and in respect of the Alberta polymetallic black shale projects is Mr. Shahé F.Sabag PGeo, President and CEO of DNI, who is responsible for verification and quality assurance of the exploration information disclosed in connection with the projects and this release.

Ton=short ton; lb=pound; tonne = metric tonne = 1000kg. The 2012 drill core analyses included an appropriate number of analytical standards, blanks and duplicates, and no analytical issues were identified. Metal/Oxide commodity prices used to establish bulk recoverable values for cut-off grade thresholding tests are the five year trailing average to October 25, 2012, for Mo-Ni-U-V-Zn-Cu-Co-Li (U consolidated from www.cameco.com; Li from www.asianmetal.com; remaining metals from www.metal-pages.com); the three year trailing average to October 25, 2012, for La-Ce-Pr-Nd-Sm-Eu-Gd-Tb-Dy-Y (consolidated from www.metal-pages.com); three year trailing average to August, 2011, for Tm (from Montviel Core Zone REE resources study 2011 by SGS Canada Inc.); Th per USGS  Mineral Commodity Summaries 2009-2011; the two year trailing average to October 25, 2012, for Ho-Er-Yb-Lu-Sc (consolidated from www.asianmetal.com). Metal prices vary among various commodity information sources and in all conflicting instances the lower pricing was used. Analyses by Activation Laboratories Ltd., Ancaster, ON; U and Co analyses by INA, REE-Th by Fusion-MS, all other metals by ICP or ICP/MS following 4-acid digestion. Analytical results from the 2012 drilling were announced on Jan31/2013, along with details of DNI's analytical quality assurance and quality control parameters.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

DNI - TSX Venture
DG7 - Frankfurt
Issued: 74,857,022

We seek Safe Harbour. This announcement includes forward looking statements. While these statements represent DNI's best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including risk factors listed in DNI's Annual Information Form and its MD&As, all of which are available from SEDAR and on its website.


 

 

 

SOURCE: DNI Metals Inc.

For further information:

DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195
email ir@dnimetals.com. Also visit www.dnimetals.com

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