Duluth Metals announces 95% copper and 72% nickel recoveries from initial metallurgical tests



    TORONTO, Oct. 4 /CNW/ - Duluth Metals Limited ("Duluth") (TSX: DM)
(TSX: DM.U) today announced significant high extraction and recovery rates for
its initial metallurgical tests of the Nokomis Deposit copper - nickel - PGM
ores. These results, prepared by SGS Lakefield, confirm the use of
conventional flotation - concentration and hydrometallurgical processing using
the Platsol(TM) Process as the preferred method of final recovery. SGS
Lakefield is currently preparing a full report that will be available on
SEDAR. The Nokomis Deposit occupies approximately one third of Duluth's Maturi
Extension Properties near Ely, Minnesota.
    "Final recoveries of 95% for copper and 72% for nickel are tremendous,
with excellent recoveries on platinum and palladium." stated Dr. Henry Sandri,
President and CEO. "The first stages of processing, consisting of crushing and
grinding followed by flotation and concentration, are all conventional
techniques and SGS Lakefield confirmed that our mineralization requires only
standard processing and chemicals - nothing out of the ordinary. The exciting
part was the successful use and high level of hydrometallurgical recoveries
using the Platsol(TM) Process which allows for an environmentally clean method
of recovering base and precious metals. These recoveries are some of the
highest seen to date with Duluth Complex ores". (See table below.)

    
                     Nokomis Deposit - Processing Results
                     ------------------------------------

                                Cu        Ni        Pt        Pd        Au
                              -----------------------------------------------
    Head Grade                0.75%     0.24%     0.18g/t   0.42g/t   0.10g/t
    -------------------------------------------------------------------------
    Flotation/Concentrate
     Recovery                 95.3%     72.4%     86.0%     87.0%     73.0%
    -------------------------------------------------------------------------
    Hydrometallurgical
     (Platsol(TM)) Recovery   99.6%     99.2%     97.6%     98.1%     84.1%
    -------------------------------------------------------------------------
    Combined Recovery         94.9%     71.8%     83.9%     85.4%     61.3%
    -------------------------------------------------------------------------
    Concentrate Grade         12.2%     2.97%     2.61g/t   6.09g/t   1.21g/t
    -------------------------------------------------------------------------
    

    "Testing also showed that the Nokomis Deposit mineralization can produce
either a high grade bulk copper-nickel concentrate, or two separate
concentrates: a high grade copper concentrate and a nickel rich bulk
concentrate, both of marketable grades. This is very important in adding
flexibility and options to our overall process design. In addition, as this is
our first testing, SGS Lakefield confirms that the system is not optimized,
and additional improvements may follow from future tests", said Dr. Sandri.
    The metallurgical tests were undertaken by SGS Lakefield. Conditions for
the various tests were chosen to examine a number of different parameters for
grinding, flotation/concentration, and hydrometallurgical extraction with the
following parameters: 252 kgs (554 lbs) of composite representative
mineralization were combined from 8 recently drilled holes representing the
Nokomis Deposit. This blended sample was shipped to SGS Lakefield in
Peterborough, Ontario. The sample was subject to various characterization,
including head assaying and mineralogical analysis, and a Bond ball mill index
test, resulting in 16.3 kWh/t, which is considered medium-hard in the context
of the SGS Lakefield database and consistent with other ores from the Duluth
Complex. In addition batch rougher bulk flotation tests were conducted on the
ground composite to evaluate the primary grind, collector type and dosage, and
activators through kinetic rate tests. Primary grind size of 80% passing 100
microns (150 mesh) with 45 g/t of SIPX and no activator generated the best
metallurgical results. Batch cleaner tests evaluated the effects of regrinding
the residual material under various flow sheet configurations. A copper-nickel
bulk concentrate was produced for further testing.
    Additional tests gave very positive results in producing two concentrates
- a copper concentrate and a nickel bulk concentrate. A split-stream flow
sheet was tested and initial fast-floating copper minerals cleaned separately
from slower floating nickel minerals, resulting in a copper concentrate and a
nickel rich bulk concentrate. This flow sheet demonstrated equal success to
the copper-nickel bulk concentrate flow sheet. Regrinding proved beneficial at
producing higher grade concentrates with apparent improved liberation. The
hydrometallurgical tests were run under typical Platsol conditions: 220 C, 120
minutes retention time, 10 g/l NaCl, 100 psi oxygen overpressure. Conditions
were not optimized for the tests.
    Results of these tests will be input into Duluth's Scoping Study of the
Nokomis Deposit, presently being prepared by Scott Wilson Roscoe Postle
Associates Inc. Duluth is presently preparing additional samples for further
testing and optimization studies at SGS Lakefield. The Company is also
continuing to drill additional step-out areas in the Maturi Extension
Properties and in-fill drill portions of the Nokomis Deposit.
    In addition, Duluth Metals is pleased to announce the launch of their new
website at www.duluthmetals.com.
    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 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.





For further information:

For further information: Mara Strazdins, Director of Corporate
Communications, mstrazdins@duluthmetals.com, (416) 369-1500; Henry Sandri,
President and CEO, hsandri@duluthmetals.com; Minnesota Corporate Office: (651)
389-9990; www.duluthmetals.com

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