Duluth Metals confirms 12 million Indicated ounces and 6 million Inferred
ounces of contained palladium, platinum and gold
Contained Precious Metals ------------------------------------------------------------------------- June 2008 October 26, 2009 Metal(1) Indicated Resources Indicated Resources Incremental Change(2) ------------------------------------------------------------------------- Palladium 5.17 million ounces 6.93 million ounces +1.76 million ounces ------------------------------------------------------------------------- Platinum 2.30 million ounces 3.11 million ounces +0.81 million ounces ------------------------------------------------------------------------- Gold 1.21 million ounces 1.63 million ounces +0.42 million ounces ------------------------------------------------------------------------- TPM 8.68 million ounces 11.67 million ounces +2.99 million ounces ------------------------------------------------------------------------- ------------------------------------------------------------------------- June 2008 October 26, 2009 Metal(1) Inferred Resources Inferred Resources Incremental Change(2) ------------------------------------------------------------------------- Palladium 3.94 million ounces 3.60 million ounces -0.34 million ounces ------------------------------------------------------------------------- Platinum 1.75 million ounces 1.63 million ounces -0.12 million ounces ------------------------------------------------------------------------- Gold 0.88 million ounces 0.80 million ounces -0.08 million ounces ------------------------------------------------------------------------- TPM 6.57 million ounces 6.03 million ounces -0.54 million ounces ------------------------------------------------------------------------- (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
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 ------------------------------------------------------------------------- Indicated Resources(1-10) ------------------------------------------------------------------------- Cut-off Tonnes Cu Ni Co Au Pt Pd TPM CuEq ------------------------------------------------------------------------- Grade (000's) % % % g/t g/t g/t g/t % ------------------------------------------------------------------------- 1.0% CuEq 91,548 0.754 0.213 0.010 0.137 0.272 0.614 1.023 1.80 ------------------------------------------------------------------------- 0.5% Cu 90,419 0.757 0.213 0.010 0.138 0.273 0.617 1.028 1.81 ------------------------------------------------------------------------- 0.6% Cu 81,234 0.780 0.218 0.010 0.140 0.283 0.639 1.062 1.86 ------------------------------------------------------------------------- 0.7% Cu 57,728 0.832 0.228 0.010 0.148 0.305 0.682 1.135 1.97 ------------------------------------------------------------------------- 0.8% Cu 32,404 0.899 0.237 0.010 0.158 0.326 0.728 1.212 2.10 ------------------------------------------------------------------------- Inferred Resources(1-10) ------------------------------------------------------------------------- Cut-off Tonnes Cu Ni Co Au Pt Pd TPM CuEq ------------------------------------------------------------------------- Grade (000's) % % % g/t g/t g/t g/t % ------------------------------------------------------------------------- 1.0% CuEq 22,002 0.760 0.216 0.010 0.126 0.272 0.607 1.005 1.81 ------------------------------------------------------------------------- 0.5% Cu 21,894 0.763 0.216 0.010 0.126 0.273 0.610 1.009 1.82 ------------------------------------------------------------------------- 0.6% Cu 20,101 0.780 0.220 0.010 0.130 0.284 0.629 1.043 1.86 ------------------------------------------------------------------------- 0.7% Cu 15,440 0.817 0.229 0.011 0.134 0.305 0.660 1.099 1.95 ------------------------------------------------------------------------- 0.8% Cu 8,431 0.868 0.237 0.011 0.139 0.331 0.696 1.166 2.05 ------------------------------------------------------------------------- 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. 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: ------------------------------------------------------------------------- Indicated Resources(1-10)* ------------------------------------------------------------------------- Higher Tonnes Cu Ni Co Au Pt Pd TPM CuEq ------------------------------------------------------------------------- Grade Area (000's) % % % g/t g/t g/t g/t % ------------------------------------------------------------------------- Eastern 62,509 0.750 0.214 0.010 0.146 0.282 0.651 1.079 1.82 ------------------------------------------------------------------------- Western 15,740 0.707 0.203 0.010 0.106 0.203 0.456 0.765 1.63 ------------------------------------------------------------------------- Central 13,298 0.829 0.217 0.010 0.134 0.305 0.621 1.060 1.91 ------------------------------------------------------------------------- Inferred Resources(1-10)* ------------------------------------------------------------------------- Higher Tonnes Cu Ni Co Au Pt Pd TPM CuEq ------------------------------------------------------------------------- Grade Area (000's) % % % g/t g/t g/t g/t % ------------------------------------------------------------------------- Eastern 7,939 0.731 0.213 0.010 0.131 0.272 0.634 1.037 1.78 ------------------------------------------------------------------------- Western 5,642 0.714 0.208 0.010 0.112 0.200 0.494 0.806 1.65 ------------------------------------------------------------------------- Central 8,502 0.819 0.225 0.011 0.130 0.320 0.657 1.107 1.95 ------------------------------------------------------------------------- *Footnotes 1-10 as listed under previous table.
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
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.
For further information: For further information: please contact Mara Strazdins, Director of Corporate Communications, at [email protected] or at (416) 369-1500; or Henry Sandri, President and CEO, at [email protected]. The telephone number for the Minnesota corporate office is (651) 389-9990; Web Page: www.duluthmetals.com
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