TORONTO, Feb. 19 /CNW/ - Duluth Metals Limited ("Duluth Metals") (TSX:
DM) (TSX:DM.U) today announced the signing of an exclusive option to purchase
a key piece of infrastructure land called the Dunka Pit from Cliffs Erie LLC
("CE"), a subsidiary of Cleveland-Cliffs Inc ("Cliffs"). The acquisition of
this strategic land parcel which is in close proximity to the Duluth Metals
Nokomis Deposit would meet a two-fold objective of providing a location for
offsite processing, while fulfilling Duluth Metal's commitment to
environmental stewardship through use of an existing brownfield/industrial
"The potential use of Dunka is an excellent example of the
're-utilization' of former ferrous mining sites as processing plant
locations", stated Dr. Henry J. Sandri, President and CEO. "The recycling of
existing ferrous mining sites takes advantage of brownfield locations that
have limited use, reduces the future disturbance of area lands, and, under new
regulations, can ensure that the eventual sites are reclaimed to existing
environmental standards. The anticipated acquisition of Dunka will meet Duluth
Metals' objective of locating off site processing and re-using an existing
brownfield/industrial location", stated Dr. Sandri.
Dunka is a former iron ore / taconite open pit mine located at the
northeastern tip of the Mesabi Range iron ore deposits. Dunka was mined first
by Erie Mining Company and then later by LTV Steel Mining Company ("LTVSMC")
until 1994 and Dunka's ore, along with five other mines, was shipped to the
beneficiation facilities at Hoyt Lakes, Minnesota for processing into pellets.
CE acquired Dunka along with other LTVSMC properties and operations when it
purchased the LTVSMC assets in 2001.
The Dunka assets include approximately 1,845 acres, including three
interconnected previously mined iron ore pits, rock berms, adjacent lands,
access routes, rights-of-way, infrastructure and utility corridors, and
operational facilities, including a water treatment plant. Dunka is presently
a brownfield site in the final stages of remediation. After exercise of the
option by Duluth Metals, the completion of the sale would be subject to State
of Minnesota regulatory review, including the transfer of ongoing
environmental and reclamation obligations of the Dunka site to Duluth Metals.
Duluth Metals will be evaluating the Dunka site as a future
infrastructure and residual rock disposal site for the processing of copper,
nickel and platinum group metals ores from its Nokomis Deposit, located
approximately 8 kilometers (5 miles) to the northeast.
Other recent examples of the recycling of former ferrous mining
operations include CE's sales and options to sell other portions of the former
LTVSMC site. These include a sale to Mesabi Nugget (for an iron nugget
facility), a sale to PolyMet Mining, Inc. (for a copper-nickel mining and
processing facility), and an option to Excelsior Energy (for a 603 MW coal
gasification power plant).
Duluth Metals recently reported on the completion of a NI-43-101
compliant independent Scoping Study by Scott Wilson Roscoe Postle Associates.
The Scoping Study confirmed robust economics and indicate the potential for
the Nokomis Project to be one of the world's low cost copper-nickel producers
operating on a large scale over a very long period of time. The Nokomis
Deposit currently contains 347 million tonnes of Indicated Resources and 108
million tonnes of Inferred Resources (NI-43-101 compliant resource estimate).
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 exploration data and analytical results.
About Duluth Metals
Duluth Metals is committed to acquiring, exploring and developing copper,
nickel and platinum group metal (PGM) deposits. Duluth Metals' 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
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is an
international mining company, the largest producer of iron ore pellets in
North America and a major supplier of metallurgical coal to the global
steelmaking industry. Cliffs operates six iron ore mines in Michigan,
Minnesota and Eastern Canada, and three coking coal mines in West Virginia and
Alabama. Cliffs also owns 80 percent of Portman Limited, a large iron ore
mining company in Australia, serving the Asian iron ore markets with
direct-shipping fines and lump ore. In addition, Cliffs has a 30 percent
interest in the Amapa Project, a Brazilian iron ore project, and a 45 percent
economic interest in the Sonoma Project, an Australian coking and thermal coal
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 Metals' 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 Metals' 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 Metals 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
For further information:
For further information: Mara Strazdins, Director of Corporate
Communications, at firstname.lastname@example.org or at (416) 369-1500 or Henry
Sandri, President and CEO, at email@example.com; U.S. corporate office:
telephone (651) 389-9990, Web Page: www.duluthmetals.com