Duluth Metals Initial 43-101 Resource exceeds expectations

    TORONTO, June 26 /CNW/ - Duluth Metals Limited ("Duluth") (TSX: DM)
(TSX:DM.U) today announces the receipt of an independent NI 43-101 compliant
resource estimate completed by Scott Wilson RPA on its Maturi Extension
Property near Ely, Minnesota. This initial resource estimate consists of
347 million tonnes of the higher classification resource category of Indicated
Resources grading 0.62% copper, 0.20% nickel, 0.52 grams per tonne of total
precious metals (TPM = Platinum+Palladium+Gold), plus an additional 108
million tonnes of Inferred Resources grading 0.64% copper, 0.18% nickel, 0.70
grams per tonne of total precious metals (TPM = Platinum+Palladium+Gold).
Drilling is currently underway to upgrade the Inferred portion of the resource
to Indicated. The mineralization is also open to the east, northeast and south
and the current drilling may also add substantially to the resource in these
areas. A scoping study will be initiated immediately with a pre-feasibility
study likely to commence later this year.
    "This result vastly exceeds even our most optimistic expectations! The
good continuity of the mineralization has allowed 347 M tonnes to receive the
higher classification of Indicated Resource. We are excited about the eventual
production potential of this resource as well as the potential to add
additional tonnes from the untested portions of our property. We have only
drilled off a 3.5 sq. kilometer section of our property which is approximately
one-third of the total property area. The size and extent of the mineralized
horizon is extraordinary." stated Dr. Henry Sandri, President and CEO. "We
will be moving quickly into a preliminary assessment (scoping study) and
pre-feasibility study and anticipate starting a full feasibility study in
    The resource estimate in the western portion of the property, is
highlighted below and is also reported at higher cut-off grades as follows:

         Duluth Metals Limited Maturi Extension Property, Minnesota

                             Indicated Resources
    Cut-off          Tonnes     Cu     Ni     Co     Au     Pt     Pd    TPM
    Grade           (000's)      %      %      %    g/t    g/t    g/t    g/t
    0.8% CuEq(6)    346,782  0.617  0.204  0.011  0.076  0.138  0.310  0.524
    0.5% Cu         296,720  0.649  0.210  0.011  0.080  0.147  0.329  0.555
    0.6% Cu         186,201  0.706  0.220  0.011  0.089  0.165  0.371  0.625
    0.7% Cu          74,380  0.794  0.239  0.011  0.103  0.194  0.444  0.740
    0.8% Cu          26,311  0.889  0.255  0.011  0.114  0.216  0.503  0.833

                             Inferred Resources
    Cut-off          Tonnes     Cu     Ni     Co     Au     Pt     Pd    TPM
    Grade           (000's)      %      %      %    g/t    g/t    g/t    g/t
    0.8% CuEq(6)    108,361  0.645  0.180  0.009  0.098  0.187  0.413  0.697
    0.5% Cu          93,974  0.703  0.189  0.010  0.107  0.204  0.451  0.762
    0.6% Cu          76,040  0.738  0.189  0.010  0.115  0.217  0.480  0.812
    0.7% Cu          44,903  0.800  0.192  0.009  0.131  0.244  0.535  0.910
    0.8% Cu          17,408  0.875  0.179  0.009  0.164  0.273  0.617  1.053

    1.  CIM definitions were followed for Mineral Resource estimation and
    2.  Mineral Resources are estimated at a zone definition (wireframe) cut-
        off grade of 0.8% Cu equivalent grade (CuEq).
    3.  Mineral Resources were estimated using average long-term metal
        US$ prices of $6.00/lb nickel, $2.00/lb copper, $10/lb Co,
        $950/oz platinum, $350/oz palladium and $600/oz gold.
    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%) = Cu% + 1.94 x Ni% + 1.77 x Co%
        + 0.15 x Au g/t + 0.48 x Pt g/t + 0.17 x Pd g/t
    7.  The 0.8% CuEq cut-off grade includes all material in the wireframed
    8.  TPM is Au g/t + Pt g/t + Pd g/t.
    9.  Co, Au, Pt, Pd grades, that are lacking in the few historic drill
        holes used in the estimate, have been entered in the resource
        database based on regression of assay grades from DML drill hole
    10. Resource blocks at cut-off grades up to and including 0.8% Cu form
        reasonably coherent areas that could be developed for mining.

    Richard E. Routledge, M.Sc., P.Geo. of Scott Wilson Roscoe Postle
Associates Inc., Toronto Canada, is the Independent Qualified Person who
prepared the resource estimate and reviewed this release. For the 2006-2007
winter drill program, 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, 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 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.

    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
Maturi Extension 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

    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, at mstrazdins@duluthmetals.com or at (416) 369-1500 or Henry
Sandri, President and CEO, at hsandri@duluthmetals.com. The Minnesota
corporate office is telephone (651)-389-9990; Web Page: www.duluthmetals.com

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