Duluth Metals Announces an Updated Mineral Resource Estimate
Confirming Large Increases to Twin Metals Contained Metal, Grade
and Indicated Tonnage
- Amongst the world's largest Cu-Ni-PGM polymetallic sulphide
deposits with contained metals (using a 0.3% Cu cut-off) of 13.7
billion lbs copper, 4.4 billion lbs nickel, and 21.2 million ozs
palladium+platinum+gold (TPM)1 in the Indicated category
and 11.8 billion lbs copper, 4.0 billion lbs nickel, and 12.8
million ozs TPM1 in the Inferred category, representing
an average 19% increase from the June
2012 interim AMEC Report.
- Using a base case 0.3% Cu cut-off, AMEC estimated an Indicated
Mineral Resource of 1.17 billion tons2 and an Inferred
Mineral Resource of 1.26 billion tons on the three deposits (Birch
Lake, Maturi and Spruce Road) occurring on approximately 11% of the
footprint of the prospective portion of the Twin Metals Minnesota
(TMM) property block, representing a 60% increase in Indicated Tons
and a 9% increase in Inferred Tons from the June 2012 interim report.
- The S3 Subunit (which is a subset of the base case mineral
resource estimate for the Maturi Deposit) using a higher 0.5% Cu
cut-off contains 622 million tons in the Indicated category and 198
million tons in the Inferred category. This material may have
potential to provide higher-grade mill feed for the early stages of
any planned mining operation.
- Exploration Target areas include additional potential resources
of between 1.4 and 2.2 billion tons contiguous to the boundaries of
the three deposits. These Exploration Target areas occur on
approximately 12% of the footprint of the prospective portion of
the TMM property block.
- The AMEC updated mineral resource estimate highlights a growing
Platinum Group Metal (PGM) and gold resource of 21.2 million ozs
Indicated and 12.8 million ozs Inferred in the Maturi and Birch
Lake deposits. A decline of 3.0 million ozs contained in the
Inferred Resource from the June 2012
interim report is offset by a 9.1 million ozs (75%) increase in the
Indicated Resource. The TMM project has one of the world's largest
palladium and platinum resources outside of South Africa.
TORONTO,
Dec. 4, 2012 /PRNewswire/ - Duluth
Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) today announced
that Twin Metals Minnesota LLC (TMM) has received a draft NI 43-101
Technical Report on the consolidated mineral resources for the Twin
Metals Minnesota Project in Northeastern
Minnesota prepared by an AMEC E&C Services Inc. (AMEC)
team led by Dr. Harry Parker. This
final study utilizes 867 drill holes and 308 wedge offsets to
confirm the Twin Metals Minnesota Project to be one of the largest
base and precious metal deposits in the world of this type. In
addition, the PGM resource estimate confirms the project to be one
of the largest palladium and platinum resources outside of
South Africa. The final NI 43-101
compliant Technical Report will be delivered by AMEC and filed on
SEDAR within 45 days from today's date.
Vern Baker,
President of Duluth Metals, commenting on the report stated: "This
final AMEC report confirms the impressive nature of the deposits,
with very large qualified resources on only 11% of the Twin Metals
Minnesota property. All key parameters including grade, tonnage,
and contained metal have grown substantially since the June 2012 interim report. The updated resource
statement provides greater clarity on continuous zones of higher
grade mineralization for TMM's ongoing prefeasibility study. Mine
planning will focus on utilizing the higher grade areas for initial
mine sequencing, potentially improving the business/ economic model
significantly."
________________________
1 Values for the Pt, Pd and Au
components of TPM are shown in Table 5 and Table 6.
2 All tonnages are reported as short tons.
Significant Increase in the TMM Global
Resource
The study includes three mineral resources in
close proximity to one another within the Twin Metals Minnesota
Project referred to as the Maturi, Birch Lake and Spruce Road
Deposits:
- Using a base case 0.3% Cu cut-off, the Maturi Deposit**
contains 1065 million tons of Indicated Mineral Resources
grading 0.59% copper, 0.19% nickel, 0.60 parts per million TPM (TPM
= Pt + Pd + Au), plus an additional 542 million tons of Inferred
Mineral Resources grading 0.51% copper, 0.17% nickel, 0.53 parts
per million TPM. (Maturi Deposit tonnages do not include 139
million tons of mineralized material excluded from the underground
resource in a safety pillar)
- Using a base case 0.3% Cu cut-off, the Birch Lake
Deposit** contains 99.7 million tons of Indicated Mineral
Resources grading 0.52% copper, 0.16% nickel, 0.86 parts per
million TPM, plus an additional 239.2 million tons of Inferred
Mineral Resources grading 0.46% copper, 0.15% nickel, 0.64 parts
per million TPM
- Using a base case 0.3% Cu cut-off, the Spruce Road
Deposit** contains 480 million tons of Inferred Mineral
Resources grading 0.43% copper, 0.16% nickel.*
* Note - The Spruce Road resource was
estimated using Inco legacy assay data. Platinum, palladium, and
gold were not assayed by Inco, and the core is not available for
re-assay.
** Note - These mineral resource
estimates include 100% of the estimated resource in each deposit,
and include mineral resources acquired as a part of TMM's
acquisition of Franconia Minerals Corporation in 2011. Franconia's
principal assets are a 70% interest in the Birch Lake, 'old' Maturi
and Spruce Road deposits in northeastern Minnesota through the Birch Lake Joint
Venture. Franconia announced in November, 2010 its intention to
increase its ownership at the Birch Lake Joint Venture to 82%; see
Franconia's company profile at www.SEDAR.com for Technical Reports.
TMM's ownership of the resource will be factored by these
percentages where applicable.
Higher Grade
core delineated in the Maturi Deposit - Potential Earlier Economic
Mining Opportunities
The current Maturi Deposit resource estimate is
based on a refined geological model. One geological subunit within
the Maturi Deposit, known as the S3, hosts a higher-grade area that
is a subset of the base case mineral resource estimate that may
have potential as an early start-up area. AMEC estimated that
the S3 Subunit in the Maturi Deposit, using a 0.5% Cu
cut-off, contains 622 million tons grading 0.69% Cu, 0.22%
Ni and 0.76 ppm TPM of Indicated Mineral Resources and 198 million
tons grading 0.65% Cu, 0.21% Ni and 0.82 ppm TPM in
the Inferred category. This material is a higher grade sub-set
of the global resources estimated for Maturi. Within the Maturi
Deposit, the bulk of mineralization is hosted by two subunits of
the Basal Mineralized Zone (BMZ). The S2 and S3 subunits are
stratiform, with the S3 subunit overlying the S2 subunit. Both
subunits are laterally extensive, and are present over the vast
majority of the deposit footprint. Within the Indicated Mineral
Resource areal footprint, the S3 subunit ranges in vertical
thickness from 0 to 355 feet, averaging 108 feet thick (0 to 276
feet, average 91 feet true thickness) and within the Indicated
Mineral Resource areal footprint, the S2 subunit ranges in vertical
thickness from 0 to 423 feet, averaging 72 feet thick (0 to 329
feet, averaging 59 feet true thickness). Table 1 shows tabulation
range of sensitivity cases at different copper cut-off grades for
the S3 Subunit of the Maturi Deposit. The base case subset estimate
at a 0.3% Cu cut-off grade for the unit is shown in bold, and the
0.5% Cu cut-off grade sensitivity case subset is indicated in
italics.
Table 1 - Maturi Deposit S3 Subunit Sensitivity case
Indicated and Inferred Mineral Resources
|
Maturi Deposit- S3
Subunit |
|
Indicated Mineral Resource |
Cu% |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM |
cut-off |
Tons |
% |
% |
ppm |
ppm |
ppm |
ppm |
0.2 |
643 |
0.68 |
0.22 |
0.20 |
0.45 |
0.11 |
0.75 |
0.3 |
643 |
0.68 |
0.22 |
0.20 |
0.45 |
0.11 |
0.75 |
0.4 |
641 |
0.68 |
0.22 |
0.20 |
0.45 |
0.11 |
0.75 |
0.5 |
622 |
0.69 |
0.22 |
0.20 |
0.45 |
0.11 |
0.76 |
0.6 |
500 |
0.72 |
0.23 |
0.21 |
0.47 |
0.11 |
0.78 |
|
Inferred Mineral Resource |
Cu% |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM |
cut-off |
Tons |
% |
% |
ppm |
ppm |
ppm |
ppm |
0.2 |
234 |
0.62 |
0.20 |
0.21 |
0.46 |
0.10 |
0.77 |
0.3 |
232 |
0.62 |
0.20 |
0.21 |
0.47 |
0.10 |
0.78 |
0.4 |
225 |
0.63 |
0.20 |
0.21 |
0.47 |
0.10 |
0.78 |
0.5 |
198 |
0.65 |
0.21 |
0.22 |
0.50 |
0.11 |
0.82 |
0.6 |
129 |
0.70 |
0.22 |
0.25 |
0.55 |
0.12 |
0.92 |
Significant Increase in Contained Metals from
June 2012:
Contained metals in the new resources are shown
in Table 2:
Table 2 - CONTAINED METALS IN THE TMM RESOURCE*
METAL |
INDICATED RESOURCE |
INFERRED RESOURCE |
Copper |
13.7 Billion lbs. |
11.8 Billion lbs. |
Nickel |
4.4 Billion lbs. |
4.0 Billion lbs. |
|
|
|
Platinum |
5.6 Million ozs. |
3.5 Million ozs.** |
Palladium |
12.6 Million ozs. |
7.6 Million ozs.** |
Gold |
3.0 Million ozs. |
1.7 Million ozs.** |
|
|
|
* Note - Based on mineral resources
estimated at base case 0.3% copper cut-off grade.
** Note - Contained ounces of platinum, palladium, and
gold in the Inferred category do not include the Spruce Road
deposit.
One of largest Platinum Group and Gold
Resources Outside of South
Africa
The updated AMEC resource statement highlights a
growing platinum group metals (PGM) and gold resource of 21.2
million ozs. Indicated TPM and 12.8 million ozs. Inferred TPM,
which is one of the world's largest palladium and platinum
resources outside of South Africa.
A detailed contained metal tabulation for platinum and palladium in
the TMM resource is shown in Table 3:
Table 3 - PRECIOUS METALS CONTAINED IN INDICATED AND INFERRED
MINERAL RESOURCES
METAL |
|
INDICATED
RESOURCE |
INFERRED
RESOURCE |
Platinum (million troy ounces) |
Maturi |
4.9 |
2.2 |
|
Birch Lake |
0.7 |
1.3 |
|
TOTAL |
5.6 |
3.5 |
|
|
|
|
Palladium (million troy ounces) |
Maturi |
11.1 |
5.1 |
|
Birch Lake |
1.5 |
2.6 |
|
TOTAL |
12.6 |
7.6 |
|
|
|
|
Gold (million troy ounces) |
Maturi |
2.6 |
1.1 |
|
Birch Lake |
0.3 |
0.6 |
|
TOTAL |
3.0 |
1.7 |
Updated Mineral Resources
Twin Metals Minnesota LLC, is the joint venture
company between Duluth Metals
Limited (60% ownership interest) and Antofagasta plc (40% ownership interest). In
2011, Twin Metals Minnesota LLC acquired Franconia Minerals
Corporation. Franconia`s principal assets are a 70% interest in the
Birch Lake, "old Maturi" (not including former Nokomis property) and Spruce Road deposits
through the Birch Lake Joint Venture, with Beaver Bay Resources
owning the remaining 30%. Franconia announced in November, 2010 its
intention to increase its ownership at the Birch Lake Joint Venture
to 82% upon commencement of production. All of the forgoing
Indicated and Inferred Mineral Resources, and Exploration Target
tonnages are expressed as a 100% ownership position.
The Mineral Resource estimate for the Maturi
deposit incorporate assay data from 444 drill holes and 154 wedge
off-set holes totalling 1,328,000 feet drilled on the Maturi
deposit between 2006 and 2012, in addition to information from 99
legacy holes also in the geologic data base. The Birch Lake deposit
resource estimate incorporates assay data from 97 drill holes and
146 wedge off-set holes totalling 297,000 feet drilled between 2000
and 2012, and information from an additional 17 legacy drill holes
and 8 wedge off-set holes. The Spruce Road deposit resource
estimate incorporates assay data from 210 legacy holes. The
effective date of the mineral resource estimate is September 15, 2012.
Figure 1 is a map showing the Indicated and
Inferred boundaries and the Exploration Target Areas which can be
found as part of this press release on the Company website at
www.duluthmetals.com.
The November 2012 Resource
Estimates for the Maturi, Birch Lake and Spruce Road deposits are
based on a 0.3% copper cut-off grade to define the resource model.
Based on AMEC`s review of metal prices, process recoveries,
refining costs and underground mine operating costs likely to apply
at the Twin Metals site, the 0.3% copper cut-off grade
(highlighted) is considered the base case for the statement of
Indicated and Inferred Mineral Resources at this time. The
estimates at the cut-off grades higher and lower than the base case
are provided to show sensitivity of the estimates to cut-off
grade.
Detailed Resource Tabulations
Tables of the updated resource tons and grades
for various cut-offs are shown below for each deposit. The base
case (0.3% Cu cut-off) is highlighted. The remaining cases are
included to show the sensitivity of the estimates to changes in
cut-off grades:
Table 4 - MATURI DEPOSIT INDICATED AND INFERRED MINERAL
RESOURCES
|
Maturi
Deposit3 |
|
Indicated Mineral
Resource4 |
Cu % |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM5 |
cut-off |
Tons |
% |
% |
ppm |
Ppm |
ppm |
ppm |
0.2 |
1137 |
0.57 |
0.18 |
0.15 |
0.34 |
0.08 |
0.58 |
0.3 |
1065 |
0.59 |
0.19 |
0.16 |
0.36 |
0.09 |
0.60 |
0.4 |
936 |
0.63 |
0.20 |
0.17 |
0.38 |
0.09 |
0.64 |
0.5 |
739 |
0.67 |
0.21 |
0.19 |
0.42 |
0.10 |
0.70 |
0.6 |
538 |
0.72 |
0.23 |
0.20 |
0.45 |
0.11 |
0.76 |
|
Inferred Mineral
Resource |
Cu % |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM |
cut-off |
Tons |
% |
% |
ppm |
Ppm |
ppm |
ppm |
0.2 |
782 |
0.43 |
0.14 |
0.12 |
0.27 |
0.06 |
0.44 |
0.3 |
542 |
0.51 |
0.17 |
0.14 |
0.32 |
0.07 |
0.53 |
0.4 |
383 |
0.57 |
0.19 |
0.16 |
0.38 |
0.08 |
0.62 |
0.5 |
256 |
0.63 |
0.20 |
0.20 |
0.44 |
0.10 |
0.74 |
0.6 |
141 |
0.70 |
0.22 |
0.24 |
0.53 |
0.12 |
0.88 |
Table 5 - BIRCH LAKE DEPOSIT INDICATED AND INFERRED MINERAL
RESOURCES
|
Birch Lake
Deposit |
|
Indicated Mineral
Resource |
Cu % |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM |
cut-off |
Tons |
% |
% |
ppm |
Ppm |
ppm |
ppm |
0.2 |
111.9 |
0.49 |
0.15 |
0.22 |
0.48 |
0.11 |
0.80 |
0.3 |
99.7 |
0.52 |
0.16 |
0.23 |
0.51 |
0.11 |
0.86 |
0.4 |
85.4 |
0.55 |
0.17 |
0.25 |
0.54 |
0.12 |
0.91 |
0.5 |
54.9 |
0.60 |
0.18 |
0.27 |
0.59 |
0.13 |
0.99 |
0.6 |
22.8 |
0.67 |
0.21 |
0.29 |
0.63 |
0.14 |
1.06 |
|
Inferred Mineral
Resource |
Cu % |
Million |
Cu |
Ni |
Pt |
Pd |
Au |
TPM |
cut-off |
Tons |
% |
% |
ppm |
Ppm |
ppm |
ppm |
0.2 |
313.1 |
0.41 |
0.13 |
0.16 |
0.32 |
0.08 |
0.55 |
0.3 |
239.2 |
0.46 |
0.15 |
0.18 |
0.37 |
0.09 |
0.64 |
0.4 |
158.4 |
0.51 |
0.16 |
0.20 |
0.42 |
0.10 |
0.72 |
0.5 |
76.8 |
0.58 |
0.18 |
0.23 |
0.48 |
0.11 |
0.82 |
0.6 |
23.5 |
0.66 |
0.20 |
0.27 |
0.57 |
0.13 |
0.97 |
________________________
3 Maturi Deposit tonnages do not include 139 million
tons of mineralized material excluded from the underground resource
in a safety pillar.
4 CIM Definition Standards (2010) were followed for
Mineral Resource estimation and classification.
5 TPM is defined as Au + Pt + Pd.
Table 6 - SPRUCE ROAD DEPOSIT INFERRED MINERAL
RESOURCE
|
Spruce Road
Deposit |
|
Inferred Mineral Resource |
Cu % |
Million |
Cu |
Ni |
cut-off |
Tons |
% |
% |
0.2 |
674 |
0.38 |
0.14 |
0.3 |
480 |
0.43 |
0.16 |
0.4 |
254 |
0.50 |
0.18 |
0.5 |
101 |
0.57 |
0.21 |
0.6 |
24 |
0.66 |
0.24 |
Exploration Target Area Tonnage and Grade
Ranges
Similar to the June
2012 interim report, AMEC has again highlighted additional
potential resources outside of the three mineral resources which
occur on an additional 12% of the footprint of the Twin Metals
Minnesota property. In addition to the TMM global resource,
Exploration Targets have been outlined for four areas surrounding
and adjacent to the Maturi and Birch Lake deposits. The grade and
tonnage ranges of the four exploration targets are based on limited
drill hole results. The potential quantity and grade of the
Exploration Targets are conceptual in nature, and there has been
insufficient exploration to define the target as a mineral
resource, and it is uncertain if further exploration will result in
the target being delineated as a mineral resource.
Maturi
The area inside the Maturi model perimeter
surrounding the boundary of the Mineral Resource estimate was
divided into two exploration targets, Maturi North and Maturi
South. An additional exploration target, Maturi West, lies outside
and to the west of the current model area. The tonnage and grades
of the Maturi North exploration target could range from 290
to 435 million tons grading 0.41 to 0.61% Cu, 0.14 to 0.21 %Ni,
0.10 to 0.14 ppm Pt, 0.24 to 0.34 ppm Pd, and 0.07 to 0.07 ppm Au.
The tonnage and grades of the Maturi South exploration
target could range from 330 to 500 million tons grading 0.42 to
0.62 %Cu, 0.13 to 0.19 %Ni, 0.14 to 0.21 ppm Pt, 0.31 to 0.45 ppm
Pd, and 0.07 to 0.10 ppm Au. The tonnage and grades of the
Maturi West exploration target could range from 600 to 980
million tons grading 0.41 to 0.52 %Cu, 0.15 to 0.18 %Ni, 0.10 to
0.14 ppm Pt, 0.27 to 0.31 ppm Pd, and 0.07 to 0.07 ppm Au. The
ranges of PGE values stated for Maturi West are based on regression
formulas.
Birch Lake
The Birch Lake exploration target includes the
area inside the Birch Lake model perimeter surrounding the
Indicated and Inferred Mineral Resources. The tonnage and grades of
the Birch Lake exploration target could range from 222 to
334 million tons grading 0.33 to 0.50 %Cu, 0.11 to 0.16 %Ni, and
0.39 to 0.58 ppm TPM.
About the Resource Estimates
The figures for resources presented herein,
including the anticipated tonnages and grades that may be achieved
or the indicated level of recovery that may be realized, are
estimates, and no assurances can be given that they will be
realized during production. Such estimates are, in large part,
based on interpretations of geological data obtained from drill
holes and other sampling techniques. Actual mineralization or
favourable host rock units may be different from those predicted.
It may also take many years from the initial phase of drilling
before production is possible, and during that time the economic
feasibility of exploiting a deposit may change.
The Company's business of mineral exploration
has a high level of inherent risk. Although the Company is
optimistic about the potential of many of its projects, there is no
guarantee that any mineral deposits will be economically feasible
and that these deposits will be put into production. The Company's
exploration and development activities may also be affected by a
number of risks, including environmental, metallurgical, financing,
permitting, approval, legislative and other government risks which
are normal to the industry and are referenced in greater detail in
the Company's Annual Information Form.
For the purposes of assessing reasonable prospects of economic
recovery and appropriate cut-off grade, the following assumptions
were used:
- Average mining costs: $16/t (all
underground mining; long hole open stoping with backfill)
- Average process costs: $12/t
(flotation concentrate followed by hydrometallurgical processing
using Teck Resources Limited ("Teck") CESLâ„¢
process6)
- G&A costs: $2/t
Underground potentially mineable shapes were constrained by
geology and the mine modeling software used was Vulcanâ„¢. The Maturi
resource was estimated using Ordinary Kriging with a maximum block
size of 25 x 25 x 15 feet. Indicated Mineral Resources generally
extend 250 feet from well-drilled areas showing continuity in NSR
values and geological geometry. Areas defined by only legacy
drilling are not included within the Indicated Mineral Resource
outline. The Inferred Mineral Resource boundary typically extends
500 feet from well-drilled areas showing continuity in NSR values
and geological geometry. A variable tonnage factor was used, but
the average tonnage factor was 10.5 ft3/t. The metal
prices used in the NSR calculation were mutually agreed upon by
TMM, Antofagasta and AMEC on
December 7, 2011 and have not changed
for this estimate. Assumed metal prices and metallurgical
recoveries are presented in Tables 7a and 7b.
Table 7a - NSR calculation parameters, Maturi Deposit
Metal |
Price (US$) |
Recovery
Concentrate |
Recovery
CESL |
Recovery
Global |
Payable |
Copper |
$3.00/lb |
94.3% |
96.3% |
90.8% |
100.0% |
Nickel |
$9.38/lb |
72.0% |
95.6% |
68.8% |
80.0% |
Platinum |
$1840/troy oz |
93.0% |
59.4% |
55.2% |
80.0% |
Palladium |
$805/troy oz |
90.0% |
70.7% |
63.6% |
80.0% |
Gold |
$1050/troy oz |
85.0% |
74.5% |
63.3% |
80.0% |
Table 7b - NSR calculation parameters, Birch Lake
Deposit
Metal |
Price (US$) |
Recovery
Concentrate |
Recovery
CESL |
Recovery
Global |
Payable |
Copper |
$3.00/lb |
94.3% |
96.3% |
90.8% |
100.0% |
Nickel |
$9.38/lb |
60.0% |
95.6% |
57.4% |
80.0% |
Platinum |
$1,840/troy oz |
93.0% |
59.4% |
55.2% |
80.0% |
Palladium |
$805/troy oz |
90.0% |
70.7% |
63.6% |
80.0% |
Gold |
$1,050/troy oz |
85.0% |
74.5% |
63.3% |
80.0% |
________________________
6 Teck has developed a
hydrometallurgical process named CESLâ„¢, that effectively recovers
copper, nickel and PGM's from bulk copper-nickel-PGM concentrates,
which Duluth and Twin Metals are
considering as a concentrate processing alternative. Concentrate
from the Maturi group of deposits has been successfully processed
at bench and pilot scale at Teck's hydrometallurgical facility in
Richmond, BC with average recovery
of metal from concentrate into saleable product form as reported in
Table 7a and Table 7b.
For the non-legacy assay data utilized in these
resource estimates, half core samples were prepared at ALS Minerals
laboratories in Thunder Bay and
then shipped to the ALS analytical facilities in Vancouver. Samples were analyzed for Au, Pt,
and Pd using a 30g standard fire assay with an ICP-AES finish. An
additional 33 elements were analyzed for using a four acid (near
total) digestion and a combination of ICP-MS and ICP-AES. ICP
over-limits for copper and nickel are re-analyzed using dissolution
four acid (near total) digestion followed by ICP-AES or AAS. The
remaining half core samples are being stored in Minnesota. A system of blanks, standards and
quarter-core duplicates were added to the sample stream by Twin
Metals Minnesota LLC to verify accuracy and precision of assay
results, supplementing and verifying a variety of internal QA/QC
tests performed by ALS Minerals.
All data verification and quality
assurance/quality control procedures of Twin Metals Minnesota LLC
were applied specifically to the results contained in this press
release, and the data herein has been verified by Phillip Larson, P. Geo., Senior Geologist with
Duluth Metals and a Qualified Person under NI 43-101, in accordance
with the procedures of the Company. The data verification
procedures and quality assurance/control procedures adopted by the
Company and applied to the work being reported in this press
release can be found in Section 11 of the "NI 43-101 Technical
Report on the Maturi, Birch Lake, and Spruce Road Copper-Nickel-PGE
Projects, Ely, Minnesota, USA",
with an effective date of June 15,
2012, and dated July 27, 2012.
The Technical Report was filed on SEDAR under the Company's profile
on July 27, 2012 (www.sedar.com).
Dr. Harry Parker,
SME, Registered Member, Technical Director of AMEC, is the
Independent Qualified Person who prepared the Resource Estimate and
is responsible for the mineral resource estimates summarized in
this press release. Dr. Parker is a licensed Professional Geologist
in the State of Minnesota.
Phillip Larson, P. Geo. is the
Qualified Person for Duluth Metals and Senior Geologist for Duluth
Metals, in accordance with NI 43-101 of the Canadian Securities
Administrators, and reviewed and approved the technical content of
this press release.
About Duluth Metals Limited
Duluth Metals Limited is committed to acquiring,
exploring and developing copper, nickel and platinum group metal
(PGM) deposits. Duluth Metals has a joint venture with Antofagasta plc on the Twin Metals Project,
located within the rapidly emerging Duluth Complex mining camp in
north-eastern 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. Aside from the joint venture, Duluth Metals retains a 100% position on
approximately 40,000 acres of mineral interests on exploration
properties adjacent to and nearby the Twin Metals Minnesota LLC
joint venture.
About Twin Metals Minnesota LLC
Twin Metals Minnesota, LLC, is a joint venture
company, 60 percent owned by Duluth Metals Limited and 40 percent
by Antofagasta plc. Twin Metals
was formed in 2010 to pursue the development and operation of a
copper, nickel and platinum group metals (strategic metals)
underground mining project within the Duluth Complex in
northeastern Minnesota. Twin
Metals holds mineral and land assets of approximately 32,000 acres
of leased and permitted land, including mineral resources prepared
in compliance with the requirements of NI 43-101.
This press release contains forward-looking
statements (including "forward-looking information" within the
meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995) relating to, among other
things, the results of drilling operations of Duluth Metals and
exploration and mine development. Generally, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Duluth Metals has relied on a number of assumptions and
estimates in making such forward-looking statements, including,
without limitation, the prices of copper, nickel and platinum group
metals (PGMs) and the costs associated with continuing exploration
and mining development. Such assumptions and estimates are made in
light of the trends and conditions that are considered to be
relevant and reasonable based on information available and the
circumstances existing at this time. A number of risk factors may
cause actual results, level of activity, performance or outcomes of
such exploration and/or mine development to be materially different
from those expressed or implied by such forward-looking statements
including, without limitation, whether such discoveries will result
in commercially viable quantities of such mineralized materials,
the possibility of changes to project parameters as plans continue
to be refined, the ability to execute planned exploration and
future drilling programs, possible variations of copper, nickel and
PGM grade or recovery rates, the need for additional funding to
continue exploration efforts, changes in general economic, market
and business conditions, and those other risks set forth in Duluth
Metals' most recent annual information form under the heading "Risk
Factors" and in its other public filings. Statements related to
"reserves" and "resources" are deemed forward-looking statements as
they involve the implied assessment, based on realistically assumed
and justifiable technical and economic conditions, that an
inventory of mineralization will become economically extractable.
Forward-looking statements are not guarantees of future performance
and such information is inherently subject to known and unknown
risks, uncertainties and other factors that are difficult to
predict and may be beyond the control of Duluth Metals. Although
Duluth Metals has attempted to identify important risks and factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors and risks that cause actions, events or
results not to be as anticipated, estimated or intended.
Consequently, undue reliance should not be placed on such
forward-looking statements. In addition, all forward-looking
statements in this press release are given as of the date hereof.
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 securities laws. The forward-looking
statements contained herein are expressly qualified by this
disclaimer.
Cautionary Note to United States Investors
Concerning Estimates of Indicated and Inferred Mineral
Resources
This press release uses the terms "Indicated
Mineral Resources" and "Inferred Mineral Resources" in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Definition Standards. While such terms are recognized under
Canadian securities legislation, the United States Securities and
Exchange Commission does not recognize these terms. The term
"Inferred Mineral Resource" refers to 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. These estimates
are based on limited information and it cannot be assumed that all
or any part of an "Inferred Mineral Resource" will be upgraded to a
higher classification resource, such as "Indicated" or "Measured",
as a result of continued exploration. Accordingly, an estimate
relating to an "Inferred Mineral Resource" is insufficient to allow
meaningful application of technical and economic parameters or to
enable an evaluation of economic viability. Under Canadian
securities legislation, estimates of an "Inferred Mineral Resource"
may not form the basis of feasibility or other economic studies.
Investors are cautioned not to assume that all or any part of an
"Inferred Mineral Resource" is economically or legally mineable.
Investors are also cautioned not to assume that all or any part of
"Indicated" will ever be converted into "Mineral Reserves" (being
the economically mineable part of an "Indicated" or "Measured
Mineral Resource").
Webpage: www.duluthmetals.com
SOURCE Duluth Metals Limited
Image with caption: "Figure 1 - Map of Twin Metals Minnesota
Indicated Resources, Inferred Resources, and Exploration Target
Areas. (CNW Group/Duluth Metals Limited)". Image available at:
http://photos.newswire.ca/images/download/20121204_C5810_PHOTO_EN_21493.jpg