January 21, 2013
Duluth Metals Limited (" Duluth" or "Duluth Metals") (TSX: DM) (TSX:DM.U)
today announces that the independent NI 43-101 Technical Report completed by AMEC E&C Services Inc. (AMEC) by a team led by Dr.
entitled "Maturi, Birch Lake, and Spruce Road Cu-Ni-PGE Projects,
, USA, NI 43-101 Technical Report" with an effective date of
15 September 2012
has now been filed on SEDAR (
). This final study utilizes 867 drill holes and 308 wedge offsets to confirm the Twin Metals Minnesota LLC ("TMM" or "Twin Metals") project to be one of the largest base and precious metal deposits of this type in the world. The report also highlights the significance of the higher grade S3 subunit for potential early mine sequencing. In addition, the PGM resource estimate confirms the project to be one of the largest palladium and platinum resources outside of
. This filing follows the press release of
December 4, 2012
which referenced the summary highlights of the new resource estimate:
- Amongst the world's largest Cu-Ni-PGM polymetallic sulphide deposits with contained metals (using a 0.3% Cu cut-off) of 13.6 billion lbs copper, 4.4 billion lbs nickel, and 21.4 million ozs palladium+platinum+gold (TPM) [ 1 ]in the Indicated category and 11.9 billion lbs copper, 4.1 billion lbs nickel, and 12.8 million ozs TPM [ 1 ] 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 1.16 billion tons [ 2 ] 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 TMM property block, representing a 60% increase in Indicated Tons and an 8% decrease 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 21.4 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.
below shows copper values expressed in percent ranging from less than 0.2% Cu (blue) to greater than 0.8% Cu (red) in the S2+S3 subunits of the Maturi Deposit from an oblique south view. Drill holes are projected as the light blue strings and the green outline is the limit of the block model. The grey surface represents the base of the Basal Mineralized Zone.
Values for the Pt, Pd and Au components of TPM are shown in Table 3 and Table 4.
All tonnages are reported as short tons.
, President of Duluth Metals, commenting on the report stated: "The AMEC Technical Report confirms the TMM resource to be one of the largest deposits of its kind in the world. While the resource is very large, the S3 Subunit within the Maturi Deposit hosts a higher-grade area that is a subset of the base case mineral resource estimate. Mine planning will focus on utilizing this higher grade areas for initial mine sequencing, potentially improving the business/ economic model significantly."
The Technical Report includes three deposits for which mineral resources have been estimated. These deposits are in close proximity to one another within the Twin Metals Minnesota Project, and are 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.*
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.
- 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
deposits in northeastern
Joint Venture. Franconia announced in November, 2010 its intention to increase its ownership at the
Joint Venture to 82%; see
's company profile at
for Technical Reports. TMM's ownership of the resource will be factored by these percentages where applicable.
The S3 Subunit Provides Potential Earlier Economic Mining Opportunities