TORONTO (Commodity Online): Duluth Metals Limited (TSX: DM) (TSX:DM.U) has confirmed 12 million Indicated ounces and 6 million Inferred ounces of contained platinum, palladium and gold (Total Precious Metal or TPM) in the Nokomis Deposit as reported by Scott Wilson RPA's latest NI 43-101 Resource Estimate. This 3 million ounce increase in Indicated Resources represents a 34% increase in the TPM ounces over the Scott Wilson RPA June 2008 NI 43-101 Resource Estimate

"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 Christopher Dundas, Chairman of Duluth Metals. "We have the potential to separate and monetize the precious metal revenue stream from our substantial base metal revenue stream. This potential for separation is enhanced by the proposed utilization of Platsol(TM) or other similar hydromet processes which separate the precious metal concentrate prior to marketing to precious metal refineries."



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. (Courtesy: PRNewswire)

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook