Duluth Metals identifies two new mineralized areas on exploration lands


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DM.TO 2.27 -0.02

Photo_Asset_1Figure 1 - Project Area Location, Bedrock Geology and Resources Map (CNW Group/Duluth Metals Limited)

TORONTO , Feb. 5, 2013 /CNW/ - Duluth Metals Limited ("Duluth") (DM.TO) (DM-U.TO) is pleased to present early results from the exploration program currently underway on Duluth's 100% owned exploration properties in the Duluth Complex, northeast Minnesota.  The program has successfully identified two new mineralized areas, one consisting of platinum group element ("PGE") mineralization on the East Shore properties which cover the eastern margin of the South Kawishiwi Intrusion (SKI), and a second consisting of copper-nickel-PGE mineralization within the Nickel Lake Macrodike (NLM). The program has consisted of geologic mapping, geochemistry, geophysics, and initial drill testing of targets on the properties which cover 8,850 acres of favorable geology adjacent to Duluth's Twin Metals Project (Fig. 1).

"It's exciting that at the very early stages of our exploration program we have confirmed mineralization in hotter portions of the geological system upstream from the multi-billion ton Twin Metals Minnesota deposits," commented Dean Peterson , Senior Vice President-Exploration of Duluth Metals.

Vern Baker , President of Duluth Metals commented, "We are pleased with the early drill results which have confirmed sulphide mineralization in two key areas of this massive geological system. We will be continuing with further extensive drilling in these two areas of mineralization. One of the key focal points of the next phase of drilling is the East Shore area where higher grade PGM values have been returned from both surface outcrop and preliminary drilling. In addition, the drilling in the Nickel Lake Macrodike has identified mineralization somewhat different to the known mineralization of the adjacent Twin Metals Project. We are currently following up with down-hole EMP geophysical surveys and intend to continue drilling into the spring with holes aimed at higher grade targets within deeper sections of the NLM."

Duluth is also pleased to report that Alan King , one of the world's foremost geophysicists is being retained to consult with the Duluth Exploration team.  Mr. King 's extensive worldwide expertise on nickel/copper geophysics will be a valuable addition to Duluth's exploration efforts.

Area 1 - East Shore PGE Mineralization

The first new area of mineralization comprises PGE mineralization along the eastern side of the SKI and within the adjacent anorthositic rocks on the East Shore Property as shown in Figures 1 and 2. Geological mapping and geochemical sampling of outcrops and angular boulders this summer identified mineralization along a 2000 foot strike length zone of the eastern contact of the SKI. Outcrop grab sampling returned TPM1 values up to 3.5 grams/tonne (g/t) TPM, and float sampling up to 7.7 g/t TPM (Fig. 2a).  Significantly, some of the samples are characterized by high PGE to copper sulphide ratios. The occurrence of this mineralization suggests the potential for high-grade structure-hosted PGE mineralization, which has not been previously recognized in the Duluth Complex.

Initial drilling in the East Shore area has confirmed anomalous TPM values in a flat-lying zone in several holes with highlighted drill intercepts (see Fig. 2b) of PGM rich material as follows: (True thickness is estimated at about 100% of core length.)

  • 12-DM-007 returned a 11.7 foot intersection of 3.28 g/t TPM including 7.3 feet of 4.95 g/t TPM
  • 12-DM-006 returned a 13.9 foot intersection of 1.63 g/t TPM including 4.8 feet of  2.96 g/t TPM

Full assay results are shown in the following Table 1:

Drill Hole From To Thickness Cu Ni Pt Pd Au TPM
  (ft) (ft) (ft) (%) (%) (g/t) (g/t) (g/t) (g/t)
12-DM-006 187.9 201.8 13.9 0.24 0.08 0.41 1.05 0.18 1.63
including 192.2 197.0 4.8 0.50 0.16 0.75 1.81 0.41 2.96
12-DM-007 187.9 199.6 11.7 0.04 0.02 0.69 2.48 0.10 3.28
including 187.9 195.2 7.3 0.02 0.02 1.03 3.83 0.09 4.95


Area 2 - Nickel Lake Macrodike Mineralization

A systematic surficial geochemical survey in the NLM has defined a series of pronounced base-metal (Fig. 3a) and precious-metal (Fig. 3b) geochemical anomalies.  These anomalies highlight the sulfide-bearing nature of the NLM and appear to be sourced from discrete varieties of mapped sulfide-bearing bedrock located on the northern margin of the NLM. The significant base and precious metal geochemical anomaly in Section 20 is currently being drill tested.

Within the NLM, a significant thickness of disseminated Cu-Ni-PGE bearing sulphide has been identified in the initial drilling. Notably, the mineralized material is unlike mineralization in the nearby Spruce Road and Maturi Deposits, having an elevated Cu:Ni ratio of 5:1. The presence of this mineralization in the NLM confirms the existence of sulphide-bearing magmas in the feeder conduit to the mineralized SKI.  The high Cu:Ni ratio suggests sulphide fractionation took place within the NLM, and highlights the possibility that the system may contain zones of concentrated Ni-rich sulphide minerals in the feeder conduit.

Significant widths of mineralization in the NLM area have been identified both in surface outcrop and in two drill holes to date (Fig. 4).  Highlights from the drilling to date are as follows: (The mineralized body is interpreted to dip at about 60° to the southeast. True thickness is estimated at about 95% of core length).

  • 12-DM-017 returned a 243.4 foot intersection of 0.38% copper, 0.08% nickel and 0.12 grams/tonne (g/t) TPM, including a 30 foot intersection of 0.50% copper, 0.10% nickel and 0.13 g/t TPM.
  • 12-DM-018 returned a 291.0 foot intersection of 0.30% copper, 0.06% nickel and 0.17 g/t TPM, including a 23.7 foot intersection of 0.50% copper, 0.09% nickel, and 0.33 ppm g/t TPM.

Full assay results are shown in the following Table 2:

Drill Hole From
12-DM-017 91.1 334.5 243.4 0.38 0.08 0.03 0.06 0.03 0.12
including 196.0 226.0 30.0 0.50 0.10 0.03 0.07 0.03 0.13
12-DM-018 113.4 404.4 291.0 0.30 0.06 0.04 0.08 0.04 0.17
including 380.7 404.4 23.7 0.50 0.09 0.10 0.15 0.08 0.33


Ongoing drilling efforts are aimed at demonstrating the continuity of this mineralization on strike and at depth, as well as following this mineralization to deeper sections of the NLM.  Future drilling efforts within deeper sections of the NLM will focus on looking for higher grade mineralization analogous to that found in the Maturi Deposit and potential concentrations of Ni-rich massive sulphide. Drilling the most prospective area for potential concentrations of massive sulphide at the mouth of the NLM will require summer road building, planned to commence in the spring.