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Bulk-mineable underground copper-nickel-PGM deposit - Nokomis Deposit, Minnesota

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Message: Duluth Metals continues to intersect higher grade mineralization

Duluth Metals continues to intersect higher grade mineralization

posted on Jul 11, 2008 04:14PM
Duluth Metals continues to intersect higher grade mineralization

TORONTO, July 10 /CNW/ - Duluth Metals Limited ("Duluth Metals") (TSX: DM) (TSX:DM.U) today announced significant new assays for six infill and one step-out holes drilled on the Nokomis Deposit located near Ely, Minnesota. Highlights include hole MEX-109 which intersected 155.0 feet of 0.828% copper, 0.247% nickel, 1.089 grams per tonne (g/t) of Total Precious Metals (TPM (equal sign) Platinum+Palladium+Gold) and 3.2 g/t silver (Cu Equivalent(x) of 2.00%), which included 40.0 feet of 0.955% copper, 0.278% nickel, 1.527 g/t TPM and 3.9 g/t silver (Cu Equivalent(x) of 2.40%). Holes MEX-108, 109, 111, 112 and 116 all reflect significant grade increases to the head grade utilized in the 43-101 Scoping Study published on January 22, 2008. These holes continue to demonstrate that within the global resource there are significant areas of higher grade copper, nickel, TPM mineralization that will help pursue the recommendations of the Scoping Study.

In addition to MEX-109, the drilling intersected mineralized sections ranging from 30.0 to 142.7 feet as per the detailed table below and returned significant higher grade sections in a number of holes as follows:

-   MEX-108 intersected 137.7 feet of 0.899% copper, 0.249% nickel and
0.979 g/t TPM (Cu Equivalent(x) of 2.03%), including 73.9 feet of
1.081% copper, 0.287% nickel and 1.197 g/t TPM (Cu Equivalent(x) of
2.40%).
- MEX-111 intersected 142.7 feet of 0.901% copper, 0.245% nickel and
0.957 g/t TPM (Cu Equivalent(x) of 2.02%), including 24.0 feet of
1.094% copper, 0.289% nickel and 1.333 g/t TPM (Cu Equivalent(x) of
2.51%).
- MEX-112 intersected 34.5 feet of 1.175% copper, 0.270% nickel and
1.821 g/t TPM (Cu Equivalent(x) of 2.69%), including 29.5 feet of
1.240% copper, 0.272% nickel and 1.897 g/t TPM (Cu Equivalent(x) of
2.79%).
- MEX-113 intersected 30.0 feet of 0.684% copper, 0.223% nickel and
0.989 g/t TPM (Cu Equivalent(x) of 1.74%), and in another zone,
intersected 15.0 feet of 0.921% copper, 0.505% nickel and 0.849 g/t
TPM (Cu Equivalent(x) of 2.78%).
- MEX-114 intersected 44.4 feet of 0.682% copper, 0.195% nickel and
1.686 g/t TPM (Cu Equivalent(x) of 1.91%).
- MEX-116 intersected 44.2 feet of 0.874% copper, 0.287% nickel and
0.920 g/t TPM (Cu Equivalent(x) of 2.12%), including 14.9 feet of
1.214% copper, 0.378% nickel and 1.143 g/t TPM (Cu Equivalent(x) of
2.83%), and in another zone, intersected 9.9 feet of 1.032% copper,
0.666% nickel and 1.025 g/t TPM (Cu Equivalent(x) of 3.44%).

(x) Note to Reader: Copper Equivalent is based on US metal prices of:
Copper - $1.75/lb, Nickel - $7.00/lb, Cobalt - $10.00/lb, Gold -
$600/oz, Platinum - $1,100/oz, Palladium - $350/0z and Silver -
$8.50/oz, and the methodology with metallurgical recoveries, refining
costs and other charges being considered for all metals in accordance
with the January 22, 2008, NI 43-101 Scoping Study produced by Scott
Wilson Roscoe Postle Associates.

"Holes Mex-108 and 109 are two excellent holes which indicate the expansion of our higher grade intersections within our current Nokomis Resource Block. MEX-111, our one step-out hole to the Southwest, intersected 142.7 feet of 0.901% copper, 0.245% nickel and 0.957g/t TPM. We are especially pleased with the on-going results which demonstrate the continuity of mineralization and areas of higher grade copper, nickel and TPM intercepts within the Nokomis Deposit" stated Dr. Henry J. Sandri, President and CEO of Duluth. "We are definitely achieving one of the primary objectives of the Scoping Study in terms of delineating higher grade zones."

A more detailed summary of the assay results for holes MEX-108 to MEX-116 can be found in the table below. True width is estimated at about 90% of core length.

HOLE          ZONE            FROM     TO   LENGTH COPPER  NICKEL  TPM(x)
(feet) (feet) (feet) (%) (%) (g/t)

MEX-108 at 0.3% Cu cut-off 1354 1377.7 23.7 0.510 0.071 0.174
at 0.3% Cu cut-off 2569.2 2608.6 39.4 0.362 0.046 0.048
at 0.3% Cu cut-off 3607.4 3789.4 182 0.805 0.225 0.842
at 0.5% Cu cut-off 3646.8 3784.5 137.7 0.899 0.249 0.979
including 3671.3 3745.2 73.9 1.081 0.287 1.197

MEX-109 at 0.3% Cu cut-off 3483 3668 185 0.760 0.227 0.991
at 0.5% Cu cut-off 3493 3648 155 0.828 0.247 1.089
including 3498 3538 40 0.955 0.278 1.527

MEX-111 at 0.3% Cu cut-off 3425.3 3577.9 152.6 0.865 0.235 0.911
at 0.5% Cu cut-off 3425.3 3568 142.7 0.901 0.245 0.957
including 3430.3 3454.8 24.5 1.094 0.289 1.333
including 3474.5 3489.3 14.8 1.214 0.327 1.270
including 3523.7 3553.4 29.7 1.029 0.289 1.050
at 0.3% Cu cut-off 3646.8 3730.5 83.7 0.637 0.200 0.466
at 0.5% Cu cut-off 3666.4 3730.5 64.1 0.684 0.215 0.521

MEX-112 at 0.3% Cu cut-off 3410.6 3489.3 78.7 0.772 0.196 1.125
at 0.5% Cu cut-off 3454.8 3489.3 34.5 1.175 0.270 1.821
including 3459.8 3489.3 29.5 1.240 0.272 1.897
at 0.3% Cu cut-off 3528.7 3572.9 44.2 0.452 0.111 0.419

MEX-113 at 0.3% Cu cut-off 2453 2583 130 0.434 0.151 0.494
at 0.5% Cu cut-off 2513 2543 30 0.684 0.223 0.989
at 0.5% Cu cut-off 2563 2583 20 0.616 0.215 0.576
at 0.3% Cu cut-off 2633 2673 40 0.547 0.240 0.503
at 0.5% Cu cut-off 2633 2648 15 0.921 0.505 0.849

MEX-114 at 0.3% Cu cut-off 3130.1 3174.4 44.3 0.399 0.109 0.479
at 0.3% Cu cut-off 3233.5 3287.5 54 0.620 0.178 1.461
at 0.5% Cu cut-off 3238.3 3282.7 44.4 0.682 0.195 1.686

MEX-116 at 0.3% Cu cut-off 2707 2756.2 49.2 0.827 0.274 0.878
at 0.5% Cu cut-off 2712 2756.2 44.2 0.874 0.287 0.920
including 2726.6 2741.5 14.9 1.214 0.378 1.143
at 0.5% Cu cut-off 2795.5 2805.4 9.9 1.032 0.666 1.025

(x) Total Precious Metals (equal sign) Platinum+Palladium+Gold


Complete gold, platinum, and palladium assays for MEX-108, 109, 111, 112,
113, 114, and 116 are as follows:
PALLA-
HOLE ZONE FROM TO LENGTH GOLD PLATINUM DIUM
(feet) (feet) (feet) (g/t) (g/t) (g/t)
MEX-108 at 0.3% Cu cut-off 1354 1377.7 23.7 0.037 0.044 0.093
at 0.3% Cu cut-off 2569.2 2608.6 39.4 0.009 0.007 0.031
at 0.3% Cu cut-off 3607.4 3789.4 182 0.116 0.202 0.524
at 0.5% Cu cut-off 3646.8 3784.5 137.7 0.136 0.233 0.610
including 3671.3 3745.2 73.9 0.175 0.278 0.744

MEX-109 at 0.3% Cu cut-off 3483 3668 185 0.130 0.260 0.602
at 0.5% Cu cut-off 3493 3648 155 0.143 0.286 0.660
including 3498 3538 40 0.213 0.414 0.901

MEX-111 at 0.3% Cu cut-off 3425.3 3577.9 152.6 0.120 0.245 0.546
at 0.5% Cu cut-off 3425.3 3568 142.7 0.126 0.258 0.573
including 3430.3 3454.8 24.5 0.182 0.378 0.772
including 3474.5 3489.3 14.8 0.094 0.338 0.839
including 3523.7 3553.4 29.7 0.158 0.288 0.604
at 0.3% Cu cut-off 3646.8 3730.5 83.7 0.071 0.112 0.283
at 0.5% Cu cut-off 3666.4 3730.5 64.1 0.079 0.124 0.318

MEX-112 at 0.3% Cu cut-off 3410.6 3489.3 78.7 0.131 0.351 0.643
at 0.5% Cu cut-off 3454.8 3489.3 34.5 0.220 0.463 1.137
including 3459.8 3489.3 29.5 0.237 0.478 1.182
at 0.3% Cu cut-off 3528.7 3572.9 44.2 0.059 0.107 0.254

MEX-113 at 0.3% Cu cut-off 2453 2583 130 0.058 0.129 0.307
at 0.5% Cu cut-off 2513 2543 30 0.093 0.252 0.644
at 0.5% Cu cut-off 2563 2583 20 0.076 0.143 0.358
at 0.3% Cu cut-off 2633 2673 40 0.036 0.133 0.334
at 0.5% Cu cut-off 2633 2648 15 0.039 0.221 0.588

MEX-114 at 0.3% Cu cut-off 3130.1 3174.4 44.3 0.070 0.122 0.287
at 0.3% Cu cut-off 3233.5 3287.5 54 0.148 0.367 0.945
at 0.5% Cu cut-off 3238.3 3282.7 44.4 0.168 0.422 1.096

MEX-116 at 0.3% Cu cut-off 2707 2756.2 49.2 0.107 0.252 0.520
at 0.5% Cu cut-off 2712 2756.2 44.2 0.112 0.266 0.542
including 2726.6 2741.5 14.9 0.123 0.337 0.684
at 0.5% Cu cut-off 2795.5 2805.4 9.9 0.120 0.246 0.659

A "MEX 109-116 Location Map" highlighting these holes as well as other holes discussed in this release can be found on our Company website at www.duluthmetals.com.

For the 2008 drill program, half core samples have been prepared at ALS Chemex Ltd. laboratories in Thunder Bay and then shipped to its analytical facilities in Vancouver. Samples are being analyzed for Au, Pt, and 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.

Currently five drills are turning on the property. Two of the rigs are continuing with large diameter PQ core drilling with the objective of providing bulk sample material for further metallurgical test work.

David Oliver, P. Geo. and Duluth Project Manager is the Qualified Person, 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 Nokomis Deposit 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 metals.

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.



Source: Canada NewsWire (July 10, 2008 - 7:30 AM EDT)

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