Duluth Metals Continues to Identify New Mineralized Areas on Exploration Lands

Duluth Metals Continues to Identify New Mineralized Areas on Exploration Lands

  PR Newswire

  TORONTO, March 20, 2013

TORONTO, March 20, 2013 /PRNewswire/ --

  *In total four new areas of mineralization discovered since the start-up of
    drilling (October 2012) with two new areas reported in this press release
  *Part of a long-term multi-phase drilling program over an extensive land
    package of approximately 8,850 acres of favorable geology adjacent to
    Duluth's Twin Metals Project
  *Currently completing Phase 1 of the exploration program with Phase 2 to
    start-up in the spring/summer
  *Program continues to target Nickel Lake Macrodike as well as Platinum
    Group mineralization on the eastern margin of the South Kawishiwi
    Intrusion

Duluth Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) is pleased to present
results from Phase 1 of the multi-phase exploration program currently underway
on Duluth's 100% owned exploration properties in the Duluth Complex, northeast
Minnesota. In addition to the two new areas of mineralization press released
by the Company on February 5, 2013, and referred to as Areas 1 and 2, the
Phase 1 program has found significant mineralization in two other new areas
referred to Areas 3 and 4:

  *Area 3 - In the Northeast portion of the Nickel Lake Macrodike (NLM),
    drilling has found copper-nickel-PGE mineralization along the northern
    wall of the Macrodike.
  *Area 4 - Along the eastern edge of the South Kawishiwi Intrusion (SKI),
    drilling has identified a planar structure with predominant copper
    mineralization in the Bogberry Lake area.

Furthermore, continued drilling in the Southwest portion of the NLM and
previously reported as Area 2 , continues to show mineralization along the
north wall of the Macrodike. (see press release dated Feb 05, 2013, Duluth
Metals Identifies Two New Mineralized Areas on Exploration Lands at
http://www.duluthmetals.com for earlier results)

The Phase 1 portion of the exploration 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). Phase 2 of the program will take advantage of
the spring break-up to compile and interpret geological data and define future
drill targets for the balance of 2013. Drilling will also target the deeper
portions of the Nickel Lake Macrodike.

"The program has been successful identifying four areas of mineralization
along the eastern edge of the SKI and the NLM that carry significant metal
values and that demand additional work. This is a huge system, with the very
large qualified Twin Metals Project resource identified in one area of the
SKI, and the system has the potential to provide additional large areas of
mineralization," commented Dean Peterson, Senior Vice President-Exploration of
Duluth Metals.

Vern Baker, President of Duluth Metals commented, "We are continuing to
explore this large parcel of land with a long term multi-phase drilling
program. As the four identified areas of mineralization extend over a small
region of the land package we will be continuing to compile drilling,
geological and geophysical data for the land holdings and drill other
strategic targets. Two of our main target areas are the deeper portions of
the NLM and the "delta" area west of the mouth of the NLM as the Phase 1
drilling has been concentrated in the upper portions of the Macrodike."

Area Location Map

The new areas of mineralization, Areas 1, 2, 3 and 4, are shown in Figure 1.

NLM Drilling Overview

Drilling to date has confirmed that the NLM is a southwest-northeast striking
complex of intrusives, dipping steeply toward the southeast. The southeastern
flank of the NLM is occupied by relatively flat-lying, layered gabbroic and
troctolitic intrusions, forming a keel-shaped body akin to the Great Dyke. The
northwestern flank of the NLM was formed by multiple pulses of magma,
including heterogeneous ultramafic and inclusion- and sulphide-bearing phases,
intruded as vertical sheet-like bodies.

As previously reported, initial drilling in the NLM has confirmed the
existence of sulphide-bearing magmas in the feeder conduit to the mineralized
SKI. In addition, this drilling has provided important stratigraphic data
critical to developing a robust geological and geophysical model for exploring
for high grade Ni-rich sulphide mineralization in and near the mouth of the
NLM.

Area 3 - Northeast NLM Mineralization

In Northeast NLM Area 3, drilling has intersected multiple zones of Cu-Ni-PGE
sulfide mineralization. The three holes completed to date, 13-DM-37, 13-DM-40,
and 13-DM-43, were all collared in mineralization. 13-DM-37 and 13-DM-40 were
drilled to the north and vertically, respectively, and each intersected
significant intersections of Cu-Ni-PGE mineralized material. Following up on
these initial results, 13-DM-43 was drilled down-dip (-50° inclination) in the
NLM, attempting to parallel the mineralized zone to depth. In addition to the
near-surface mineralization, 13-DM-43 intersected two additional mineralized
zones at depth. Following these encouraging results, 13-DM-48 is drilling a
more steeply inclined hole (-75° inclination) in the same zone. In addition to
the near-surface mineralization, 13-DM-48 the highest grade Cu-Ni-PGE
mineralization identified thus far in the NLM.

Highlights of drilling include: (True thickness unknown.)

  *13-DM-037 returned a 89.5 foot intersection of 0.41% Cu with 0.142 g/t TPM
  *13-DM-040 returned a 187 foot intersection of 0.44% Cu with 0.176 g/t TPM.
  *13-DM-043 returned a 252 foot intersection of 0.38% Cu with 0.176 g/t TPM,
    including 18.6 feet of 0.57% Cu, 0.11% Ni, and 0.468 g/t TPM.
  *13-DM-048 returned a 204.9 foot intersection of 0.37% Cu and 0.144 g/t TPM
    including 30 feet of 0.56% Cu, 0.11% Ni and 0.274 g/t TPM, as well as a 6
    foot intersection of 2.059 g/t TPM and a 5 foot intersection of 0.702 g/t
    TPM. Note: This hole is currently being drilled and additional assays are
    pending.

    Full assay results are shown in the following Table 1:
    Drill           From         To        Thickness                   Cu        Ni
    Hole            (ft)        (ft)         (ft)         Cut-off      %         %
                                                          @0.3%
    13-DM-037       16.2       105.7         89.5         Cu           0.41      0.09
                                                          @0.3%
    13-DM-040       6.5        193.7         187.2        Cu           0.44      0.10
                                                          @0.3%
    13-DM-043        8         213.3         205.3        Cu           0.39      0.07
                                                          @0.5%
    including      194.7       213.3         18.6         Cu           0.57      0.11
                                                          @0.3%
    13-DM-043      831.5       863.3         31.8         Cu           0.35      0.07
                                                          @0.3%
    13-DM-043      1791.7       1895         103.3        Cu           0.34      0.07
                                                          @0.3%
    13-DM-043       1935       1996.3        61.3         Cu           0.49      0.09
                                                          @0.5%
    including      1948.5      1982.5         34          Cu           0.60      0.11
                                                          @0.3%
    13-DM-043      2047.8      2082.6        34.8         Cu           0.45      0.09
                                                          @0.3%
    13-DM-048       23.7       228.6         204.9        Cu           0.37      0.08
                                                          @0.5%
    including       121         151           30          Cu           0.56      0.11
                                                          @0.5
    13-DM-048      828.4       834.4           6          g/t TPM      0.79      0.18
                                                          @0.5
    13-DM-048       853         858            5          g/t TPM      0.15      0.02
  
    (Table continued)

    Drill          Pt         Pd         Au         TPM
    Hole          g/t        g/t        g/t        g/t

    13-DM-037    0.038      0.075      0.030      0.142

    13-DM-040    0.052      0.091      0.033      0.176

    13-DM-043    0.046      0.079      0.035      0.161

    including    0.134      0.241      0.094      0.468

    13-DM-043    0.025      0.050      0.021      0.096

    13-DM-043    0.024      0.066      0.024      0.113

    13-DM-043    0.045      0.118      0.040      0.202

    including    0.054      0.136      0.044      0.234

    13-DM-043    0.037      0.100      0.038      0.175

    13-DM-048    0.035      0.076      0.033      0.144

    including    0.068      0.145      0.060      0.274

    13-DM-048    0.543      1.080      0.436      2.059

    13-DM-048    0.405      0.275      0.022      0.702

    Note - 13-DM-048 is currently being drilled and additional assays are pending.

Area 4 - Bogberry Lake Mineralization along the eastern edge of the SKI

Drilling in Area 4 targeted a flat-lying conductive anomaly identified in an
airborne geophysical survey. Drilling identified a flat-lying zone
characterized by a graphitic layer overlying chalcopyrite mineralization. The
zone has been intersected by all seven holes completed to date. The
mineralization is hosted by anorthositic wallrock adjacent to the eastern
margin of the SKI, and is characterized by a different tenor from most other
mineralization seen thus far in the SKI. Mineralization corresponding to the
main conductive body is extremely low in PGEs, however 13-DM-36 in the
northern part of the area returned higher grade PGEs, and to the south
drilling and rock sampling has found PGE-enriched zones. These results suggest
mobilization and fractionation of sulphidic Cu-Ni-PGE bearing fluids into the
anorthositic wallrock of the SKI, and highlight the potential for high grade
PGE mineralization in the wallrock of the mineralized SKI.

Highlights of drilling include: (True thickness estimated at 65% of the cored
interval.)

  *13-DM-027 returned a 44.4 foot intersection of 0.35% Cu.
  *13-DM-036 returned a 3.6 foot intersection of 0.65% Cu with 0.811 g/t TPM.

    Full assay results are shown in Table 2:
    Drill       From    To      Thickness        Cu     Ni     Pt      Pd      Au      TPM
    Hole        (ft)    (ft)      (ft) Cut-off   %      %      g/t     g/t     g/t     g/t
                                         @0.2%
    12-DM-019   726.4   786.0     59.6     Cu   0.23   0.05   0.004   0.005   0.006   0.015
                                         @0.2%
    12-DM-023   828.4   857.8     29.4     Cu   0.24   0.04   0.009   0.031   0.008   0.049
                                         @0.3%
    12-DM-027   689.7   734.1     44.4     Cu   0.35   0.08   0.014   0.014   0.017   0.045
                                         @0.3%
    12-DM-027   849.7   859.4      9.7     Cu   0.44   0.05   0.024   0.015   0.026   0.065
                                         @0.2%
    12-DM-028   637.5   660.7     23.2     Cu   0.23   0.05   0.003   0.009   0.007   0.018
                                         @0.2%
    13-DM-032   696.7   735.2     38.5     Cu   0.22   0.03   0.009   0.010   0.007   0.026
                                         @0.2%
    13-DM-032   797.7   882.3     84.6     Cu   0.21   0.05   0.011   0.010   0.010   0.030
                                         @0.3%
    13-DM-035   644.4   648.3      3.9     Cu   0.34   0.08   0.017   0.021   0.016   0.054
                                         @0.3%
    13-DM-036   717.5   721.1      3.6     Cu   0.65   0.04   0.321   0.333   0.157   0.811

Additional holes in Area 2 - Nickel Lake Macrodike Mineralization

Drilling in southwest NLM (Area 2) has been focused on following previously
reported intercepts of Cu-Ni-PGE bearing sulphide mineralization previously
reported in holes 12-DM-17 and 12-DM-18.

Significant widths of mineralization in the NLM area have been identified both
in surface outcrop and two additional drill holes. Similar to the previously
reported results, this material is characterized by a high Cu:Ni ratio,
suggesting sulphide fractionation occurred in the NLM. Highlights from the
latest drilling to date are as follows: (True thickness is estimated at about
95% of core length.)

  *12-DM-022 returned a 240 foot intersection of 0.30% Cu, 0.06% Ni and 0.17
    g/t TPM
  *12-DM-025 returned a 219 foot intersection of 0.33% Cu, 0.06% Ni and 0.18
    g/t TPM

The Cu-Ni-PGE mineralization intersected in four drill holes to date is
flanked to the southeast by a second sulphide mineralized phase. This
mineralization has been intersected in three drill holes, and while low in
grade, has a distinctly higher Ni tenor than other sulphide mineralization
identified in the NLM. This material, characterized by a low Cu:Ni, provides
further evidence indicating the NLM was a dynamic magma conduit that saw
multiple pulses of sulphide-bearing magma during the intrusion of the SKI.

    Full assay results are shown in the following Table 3:
    Drill         From      To        Int                   Cu       Ni       Pt
    Hole          (ft)      (ft)      (ft)      Cut-off     %        %        g/t


    12-DM-021     39.9      274.0     234.1                 0.12     0.05     0.016
                                                  @0.3%
    12-DM-022     125.0     365.0     240.0          Cu     0.31     0.06     0.048


    12-DM-025     35.9      210.6     174.7                 0.19     0.06     0.029
                                                  @0.3%
    12-DM-025     243.8     463.3     219.5          Cu     0.33     0.06     0.050


    13-DM-026     62.4      294.6     232.2                 0.10     0.04     0.011

    (table continued)

    Drill         Pd        Au        TPM
    Hole          g/t       g/t       g/t          Notes
                                                     Low
                                                   Cu:Ni
    12-DM-021     0.026     0.009     0.050     sulphide

    12-DM-022     0.080     0.040     0.168
                                                     Low
                                                   Cu:Ni
    12-DM-025     0.061     0.027     0.117     sulphide

    12-DM-025     0.085     0.047     0.182
                                                     Low
                                                   Cu:Ni
    13-DM-026     0.019     0.006     0.036     sulphide


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 drier road building conditions in order to access that area.

Area 1 - East Shore PGE Mineralization

Exploration work is also continuing on the first new area of mineralization
referred to as Area 1. PGE mineralization within this area along the eastern
side of the SKI and within the adjacent anorthositic rocks on the East Shore
Property was previously reported in the Company's February 5, 2013 press
release. The near term focus is to compile and analyze the geological and
assay data from both drilling as well as surface mapping and sampling in order
to determine the nature and geometry of this mineralization, which is unusual
in that it is highly enriched in PGEs relative to copper.

Ongoing Exploration Program

Duluth is continuing with an extensive exploration program for the remainder
of 2013. The spring season will see a reduction in drilling activity as sites
become difficult to access due to the spring melt. This press release can
also be found on the Company website at http://www.duluthmetals.com .

About the Sampling

Duluth Metals adheres to a rigorous QA/QC program as a part of sampling
procedures throughout the drill program. Duplicate, blank, and reference
standards are inserted into the sample stream prior to submittal the
laboratory. Half core samples are crushed and pulverized at ALS Minerals in
Thunder Bay, Ontario, and then shipped to its analytical facilities in
Vancouver, British Columbia. Samples are analyzed for Au, Pt, and Pd using a
30 gram fire assay with an ICP-AES finish, and for Cu, Ni, and other trace
elements using a four acid (near total) digestion and a combination of ICP-MS
and ICP-AES finishes. Overlimits are re-analyzed using sodium peroxide fusion,
acid dissolution, followed by an ICP-MAES finish. The remaining half core
samples are stored in 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 is responsible for Duluth Metal's technical
content of this press release and quality assurance of the exploration data
and analytical results.

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.

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").  

Image with caption: "Figure 1 - Project Area Location, Bedrock Geology and
Resources Map (CNW Group/Duluth Metals Limited)". Image available at:
http://photos.newswire.ca/images/download/20130320_C6455_PHOTO_EN_24669.jpg

SOURCE: Duluth Metals Limited

For further information:

Mara Strazdins Vice President Investor Relations and Corporate Communications
Telephone: +1(416)369-1500 ext. 222 Email: mstrazdins@duluthmetals.com

Vern Baker President Telephone: +1(651)389-9990 Email:
vbaker@duluthmetals.com

Webpage:  http://www.duluthmetals.com
 
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