VANCOUVER — Toronto-based Duluth Metals and 40% joint venture partner Antofagasta can claim to hold one of the world's largest polymetallic sulphide deposits following a resource update on the Twin Metals project southeast of Ely, Minnesota. Duluth announced the resource estimate on Dec. 4, which expands the project's in situ copper-nickel numbers along with establishing one of the largest palladium-platinum deposits outside of South Africa.
Lying along the South Kawishiwi intrusion in northeastern Minnesota, the Twin Metals resource runs over three deposits, including Birch Lake, Maturi and Spruce Road. The Twin Metals partnership has been working to achieve greater clarity on continuous zones of higher grade mineralization in anticipation of an upcoming prefeasibility study that should start the project on the road to production.
Duluth's resource for Maturi covers roughly 405,000 metres of drilling and holds 907 million indicated tonnes grading 0.59% Cu, 0.19% Ni, 0.6 ppm platinum-palladium-gold (3PE), as well as 491 million inferred tonnes averaging 0.51% Cu, 0.17% Ni, and 0.53 ppm 3PE.
Based on 90,500 metres of drilling the Birch Lake deposit holds 89 million indicated tonnes grading 0.52% Cu, 0.16% Ni, and 0.86 ppm 3PE, as well as 216 million inferred tonnes averaging 0.46% Cu, 0.15% Ni, and 0.64 ppm 3PE.
Spruce Road relies on data from 210 legacy holes, and, as such, the resource remains in the inferred category. The deposit hosts 435 million tonnes grading 0.43% Cu and 0.16% Ni. All resources rely on a 0.3% Cu cut-off.
When taken as a whole, the three deposits hold indicated contained metals totalling 13.7 billion lb of copper, 4.4 billion lb of nickel, 5.6 million oz of platinum, 12.6 million oz of palladium and 3 million oz of gold.
Duluth highlights a higher grade core to the Maturi deposit that could offer higher returns during early stage production. Labelled S3, the Maturi subunit hosts 564 million tonnes grading 0.69% Cu, 0.22% Ni and 0.76 ppm 3PE in the indicated category and 180 million tonnes grading 0.65% Cu, 0.21% Ni and 0.82 ppm 3PE in the inferred category. S3’s resources are at a higher cut-off grade of 0.5% Cu.
"The [final report] confirms the impressive nature of the deposits," commented Duluth president Vern Baker, who pointed out the resource only covers 11% of the Twin Metals land package. "All key parameters including grade, tonnage, and contained metal have grown substantially. Mine planning will focus on utilizing the higher grade areas for initial mine sequencing, potentially improving the business-economic model significantly."
In addition to its 60% stake in the 130 km2 Twin Metals package, Duluth is undertaking exploration on an adjacent, 160 km2 land position where the company holds a 100% interest. On Nov. 26, Duluth mobilized a fourth drill rig to its exploration site, as the company continues a program targeting prospective zones on its Nor'East and East Shore properties.
Duluth has budgeted US$7 million budgeted on early stage exploration, and completed a 7,000-km airborne VTEM survey as well as geochemistry and mapping initiatives this past summer. The Nor’East property is viewed as a high priority target due to the fact it lies at the junction of the Nickel Lake macrodike and the South Kawishiwi intrusion.
Duluth has traded within a 52-week range of $1.39 and $2.76. The company has 125 million shares outstanding and closed at $2.48 at press time with a $311 million market capitalization. The company reported roughly US$17 million in cash as of Nov. 2, with funding for the first two phases of its joint venture complete.
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