The new Nokomis Resource Estimate now contains 550 million tonnes of Indicated Resources grading 0.639% copper, 0.200% nickel, 0.660 grams per tonne TPM (TPM = Pt + Pd + Au) for a copper equivalent (CuEq) grade of 1.51%, plus an additional 274 million tonnes of Inferred Resources grading 0.632% copper, 0.207% nickel, 0.685 grams per tonne TPM for a CuEq grade of 1.53% (see Table footnotes for an explanation of the copper equivalent formula).
This Scott Wilson RPA Estimate also includes multiple higher grade areas. The three highest grade areas have a cumulative total of 92 million Indicated tonnes of 1.80 CuEq% (at a 1% CuEq cut-off grade) and 22 million Inferred tonnes of 1.81 CuEq% (also at a 1% CuEq cut-off grade). Duluth Metals notes that definition of these higher grade areas is important for mine planning and initial operations in order to enhance rapid payback of capital investment.
Furthermore, Scott Wilson RPA has reported on silver in this estimate, and the Nokomis Deposit contains 37 million ounces of silver within the Indicated Resource outline (550 million tonnes at 2.116 g/t Ag) and 18 million ounces of silver within the Inferred Resource outline (274 million tonnes at 2.056 g/t Ag).
The updated Resource Estimate used a 1% copper equivalent cut-off grade to define the resource model. Based on Scott Wilson RPA's review of metal prices, process recoveries, refining costs and underground mine operating costs likely to apply at the Nokomis deposit site, the 1.0% copper equivalent cut-off grade (highlighted) is reasonable for the statement of Indicated and Inferred Resources at this time.
"This new Resource Estimate on Nokomis has significantly increased the grade, tonnage, and contained metal in the deposit. The infill and step-out drilling confirm the continuous nature of the mineralization within the deposit and there is definite potential for the mineralization to extend outside of the currently defined resource block", stated Dr. Henry J. Sandri, President and CEO of Duluth Metals. "The incremental increase of 101 million tonnes in Indicated Resources is remarkable in terms of size and dimension, principally because the increase, by itself, is larger than the majority of the world's copper-nickel-PGM deposits and mines. Nokomis has demonstrated a unique characteristic - for each of the past three resource estimates - grades and tonnages have significantly continued to improve. In addition, there is considerable upside opportunity to find additional tonnes since approximately 40% of the property has yet to be drilled."
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