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Duluth Metals Commences Drilling Program on Platinum Targets on the Land O'Dixie Property


News provided by

Duluth Metals Limited

02 Aug, 2011, 10:30 GMT

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TORONTO, August 2, 2011 /PRNewswire/ --

Duluth Metals Limited ("Duluth Metals" and "Company") (TSX: DM) (TSX: DM.U) is pleased to announce that a diamond drill program has commenced on the Land O'Dixie Property, one of the Company's grassroots exploration properties within the Duluth Complex in Minnesota, U.S.A. The Company has planned a drilling program to test a large layered mafic intrusion identified on the property with potential for Platinum-rich Reef style targets. The Company has budgeted USD$8 Million for exploration on its 100% owned exploration interests in Northern Minnesota. Duluth Metals currently has 37,000 acres of 100% owned mineral/land interests in close proximity to Minnesota's emerging copper-nickel-platinum group mining camp within the Duluth Complex.

"Our geologic expertise is based around our experience in the Duluth Complex. That expertise has already led to significant exploration success for Duluth Metals," stated Vern Baker, President of Duluth Metals. "It makes sense for the Company to leverage that expertise by continuing with an aggressive exploration program on what we believe are some of the most prospective mafic rocks in the world."

The exploration program is fully financed by the Company which had USD$36.5 million in the treasury as of June 6, 2011. Duluth Metals is utilizing information gained from a 7,053 line-kilometer airborne VTEM-Magnetic survey over a 649 square kilometer area within the Duluth Complex to help define potential drilling targets.  In addition, a regional glacial till geochemistry and mineralogy program, along with geological mapping coordinated with the geophysics and geochemistry is underway to detect and delineate unexposed mineralization.

"We have assembled an outstanding geologic team of professionals whose goal is to discover additional ore deposits in new areas of the Duluth Complex," stated Dr. Dean Peterson, senior V.P. Exploration of Duluth Metals, and a pre-eminent authority on Duluth Complex mineralization.  "The dedicated staff has been working extremely hard towards the goal and we all are excited to commence drilling on several stratiform Platinum-rich Reef style targets within the most mafic intrusion of the Duluth Complex."

The Duluth Complex and associated intrusions of the Midcontinent Rift System in northeastern Minnesota constitute one of the largest, semi-continuous, mafic intrusive complexes in the world, second only to the Bushveld Complex of South Africa. These rocks cover an arcuate area of over 5,000 square kilometers and give rise to two strong gravity anomalies (+50 & +70 mgal) that imply intrusive roots to more than 13 km depth. The geometry of three large mafic intrusions within the Duluth Complex has been modeled by the integration of field mapping and drill hole data with maps of gravity and magnetic anomalies. These igneous bodies include the South Kawishiwi, Partridge River, and Bald Eagle intrusions that collectively outcrop on the western edge of an area of greater than 800 square kilometers. The South Kawishiwi intrusion (in the north) and Partridge River intrusion (in the south) host several billion tons (each) of low-to-medium grade Cu-Ni-PGE mineralization near their base, with the South Kawishiwi hosting the highest grade deposits in the Duluth Complex.

On July 28, 2011, Duluth Metals Limited announced that it proposes to distribute to its shareholders of record as of August 23, 2011 a special warrant dividend convertible to common shares of Duluth Exploration Limited ("DEL").  DEL through its subsidiary Duluth Exploration (USA) Inc. will enter into an earn-in agreement on the 37,000 acres of mineral interests held by the Company's wholly-owned U.S. subsidiary including the mineral interests of the Land of Dixie, the subject of this press release.

Phillip Larson, P. Geo. is the Qualified Person for Duluth and Senior Geologist for Duluth, in accordance with NI 43-101 of the Canadian Securities Administrators, and is responsible for Duluth'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 been active 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.

This document may contain 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 operations of Duluth, the environment in which it operates, timing and amount of capital expenditures, results of exploration and mine development, the availability of funding to Duluth and timing of geological reports. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Duluth. 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 the annual information form under the heading "Risk Factors" and in the other public filings of Duluth. 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 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.

For further information:
Mara Strazdins
Director of 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

(DM. DM.U.)

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