Duluth Metals Limited Inc. Progress Report On The Nokomis Deposit by 24hgold

Keywords : Cobalt |

Re: News Releases - Wednesday, September 10, 2008
Title: Duluth Metals Progress Report On The Nokomis Deposit

TORONTO, Ontario, September 10, 2008 -- Duluth Metals Limited ("Duluth Metals")(TSX:DM) (TSX:DM.U) is pleased to provide a progress report on activities currently underway and planned for the Fourth Quarter, 2008. The Company's cash position remains strong with approximately CAD$16 million cash on hand.

The Company is currently in the process of final bid selection for choosing the engineering consultants to complete the Nokomis Deposit Pre-Feasibility Study. The Company expects to award this major contract within two weeks. The frame of reference for this Pre-Feasibility Study is very comprehensive and encompasses every aspect of the major underground operation including optimization of mine methods, mine planning, all processing and scale of operation. This study will utilize our updated Scott Wilson RPA NI 43-101 Resource Estimate dated July 18, 2008, as well as results from additional drilling since that date. It is estimated that data from in excess of 40 additional holes will augment the Pre-Feasibility analysis.

Duluth Metals has a full program outlined for the balance of 2008 and is moving forward with comprehensive geological, geophysical and mining analysis of over 418,000 feet (127,000 metres) of Diamond drill core completed to date. Drilling will continue with one rig in the near term during this phase of geological interpretation, underground mine planning and the initial Pre-Feasibility Study. Geological and geophysical interpretation will focus on delineating the higher grade zones of the Nokomis Deposit and further assessment of the higher grade mineralization found in certain areas of the footwall of the deposit.

Metallurgical work is a major thrust of the Fall program with a series of metallurgical tests currently underway at SGS Lakefield Laboratories (SGS) and a 30 ton bulk metallurgical testing scheduled to commence at SGS in the Fourth Quarter. Core samples for the bulk sample have been collected from the Company's successful large diameter PQ drilling program. These samples are currently being shipped to SGS.

Duluth Metals recognizes that environmental planning and coordination is critical to the success of the Nokomis Project. Duluth Metals is moving forward with a series of environmental baseline studies at the Nokomis Deposit and the Dunka Property, required for environmental and mines permitting. Currently the Company has commenced 32 environmental work contracts which will be utilized in this process. Major baseline studies include surface and hydrogeologic water quality, wetlands, flora and fauna, noise, visual impact, archeological and cultural resources, as well as initiating water and meteorological monitoring. Frequent meetings with State and Federal officials are being held to review the steps necessary to complete successful environmental and mines permitting.

Evaluation of recently acquired State lands, 8 kilometers south of the Nokomis Deposit and 2 kilometers east of the Dunka Property, demonstrates the potential for Duluth Complex mineralization at depths commensurate to those currently being drilled at the Nokomis Deposit. The proximity of this opportunity to the Dunka Property presents an exciting new exploration target.

The recently updated NI 43-101 Nokomis Resource Estimate (see SEDAR filing July 21, 2008) defines 449 million tonnes Indicated Resources grading 0.624% copper, 0.199% nickel, 0.600 grams per tonne TPM (copper equivalent grade of 1.46%), plus an additional 284 million tonnes of Inferred Resources grading 0.627% copper, 0.194% nickel, 0.718 grams per tonne TPM (copper equivalent grade of 1.50%). (Note - 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/oz 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 Net Smelter Return Factors contained in the January 22, 2008, NI 43-101 Scoping Study produced by Scott Wilson RPA.)

Christopher Dundas, Chairman of Duluth Metals will be speaking on the progress of the Nokomis Deposit at the Global Capital Conference in London, U.K. on October 2, 2008. Other information is available on our website at www.duluthmetals.com.

In addition, Duluth Metals is pleased to announce that it has retained the Florida-based firm of Michael Baybak and Company, Inc. ("MBC") to increase investor awareness and conduct both institutional and retail investor relations programs on behalf of the Company. Headed by Mr. Michael Baybak, MBC is a long-term institutional and media investor relations specialist in the natural resource sector, with a focus on introducing Canadian resource companies of merit to broader institutional and retail investor audiences. Mr. Baybak graduated from Columbia University and attended Yale Law School. Before entering the financial relations field in 1977, he was a business writer for a number of organizations, including McGraw-Hill and The Christian Science Monitor.

David Oliver, P. Geo. is the Qualified Person and Project Manager for Duluth, 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 Metals is committed to acquiring, exploring and developing copper, nickel and platinum group metal (PGM) deposits. Duluth Metals' 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 un-developed 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 Metals' 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 Metals' 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 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.

For further information: please contact Mara Strazdins, Director of Corporate Communications, at mstrazdins@duluthmetals.com or at (416) 369-1500 or Henry Sandri, President and CEO, at hsandri@duluthmetals.com. U.S. corporate office: telephone 651-389-9990.

Web Page: www.duluthmetals.com

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