TORONTO, Sept. 12, 2012 /CNW/ - announces that its NI-43-101
compliant resource study, relating to cover rocks above the Second
White Speckled mineralized black shale at its Buckton Zone, has
been completed (the "Buckton Labiche Resource Study"). The Study
successfully identified a 2.74 billion short ton inferred resource
for Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Th-Sc hosted in the Labiche
Formation black shale. This Formation makes up majority of the
cover rocks above the Buckton Zone on DNI's Alberta polymetallic
black shale projects. Approximately 630 million short tons of the
Labiche resource being announced lies directly above the Buckton
inferred maiden resource (announced October 24, 2011, and January
16, 2012), and had previously been regarded as overburden cover
"waste" material which would have to be removed to access the
Buckton Zone. Recognition of the Labiche inferred resource is a
significant new milestone development from the Buckton Zone. It
will enable potential inclusion of considerable additional tonnages
of mineralization hosted in the underlying Second White Speckled
Shale Formation into the Buckton resource, all of which tonnages
were previously omitted from resources due to excessive thickness
of cover material. The Buckton Labiche Resource Study was prepared
by Apex Geoscience Ltd ("Apex"), Edmonton, under the supervision of
Mr.Roy Eccles PGeol, Mr.Michael Dufresne PGeol and Mr.Steven
Nicholls MAIG, who are the Qualified Persons in connection with its
preparation and are independent of DNI. The Study relies on DNI's
2010-2011 winter drilling over the Buckton Zone, together with
historic drilling from the area from which all archived Labiche
Formation drill core intercepts were re-sampled and re-analyzed by
DNI in preparation for the Resource Study for consistency with
DNI's more recent drilling data. All of the foregoing drilling
campaigns were implemented by Apex under the supervision of
Mr.Dufresne. The Buckton Labiche Resource Study complies with
National Instrument 43-101 and CIM resource estimation guidelines.
This press release is a summary of salient conclusions from the
Resource Study report which is being filed to SEDAR and will be
available shortly. The report, "Technical Report, Inferred Resource
Estimate Of The Labiche Formation And Its Potential To Add To The
Overall Metal Content Of The Buckton Mineralized Zone, SBH
Property, Northeastern Alberta", with effective date of September
11, 2012, will also be available from DNI's website
www.dnimetals.com once it is filed. The Buckton Labiche resource
reported by the Buckton Labiche Resource Study is classified as an
inferred resource consisting of 2,737,641,000 short tons
(2,483,546,000 metric tonnes) of mineralized Labiche Formation
black shale, extending over 13.8 square kilometres beneath less
than 75m of overburden cover, which is mineralized with recoverable
Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn),
Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th)
and Rare Earth Elements Lanthanum (La), Cerium (Ce), Praseodymium
(Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium
(Gd), Terbium (Tb), Dysprosium (Dy), Yttrium (Y). The Study
estimates that the resource is overlain by 740,898,000 short tons
(672,131,000 metric tonnes) of glacial till overburden. Details of
the inferred resource reported by the Buckton Labiche Resource
Study are tabulated below.
___________________________________________________________________________________________________________
| Buckton Labiche Inferred Resource |
|___________________________________________________________________________________________________________|
|Mineralized| 2,737,641,000 | |Shale | | |(tons) | |
|___________|_______________________________________________________________________________________________|
| | MoO3 | Ni | U3O8 | V2O5 | Zn | Cu | Co | Li2CO3 |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Raw Grade | 3 | 49 | 5 | 448 | 143 | 31 | 13 | 400 | |(ppm) | | |
| | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recovery % | 55% | 80% | 75% | 10% | 75% | 65% | 80% | 40% |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable| 2 | 39 | 4 | 45 | 107 | 20 | 10 | 160 | |Grade (ppm)|
| | | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Metal/Oxide| 21.6 | 11.1 | 73 | 8.1 | 1.1 | 3.2 | 25.3 | 3 |
|Price* | | | | | | | | | |(US$/lb) | | | | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable| 4,014,000 |97,673,000 |9,655,000 |111,312,000|
265,984,000 |49,751,000 |25,232,000|397,618,000| |metal/oxide| | |
| | | | | | |(kg) | | | | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable| 8,850,870 |215,368,965|21,289,275|245,442,960|
586,494,720 |109,700,955|55,636,560|876,747,690| |metal/oxide| | |
| | | | | | |(lbs) | | | | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
| |
|___________________________________________________________________________________________________________|
| | La2O3 | Ce2O3 | Pr2O3 | Nd2O3 | Sm2O3 | Eu2O3 | Gd2O3 | Tb2O3 |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Raw Grade | 46 | 82 | 10 | 37 | 7 | 2 | 6 | 1 | |(ppm) | | | | | |
| | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recovery | 15% | 25% | 30% | 35% | 50% | 55% | 60% | 60% | |% | |
| | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable| 7 | 21 | 3 | 13 | 4 | 1 | 4 | 1 | |Grade | | | | | |
| | | |(ppm) | | | | | | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Metal/Oxide| $42.9 | $41.3 | $81.3 | $93.4 | $39.3 | $1,202.6 |
$56.0 | $1,017.4 | |Prices** | | | | | | | | | |US$/kg) | | | | | |
| | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable|17,141,000 |51,056,000 |7,311,000 |32,516,000 |
8,984,000 | 2,023,000 |8,657,000 | 1,341,000 | |Oxide (kg) | | | |
| | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
|Recoverable|37,795,905 |112,578,480|16,120,755|71,697,780 |
19,809,720 | 4,460,715 |19,088,685| 2,956,905 | |Oxide (lb) | | | |
| | | | |
|___________|___________|___________|__________|___________|_____________|___________|__________|___________|
| |
|___________________________________________________________________________________________________________|
| | Dy2O3 | Ho2O3 | Er2O3 | Tm2O3 | Yb2O3 | Lu2O3 | Y2O3 | Sc2O3 |
ThO2 |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Raw Grade | 5 | 1 | 3 | 1 | 3 | 1 | 33 | 24 | 12 | |(ppm) | | | |
| | | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Recovery | 60% | 60% | 50% | 50% | 45% | 55% | 55% | 30% | 30% |
|% | | | | | | | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Recoverable| 3 | 1 | 2 | 0.2 | 1 | 0.3 | 18 | 7 | 4 | |Grade | | |
| | | | | | | |(ppm) | | | | | | | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Metal/Oxide| $547.6 | $275.6 | $240.0 | $97.0 | $76.9 | $719.4 |
$57.4 | $3,528.5 | $252.0 | |Prices** | | | | | | | | | | |US$/kg)
| | | | | | | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Recoverable|7,634,000 |1,519,000|3,778,000| 570,000 |3,479,000|
699,000 |45,516,000 |17,769,000 |9,059,000 | |Oxide (kg) | | | | |
| | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
|Recoverable|16,832,970|3,349,395|8,330,490|1,256,850|7,671,195|1,541,295|100,362,780|39,180,645
|19,975,095| |Oxide (lb) | | | | | | | | | |
|___________|__________|_________|_________|_________|_________|_________|___________|___________|__________|
*Metal/Oxide commodity prices are the five year average to Aug/2006
used to establish bulk recoverable values for cut-off grade
thresholding tests. **Metal/Oxide commodity prices used to
establish bulk recoverable values for cut-off grade thresholding
tests are the three year trailing average to Nov17/2011 for
La-Ce-Pr-Nd-Sm-Eu-Gd-Tb-Dy and Y, and the one year trailing average
to Nov17/2011 for Ho-Er-Yb-Lu and Sc. Tm value from Montviel Core
Zone REE resources study 2011 by SGS Canada Inc. Th value per USGS
Mineral Commodity Summaries 2008-2010. Metal prices vary among
various commodity information sources and, in all conflicting
instances, the lower pricing was used. The 2011 drilling included
an appropriate number of analytical standards, blanks and
duplicates, and no analytical issues were identified. Re-analysis
of historic drill core included an appropriate number of analytical
standards, blanks and duplicates, and no analytical issues were
identified. ton=short ton; lb=pound; kg=Kilogram; Figures may not
add exactly due to rounding. Mineral resources are not
mineral reserves and do not have demonstrated economic viability.
There is no guarantee that all or any part of the mineral resource
reported herein will be converted into a mineral reserve. An
'Inferred Mineral Resource' is that part of 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. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The value reported therefore
represent preliminary mineral recovery testing results and may not
reflect ultimate actual process recoverability, which is subject to
ongoing studies. This Buckton Labiche resource has been classified
as an inferred resource according to CIM standards. This
classification is based on a number of factors, namely; limited
number of drill holes and their wide spacing, good continuity of
mineralization and geological control between drill holes and from
section to section along approximately six kilometres of strike.
The Buckton Labiche Resource Study concludes that the Buckton
Labiche inferred mineral resource is mineralization that is
believed to have a reasonable prospect for extraction in the
future, especially in conjunction with extraction of the underlying
higher grading Second White Speckled Shale Formation. It includes
all Labiche underlying uppermost blocks that are beneath less than
75m of overburden/till, and for blocks whose combined metal content
meets a lower cut-off of US$7.5 per tonne whose value is
represented by the collective value of contained recoverable
Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Th-Sc relying on the trailing one to
five year commodity price averages as tabulated above (see table
footnotes for details) and relying on the best achieved metals
recoveries as reported from the collective of DNI's leaching
testwork (see press Sept8/2011 and Dec2/2011). The Buckton Labiche
resource is open to the north, northeast and south, and eastward to
the erosional edge of the Birch Mountains over a large area with
thin overburden cover where mineralization intermittently outcrops
at surface or is intermittently exposed throughout several
kilometres of valley walls. The Buckton Labiche Resource Study
relies on an aggregate of eleven vertical core holes distributed
over an area of approximately 15.8 square kilometres, and spaced
approximately 240m-2500m apart (averaging 1000m). Approximately 85%
of the Labiche Formation shale within the foregoing area lies
beneath less than 75m of overburden till and meet cut-off threshold
criteria for classification as an inferred resource. This Formation
also shows good lateral uniformity for many of the contained metals
over large distances across the Property. The spacing and number of
holes are considered sufficient for the determination of inferred
resources, and extrapolation of grades between the drill holes is
supported by statistical variography examined during the Study. The
Buckton Labiche resource comprises an approximately 13.8 square
kilometer, 13m to 109m thick, near-horizontal tabular zone hosted
entirely within the Labiche Formation, bounded by its upper and
lower contacts. Ultimate thickness of the Formation over the area
drilled is unknown since its upper portions have been eroded away
predominantly by glaciation. This Formation is exposed throughout
the eastern erosional edge of the Birch Mountains but is overlain
westward by glacial till. Given the uniformity of metals grades
within this shale, the Labiche resource is laterally delimited
based on depth criteria rather than continuity of metallic
mineralization which extends well beyond its limits. Presence of
Labiche Formation shale beyond the area drilled has been confirmed
by oil/gas downhole well logs which report sections of Labiche
shale over a large area extending well beyond the current
boundaries of the resources. The Buckton Labiche Resource Study
consisted of modeling and tonnage estimation using a 3-dimensional
block model based on geostatistical applications using commercial
mine planning software MICROMINE. The sample file comprised 854
samples of variable length for all lithologies but, when composited
in MICROMINE, yielded a database of 269 sample composites for the
Labiche shale which were used for the mineral resource estimation.
All drill holes are short vertical holes and, as such, there are no
down-hole surveys. Variography was conducted on the composited
drill hole data within the Labiche Shale domain to produce
spherical semi variograms. Each metal was modeled individually to
determine the continuity and orientation of mineralization. As a
result of the wide drill hole spacing a parent model block size of
250mx250mx2m was chosen for the resource estimate. The block model
was extended far enough past the mineralized wireframe to encompass
the entire mineralized shale domain. The recoverable grades for the
metals were translated into a US$ value for each block and
sub-block relying on trailing average metal/oxide as noted in
footnotes to the above tables, and the collective values aggregated
to enable testing against a block value base case cut-off of US$7.5
per tonne being the same cut-off previously utilized for the
Buckton maiden and Buckton supplemental REE-Y-Th-Sc resource
studies. According to the foregoing method, the Study concluded
that the reported resource represents an average value of US$12.2
per short ton (US$13.5 per tonne) representing the aggregate value
of recoverable grades for Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Th (US$35.1
per short ton; US$38.7 per tonne if Scandium is also included).
REEs account for approximately two-thirds of the foregoing
aggregate values (excluding Sc). The US$7.5 per tonne cut-off is
considered to be a reasonable benchmark which has been utilized by
recent mineral resource estimates for open pit mineable
poly-metallic black shales in Sweden as the break-even point and
lower cut-off. Considering a scenario of possible open pit mining
in northeast Alberta along the eastern edge of the Birch Mountains,
with potential for a low strip ratio at startup, the likely
free-dig nature of the poorly consolidated Shale, the potential for
easy access to multiple working faces, the location of the project
with respect to access, power and other important infrastructure, a
lower cut-off value for the mineral resource estimate of US$7.5 per
tonne is considered reasonable by the Study as a base case cut-off
threshold which also captures a relatively continuous mineralized
zone with favourable bulk mining configuration. Iteration of the
Labiche resource model at a higher cut-off of $10 per tonne had no
effect on the Labiche resource. The Buckton Labiche Resource Study
notes that although the resource reported represents mineralization
which is recoverable by a single bulk leaching method from the
Labiche shale, REEs account for approximately two-thirds of the
recoverable value reported (excluding Sc). The per ton (or tonne)
values reported are, accordingly, subject to uncertainties as to
long term REE pricing and viability of demand, the unknown effect
of new production on REE markets; and the ultimate cost of
separating REEs from pregnant leaching solutions once they have
been leached from the shale and their refinement into useable
saleable final products. The Buckton Labiche Resource Study
demonstrates that a substantive portion of the cover material above
the Buckton maiden resource is not waste and represents mineral
value recoverable by the same leaching methods as those required
for recovery of metals and REEs from the Buckton maiden resource.
Considering that the Buckton maiden resource has been delimited
based on thickness of overlying cover rocks rather than continuity
of grade, the Study recommends that the Buckton maiden resource
study and the Buckton Supplemental REE-Y-Sc-Th resource study be
reviewed to determine whether mineralized tonnages previously
reported lying under more than 75m of cover rocks, which were
previously omitted from classification as resources, might be
re-classified and included to expand the Buckton inferred resource
given that much of the cover rocks above these tonnages consist of
Labiche Formation shale which holds intrinsic recoverable value per
the Labiche resource announced herein. The Buckton Labiche Resource
Study concludes that the Labiche inferred resource announced herein
has excellent potential for expansion with further drilling, and
recommends implementation of additional exploration at the Buckton
Zone, and the Property, to include additional leaching testwork and
additional drilling to continue expanding and upgrading the Buckton
Zone resource hosted within the Labiche as well as the Second White
Speckled Shale Formations. Some of this drilling is in progress as
is ongoing leaching testwork. The Study reinforces that work on the
Buckton Zone advance toward commencing a Preliminary Economic
Assessment study (Scoping Study) as planned by DNI, and that DNI
give consideration to viewing the Buckton Zone, previously regarded
as mineralization confined only to the Second White Speckled Shale
Formation, to consist of a Zone of "stacked" polymetallic
mineralization consisting of an upper, lower grading, zone hosted
in Labiche Formation shale which directly overlies a higher grading
zone hosted in the Second White Speckled Shale which has thus far
been DNI's primary target. The Study also recommends that resources
identified at the Buckton Zone, hosted in the Labiche as well as
the Second White Speckled shale Formations, be revised and updated
to incorporate additional results from DNI's 2012 drilling program
in progress, and that the cut-off threshold of US$7.5 per tonne
utilized in the prior resource studies be revised to US$10 per
tonne to incorporate a nominal cost for refining REEs into saleable
final products. Prior iteration of the resource model at the higher
US$10 per tonne cut-off noted an insignificant change in the
resource identified in the Second White Speckled Shale at the
Buckton Zone, and no effect on the Labiche resource announced
herein. In a statement Mr.S.Sabag, DNI's president & CEO,
commented: "… we are excited by this significant development which
substantially represents a tenfold expansion of DNI's mineral
resources at the Buckton Zone. We look forward with equal
excitement to further expansion of these resources with results
from our drilling in progress and to advancing the project to a
Preliminary Economic Assessment study as planned". The Qualified
Persons in connection with the preparation of the Buckton Labiche
Resource Study are Mr.Roy Eccles PGeol, Mr.Michael Dufresne PGeol
and Mr.Steven Nicholls MAIG who are independent of DNI. The
Qualified Person in connection with this press release and in
respect of the Alberta polymetallic black shale projects is
S.F.Sabag PGeo, President and CEO of DNI, who is responsible for
verification and quality assurance of the exploration information
disclosed in connection with the projects and this release.
Ton=short ton; lb=pound; tonne = metric tonne = 1000kg. The 2011
drilling and re-analysis of historic Labiche drill core intercepts
included an appropriate number of analytical standards, blanks and
duplicates, and no analytical issues were identified. Metal/Oxide
commodity prices used to establish bulk recoverable values for
cut-off grade thresholding tests are the three year trailing
average to Nov17/2011 for La-Ce-Pr-Nd-Sm-Eu-Gd-Tb-Dy and Y
(consolidated from www.metal-pages.com), and the one year trailing
average to Nov17/2011 for Ho-Er-Yb-Lu and Sc (consolidated from
www.asianmetal.com). Tm value from Montviel Core Zone REE resources
study 2011 by SGS Canada Inc. Th value per USGS Mineral
Commodity Summaries 2008-2010. Metal prices vary among various
commodity information sources and in all conflicting instances the
lower pricing was used. Analyses by Activation Labs, Ancaster, ON;
Analytical results from the 2011 drilling were announced on
Jul15/2011, along with details of DNI's analytical quality
assurance and quality control parameters. Additional REE and
Specialty Metals grades were announced on Dec2/2011. Archived drill
core from some of the historic drilling was examined, re-sampled
and re-analyzed by DNI as part of its verification sampling program
in 2008-2009. All samples from 2011 drilling were re-analyzed for
REEs in December 2011 by Activation Labs, Ancaster, ON, by
Fusion and Trace Element Fusion ICP (Code8). Labiche Formation
intercepts from archived historic 1997 drill core were re-sampled
and re-analyzed by Activation Labs, Ancaster, ON, by Fusion
and Trace Element Fusion ICP (Code8) for consistency with DNI's
more recent data. For detailed information related to the Buckton
maiden inferred resource as it relates to base metals, Uranium and
Lithium, see the resource study report "Technical Report, Maiden
Resource Estimate, Buckton Mineralized Zone, SBH Property,
Northeast Alberta", October 18, 2011, effective date September 30,
2011, by APEX Geoscience Ltd. For detailed information related to
the Buckton Supplementary REE Inferred Resource relating to
REE-Y-Sc-Th see the resource study report "Technical Report,
Supplementary REE-Y-Sc-Th, Inferred Resource Estimate To Accompany
The Maiden Resource Mo-Ni-U-V-Zn-Cu-Co-Li Estimate, Buckton
Mineralized Zone, SBH Property, Northeast Alberta", December 22,
2011, effective date January 18, 2012, by APEX Geoscience Ltd. The
foregoing reports are available from www.sedar.com and from DNI's
website www.dnimetals.com. Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. DNI - TSX Venture DG7 -
Frankfurt Issued: 69,546,689 We seek Safe Harbour. This
announcement includes forward looking statements. While these
statements represent DNI's best current judgment, they are subject
to risks and uncertainties that could cause actual results to vary,
including risk factors listed in DNI's Annual Information Form and
its MD&As, all of which are available from SEDAR and on its
website. DNI Metals Inc. CONTACT: DNI Metals Inc. - Shahe
Sabag, President & CEO or Denis Clement,Chairman -
416-595-1195email ir@dnimetals.com. Also visit www.dnimetals.com
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