Duluth Metals Ltd DULMF

RE: An idea for 2008 - merging FRA and DM

[smilewithme]

Hi matilla, my view is that things will start happening with Polymet Mining gets its permit. And it will be Teck that will make the move. eventually everyone will share the Erie plant. whatever happens, lots of upside from here! smilewithme From Comark Analyst report: "The complex provides many avenues for expansion due to the massive size of the mineralization that it contains and these companies have potential to expand in different ways. PolyMet’s main expansion opportunity is based on bringing its mill to full capacity either through toll milling or acquisitions. Franconia is the only company that currently holds more than one deposit in the area. This allows them to stage production and create more flexibility. Franconia is currently moving forward on two of their deposits, with their third deposit providing the potential for expansion once the first two are online. Duluth Metals has the Maturi Extension Properties and has the largest current resource, in terms of contained metals, in the Complex. Currently, the Company has drilled on only one-third of its property leaving the potential open for significant discoveries. Teck Cominco has the largest deposit in the complex and, based on their significant foothold in the region, it could be considered a reasonable possibility that they could choose to consolidate the complex giving them the potential to be the largest producer in the third largest nickel belt in the world. The largest scale operation based on current guidance will be the NorthMet operation. With a daily production of at least 29,000 tpd and a likely expansion to 54,400 tpd, it is much larger than any of the operations currently planned. Both Franconia and Duluth Metals are underground operations with a smaller scale with Franconia reaching a maximum production of 18000tpd (with a likely expansion to at least 22000tpd) and Duluth Metals at 20,000tpd. Based on this scale, we are modeling for a 23-year mine life at NorthMet, a 26-year life for the combined operation at Franconia’s two deposits and a 30-year mine life for Duluth Metals.