DNI Reports Additional Bioleaching Results, Including Specialty Metals and Rare Earth Elements From Its Black Shale Projects,...

TORONTO, Sept. 8, 2011 /CNW/ -- 
DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt)


TORONTO, Sept. 8, 2011 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven)(DG7:FSE) is pleased to announce consolidated results from a series of
 bioleaching R&D studies which conclude DNI's initial testwork on
 surface samples from its Alberta polymetallic black shale projects,
 Athabasca Region, Alberta.


The bioleaching studies were carried out by Alberta Innovates Technology
 Futures (AITF, formerly the Alberta Research Council) to specifications
 formulated by DNI and Dr.Corale Brierley, of C.L.Brierley Consultancy
 LLC, Denver, who has been assisting DNI during the past two years as
 its bioleaching consultant, in formulation of DNI's bioleaching
 testwork programs.


The studies were implemented in several iterative stages commencing in
 late 2009, and were completed at the end of 2010. The studies
 collectively confirmed that suitable bioleaching organisms are
 indigenous to the shale and can be readily extracted, cultivated and
 adapted to the shale's chemistry. The studies also confirmed that a
 broad suite of metals can be collectively extracted from the shale,
 with high recoveries for Ni/U/Zn/Co/Cd and lower recoveries for
 Mo/V/Cu/Li which might be enhanced through optimized leaching
 parameters. Results from the above studies are consistent with results
 from concurrent bioleaching testwork previously announced by DNI
 carried out by the Bureau de Recherches Géologiques et Minières (BRGM),
 France, (press Apr28/2010), and simple sulfuric acid leaching tests
 conducted under DNI's direction at Canadian analytical facilities
 (press Mar4/2010).


Two sets of surface samples (#BK003 and #BK456) were tested, both of
 which were collected by DNI during its 2009 surface trench sampling
 from a 9.5m thick mineralized exposure of Second White Speckled Shale
 at the Buckton South Zone located approximately 9km to the south of the
 Buckton Mineralized Zone. Sample BK003 represents material collected
 over 2m of true width, and sample BK456 is a composite sample collected
 over approximately 4m of true width beneath sample BK003. The Buckton
 South Zone either represents the southerly projected extension of the
 Buckton Mineralized Zone, or is a separate similar mineralized Zone
 which has not yet been drilled (cored) by DNI, although 12m-23m
 thicknesses of the Speckled Shale Formation are reported in downhole
 logs from approximately twenty historic oil/gas wells throughout a
 100-150 square kilometer area.


The earliest parts of the testwork, completed in late 2009, consisted of
 successful harvesting of bio-organisms from the shale, their culturing
 and subsequent adaptation. Acid mobility tests, completed in early 2010
 to collect baseline data to assess sulfur reagent consumption during
 leaching, reported ranges of 7.4-12.3kg and 89.7-102.9kg of acid
 consumption per tonne of mineral feed for sample BK003 and BK456,
 respectively. The acid consumption results define too wide a range to
 be conclusive and will be re-tested during future work.


A set of bench scale batch amenability leaching tests (BATs) were
 carried out in duplicate on approximately 200gm aliquots from each of
 the two samples to test amenability of the shale samples to leaching
 and to determine the amount and suite of metals which might be
 extracted (recovered) from the shale via bioleaching. The BAT tests
 entailed leaching during 38 and 27 days of incubation for samples BK456
 and BK003, respectively, utilizing the indigenous bio-organisms
 previously harvested from the shale.


Test results for sample BK456 are tabulated below, consolidated from the
 iterative studies as calculated by DNI based on analyses, weights or
 volumes of the various solid and liquid fractions from the leaching
 tests as reported by AITF. Previously announced results from similar
 bioleaching tests completed by BRGM and the Acid Leaching tests carried
 out under DNI's direction at Canadian analytical facilities are also
 tabulated for comparison.




 ____________________________________________________________________
|                   Calculated Metals Extractions (recoveries)       |
|____________________________________________________________________|
|  |Bioleaching - AITF  | Bioleaching - |Acid Leaching - DNI|        |
|  |       (ARC)        |     BRGM      |                   |        |
|__|____________________|_______________|___________________|  Best  |
|  | Sample BK456 ((1)) |Sample 09ASH004| Sample 09ASH004 ( |Recovery|
|  |                    |     ((2))     |       (3))        |Achieved|
|__|____________________|_______________|___________________|        |
|  |   per   |per Solids|Biotic|Abiotic |36hr-30C| 24hr-50C |        |
|  |Solutions|          |Tests | Tests  |        |          |        |
|__|_________|__________|______|________|________|__________|________|
|Mo|    34%  |     30%  |  16% |    3%  |   28%  |     51%  |   51%  |
|__|_________|__________|______|________|________|__________|________|
|Ni|    85%  |     89%  |  88% |   87%  |   89%  |     70%  |   89%  |
|__|_________|__________|______|________|________|__________|________|
|U |   100%  |     94%  |  88% |   82%  |   84%  |     67%  |   100% |
|__|_________|__________|______|________|________|__________|________|
|V |     8%  |     12%  |   6% |    8%  |   34%  |     51%  |   51%  |
|__|_________|__________|______|________|________|__________|________|
|Zn|   100%  |     85%  |  84% |   84%  |   88%  |     70%  |   100% |
|__|_________|__________|______|________|________|__________|________|
|Cu|    65%  |     66%  |   na |   49%  |   53%  |     57%  |   66%  |
|__|_________|__________|______|________|________|__________|________|
|Co|    91%  |     91%  |  88% |   83%  |   86%  |     69%  |   91%  |
|__|_________|__________|______|________|________|__________|________|
|Cd|   100%  |     98%  |   na |    na  |   93%  |     71%  |   100% |
|__|_________|__________|______|________|________|__________|________|
|Li|    25%  |     22%  |   na |    na  |   45%  |     58%  |   58%  |
|__|_________|__________|______|________|________|__________|________|




(1) Sample BK456 is a weighted composite of samples# 09ASH004, 09ASH005
 and 09ASH006. Calculated metal extractions tabulated show results based
 on aggregate metals extracted in all solution fractions as a percentage
 of the head grade, compared with extractions calculated based on the
 difference between head grade and aggregate metals remaining in all
 solid (tails) fractions. Calculated extractions for U and Cd of 104%
 and 102%, respectively, are stated as 100%; (2) BRGM test results
 reiterated from DNI press Apr28/2010 and tabulated as rounded figures.
 Abiotic test results from leaching in acidic conditions without
 addition of bio-organisms shown for comparison with the biotic test
 results; (3) DNI Acid Leaching results reiterated from DNI press
 Mar4/2010, showing comparative results from tests conducted at
 different temperatures leach duration.


To the extent that all of the leaching testwork completed to date
 represent initial tests,  the recoveries tabulated above represent
 minimum recoveries achievable and are initial results to be optimized
 during future additional testwork. The best recovery achieved to date
 for the various metals is shown as a benchmark on which DNI is relying
 for planning purposes, and as a benchmark of interim recoveries which
 future work will endeavor to enhance.


Results for sample BK003 are not tabulated above given that they did not
 meet acceptable mass balance thresholds and can only be regarded in
 qualitative terms indicating that the suite of metals of interest can
 be extracted from the shale, and that recoveries for Ni/U/Zn/Co/Cd are
 considerably better than for Mo/V/Cu/Li.


Following bioleaching, one of the duplicate samples was further leached
 in HCl to monitor precipitation of a variety of compounds (eg:
 jarosites, sulfates, ferro-compounds) and to assess related metals
 re-precipitation from the leaching solution after the metals had been
 extracted from the shale. The test results indicate that while a small
 fraction (1%-8%) of all dissolved metals, once leached from the shale,
 are removed from the leaching solution through re-precipitation, a
 considerable portion of Mo-V-Cu (at least approximately 47% of Mo, 58%
 V and 19% Cu) once leached from the shale are lost to re-precipitation
 correlated with abrupt changes in pH within the leaching solution. The
 foregoing processes will be addressed during future testwork intended
 to optimize test parameters to enhance recoveries of Mo-V-Cu.


DNI's leaching testwork over the past two years has confirmed collective
 recoverability of traditional metals from the shale. The testwork,
 however, also reported successful recoveries of additional metals of
 value which are incidentally extracted from shale as co-products. These
 co-products consist of specialty metals (Li, Sc, Th) and rare earth
 elements including critical rare earths (Dy, Y, Tb, Eu and Nd). To the
 extent that the leaching tests reported good recoveries of most of the
 foregoing metals, they hold potential to add considerable previously
 unrecognized value to the mineralized zones identified by DNI at the
 Property.


Grades for specialty metals and rare earth elements (REE's) from DNI's
 2010-2011 winter drilling program are summarized below (see also DNI
 press Jul15/2011 for results for other metals), together with results
 from historic drilling and head grades for samples BK456 and BK003
 tested during bioleaching studies. Considering the excellent uniformity
 of grades among all drill holes across the Buckton Mineralized Zone,
 the tabulated results serve to characterize grades which can be
 reasonably expected from the Zone.




 __________________________________________________________________
|Hole or|Zone Width** (m) |      Weighted Average Grade (ppm)***   |
|_______|_________________|________________________________________|
|Sample#|   From-To |Width|Ce |Dy|Er|Gd|La|Nd|Pr|Sm|Y |Yb|Th|Sc|Li |
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|___|
|11BK01*| 46.6-66.9 |20.3 |85 |na|na|na|57|79|na|11|51|5 |10|12|56 |
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|___|
|11BK02*| 67.0-89.8 |22.8 |82 |na|na|na|50|73|na|10|51|5 |11|12|59|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|11BK03*| 41.2-61.0 |19.9 |77 |na|na|na|49|47|na|9 |40|3 |13|11|56|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|11BK04*| 54.5-68.0 |13.5 |73 |na|na|na|41|58|na|9 |39|4 |10|12|53|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|11BK05*| 61.9-74.5 |12.6 |74 |na|na|na|48|42|na|9 |41|4 |11|11|58|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|7BK01* |132.9-148.2|15.3 |84 |na|na|na|58|39|na|9 |62|6 |10|11|55|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|7BK03* |75.0-101.2 |26.2 |98 |na|na|na|66|45|na|10|74|7 |10|12|56|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|7BK05* | 76.8-95.2 |18.4 |90 |na|na|na|55|36|na|8 |55|6 |10|12|56|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|BK456* |      na   |   4 |111|16|9 |20|72|94|25|17|98|9 |8 |17|53|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|BK003* |      na   |   2 |55 |5 |2 |6 |25|28|9 |5 |22|2 |9 |7 |68|
|_______|___________|_____|___|__|__|__|__|__|__|__|__|__|__|__|__|
|m=metres; Eu 1-4 ppm; Tb 1-3 ppm                                  |
|__________________________________________________________________|








 ___________________________________________________________________________________________
|Hole or|Zone Width** (m) |                        Weighted Average Grade (lb/st)***        |
|_______|_________________|_________________________________________________________________|
|Sample#|   From-To |Width| Ce | Dy | Er | Gd | La | Nd | Pr | Sm |  Y | Yb | Th | Sc | Li |
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|11BK01*| 46.6-66.9 |20.3 |0.17| na | na | na |0.11|0.16| na |0.02|0.10|0.01|0.02|0.02|0.11 |
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|_____|
|11BK02*| 67.0-89.8 |22.8 |0.16| na | na | na |0.10|0.15| na |0.02|0.10|0.01|0.02|0.02|0.12|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|11BK03*| 41.2-61.0 |19.9 |0.15| na | na | na |0.10|0.09| na |0.02|0.08|0.01|0.03|0.02|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|11BK04*| 54.5-68.0 |13.5 |0.15| na | na | na |0.08|0.12| na |0.02|0.08|0.01|0.02|0.02|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|11BK05*| 61.9-74.5 |12.6 |0.15| na | na | na |0.10|0.08| na |0.02|0.08|0.01|0.02|0.02|0.12|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|7BK01* |132.9-148.2|15.3 |0.17| na | na | na |0.12|0.08| na |0.02|0.12|0.01|0.02|0.02|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|7BK03* |75.0-101.2 |26.2 |0.20| na | na | na |0.13|0.09| na |0.02|0.15|0.01|0.02|0.02|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|7BK05* | 76.8-95.2 |18.4 |0.18| na | na | na |0.11|0.07| na |0.02|0.11|0.01|0.02|0.02|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|BK456* |      na   |   4 |0.22|0.03|0.02|0.04|0.14|0.19|0.05|0.03|0.20|0.02|0.02|0.03|0.11|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|BK003* |      na   |   2 |0.11|0.01|0.00|0.01|0.05|0.06|0.02|0.01|0.04|0.00|0.02|0.01|0.14|
|_______|___________|_____|____|____|____|____|____|____|____|____|____|____|____|____|____|
|m=metres; lb/st=pounds per short ton; Eu 0.002-0.008 lb/st; Tb 0.002-0.006 lb/st          |
|__________________________________________________________________________________________|





*Drill holes 11BK01-11BK05 drilled by DNI. Drill holes 7BK01, 7BK03 and
 7BK05 are historic hole. Drill holes tabulated are from drilling over
 the Buckton Mineralized Zone. Samples BK456 and BK003 are surface
 trenching samples tested during bioleaching tests.  **All holes are
 vertical and widths reported are true widths; Drill core sampled at a
 standard 0.5m interval; Data for historic holes based on DNI's
 verification analytical program which re-sampled historic drill core at
 lengths averaging 3.8m; Zone width represents true thickness of the
 flat-lying Second White Speckled Shale Formation which hosts the
 polymetallic mineralization within its contacts.  ***Analyses are
 weighted averages over the entire intercept of the Speckled Shale
 Formation based on lithogeochemical characterization; Data for historic
 drill holes from DNI's verification analytical program; lb/st=pounds
 per short ton; na=not available; Analyses by Activation Labs, Ancaster,
 ON; REE analyses by ICP or MS after total sample digestion; In addition
 to analytical blanks and standards utilized by Actlabs as part of its
 analytical quality assurance and quality control ("QA/QC") protocols,
 DNI's QA/QC parameters consist of duplicate analyses as follows: one
 matrix-matched analytical blank per 10 samples, one duplicate analysis
 of pulverized pulp per 10 samples, and one duplicate subsample from
 coarse fraction per 10 samples.


Considering the uniformity of grades among all drill holes across the
 Buckton Mineralized Zone, the tabulated results above serve to
 characterize grades which can be reasonably expected from this Zone
 which holds potential for hosting 1.4-1.5 billion short tons of
 polymetallic mineralization extending over 26 square kilometers and is
 open in three directions. If amortized over the Buckton Mineralized
 Zone, the apparently modest grades tabulated are significant and
 represent an immense in-situ metallic budget of recoverable specialty
 metals and REE's ranging in the millions of pounds for any given metal.
 Sufficient drilling has been completed over a portion of the Buckton
 Mineralized Zone to classify a portion of it to an inferred resource
 relating to base metals and Uranium. A similar study relating to
 specialty metals and REE's will follow later in the year.


Calculated recoveries of specialty metals and REE's based on results
 from the AITF bioleaching testwork studies are summarized below for
 sample BK456.


 ______________________________________________________________________
|Calculated Bioleaching Recoveries for Specialty Metals* - Sample BK456|
|______________________________________________________________________|
|         |Ce |Dy |Er |Eu |Gd |La |Nd |Pr |Sm |Tb | Y |Yb |Th**|Sc |Li |
|_________|___|___|___|___|___|___|___|___|___|___|___|___|____|___|___|
|per      |77%|92%|88%|83%|88%|66%|66%|58%|91%|97%|90%|90%|100%|51%|25%|
|Solutions|   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |
|_________|___|___|___|___|___|___|___|___|___|___|___|___|____|___|___|
|per      |68%|92%|92%|86%|90%|70%|78%|76%|83%|92%|92%|64%|74% |57%|22%|
|Solids   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |
|_________|___|___|___|___|___|___|___|___|___|___|___|___|____|___|___|
|  *calculated by DNI based on analyses, weights or volumes as reported|
|                                                               by AITF|
| ** Calculated extraction of 111% (per solution) for Th stated as 100%|
|______________________________________________________________________|




Despite the general availability of commodity price quotes for specialty
 metals and REE's, given lack of transparency in their respective
 commodity markets, assessment of the economic impacts that these metals
 might have as co-products on future development DNI's polymetallic
 shales cannot be determined at this time. The grades and incidental
 recoverability of these metals are, however, material to any potential
 production scenario envisaged by DNI for continuing exploration and
 development of the six mineral systems identified at the Property as a
 long term source of a variety of metals. The foregoing results compel
 DNI to broaden scope of its future testwork to actively focus on
 specialty metals and REE's recoveries alongside the base metals of
 interest which have so far been DNI's primary focus.


General Update of Work In Progress:
A resource study over a portion of the Buckton Mineralized Zone is
 nearly completed and will be announced shortly. Plans are to augment
 and amend the study with a stand-alone resources study to estimate
 specialty metals and REE's resources, and related metallic budget
 hosted within the resources being delineated over a portion of the
 Zone.


Bioleaching testwork is in progress on composite samples from the past
 winter's drilling. This work will substantially repeat work completed
 to date on surface trenching samples, and is slated for completion at
 the end of the year. Other work is in its planning stages to expand and
 optimize leaching parameters.


Permitting applications have been submitted in advance of a planned
 winter drilling to probe projected extensions of the Buckton
 Mineralized Zone and to commence initial drilling over the Buckton
 South Zone which may represent its southerly extension or an entirely
 separate similar Zone.


DNI continues to focus its efforts on its polymetallic black shale
 Properties in Alberta, and on its carried interest in the diamond
 discovery on its Attawapiskat Property, Ontario.


The Qualified Person in connection with this press release is S.F.Sabag
 P.Geo, DNI's president and CEO, who has reviewed analytical results and
 is responsible for preparation of this press release. All detailed data
 underlying test results reported herein are included in Alberta Mineral
 Assessment Report#MIN20100017.


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: 60,100,284


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 MDS&A's, all of which are available from SEDAR
 and on its website. 


 


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p align="justify" DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement,  Chairman - 416-595-1195br/ email a href="mailto:[e-mail]"[e-mail]/a. Also visit a href="http://www.dnimetals.com" cr="true"www.dnimetals.com/a /p 

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