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BRACEMAC-MCLEOD
FEASIBILITY ADVANCES AS EXPLORATION CONTINUES AT MATAGAMI
Vancouver, B.C., September 30, 2009 - Mr. Harvey Keats, Chief
Executive Officer of Donner Metals Ltd. (TSXV-DON), is pleased to report
initial results from the feasibility drilling on Bracemac-McLeod, funded
by Xstrata Zinc, and current results from the on-going Donner funded
exploration program within the extensive Matagami project area.
Bracemac-McLeod - Accelerated Feasibility Program
Xstrata Zinc commenced definition drilling at Bracemac-McLeod in late
August as part of the Accelerated Feasibility Study program.
Currently, 3 drills are active and presently focused on defining the
three Bracemac zones at 25 metre pierce point spacings. Results to
date are conformable to the resource boundaries used in the calculation
of the indicated resource (3,623,000 tonnes grading 11.52% zinc, 1.60%
copper, 31.55 g/t silver and 0.49 g/t gold). Of note, drill holes
BRC-09-110 and BRC-09-111, drilled in the Upper Bracemac Zone, returned
above average thicknesses with significant copper values, while
BRC-09-109 did not intersect mineralization in the down-dip portion of
this zone.
Table 1: Bracemac Feasibility Drilling
Zones: UB = Upper Bracemac, B = Bracemac, KT = Key Tuffite, P = Pipe
"(in)" denotes that the drill hole pierce point is within the
boundaries of the current resource envelop.
"(out)" denotes that the drill hole pierce point is outside of
the boundaries of the current resource envelop.
Sph = sphalerite, Cpy = Chalcopyrite, Py = Pyrite, Po = Pyrrhotite.
A.P. = Assays Pending.
ETW = Estimated True Width.
Depth = Total depth drilled.
Regional Exploration
Drilling:
Exploration diamond drilling focused on various targets within the South
Flank and North Flank project areas is in progress. Seven diamond
drill holes were completed since the last report with two drills
currently active on exploration drilling. Drilling is focused on
the Key Tuffite as well as the sequence of upper tuffites that occur
stratigraphically above the Key Tuffite. Four holes intersected
strongly anomalous base metal values at the Key Tuffite and one drill
hole intersected anomalous results in an upper tuffite. The base
metal values encountered in the anomalous drill holes indicate the
targeted area was influenced by the mineralizing process typical of
Matagami massive sulphide deposits. Drill holes completed to date
is summarized as follows:
DJV-09-81: A stratigraphic drill hole designed to confirm the presence of
the Key Tuffite in a poorly explored area 1.5 kilometres southeast of the
producing Perseverance mine (Xstrata Zinc). The hole targeted
unexplained MEGATEM responses and down-hole geophysical anomalies in a
region where mineralization was noted in upper tuffites in other drill
holes. Mineralized Key Tuffite was intersected and a weak off-hole
anomaly was detected by a Crone borehole EM survey.
PRE-09-10: This hole was targeted on historical off-hole EM targets
encountered in open-spaced, historical drill holes 1 kilometre west of
the past producing Isle Dieu mine (produced 3.05 Mt grading 17.85% zinc,
1.01 % Cu, 76.63g/t Ag 0.46g/t Au). Mineralized Key Tuffite was
encountered and was underlain by altered footwall rhyolite (chlorite and
sphalerite stringers). Borehole EM surveying returned responses
related to stringer pyrrhotite in the hanging wall to the Key Tuffite.
OR-09-38: Targeted on a mineralized upper tuffite in the hanging wall
above Orchan West deposit, this drill hole encountered mineralized
tuffites at the target and borehole geophysics detected an off-hole
response related to this mineralized horizon. This hole was not
planned to test the Key Tuffite horizon.
OR-09-39: Was designed to test the northwest and slightly down-dip
extension of the Orchan West deposit. The hole encountered
mineralized upper tuffites and weakly mineralized KT that was encountered
higher than expected which suggests synvolcanic faulting in this area
that is typical in Matagami sulphide deposits. Geophysics returned
complex off-hole anomalies that are under review.
BAS-09-55: Targeted historical off-hole EM anomalies at the Key Tuffite
900 metres southeast of the former producing Bell Allard Mine (produced
3.59 Mt grading 13.67% zinc, 1.25 % Cu, 40.55g/t Ag 0.69g/t Au).
The hole intersected two intervals of mineralized Key Tuffite underlain
by altered (chloritized) footwall rhyolite. A strong in-hole
geophysical response related to stringer pyrrhotite in the Key Tuffite
was detected by borehole geophysics.
BAS-09-56: Targeted an area of EM responses returned from previous
drilling 850 metres down dip and to the northeast of the Bell Allard
South Pit. The hole encountered mineralized upper tuffites, 80
metres stratigraphically above the Key Tuffite horizon, and a repeated
Key Tuffite sequence cut by a 40 metre gabbro sill. Above the sill,
the Key Tuffite is comprised of massive sulphides dominated by
pyrite. Below the sill, mineralized Key Tuffite with significance
magnetite was encountered. Geophysical surveying is in progress and
assays are pending.
MC-09-76: Was designed as a pure stratigraphic test 1 kilometre southeast
of McLeod. The drill hole encountered weakly mineralized Upper
Tuffite and altered (silicified/hemitized) footwall rhyolite. The
Key Tuffite was absent due to faulting. Down-hole geophysics did
not return significant responses.
Table 2: Exploration Drilling
Horizons: UT = Upper tuffite, KT = Key Tuffite, FW = footwall.
ETW = Estimated True Width.
Depth = Total depth drilled.
Surface Exploration:
Daniel-1
DEEPEM surveying has been completed on three grids over the Daniel-1
showing area. Preliminary results have identified responses that
suggest mineralization intersected in DAN-09-10 (2.20% copper, 0.09%
zinc, 8.8g/t silver and 0.25g/t gold over 3.95 metres) extends to the
west. Another anomaly of interest was also detected in the
area. Drilling is planned for the winter months.
Airborne Survey:
A 647 line Kilometre ZTEM airborne survey was conducted in a corridor
stretching from Daniel-1 to the PD deposit in the west end of the Matagami
Camp and in a second corridor stretching from south of the Perseverance
Mine to the West Camp - PD trend. Results
are being analyzed, however a number of interesting responses are present
in the data.
SUMMARY
A total of 209 drill holes have been completed on the Matagami Project
since the activity under the Option and Joint Venture Agreement began in
late 2006. This includes a total of 12 drill holes that have been
completed on the Advanced Feasibility Drilling on Bracemac-McLeod.
Five drills are currently active on the project.
Based on the Indicated Resource of 3,623,000 tonnes grading 11.52% zinc,
1.60% copper, 31.55 g/t silver and 0.49 g/t gold at Bracemac-McLeod,
Xstrata Zinc is presently conducting an "Accelerated Feasibility
Study". Additional geological information, including maps and
sections, is available at www.donnermetals.com.
PROJECT OVERVIEW
Donner has the option to earn a 50% participating joint venture interest
in the Matagami Project by incurring a total of $25 million of
expenditures on exploration and related work on or before May 31, 2011.
Upon earn-in by Donner, five separate joint ventures will be formed,
covering the property and the area of interest. In each of the five
joint venture areas, Xstrata Zinc has the option to earn-back a 15%
interest in each area by incurring up to $20 million on a bankable
feasibility study.
The Matagami Project has an area of mutual interest of 4,750 square
kilometres and presently includes 3,340 mineral claims covering 801
square kilometres. The project covers the Matagami Mining Camp
which is a world-class mining district, with 18 known VMS deposits,
including 10 past producers of varying sizes, including the giant
Matagami Lake Deposit (25.64 million tonnes of 8.2% Zn, 0.56% Cu, 20.91
g/t Ag and 0.41 g/t Au) discovered in 1957 and mined from 1963 to 1988.
The area is host to historical production of 8,600 million pounds of Zn
and 853 million pounds of Cu. The Matagami area is well serviced by
established infrastructure including the town of Matagami, power, a
permitted tailings facility, railway, and airport and well developed road
and highway networks. Xstrata Zinc is currently producing from its
low-cost and wholly-owned Perseverance Deposit which feeds its
refurbished 2,600 t/day Matagami mill complex. Any future
development under the Donner-Xstrata agreement will benefit from the
established infrastructure and facilities. Zinc concentrates
produced at Matagami are refined at the Noranda Income Fund zinc refinery
in Valleyfield Qu�bec. Copper concentrates are smelted at Xstrata's
Horne smelter in Rouyn-Noranda and refined at Xstrata's Canadian Copper
Refinery in Montreal.
The Company's strategy is to explore for and discover zinc-copper
deposits in the Matagami Camp and to leverage the general infrastructure
and existing processing facilities within a known and well-established
cost structure for developing VMS deposits. Donner's exploration
objective is to investigate multiple stratigraphic horizons with
potential for VMS mineralization including the prolific Key Tuffite
horizon throughout the Matagami Camp. To date, Donner has
discovered new mineralization at Bracemac-McLeod and at Bell
Channel. Within the extensive project area there are numerous
exploration targets with excellent potential for additional discoveries.
SUPPLEMENTARY INFORMATION
Xstrata Zinc is the project operator for the Matagami Project the
Accelerated Feasibility Study. Xstrata Zinc is responsible for both
fieldwork and resource evaluation including, but not limited to,
sampling, submittal of samples for assay, assay verification,
metallurgical evaluation and QA/QC. Assaying of samples that form
the basis of the resource calculation were carried out and certified by
ALS Chemex-Chimitec, of Val D'Or, Qu�bec (zinc, copper and silver by
atomic absorption, and gold by standard fire assay procedures).
Sample preparation was done by ALS Chemex of Val D'Or, Qu�bec.
Robin Adair, VP of Exploration for the Company, is the Qualified Person
for Donner Metals Ltd. and is responsible for the technical information
reported in this news release.
ON BEHALF OF THE BOARD OF
DONNER METALS LTD.
"Harvey Keats"
Chief Executive Officer
For more information, please contact:
Keith Schaefer
Vanguard Shareholder Solutions
Tel: 604.608.0824
Toll free: 866.898.0826
www.donnermetals.com
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