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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2011) - Mr. Harvey Keats,
Chief Executive Officer of Donner Metals Ltd. (TSX
VENTURE:DON)(FRANKFURT:D4M), reports that the Bracemac-McLeod
ramp is currently at 660 metres enroute to the Bracemac-McLeod
deposit where initial production from the mine is scheduled to start in
January, 2013. In addition to ramp advancement, the installation of
mine ventilation facilities and the construction of support
infrastructure at the ramp portal are in progress. The existing 4.3 kilometres of haulage road from the portal to the Matagami Mill is also currently being refurbished
to accommodate haulage of ore from Bracemac-McLeod.
The development of the Bracemac-McLeod
deposit is operated by Xstrata Canada Corporation - Xstrata Zinc Canada
Division ("Xstrata Zinc") with 12 contractor companies on
site currently employing approximately 30 people in addition to Xstrata
Zinc personnel.
In addition, exploration drilling has been conducted in the Radiore area, located 11.8 kilometres
north of the Bracemac-McLeod deposit, and in the New Hosco
area located 18.4 kilometres northwest of the
Bracemac-McLeod deposit. Three diamond drillholes were completed on the near-surface,
southeastern extension of the historical Radiore
Mine (historical production of 0.14 million tons 1.34% zinc, 1.57%
copper). Drillhole DR-11-04 targeted a
geophysical response 450 metres east of the
deposit. It intersected 51.6m of stringer and disseminated pyrite and pyrrhotite. A stepout drillhole from the same set-up (drillhole
DR-11-05) intersected 1.8 metres of massive pyrrhotite with traces of chalcopyrite. Drillhole DR-11-06 was drilled 65 metres to the west of this mineralization and it
intersected 49.3 metres of stringer and
disseminated pyrite and pyrrhotite. All holes
intersected stratigraphy consistent with the Radiore deposit. Two stratigraphic
drillholes were completed 1.3 kilometres southwest of the historical New Hosco Mine (historical production of 1.83 million tonnes grading 1.73% zinc and 1.73% copper). Both drillholes stayed in rocks considered to be the hanging wall to the deposit and they did
not intersect mineralization.
On the PD1 deposit, Xstrata Zinc is seeking bids from independent
engineering firms for the feasibility study described in the news
release dated February 10, 2011. The technical report on the resource
calculation has been posted on SEDAR.
Additional information is available at www.donnermetals.com.
PROJECT OVERVIEW
The Matagami Option and Joint Venture
Agreement has an area of mutual interest of 4,753 square kilometres and presently includes 2,986 mineral
claims covering 644 square kilometres. Donner
has the option to earn an initial 50% participating joint venture interest
from Xstrata Canada Corporation in the Matagami
Project by incurring a total of $25 million of expenditures on
exploration and related work on or before May 31, 2011. To date, Donner
has provided $24.9 million towards exploration and has the balance of
the funds at hand required to exercise the
option. Donner will complete its 50% earn-in option in five separate
joint venture areas within the Matagami
Project, including Bracemac-McLeod and PD1
deposits, on or before May 31, 2011. Following earn-in, five separate
joint venture ("JV") areas will be formed with initial
interests of 50% Xstrata Zinc and 50% Donner. The JV areas are: South
Flank JV area (includes Bracemac-McLeod,
McLeod Deep, Orchan West), North Flank JV
area (includes Radiore and New Hosco), Central Camp JV area; West Camp JV area
(includes the PD1 deposit - Phelps Dodge Corporation of Canada holds a
15% net carried interest and cash payments in the 9 claims covering the
PD1 deposit under a 1976 agreement) and the East JV area - see web site
for map locations. Following earn-in, Xstrata Zinc has a
"bump-up" right in each of the five JV areas to earn back a
15% interest by completing a bankable feasibility study or incurring a
maximum of CDN $20 million towards a bankable feasibility study. Pursuant
to this bump-up right, the South Flank joint venture area, which
includes the Bracemac-McLeod mine, will
become a 65% Xstrata Zinc and 35% Donner joint venture. The remaining 4
joint venture areas that comprise the rest of the Matagami
project will remain at 50% Xstrata and 50% Donner, subject to remaining
bump-up rights. The area of mutual interest remains in effect for two
years following earn-in.
The Matagami Project covers the Matagami Mining Camp, a world-class mining
district, with 18 known Volcanogenic Massive Sulphides
(VMS) deposits including 10 past producers of varying sizes, including
the giant Matagami Lake Deposit (25.64
million tonnes of 8.2% zinc, 0.56% copper,
20.91g/t silver and 0.41g/t gold) discovered in 1957 and mined from
1963 to 1988. The area is host to historical production of 8,600
million pounds of zinc and 853 million pounds of copper. The Matagami area is well serviced by established
infrastructure including the town of Matagami,
power, a permitted tailings facility, railway, 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 tonnes per day Matagami mill complex. Any future development under
the Donner-Xstrata agreement will support the established
infrastructure and facilities. Zinc concentrates produced at Matagami are refined at the Noranda
Income Fund zinc refinery in Valleyfield, Quebec. Copper concentrates
are smelted at Xstrata's Horne smelter in Rouyn-Noranda
and refined at Xstrata's Canadian Copper Refinery in Montreal, Quebec.
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, Daniel1, Bell Channel, McLeod Deep
and down-dip from Radiore. 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 and the future joint ventures. As operator, Xstrata Zinc is
responsible for the execution of all development, production and
exploration programs on the property. This includes resource
evaluation, sampling, submittal of samples for assay, assay
verification, metallurgical evaluation and QA/QC. Sample preparation
and assaying are conducted by ALS Chemex-Chimitec,
of Val D'Or, Quebec (zinc, copper and silver by atomic absorption, and
gold by standard fire assay procedures).
Robin Adair (VP of Exploration) is the Qualified Person for Donner
Metals Ltd. and is responsible for the technical information reported
in this news release.
Click here to view Table 1: Regional Exploration Drilling: http://media3.marketwire.com/docs/don36.pdf
ON BEHALF OF THE BOARD OF DONNER METALS LTD.
Harvey Keats, Chief Executive Officer
Cautionary Statement:
Certain phrases in this news release are "forward-looking
statements". Forward-looking statements are identified by wording
such as "will", "is scheduled", and
"expected". Such statements are applicable specifically to
the possible future completion of the Matagami
Option and both the development of and production from the Bracemac-McLeod Deposit as well as expected assays
from exploration drilling. With respect to Donner earning an interest
in the Matagami Project, Donner's
ability to meet the requirements of the Option and Joint Venture
Agreement can be negatively affected by financial markets and Donner's ability to raise financing, among others.
With respect to future production, and the commencement thereof, from
the Bracemac-McLeod deposit, the forward
looking statement using the wording "is scheduled" is in the
context of the feasibility study completed by Xstrata Canada
Corporation - Xstrata Zinc Canada Division and Genivar
Limited Partnership in 2010. "Forward-looking statements" involve
known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
This press release refers to information about Xstrata's Perseverance
mine and mine property on which the Company has no right to explore or
mine. This press release also refers to information about historical
production from land covered by the Matagami
Project. Investors are cautioned that mineral deposits on other
properties and/or historical production on lands under option are not
necessarily indicative of characteristics of new mineral deposits
discovered on the Matagami Project or future
discovery potential. Further discussion of "forward looking
statements" and "future oriented financial information"
and the risks inherent to mineral exploration and development, in
relation to Donner's activities, can be found
on the Company's website at www.donnermetals.com.
The reader is cautioned not to place any undue reliance on any
forward-looking statement, reference to other properties or historical
production from the Matagami Project area.
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 news
release.
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