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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - April 13, 2010) - Mr. Harvey Keats, Chief
Executive Officer of Donner Metals Ltd. (TSX
VENTURE:DON)(FRANKFURT:D4M), reports that the definition drill program
on Bracemac-McLeod has been completed. This program was conducted by
Xstrata Zinc in support of the Accelerated Feasibility Study presently
being conducted jointly by Genivar Engineering and Xstrata Zinc. The
definition drilling tested the Bracemac Zones and the upper portion of
the McLeod Zone at approximately 25 metre centers. Under the project
plan, the lower portion of the McLeod Zone, currently drilled at
approximately 50 metre spacing from surface, will be drilled at a 25
metre spacing from underground should the project pass feasibility.
New assays
received to date for the McLeod Zone are reported in the attached Table
1. Additional assay results from drilling at McLeod are pending.
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. By electing to conduct a bankable feasibility study
on Bracemac-McLeod, Xstrata Zinc has triggered its back-in right in the
South Flank project area, subject to Donner completing its earn-in
requirements by May 31, 2011.
The Matagami Project has an area of mutual interest of 4,750 square
kilometres and presently includes 2,986 mineral claims covering 644
square kilometres. The 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 benefit from 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, Daniel 1, Bell
Channel and down dip from the McLeod Zone. 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
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. Sample preparation and assaying of
samples that form the basis of the resource calculation were carried
out and certified 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 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
Cautionary Statement:
Certain phrases in this news release are "forward-looking
statements" Forward-looking statements are identified by wording such
as "will" and "should" (future sense), and apply
specifically to the possible future completion of the Matagami Option,
or decisions related to the Bracemac-McLeod Deposit and the feasibility
study currently underway on this deposit. 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 the feasibility study underway
on Bracemac-McLeod, there is no certainty that the study will be
positive and there are numerous factors that may impact the outcome of
the study either positively or negatively. These factors are being
evaluated as part of the feasibility study. "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. Further discussion of "forward
looking statements" 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.
To view the tables accompanying this press release, please click on the
link provided below: http://media3.marketwire.com/docs/don413t1.pdf.
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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