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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Nov. 23, 2009) - Mr. Harvey Keats, Chief
Executive Officer of Donner Metals Ltd. (TSX
VENTURE:DON)(FRANKFURT:D4M), reports new results from the feasibility
definition drill program on the Bracemac-McLeod Deposit and a
significantly expanded winter drill program for exploration of the
Matagami Camp.
Bracemac-McLeod - Accelerated Feasibility Program (Xstrata Zinc-funded)
Xstrata Zinc is ahead of schedule and under budget on the definition
drilling at the Bracemac-McLeod Deposit (NI 43-101, indicated resource
of 3.63 Mt grading 11.52% zinc, 1.60% copper, 31.55g/t silver and
0.49g/t gold) and has provided the new assay results listed in Table 1.
The attached Table 3 lists all drill results and descriptions of
intersections received to date. This drilling will support a revised
resource calculation that will form the basis of the Accelerated
Feasibility Study scheduled for completion in the second quarter of
2010. Xstrata Zinc awarded the contract for the feasibility study to
Genivar Engineering of Quebec City in September and the project is
rapidly advancing through its scheduled objectives. Three drills are
active on the feasibility drilling and presently focused on defining
the three Bracemac zones at 25 metre pierce point spacings.
Regional Exploration (Donner-funded)
The joint Xstrata Zinc/Donner management committee for exploration of
the Matagami Camp has approved an expanded program and budget for the
upcoming winter season. This program has been initiated and will focus
on high potential Matagami-type targets (zinc, copper, silver and
gold), as well as the newly discovered Daniel Belt which hosts
copper-gold mineralization. Two drills are currently active on exploration
drilling and a third drill will be brought to site when access permits.
Matagami-type targets have been developed at 15 locations within the
Matagami Camp, each with multiple drill targets. Recent studies in the
North Flank indicate that past production from the Norita, Norita East
and New Hosco mines was from mineralization within the stratigraphic
hanging wall to the Key Tuffite, indicating potential for discovery at
the Key Tuffite marker horizon. The identification of the hanging wall
rocks west of New Hosco potentially extends Matagami Camp stratigraphy
by 6 kilometres to the west of the past producing New Hosco Mine (1.82
Mt grading 1.73% zinc, 1.73% copper, 10.29g/t silver, 0.34g/t gold).
Targets have also been identified in the West Camp and within the in
the vicinity of the PD deposits which occur at both the Key Tuffite
level and within its stratigraphic hanging wall. A 22.4 kilometre
InfiniTEM survey is currently underway to refine the PD targets and to
investigate the Key Tuffite in this area.
The 20 kilometre long Daniel Belt is very poorly explored and is
characterized by pyroclastic rocks that are more typical of the Noranda
Camp to the south. The belt hosts newly discovered copper and gold
mineralization in the Daniel-1 area that is characterized by massive
copper-rich sulphides (DDH DAN-09-10: 2.20% copper, 0.09% zinc, 8.8g/t
silver, 0.25g/t gold over 3.95 metres) with associated disseminated
gold mineralization from nearby historical drilling (DDH DAN-03-07:
5.4g/t gold over 0.95 metres). BHEM (borehole electromagnetic) and
surface electromagnetic anomalies have been detected immediately along
strike of this mineralization. A drill will be mobilized to follow up
these targets as soon as access permits.
Recent Exploration Results:
A total of seven diamond drill holes have been completed on targets
along the South Flank and results are summarized in the following Table
2.
Diamond drill hole BAS-09-57 was drilled 1.8 kilometres southeast of
the former producing Bell Allard Mine (produced 3.59 Mt grading 13.67%
zinc, 1.25% copper, 40.55g/t silver, 0.69g/t gold), in an area with
untested BHEM geophysical targets and anomalous base metal values in
the Key Tuffite returned by previous drilling. The hole intersected 8.5
metres of mineralized Key Tuffite inter-layered with strongly altered rhyolite.
Sulfide mineralization was dominated by pyrrhotite with lesser base
metal sulphides. An in-hole BHEM response was detected.
Diamond drill hole BRA-09-01 tested an area down-dip from the former
producing Bell Allard South Pit Mine (0.23Mt grading 9.24% zinc, 1.14%
copper 37g/t silver, 0.51g/t gold). The hole was targeted on untested
BHEM targets with strongly anomalous base metal shows in the Key
Tuffite. The hole intersected chloritized footwall rhyolite, however
the Key Tuffite was not present. A weak BHEM off-hole anomaly was
detected.
BRA-09-02 was drilled 1 kilometre southeast of the Bell Allard South
Pit to test mineralized Key Tuffite and an off-hole BHEM response
returned from BRC-95-11 (6.3% zinc over 10.40 metres, ETW: 3.23m). The
hole intersected mineralized Key Tuffite followed by 46.8 metres of
strong alteration and stringer sulphide mineralization in the footwall
rhyolite. An off-hole BHEM response was detected.
BRA-09-03 tested a surface MegaTEM anomaly immediately northwest of the
surface projection of the Bracemac Key Tuffite zone. The hole
intersected mineralized Key Tuffite and strongly altered footwall
rhyolite. The MegaTEM anomaly was not explained.
Diamond drill hole MCL-09-01 was designed as a stratigraphic step-out
0.5 kilometres northwest of the lower portions of the McLeod Zone. The
targeted Key Tuffite sequence was occupied by a gabbro sill. Strongly
altered footwall rhyolite was intersected below the sill. BHEM
surveying is in progress.
A single drill hole was completed 1.25 kilometres northwest of
Xstrata's producing Perseverance Mine to determine the location of the
Key Tuffite down-plunge from Perseverance. DJV-09-82 intersected an
unmineralized rhyolite sequence representing the Key Tuffite interval.
BHEM surveying did not detect an anomaly.
SUMMARY
A total of 257 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 53 drill holes that have been
completed on the Advanced Feasibility Drilling on Bracemac-McLeod. A
total of five drills are currently active on the project, two
investigating exploration targets and three on feasibility definition
drilling at Bracemac/McLeod.
Based on the Indicated Resource of 3,623,000 tonnes grading 11.52%
zinc, 1.60% copper, 31.55g/t silver and 0.49g/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. By electing to conduct a bankable feasibility study on
Bracemac-McLeod, Xstrata 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 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% 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 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, 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 and at Bell Channel.
Within the extensive project area there are numerous exploration
targets with excellent potential for additional discoveries.
Support of Exploration and Mining from the Gouvernement du Quebec: The
discovery and advancement of Bracemac-McLeod, as well as the ongoing
exploration in the Matagami Camp is supported by the Gouvernerment du
Quebec through their exploration incentive programs. Donner Metals has
consistently used the rebates to advance the Matagami Project which in
turn supports the regional community and employment. Through this
support, additional opportunity for new discoveries is made possible
with potential for long-term impact on the Abitibi region.
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. 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
To view the tables accompanying this news release please click on the
following link: http://media3.marketwire.com/docs/don1123.pdf
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(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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