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UPDATED
BRACEMAC-MCLEOD NI 43-101 INDICATED RESOURCE:
3,623,000 TONNES AT 11.52 % ZINC, 1.60% COPPER, 31.55 G/T SILVER
AND 0.49 G/T GOLD
Vancouver, B.C., February 25, 2009 - Mr. Harvey Keats, Chief
Executive Officer of Donner Metals Ltd. (TSXV-DON), reports that, further
to the Company's news release dated January 22, 2009, the Company has
received an update of the resource calculation for Bracmac-McLeod from
Xstrata Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc),
operator of the project under the Matagami Lake Option and Joint Venture
Agreement. This update incorporates specific gravity results attained for
individual assay intervals that support the weighted average resource
calculation. Resources are currently calculated at 3,623,000 tonnes
grading 11.52% zinc, 1.60% copper, 31.55 g/t silver and 0.49 g/t
gold, with additional inferred resources of 512,000 tonnes grading 1.28%
Zinc, 1.85% copper, 12.17 g/t silver and 0.18 g/t gold, calculated
separately for the less well defined McLeod West Zone and the Copper
Zone.
Xstrata Zinc is presently conducting a scoping study focused on
metallurgical testing, preliminary engineering studies using a ramp
access and both preliminary capital and operating cost assessment prior
to commencing the next stage of drilling on the deposits. The objective
of the study is to provide an initial evaluation of the viability of mine
development as the first step towards assessing the feasibility of
production at Bracemac-McLeod. Under this program, Xstrata has also
recently provided Donner with results from sulphide characterization
studies that predict metallurgical behavior for 90 representative samples
from the Bracemac-McLeod sulphide zones. This study indicates that
sulphides are typical of past-produced mineralization in the Matagami
Camp and should behave similarly in the metallurgical process. The
results of the more detailed metallurgical analyses that are in progress
under the scoping study remain pending.
In addition to the scoping study, exploration drilling has commenced on
regional targets elsewhere on the property. Two drills are currently
active.
Current
Bracemac-McLeod Density-Weighted Resource Calculation Indicated Resources
Parameters Used For Indicated
and Inferred Resource Calculations:
- Cut-off for the Bracemac and McLeod sulphide zones is based
on the extent of massive sulphides. A cut-off grade of 4% zinc
equivalent (zinc + 2 times copper) is used for the Copper Zone. Both
are based on historical experience in resource estimation at
Matagami.
- Capping Values were applied to individual gold and silver
assays corresponding to the 97.5 percentile of each individual zone
in order to minimize the nugget effect.
- Drill spacing for indicated resources calculated for the
Bracemac Zones and the McLeod Zone is at approximately 50 metre
centres.
- Inferred resources are classified on the basis of greater
than 50 metre
drill spacing and/or uncertain continuity/geometry at 50 metre drill
spacing.
- Type of resource calculation model: Density-weighted
polygonal method on an inclined long section.
Zone Features:
The Bracemac and McLeod zones contain sulphides that are generally
typical of zinc-enriched Matagami-type VMS deposits. The zones differ on the
following:
- significant sulphides stacked in two separate stratigraphic
horizons in the hanging wall to the Key Tuffite at Bracemac,
- locally higher copper content for both the McLeod and
Bracemac Key Tuffite zones,
- the absence of well developed stringer zones directly under
the core of the zones (except the McLeod Zone),
- the tabular shape of mineralization, and
- the extensive chloritization of the footwall Watson Lake
rhyolite observed from Bracemac to McLeod (>2 km wide).
Mineralization is poorly conductive and characterized by weak or absent
electrical conductivity in the outer part of the sulphide bodies making
the delineation of their edge difficult by standard electromagnetic
geophysics. General characteristics of each zone are as follows:
McLeod Zone:
- Massive and semi-massive sulphides at or near the Key Tuffite
stratigraphic horizon.
- Excellent potential for expansion of mineralization at depth
indicated on the basis of DDH MC-08-34 (10.81% zinc, 1.35% copper,
37.72g/t silver, 0.59g/t gold over 2.12 metres).
West
McLeod Zone:
- Massive and semi-massive sulphides, generally copper-rich. Geometry,
extent of sulphides and connection with the McLeod Zone is unclear
at current drill spacing.
Copper
Zone:
- This zone is characterized by the occurrence of stringer
copper mineralization within extensive "Pipe" alteration
in a laterally predictable and continuous sheet that occurs between
10 to 30 metres
below mineralization in the McLeod Zone.
Bracemac
Zone:
- Massive and semi-massive sulphides occur in three stacked
zones (Upper Bracemac Zone, Bracemac Zone and Bracemac Key Tuffite
Zone).
Alteration and the trend of mineralization indicate further potential
exists to discover additional high-grade sulphides in the local vicinity
of both the McLeod and West McLeod zones. This potential will continue to
be assessed as the project is advanced.
The NI 43-101 compliant Technical Report for the resource estimate on
Bracemac-McLeod will be posted shortly on SEDAR and on the Company's
website at www.donnermetals.com. Additional
information regarding exploration and key target areas on the regional
project is also available on the web site.
SUMMARY
A total of 90,185
metres of diamond drilling in 180 drill holes has
been completed on the Matagami Project since the activity under the
Option and Joint Venture Agreement began in late 2006. Approximately 80,000 metres
of diamond drilling have been focused on, and in the vicinity of, the
Bracemac-McLeod Discovery.
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 Quebec. 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 and 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. In accordance with Standards of
Disclosure for Mineral Projects, National Instrument 43-101 Section
5.3(3), Donner is relying on the technical information supplied by
Xstrata Zinc, a "producing issuer" under the instrument. Calculation
of resources reported in this news release was conducted by Gilles Roy
and Michel Dessureault who are the Qualified Persons for Xstrata Zinc
responsible for the technical information supplied to Donner.
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). Sample preparation was done by ALS Chemex of Val D'Or,
Quebec.
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
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
For more information please contact
Donner Metals Ltd.
Suite 2150, 885 West Georgia Street, Vancouver, British Columbia, Canada
V6C 3E8
Telephone: (604) 683-0564 Fax: (604) 602-9311 or Toll Free:
1-800-909-8311
E-mail: donner@bed-rock.com or Web: www.donnermetals.com
or
Vanguard Shareholder Solutions
Tel: 604 608 0824
Toll Free: 866 898 0826
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