MONTREAL, QUEBEC--(Marketwired - Oct. 30, 2013) - Mr. Normand Champigny, President and Chief Financial Officer of Donner Metals Ltd. ("Donner" or the "Company") (News - Market indicators)(FRANKFURT:D4M), provides an update on its joint venture interests in the Matagami Camp, Quebec.
Following the forfeiture by the Company of its interest in the Bracemac-McLeod mine and mine property area ("Bracemac-McLeod") announced on September 3, 2013, the Company continues to hold interests in five Matagami joint ventures pursuant to an option and joint venture agreement (the "OJVA") with Glencore, providing for the joint exploration of the Matagami mining camp of Québec for volcanogenic massive sulphide zinc-copper-gold-silver deposits. Donner had indicated that it was evaluating various options to seek maximum value from those interests.
Reported in this news release are the results of exploration drilling completed on the exploration joint ventures since activities were last reported on July 31, 2013 and details of a proposed sale of the Company's joint venture interests.
Proposed Sale of Joint Venture Interests
The Company has received an offer to purchase its interest in the remaining five joint ventures for total consideration of $2,395,200. Pursuant to the terms of the OJVA, Glencore Canada Corporation ("Glencore") holds a right of first refusal to purchase the Company's interest in the joint ventures, which right Glencore has exercised subject to certain closing arrangements being implemented and conditions satisfied. The sale of the joint venture interests will require shareholder approval. The Company intends on holding an Annual and Special Meeting of Shareholders on December 10, 2013 in Montreal.
Joint Venture Exploration Results
Exploration drilling during this period was focused on the North Flank Joint Venture in the DJV and Landry areas respectively. The DJV and Landry area program is governed under the North Flank Joint Venture with participating interests of 50% Glencore and 50% Donner. The results reported herein were provided to the Company by partner and project operator Glencore.
Assay results and drill hole locations are presented in attached Table 1 and Figure 1 respectively.
Regional Exploration - DJV Area
Four drill holes were completed and one hole was deepened on the DJV Trend in follow-up of the copper mineralization previously reported in drill hole DJV-13-105 (see news release dated July 31, 2013). Diamond drillholes DJV-13-107, DJV-13-108, DJV-13-109, DJV-13-110 and DJV-13-102EXT were completed on approximately 70 metre step-outs from DJV-13-105. All holes intersected extensive rhyolite sequences cut by gabbro dykes with weakly mineralized Key Tuffite intersected in three of these holes. Altered rhyolite with weakly disseminated sulphides was also encountered in the footwall to the Key Tuffite horizon.
Diamond drill holes DJV-13-111 and DJV-13-112 were completed approximately 1 kilometre east of the above drilling along the DJV Trend (Figure 1). Both intersected weakly altered rhyolite injected by gabbro dykes. DJV-13-112 intersected unmineralized Key Tuffite at 437.90 metres.
Regional Exploration Landry Area
Four drill holes were completed and one historical drill hole deepened on the Landry Trend located approximately 2 kilometres northeast of the DJV drilling (Figure 1). The Landry Trend runs roughly parallel to the DJV Trend (Figure 1) and is interpreted as a fault/fold repetition of the targeted Key Tuffite stratigraphy. It is comprised of an altered sequence of andesite, rhyolite and tuffite which has been intruded by gabbro dykes. Diamond drill hole LA-13-001 intersected strong chlorite alteration with weak sulphide development, including anomalous gold assays in hanging wall basalt at 59.2 metres. LA-13-002 intersected 6.3 metres of weakly mineralized Key Tuffite which returned anomalous zinc values. LA-13-003 and LA-13-004 intersected a similar sequence with notable weak stringer pyrite and sphalerite in altered pillowed andesite above the interpreted Key Tuffite horizon. One hole, NMW-00-006, was deepened to allow for a re-survey of a historical geophysical anomaly that was initially detected in the original drill hole. The extension intersected weakly mineralized Key Tuffite. This drill hole is located 1.5 km along strike to the northeast on the Landry Trend (Figure 1).
Tables and maps are available at the following address: http://media3.marketwire.com/docs/907724m1.pdf
SUPPLEMENTARY INFORMATION
The Company is a partner with Glencore in five separate joint venture properties in the Matagami base metal camp located in the Abitibi region of Québec. This joint venture partnership covers claims and other direct mineral interests (collectively the "Matagami Project") at either 50%/50% or 65%/35% Glencore / Donner joint venture interests (see property map posted at www.donnermetals.com).
Additional information is available at www.donnermetals.com.
Glencore is the project operator for the Matagami Project and all of the respective joint ventures. As operator, Glencore is responsible for the execution of all exploration programs conducted on the Matagami Project. This includes resource evaluation, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC. Sample preparation and assaying are conducted by AGAT Laboratories in Sudbury, Ontario (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures).
Robin Adair is a 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.
Normand Champigny, President and Chief Financial Officer
This news release contains forward-looking information within the meaning of applicable Canadian securities laws. All information other than historical fact is forward-looking information. Forward-looking information relates to future events or future performance and is based on Donner's current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking information is often, but not always, identified by the use of words such as "expect", "project", "proposed", "intend", "seek", "anticipate", "budget", "plan", "continue", "estimate", "forecast", "may", "will", "predict", "potential", "targeting", "could", "might", "should", "believe" and similar expressions.
Although management considers the assumptions and estimates, reflected in forward-looking information, to be reasonable, based on information currently available, there can be no assurance that such information will prove to be correct. As a consequence, actual results may differ materially from those anticipated.
In particular, this news release contains forward-looking information relating to, but not limited to, statements with respect to the completion of the proposed sale of the Company's interest in the joint ventures.
Undue reliance should not be placed on forward-looking information which is inherently uncertain, and subject to known and unknown risks and uncertainties (both general and specific) and other factors that contribute to the possibility that the future events or circumstances contemplated by the forward looking information will not occur or that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include, but are not limited to risks associated with general economic conditions, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future metal prices, financial risks and substantial capital requirements. Further information regarding certain of these risks (as well as risks relating generally to the Company's business) may be found under the heading "Financial risk factors" in the Company's Management's Discussion & Analysis. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and Donner does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor it's 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.
