Donner Metals Ltd.: Development and Exploration Update VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/31/12 -- Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M), provides a development update for the Bracemac-McLeod Mine and an exploration update for the Matagami Project as reported to the Company by partner and project operator Xstrata Canada Corporation-Xstrata Zinc Canada Division ("Xstrata Zinc"). Bracemac-McLeod Development: Development, now standing at 6,430 metres, has reached the Bracemac Main and the Bracemac KT zones and development in ore has already started at the Bracemac Main zone. Ramping continues at Bracemac and in the two ramps to McLeod. There are now 25,000 tonnes of ore in the stockpile on surface from the Bracemac Main Zone. Pre-production activities will commence in January with the objective of having 3 months of ready-to-blast ore to supply the mill at 3,000 tonnes per day early in the second quarter of 2013. Equipment and buildings are being moved from Perseverance to Bracemac-McLeod in preparation for the transition to production from Bracemac-McLeod. McLeod Deep Drill Program: Donner and Xstrata have completed planning of an aggressive 35,000 metre drill program on the McLeod Deep Zone discovery that is currently estimated to contain Inferred Mineral Resources of 2.47 million tonnes grading 9.21% zinc, 1.22% copper, 39.81 g/t silver and 1.12 g/t gold (65% Xstrata, 35% Donner). Drilling will be conducted by multiple wedges from seven new pilot holes. The program will consist of both definition and exploration drilling designed to meet the following objectives: -- Meet the 50-metre drill hole spacing criteria for the estimation and classification of the McLeod Deep Zone as an indicated resource. -- Assess the continuity and distribution of gold grades within the base metal sulphide mineralization. -- Identify possible extensions of mineralization to the southeast, northwest and down-dip. -- Confirm the presence of mineralization between the McLeod Deep Zone and the bottom of the McLeod Zone, which is currently under development. This program will provide the technical information required to determine if the life-of-mine plan for Bracemac-McLeod should be expanded to include development of the McLeod Deep Zone. Exploration: A total of five diamond drill holes were completed and one hole was deepened since mid-September. Results from each area are described below and assay results are listed in the attached Table 1. McLeod Up-Dip Three diamond drill holes were completed and one hole was deepened as part of the continuing McLeod Zone up-dip exploration program (Figure 1). All holes intersected mineralized chlorite alteration ("Pipe" alteration) with local copper and copper-zinc sulphides. The holes investigated the Key Tuffite Horizon at an approximate spacing of 50 metres. Three drill holes were completed up-dip and to the east of MCL-12-16 (2.83% copper over 19.4 metres). MCL-12-19 was drilled 37 metres east and up-dip from MCL-12-16. This hole intersected 10 metres of intense Pipe alteration carrying a mineralized zone which returned 1.0 metre grading 8.86% copper, 3.97% zinc, 33.9 g/t silver, 0.18 g/t gold. MCL-12-20 intersected stringer mineralization and patchy chlorite alteration 184 metres up-dip from MCL-12-19 and 61 metres up-dip and east of hole MC-08-35 that returned 10.75% copper over 0.6 metres. MCL-12-21 was drilled 52 metres down-dip from MCL-12-20 where it intersected sheared intrusive rocks at the target followed by 36 metres of Pipe alteration. MCL-12-13, previously reported on September 19, 2012, was deepened to 522 metres. It intersected 14.7 metres of well-mineralized Pipe alteration below the Key Tuffite carrying stringer chalcopyrite and sphalerite. Assays are pending. Riviere Allard Two drill holes were completed in the Riviere Allard area in the Central Camp Joint Venture area approximately 11 kilometres from the Matagami Lake Mill. Drill holes RA-12-12 and RA-12-13, drilled 180 metres apart, intersected a weakly mineralized andesite pyroclastic unit at the target horizon. Mineralization consists of disseminated and stringer pyrite, pyrrhotite, magnetite, sphalerite and chalcopyrite. No significant values are expected. SUPPLEMENTARY INFORMATION The Bracemac-McLeod deposit contains Proven and Probable Mineral Reserves of 3.7 million tonnes grading 9.60% zinc, 1.26% copper, 28.25 g/t silver and 0.43 g/t gold. Inferred Mineral Resources of 2.6 million tonnes grading 8.79% zinc, 1.31% copper, 38.84 g/t silver and 1.06 g/t gold are located in proximity to the Mineral Reserves. The Company is a fully vested partner with Xstrata Canada Corporation in the extensive Matagami base metal camp located in the Abitibi region of Quebec. This joint venture partnership covers six joint venture areas ("the Matagami Project") governing 4,737 square kilometres of prime stratigraphy, which has yielded high-grade base metal production since 1963. Xstrata Zinc is the project operator for the Matagami Project, including the Bracemac-McLeod Mine. Additional information is available at www.donnermetals.com. Xstrata Zinc is the project operator for the Matagami Project and all of the respective 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 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. Harvey Keats, Chief Executive Officer To view Table 1 and Figure 1, associated with this press release, please visit the following link: http://media3.marketwire.com/docs/don-1031-maptable-eng.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. Contacts: Donner Metals Ltd. - Vancouver 604.683.0564 or Toll Free: 1-800-909-8311 Donner Metals Ltd. - Montreal 514.286.1665 firstname.lastname@example.org www.donnermetals.com
Donner Metals Ltd.: Development and Exploration Update
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