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
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.
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.
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
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.
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.
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:
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
Donner Metals Ltd. - Vancouver
604.683.0564 or Toll Free: 1-800-909-8311
Donner Metals Ltd. - Montreal
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