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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - May 25, 2009)
- Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX
VENTURE:DON)(FRANKFURT:D4M), reports that diamond drilling is scheduled
to resume on or about June 1, 2009 on the Matagami
Project in central Quebec. This drilling campaign will initially focus
on high priority targets between Xstrata's Perseverance Mine and the Matagami Mill, a distance of 7 kilometres, and will
expand to other areas within the South Flank later in the year. Drilling
will initially evaluate the following target areas:
Isle Dieu West: multiple off-hole EM targets
detected in historical drilling at or near the Key-Tuffite
stratigraphic level, 800 metres west of the
former producing Isle Dieu mine (3.05 million
tonnes grading 17.85% zinc, 1.01% copper, 76.63 g/t silver, 0.46 g/t
gold).
Perseverance-East: large untested Key Tuffite
located 1.3 kilometres along strike from Xstrata's operating
Perseverance mine (5.12 million tonnes grading 15.82% zinc, 1.24%
copper, 12 g/t silver, 0.38 g/t gold). MegaTEM
(airborne) and numerous off-hole EM targets are unexplained in this
area which also exhibits strong chloritization
in the Key Tuffite footwall (Watson Lake
Formation).
Orchan West: un-delineated, high-grade drill
intercepts (see attached Table 1) with unexplained down-hole EM
responses at the Key Tuffite marker horizon
and in the hanging wall stratigraphy, similar
to the Donner-Xstrata discovery at Bracemac-McLeod.
Bracemac-McLeod Scoping Study Update:
Xstrata is nearing completion of the scoping study on Bracemac-McLeod. Based on the Indicated Resource of
3,623,000 tonnes grading 11.52% zinc, 1.60% copper, 31.55 g/t silver
and 0.49 g/t gold at Bracemac-McLeod,
bench-scale metallurgical testing, preliminary engineering studies
using a ramp access and preliminary capital and operating cost
assessment is being carried out as part of the scoping study. Upon
completion of the scoping study, Xstrata Zinc Canada may elect to take Bracemac-McLeod to feasibility and may also elect
to fund the feasibility study up to a total of $20 million to increase
its interest in the South Flank Project Area from 50% to 65%.
Quebec Support of Mining:
Donner wishes to acknowledge the support of the Quebec Government
through their exploration incentive programs. Donner 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.
SUMMARY
A total of 93,113 metres of diamond drilling in 190 drill holes has
been completed on the Matagami Project since
the activity under the Option and Joint Venture Agreement began in late
2006, with most of the drilling focused at Bracemac-McLeod.
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. Expenditures to date total $17 million. 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 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, Bell Channel, and Daniel 1. 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. 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
Table 1: Orchan West Historical Intercepts ---------------------------------------------------------------------------- Horizon name - Core Minimum DDH Mineral Length ETW g/t g/t (Depth) Type From To (metres) (metres) % Zn % Cu Ag Au ---------------------------------------------------------------------------- OR-91-13D KT 1123.61 1131.11 7.50 4.25? 4.42 0.05 3.14 0.07 ---------------------------------------------------------------------------- KT 1143.18 1146.69 3.51 2.00 9.62 0.33 5.86 0.11 ---------------------------------------------------------------------------- FW 1146.69 1151.96 5.27 3.01 1.61 1.31 22.76 0.25 ---------------------------------------------------------------------------- OR-90-13 HW 719.85 724.27 4.42 1.80 12.22 1.93 14.33 0.17 ---------------------------------------------------------------------------- HW 726.06 729.87 3.81 1.58 7.62 1.57 13.67 0.07 ---------------------------------------------------------------------------- KT 1181.56 1193.60 12.04 5.0 14.34 1.02 18.11 0.37 ---------------------------------------------------------------------------- OR-91-13C HW 1128.61 1130.41 1.8 1.7? 9.05 0.70 9.41 0.10 ---------------------------------------------------------------------------- KT 1179.91 1211.49 31.58 7.5 20.77 1.34 27.75 0.31 ---------------------------------------------------------------------------- FW 1211.49 1236.73 25.24 5.99 0.71 2.98 41.01 0.47 ---------------------------------------------------------------------------- OR-91-15B KT 1198.26 1207.98 9.72 5.0 9.12 2.53 24.66 0.42 ---------------------------------------------------------------------------- FW 1289.12 1304.85 15.73 7.0 10.82 1.36 11.32 0.86 ---------------------------------------------------------------------------- OR-91-15E KT 1157.90 1164.18 6.28 4.0 14.34 3.22 59.15 0.67 ---------------------------------------------------------------------------- OR-91-15F KT 1184.09 1189.66 5.57 4.0 18.85 1.00 17.64 0.28 ---------------------------------------------------------------------------- OR-91-15G KT 1191.07 1204.23 13.16 5.0 15.66 0.88 11.56 0.43 ---------------------------------------------------------------------------- OR-96-26A KT 1141.87 1149.55 7.68 6.0 14.00 2.64 17.59 0.31 ---------------------------------------------------------------------------- OR-91-17 HW/KT 1056.99 1070.52 13.53 11.23 1.50 2.46 30.91 0.41 ---------------------------------------------------------------------------- KT 1102.40 1107.70 5.30 4.40 7.01 4.05 84.42 0.81 ---------------------------------------------------------------------------- KT 1140.01 1147.24 7.23 6.0 22.16 1.89 22.88 0.48 ---------------------------------------------------------------------------- OR-96-22D KT 1172.47 1197.19 24.72 17.0 23.48 1.02 22.76 0.49 ---------------------------------------------------------------------------- OR-96-22E KT 1151.66 1180.09 28.43 22.0 20.35 2.66 49.94 0.73 ---------------------------------------------------------------------------- OR-96-22B KT 1167.11 1173.24 6.13 5.0 14.17 1.63 37.70 0.62 ---------------------------------------------------------------------------- Horizon: HW equals Hanging wall, KT equals Key Tuffite, FW equals Footwall (to Key Tuffite) Minimum ETW equals Sulphide geometries and true thicknesses are poorly defined, quoted values are minimum estimates
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.
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