Donner Metals Ltd.: 2.35% Copper Over 8.9 Metres Intersected in the North Flank of the Matagami Camp
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/15/10 -- Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE: DON)(FRANKFURT: D4M) reports drill results from the ongoing exploration programs in the Matagami Camp. The results are highlighted by the intersection of 2.35% copper over 8.9 metres, in an emerging mineralized trend in the Radiore area of the project. DR-82-1Aext was drilled in an area thought separate from camp stratigraphy, however new geophysics and drilling has now connected this area with the North Flank trend, host of past producing mines. Other drilling elsewhere on the project has identified intense zones of alteration northwest of the producing Perseverance mine and new felsic-mafic volcanic stratigraphy in the central part of the Matagami Camp.
All assay results are reported in the attached Table 1. A total of 2 drills are currently active on exploration.
Radiore Highlights:
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Core
DDH Length ETW
(Depth) From To (metres) (metres) Zn % Cu % Ag g/t Au g/t
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DR-82-1Aext 773.3 782.2 8.9 4.3 0.13 2.35 2.59 0.07
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Radiore Area
Two drill holes and one deepening of an historical hole were completed in the Radiore area. The Radiore Deposit produced 0.14Mt of near surface ore in 1979-80 that graded 1.3% zinc, 1.5% copper, 9.0g/t silver and 0.31g/t gold. The two holes were drilled to follow up geophysical responses in an area thought previously to contain unfavorable intrusive rocks of the Bell River Complex northwest of Radiore. This drilling identified a new trend of favorable Matagami stratigraphy over 2.5+ kilometres which now connects the historical Radiore area with the North Flank, host of a number of past producers. In addition to these two new drill holes, one historical wedge hole was extended as a step-out on mineralization encountered in historical drilling down-dip from the Radiore Deposit which intersected multiple zones of copper-rich mineralization (e.g. UR-12: 2.08% copper over 36.12 metres (ETW: 17.3m)). The extent of this trend to the southeast is unknown and follow-up drilling will be required.
Specifically, diamond drill hole DR-10-01 intersected weakly mineralized and strongly altered (chlorite-pyrophyllite) felsic volcanic rocks 1.7 km northwest of the Radiore Deposit, while DR-10-02 intersected weakly mineralized andesites 480 metres north of Radiore. One historical drill hole was extended to intersect the interpreted extension of historical mineralization 700 metres down-dip of the Radiore Deposit and 50 metres southeast and up-dip of historical mineralized intercepts. DDH DR-82-1Aext (extended historical drill hole) intersected 0.13% zinc, 2.35% copper, 2.59g/t silver and 0.07g/t gold over 8.9 metres. This intersection extended mineralization 50 metres to the southeast where the zone is open.
DJV Area
Three drill holes were completed north of Perseverance in an area of favorable geophysical responses. Diamond drill hole DJV-10-84 intersected gabbro throughout its length with a thin sulphide interval that returned 1.44% copper over 0.4 metres. DJV-10-85 intersected strongly altered rhyolite and rhyolite breccia with areas of intense talc-silica alteration and local black chlorite indicative of Pipe alteration. Drill hole DJV-10-86 intersected rhyolite and rhyolite breccia with local talc-silica alteration locally cut by black chlorite. The holes were spaced 400 metres apart.
West New Hosco
Diamond Drill hole WNH-10-01 was completed 5.0 kilometres west of the historical New Hosco mine that had past production of 1.83Mt grading 1.73% zinc, 1.73% copper, 10g/t silver and 0.34g/t gold. The deposit is located in mafic volcanic rocks that are in the hanging wall to the productive Key Tuffite horizon which hosts the majority of the deposits in the Matagami camp. The purpose of the new drilling was as a stratigraphic test to intersect the Key Tuffite in an unexplored area. The hole remained in hanging wall mafic volcanic rocks, therefore not reaching the Key Tuffite.
McIvor Area
The McIvor area is a new area within the Matagami project located approximately 17 kilometres west of the Matagami Mill where geological interpretation and geophysical responses suggested the presence of key Matagami-type felsic rocks in an area previously thought to contain only mafic rocks. Three widely spaced stratigraphic drill holes were completed in this area to test for the presence of favorable camp stratigraphy and rock types. All three holes, MCV-10-1, 2 and 3, successfully intersected calc-alkalic andestite-rhyolite-dacite sequences with local disseminated sulphides.
South Flank
MCL-10-07 was drilled 1.7 kilometers southeast of the Bracemac-McLeod deposit as a stratigraphic test of the continuation of felsic volcanic stratigraphy in this area. This drill hole intersected the felsic mafic contact which confirms the presence of the Matagami Camp - South Flank stratigraphy in this area. The felsic rocks were chloritic with local traces of chalcopyrite.
Additional geological information, including maps and sections, is available at www.donnermetals.com.
PROJECT OVERVIEW
The Matagami Project is covered under the Matagami Option and Joint Venture Agreement and has an area of mutual interest of 4,737 square kilometres. The project presently includes 3,105 mineral claims covering 642 square kilometres. 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. To date, Donner has provided $24.1 million towards exploration and has the balance of the funds at hand required to exercise the option. Following earn-in, five separate joint venture ('JV') areas will be formed with initial interests of 50% Xstrata Zinc and 50% Donner. The JV areas are: South Flank JV area (includes Bracemac-McLeod, McLeod Deep, Orchan West), North Flank JV area, Central Camp JV area; West Camp JV area (includes PD1 - Phelps Dodge Corporation of Canada holds a 15% net carried interest in the claims covering the PD1 deposit under a 1976 agreement.) and the Regional JV area - see web site for map locations. Following earn-in, Xstrata Zinc has a right in each of the five JV areas to earn-back a 15% interest by completing a bankable feasibility study or incurring a maximum of CDN $20 million towards a bankable feasibility study. The area of mutual interest remains in effect for two years following earn-in.
Donner has received the feasibility study for Bracemac-McLeod from Xstrata Zinc who has now met the requirements of their earn-back right for the South Flank JV area. Upon Donner completing its earn-in, the South Flank JV area will become an Xstrata (65%)-Donner (35%) JV while the other four JV areas will remain at a 50/50 JV interest until such time as Xstrata completes their right to earn-back to a 65% interest. Under the JV, Donner is subject to costs adjustment related to the purchase of its share of any equipment Xstrata Zinc provides to the project and related to a per tonne capital cost recovery charge with respect to the use of the mill and tailings facility. Donner may decide to vest in the project anytime up to May 31, 2011. Donner has until May 31, 2011 to arrange its share of project financing.
The Matagami Project covers the Matagami Mining Camp, a world-class mining district, with 18 known Volcanogenic Massive Sulphides (VMS) deposits including 10 past producers of varying sizes, including the giant Matagami Lake Deposit (25.64 million tonnes of 8.2% zinc, 0.56% copper, 20.91g/t silver and 0.41g/t gold) discovered in 1957 and mined from 1963 to 1988. The area is host to historical production of 8,600 million pounds of zinc and 853 million pounds of copper. The Matagami area is well serviced by established infrastructure including the town of Matagami, power, a permitted tailings facility, railway, 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 tonnes per day Matagami mill complex. Any future development under the Donner-Xstrata agreement will support 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, Quebec.
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, Daniel1, Bell Channel, McLeod Deep and down-dip from Radiore. 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 as well as for the development and operation of the Bracemac- McLeod mine. Xstrata Zinc 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. Sample preparation and 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).
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 Office
Cautionary Statement:
Certain phrases in this news release are 'forward-looking statements' Forward-looking statements are identified by wording such as 'will', and apply specifically to the possible future completion of the Matagami Option, or potential future decisions related to the Bracemac-McLeod Deposit. With respect to Donner earning an interest in the Matagami Project, Donner's ability to meet the requirements of the Option and Joint Venture Agreement can be negatively affected by financial markets and Donner's ability to raise financing, among others. 'Forward-looking statements' involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This press release refers to information about Xstrata's Perseverance mine and mine property on which the Company has no right to explore or mine. This press release also refers to information about historical production from land covered by the Matagami Project. Investors are cautioned that mineral deposits on other properties and/or historical production on lands under option are not necessarily indicative of characteristics of new mineral deposits discovered on the Matagami Project. Further discussion of 'forward looking statements' and 'future oriented financial information' and the risks inherent to mineral exploration and development, in relation to Donner's activities, can be found on the Company's website at www.donnermetals.com. The reader is cautioned not to place any undue reliance on any forward-looking statement, reference to other properties or historical production from the Matagami Project area.
To view the table accompanying this press release please visit the following link: http://media3.marketwire.com/docs/dontable1115.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.
Harvey Keats
Chief Executive Office
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
donner@bed-rock.com
www.donnermetals.com