Donner Metals Ltd.: Production Imminent at Bracemac, Exploration Intersects High-Grade Between McLeod and McLeod Deep

Sat Mar 2, 2013 12:59pm EST

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  MONTREAL, QUEBEC, Mar 02 (MARKET WIRE) --
Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. ("Donner"
or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M), reports that
important high-grade sulphide mineralization has been discovered in drill
hole MCL-13-25 between the Mineral Reserves in the McLeod Zone and the
Inferred Mineral Resources in the McLeod Deep Zone. The hole intersected
massive and semi-massive sulphides that returned 12.80 metres (7.33
metres estimated true width) grading 9.42% zinc, 2.51% copper, 35.71g/t
silver and 0.81g/t gold from 932.40 to 945.20 metres. This result
dramatically increases the likelihood that the two zones, separated by a
200-metre un-drilled gap, are connected by continuous high-grade sulphide
mineralization. Five surface drills and one underground drill are
currently active on the project, including three surface rigs at McLeod
Deep.

    McLeod Deep 

    Important high-grade sulphide mineralization has been discovered between
the Proven and Probable Mineral Reserves in the McLeod Zone (2.1 million
tonnes grading, 9.25% zinc, 1.18% copper, 24.98 g/t silver, 0.49 g/t
gold) and Inferred Mineral Resources in the McLeod Deep Zone (2.47
million tonnes grading 9.20% zinc, 1.22% copper, 40 g/t silver and 1.1
g/t gold). This new result dramatically increases the likelihood that the
two zones, separated by a 200-metre un-drilled gap, are connected by
continuous high-grade sulphide mineralization, which has important
implications for additional resources and extended mine life (Figure 1). 

    The current program on McLeod Deep is an aggressive 35,000-metre drill
program designed to: 1) confirm the presence of mineralization between
the bottom of the McLeod Zone, currently included in the mine plan, and
the top of the McLeod Deep Zone (Figure 1); 2) provide the 50-metre drill
hole spacing needed for the estimation and classification of the McLeod
Deep Zone and its extensions as an Indicated Mineral Resource; and 3) to
assess the continuity and distribution of gold grades previously
encountered within the base metal sulphide mineralization in McLeod Deep.
Importantly, the program will also investigate possible extensions of
mineralization to the southeast, northwest and down-dip. 

    Two diamond drill holes were completed and three are in progress on
McLeod Deep. The first three drill holes will also act as "pilot" holes
from which multiple wedge cuts will be taken on an approximate 50-metre
spacing. The program consists of 54 planned holes focussed on both the
exploration and delineation of the McLeod Deep zone and its immediate
area, including the area connecting the McLeod zone.

    Diamond drill hole MCL-13-25 intersected massive and semi-massive
sulphides over 12.80 metres (7.33 metres estimated true width) from
932.40 to 945.20 metres that returned 9.42% zinc, 2.51% copper, 35.71g/t
silver and 0.81g/t gold. This intersection is located approximately 110
metres directly up-dip from the McLeod Deep Zone and 90 metres down-dip
from the McLeod Zone. The intersection was followed by two
well-mineralized zones of Pipe alteration and tuffite from 995.50 to
1,001.70 metres (6.20 drilled width - 3.59 metres estimated true width)
and from 1,014.90 to 1,017.20 metres (2.30 drilled width - 1.34 metres
estimated true width). These zones are characterized by Pipe alteration
containing intermittent stringer, semi-massive and massive sulphide
mineralization with variable amounts of sphalerite and chalcopyrite. The
two intervals are separated by an unmineralized felsic dyke. Assays are
pending for these two mineralized intervals.

    Drill hole MCL-13-26 intersected semi-massive and stringer mineralization
from 1,141.40 to 1,150.70metres that returned 5.77% zinc, 1.16% copper,
26.52g/t silver and 0.76g/t gold over 9.30 metres (3.59 metres estimated
true width), including 7.90% zinc, 1.14% copper, 27.30g/t silver and
0.90g/t gold over 6.60 metres (2.55 metres estimated true width) from
1,141.40 to 1,148.00 metres A second interval of semi-massive sulphides
in the footwall returned 5.99% zinc, 0.40% copper, 7.45g/t silver and
0.17g/t gold over 2.00 metres (0.77 metres estimated true width) from
1,158.50 to 1,160.50 metres MCL-13-26 is located in the uppermost portion
of the McLeod Deep Zone, 50 metres southeast of MC-08-34W2 which
intersected weakly mineralized Key Tuffite. 

    Bracemac-McLeod Mine

    Development of the Bracemac-McLeod Mine continues on schedule and on
budget, with production scheduled for May 2013. Development totals 8,660
metres to date on multiple headings. Pre-production activities are as
follows:


--  Bracemac Main Zone: ore has been accessed on 3 levels, development
    currently in progress on 5 levels; 
--  Bracemac KT Zone: ore has been accessed on 2 levels, development
    currently in progress on 4 levels; 
--  An additional level has been added to the mine plan to access
    incremental ore discovered by development drilling immediately down-dip
    of known reserves in the Bracemac Main Zone. 


    Development continues in both the main and vent ramps towards the McLeod
Zone. The main ramp is currently at 3,035 metres from the ramp portal at
a 15% grade. The vent ramp is currently at 595 metres from the Bracemac
Zone at an average grade of 7%. Underground pre-production drilling in
the Bracemac Main and KT zones is ongoing.

    There are now 64,000 tonnes of ore in the stockpile on surface from the
Bracemac Main Zone and the Bracemac KT Zone. Pre-production activities
have commenced with the objective of having approximately 3 months of
stockpiled and ready-to-blast ore to supply the mill at a rate of 3,000
tonnes per day in May 2013. Equipment and buildings have been moved from
the Perseverance Mine to Bracemac-McLeod in preparation for the
transition to production from Bracemac-McLeod.

    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 Canada Corporation - Xstrata Zinc Canada Division "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

    Certain phrases in this news release are "forward-looking statements".
Forward-looking statements are identified by wording such as " on
schedule", "on budget" and "scheduled". Such statements are applicable
specifically to the Bracemac-McLeod Mine in relation to: 1) the possible
future completion of development as scheduled under the current
development plan, 2) mining/production in relation to the current mining
plan and 3) future planned exploration activities. Such statements also
pertain to the completion of the project within context of the budget as
defined in the feasibility study completed by Xstrata Canada Corporation
- Xstrata Zinc Canada Division and Genivar Limited Partnership in 2010.
With respect to future production, and the commencement thereof, from the
Bracemac-McLeod deposit, the forward looking statements are in the
context of the feasibility study completed by Xstrata Canada Corporation
- Xstrata Zinc Canada Division and Genivar Limited Partnership in 2010 as
posted under the Company's profile at www.sedar.com. "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. 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.

    To view Table 1, Table 2 and Figure 1 visit the following link:
http://media3.marketwire.com/docs/Tables1-2.pdf

    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.

Contacts:
Donner Metals Ltd. - Montreal
514-286-1665

Donner Metals Ltd. - Vancouver
604-683-0564 or Toll Free: 1-800-909-8311
donner@bed-rock.com
www.donnermetals.com

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