Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

September 30, 2009 09:00 ET

Donner Metals Ltd.: Bracemac-McLeod Feasibility Advances as Exploration Continues at Matagami

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2009) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), is pleased to report initial results from the feasibility drilling on Bracemac-McLeod, funded by Xstrata Zinc, and current results from the on-going Donner funded exploration program within the extensive Matagami project area.

Bracemac-McLeod -Accelerated Feasibility Program

Xstrata Zinc commenced definition drilling at Bracemac-McLeod in late August as part of the Accelerated Feasibility Study program. Currently, 3 drills are active and presently focused on defining the three Bracemac zones at 25 metre pierce point spacings. Results to date are conformable to the resource boundaries used in the calculation of the indicated resource (3,623,000 tonnes grading 11.52% zinc, 1.60% copper, 31.55 g/t silver and 0.49 g/t gold). Of note, drill holes BRC-09-110 and BRC-09-111, drilled in the Upper Bracemac Zone, returned above average thicknesses with significant copper values, while BRC-09-109 did not intersect mineralization in the down-dip portion of this zone.



Table 1: Bracemac Feasibility Drilling
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UTM
Location Angle/ Core
NAD 83 Zone direction Length
DDH (Depth) 18 (True N) Zone From To (metres)
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BRC-09-109 307355E, -78 degrees/ UB
(156m) 5505899N 025 degrees (in) 128.00 132.50 4.5
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BRC-09-110 307355E, -70 degrees/ UB
(135m) 5505899N 025 degrees (in) 90.85 99.00 8.15
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BRC-09-111 307355E, -65 degrees/ UB
(645m) 5505899N 026 degrees (in) 82.71 99.00 16.29
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B (out) 239.95 240.54 1.00
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KT/
Pipe
(out) 605.00 609.00 4.00
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BRC-09-123 307540E, -79 degrees/
(372m) 5506166N 027 degrees KT (in) 335.05 336.10 1.05
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P(?) 344.72 349.56 4.84
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BRC-09-124 307540E, -74 degrees/
(360m) 5506166N 026 degrees KT (in) 315.76 322.60 6.84
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BRC-09-125 307540E, -62 degrees/
(342m) 5506167N 026 degrees KT (in) 290.14 302.58 12.44
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BRC-09-126B 307540E, -50 degrees/
(327m) 5506167N 026 degrees KT (in) 284.84 286.22 1.38
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BRC-09-128 307 547E, -77 degrees/ KT
(375m) 5506131N 027 degrees (out) 320.35 321.00 0.65
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KT
(out) 336.40 336.60 0.20
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KT
(out) 343.6 344.1 0.50
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BRC-09-129 307548E, -67 degrees/
(402m) 5506131N 025 degrees KT (in) 316.50 324.6 8.10
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BRC-09-130 307548E, -61 degrees/
(342m) 5506131N 025 degrees KT (in) 303.60 307.30 3.70
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309.80 312.63 2.83
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312.63 314.27 1.64
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314.27 316.45 2.18
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316.45 330.20 13.75
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BRC-09-131 307548E, -51 degrees/
(330m) 5506131N 026 degrees KT (in) 303.7 306.1 2.4
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306.10 311.60 5.50
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BRC-09-144 307547E, -58 degrees/
5506131N 025 degrees KT (in) 304.70 312.44 7.74
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ETW ZN Cu Ag Au
DDH (Depth) (metres) % % g/t g/t
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BRC-09-109
(156m) 2.89 0.71 0.04 6.78 0.049
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BRC-09-110
(135m) 5.17 5.63 4.05 78.51 0.033
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BRC-09-111
(645m) 11.52 8.10 1.53 44.74 0.244
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0.64 3.70 0.50 20.00 0.074
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2.18 0.04 0.03 2.00 0.007
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BRC-09-123 Semi-massive sulphides (Sph 60%, Py 10%)
(372m) Assays pending.
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Semi-massive sulphides (Sph 25%, Py 20%)
Assays pending.
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BRC-09-124
(360m) 4.84 13.87 1.63 80.88 0.22
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BRC-09-125
(342m) 8.00 19.85 Assays pending.
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BRC-09-126B
(327m) 0.97 12.63 1.28 39.88 0.170
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BRC-09-128
(375m) 0.43 0.39 0.04 1.00 0.02
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0.13 0.71 0.60 4.00 0.05
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0.33 0.06 0.98 6.00 0.07
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BRC-09-129
(402m) 4.93 18.80 0.47 36.49 0.26
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BRC-09-130 Massive sulphides (25-30% Sph, 50 % Py)
(342m) Assays pending.
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Massive sulphides (40-50% Sph, 35 % Py)
Assays pending.
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Massive sulphides (20% Cpy, 10% Sph)
Assays pending.
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Massive sulphides (20% Sph, 35 % Py)
Assays pending.
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Massive sulphides (80% Py/Po, tr. Sph/Cpy)
Assays pending.
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BRC-09-131 Massive sulphides (30% Sph, 45% Py, tr. Cpy)
(330m) Assays pending.
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Massive sulphides (20% Sph, 30% Py, 2% Cpy)
Assays pending.
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BRC-09-144
5.93 20.31 A.P. 49.96 0.541
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Zones: UB equals Upper Bracemac, B equals Bracemac, KT equals Key Tuffite,
P equals Pipe
"(in)" denotes that the drill hole pierce point is within the boundaries of
the current resource envelop.
"(out)" denotes that the drill hole pierce point is outside of the
boundaries of the current resource envelop.
Sph equals sphalerite, Cpy equals Chalcopyrite, Py equals Pyrite,
Po equals Pyrrhotite.
A.P. equals Assays Pending.
ETW equals Estimated True Width.
Depth equals Total depth drilled.


Regional Exploration

Drilling:

Exploration diamond drilling focused on various targets within the South Flank and North Flank project areas is in progress. Seven diamond drill holes were completed since the last report with two drills currently active on exploration drilling. Drilling is focused on the Key Tuffite as well as the sequence of upper tuffites that occur stratigraphically above the Key Tuffite. Four holes intersected strongly anomalous base metal values at the Key Tuffite and one drill hole intersected anomalous results in an upper tuffite. The base metal values encountered in the anomalous drill holes indicate the targeted area was influenced by the mineralizing process typical of Matagami massive sulphide deposits. Drill holes completed to date is summarized as follows:

DJV-09-81: A stratigraphic drill hole designed to confirm the presence of the Key Tuffite in a poorly explored area 1.5 kilometres southeast of the producing Perseverance mine (Xstrata Zinc). The hole targeted unexplained MEGATEM responses and down-hole geophysical anomalies in a region where mineralization was noted in upper tuffites in other drill holes. Mineralized Key Tuffite was intersected and a weak off-hole anomaly was detected by a Crone borehole EM survey.

PRE-09-10: This hole was targeted on historical off-hole EM targets encountered in open-spaced, historical drill holes 1 kilometre west of the past producing Isle Dieu mine (produced 3.05 Mt grading 17.85% zinc, 1.01 % Cu, 76.63g/t Ag 0.46g/t Au). Mineralized Key Tuffite was encountered and was underlain by altered footwall rhyolite (chlorite and sphalerite stringers). Borehole EM surveying returned responses related to stringer pyrrhotite in the hanging wall to the Key Tuffite.

OR-09-38: Targeted on a mineralized upper tuffite in the hanging wall above Orchan West deposit, this drill hole encountered mineralized tuffites at the target and borehole geophysics detected an off-hole response related to this mineralized horizon. This hole was not planned to test the Key Tuffite horizon.

OR-09-39: Was designed to test the northwest and slightly down-dip extension of the Orchan West deposit. The hole encountered mineralized upper tuffites and weakly mineralized KT that was encountered higher than expected which suggests synvolcanic faulting in this area that is typical in Matagami sulphide deposits. Geophysics returned complex off-hole anomalies that are under review.

BAS-09-55: Targeted historical off-hole EM anomalies at the Key Tuffite 900 metres southeast of the former producing Bell Allard Mine (produced 3.59 Mt grading 13.67% zinc, 1.25 % Cu, 40.55g/t Ag 0.69g/t Au). The hole intersected two intervals of mineralized Key Tuffite underlain by altered (chloritized) footwall rhyolite. A strong in-hole geophysical response related to stringer pyrrhotite in the Key Tuffite was detected by borehole geophysics.

BAS-09-56: Targeted an area of EM responses returned from previous drilling 850 metres down dip and to the northeast of the Bell Allard South Pit. The hole encountered mineralized upper tuffites, 80 metres stratigraphically above the Key Tuffite horizon, and a repeated Key Tuffite sequence cut by a 40 metre gabbro sill. Above the sill, the Key Tuffite is comprised of massive sulphides dominated by pyrite. Below the sill, mineralized Key Tuffite with significance magnetite was encountered. Geophysical surveying is in progress and assays are pending.

MC-09-76: Was designed as a pure stratigraphic test 1 kilometre southeast of McLeod. The drill hole encountered weakly mineralized Upper Tuffite and altered (silicified/hemitized) footwall rhyolite. The Key Tuffite was absent due to faulting. Down-hole geophysics did not return significant responses.



Table 2: Exploration Drilling
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UTM
Location Angle/ Core
NAD 83 Zone direction Length
DDH (Depth) 18 (True N) Horizon From To (metres)
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DJV-09-81 299575E, -55 degrees/
(514m) 5514061N 050 degrees FW 280.73 280.97 0.24
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PRE-09-10 301373E, -85 degrees/
(750m) 5511965N 054 degrees KT 713.5 714.03 0.53
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OR-09-38 301863E, -84 degrees/
(1000m) 5510301N 000 degrees UT 876 878.56 2.56
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OR-09-39 3011719E, -83 degrees/ 1218.90 1223.00
(1297m) 5510318N 010 degrees KT 4.10
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BAS-09-55 303850E, -78 degrees/
(928m) 5508173N 030 degrees KT 868.48 870.32 1.84
--------------------------------------------------------------------------
MC-09-76 309150E, -70 degrees/
(749m) 5504645N 026 degrees UT 508.1 508.5 0.4
--------------------------------------------------------------------------
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ETW ZN Cu Ag Au
DDH (Depth) (metres) % % g/t g/t
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DJV-09-81
(514m) 0.20 4.40 0.06 1.20 0.01
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PRE-09-10
(750m) 0.53 3.43 0.12 4.40 0.10
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OR-09-38
(1000m) 1.90 0.06 1.16 10.85 0.06
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OR-09-39
(1297m) 4.00 1.90 0.01 0.36 0.01
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BAS-09-55
(928m) 1.84 2.83 0.07 14.3 2.10
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MC-09-76
(749m) 0.4 0.01 0.06 0.4 0.05
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Horizons: UT equals Upper tuffite, KT equals Key Tuffite,
FW equals footwall.
ETW equals Estimated True Width.
Depth equals Total depth drilled.


Surface Exploration:

Daniel-1

DEEPEM surveying has been completed on three grids over the Daniel-1 showing area. Preliminary results have identified responses that suggest mineralization intersected in DAN-09-10 (2.20% copper, 0.09% zinc, 8.8g/t silver and 0.25g/t gold over 3.95 metres) extends to the west. Another anomaly of interest was also detected in the area. Drilling is planned for the winter months.

Airborne Survey:

A 647 line Kilometre ZTEM airborne survey was conducted in a corridor stretching from Daniel-1 to the PD deposit in the west end of the Matagami Camp and in a second corridor stretching from south of the Perseverance Mine to the West Camp - PD trend. Results are being analyzed, however a number of interesting responses are present in the data.

SUMMARY

A total of 209 drill holes have been completed on the Matagami Project since the activity under the Option and Joint Venture Agreement began in late 2006. This includes a total of 12 drill holes that have been completed on the Advanced Feasibility Drilling on Bracemac-McLeod. Five drills are currently active on the project.

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, Xstrata Zinc is presently conducting an "Accelerated Feasibility Study". Additional 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. 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 in each area 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 and at Bell Channel. 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 the Accelerated Feasibility Study. 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. 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). Sample preparation was done by ALS Chemex of Val D'Or, Quebec.

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

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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