Donner Metals Ltd.

Donner Metals Ltd.

February 16, 2010 09:36 ET

Donner Metals Ltd.: McLeod Deep Discovery Expanded-7.50 Metres Grading 10.27% Zinc, 3.44% Copper, 50.71 gpt Silver and 1.12 gpt Gold Intersected Down-Dip of the McLeod Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports assay results from exploration drilling on the Matagami Property. Assays were returned from a wedge hole on the McLeod Deep discovery which returned 10.27% zinc, 3.44% copper, 50.71g/t silver and 1.12g/t gold over 7.50 metres in massive sulphides. Assays were also received from a drill hole completed at Daniel-1 that intersected massive and semi-massive pyrite-rich sulphides over 22.0 metres.

McLeod Area:

Massive and semi-massive sulphide mineralization was intersected in drill hole MCL-09-02W2 at the Key Tuffite horizon, 340 metres down-dip from the McLeod Zone (Indicated resource: 1.88 million tonnes grading 10.88% zinc, 1.42% copper, 30.1g/t silver, 0.58g/t gold). Massive sulphides returned 10.27% zinc, 3.44% copper, 50.71g/t silver and 1.12g/t gold over 7.50 metres at a vertical depth of 1,195 metres. This interval was preceded by a separate 0.83 metre interval of semi-massive sulphides that graded 6.67% zinc, 4.41% copper, 53.50g/t silver and 0.47g/t gold. This intersection is located 106 metres up-dip from discovery drill hole MCL-09-02 (6.05% zinc, 1.85% copper, 65.49g/t silver and 1.56g/t gold over 21.60 metres) and mineralization is again underlain by very well developed Pipe alteration that is consistent with the mineralization and alteration trend that is the target for exploration drilling down-dip of the McLeod Zone.


Assays have also been received from diamond drill hole DAN-09-13 that was drilled 63 metres down-dip and slightly west of DAN-09-10 (2.20% copper, 0.09% zinc, 8.8g/t silver and 0.25g/t gold over 3.95 metres). This drill hole intersected 22.72 metres of massive and semi-massive pyrite which contained a 10.8 metre interval of massive pyrite. The mineralization did not return significant assays.

A total of 8 drills are currently active on the project, three investigating exploration targets and five on feasibility definition drilling at Bracemac-McLeod.

Assay results for the two drill holes are reported in Table 1.


Additional geological information, including maps and sections, is available at


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. By electing to conduct a bankable feasibility study on Bracemac-McLeod, Xstrata Zinc has triggered its back-in right in the South Flank project area, subject to Donner completing its earn-in requirements by May 31, 2011.

The Matagami Project has an area of mutual interest of 4,750 square kilometres and presently includes 2,986 mineral claims covering 644 square kilometres. The 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 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, 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 and down-dip from the McLeod Zone. Within the extensive project area there are numerous exploration targets with excellent potential for additional discoveries.


Xstrata Zinc is the project operator for the Matagami Project and 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. 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.


Harvey Keats, Chief Executive Officer

To view the table accompanying this news release please click on 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 release.

Contact Information