Donner Metals Ltd.

Donner Metals Ltd.

January 19, 2007 16:44 ET

Donner Metals Ltd.: New Zinc-Copper Discovery at Matagami

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FWB:D4M), announces a new discovery of zinc and copper-bearing massive sulphide in three holes at Bracemac on the Matagami Project, Quebec. Massive sulphide in BRC-06-26 averages 9.12% zinc and 1.21% copper over 16 metres and massive sulphide in BRC-06-27 averages 13.98% zinc and 3.69% copper over 8.8 metres. Assays from massive sulphide in BRC-07-28 are pending.

Drilling has also intersected 8.6% zinc and 0.14% copper over 2.2 metres in massive sulphide at Bell Channel, approximately 10 kilometres north of Bracemac.

Details of the work completed to date are described in the assay tables included in this news release. (To view the attached tables, please click on the following link:

The discovery at Bracemac was made at the Upper Tuffite in mafic volcanics approximately 220 metres stratigraphically above the Key Tuffite. The Key Tuffite occurs at the top of the Watson Lake felsic volcanics, the main productive horizon in the Matagami camp. No mineralization of economic significance has been intersected in the Key Tuffite in this drill program. However, the discovery demonstrates the potential for stacked mineralization in the Matagami camp and validates the multidisciplinary approach employed on the project.

Since the beginning of the 45,000 metre drill program, a total of eight new holes were completed, two historic holes were deepened and one new hole abandoned, for a total of approximately 6,600 metres. Drilling in holes completed to date has concentrated on the Bracemac, Bell Channel and Cold Spring areas. A third drill has now been added to the Matagami Project, and drilling continues.


Drilling at Bracemac is designed to test favourable stratigraphy, widespread alteration in both the Key Tuffite and Upper Tuffite horizons and to follow-up narrow historical mineralized intersections. The exploration program targets sulphide mineralization at both the Key Tuffite and Upper Tuffite levels as well as pipe-style mineralization (for example Perseverance) that can occur within the footwall of both horizons.

To date, there have been four new holes and one deepened hole drilled at Bracemac. BRC-06-26, BRC-06-27 and BRC-07-28 all intersected zinc and copper-bearing massive sulphide as well as other sulphide zones.

The 13.98% zinc and 3.69% copper over 8.8 metres in BRC-06-27 is 50 metres down-dip of 9.12% zinc and 1.21% copper over 16 metres in BRC-06-26. The massive sulphide with assays pending in BRC-07-28 is 50 metres along strike to the east of the massive sulphide in BRC-06-26.

Current and historical drilling, as well as down-hole geophysics limit the dip extent of the zone to approximately 120 metres. Historical drilling and interpretation of downhole geophysics limit the western extension of the mineralized zone. Interpretation of down-hole geophysics collected to date appears to limit the eastern strike extension of mineralization where the targeted horizon is much less densely drilled.

Bell Channel

Drilling at Bell Channel was designed to test geological targets as well as surface DEEPEM and downhole PulseEM targets within the productive North Flank, Key Tuffite stratigraphy. The 8.6% zinc and 0.14% copper over 2.2 in BC-06-30 occurs inside a thick gabbro sill. However there is an off-hole anomaly associated with the mineralization and the intersection indicates the potential for massive sulphide in the adjacent volcanic rocks.

Cold Spring

Two holes were drilled to test MegaTEM targets at Cold Spring on an interpreted eastern extension of the South Flank felsic volcanics. The holes did not intersect felsic volcanics or significant economic mineralization.

About the Matagami Project

The Matagami Project has an area of mutual interest of 4,737 square kilometres and presently includes 2,138 mineral claims covering 499 square kilometres. Taking advantage of Xstrata Zinc's extensive historical database, Donner and Xstrata Zinc Canada (Xstrata Zinc) are using a combination of 3D data integration, innovative advanced technologies, new concepts and diamond drilling to explore for new deposits in this prolific mining camp.

The Matagami Mining Camp is a world-class mining district, with 18 known VMS deposits, including 10 past producers of varying sizes, including the giant Mattagami 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 8.6 billion pounds of Zn and 853 million pounds of Cu and has established infrastructure including the town of Matagami, a railway, a paved road, and a 2,350 t/day mill owned by Xstrata Zinc.

Donner has the option to earn a 50% participating joint venture interest in the Matagami Project by incurring a total of $20 million of expenditures on exploration and related work on or before May 31, 2011. Upon the expenditure of $20 million 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 such area by incurring up to $20 million on a feasibility study.

Supplementary Information

The field work on the Matagami Project is being carried out by project operator Xstrata Zinc Canada (Xstrata Zinc). Xstrata Zinc is responsible for the sampling and submittal of samples for assay. Assaying of samples reported in this news release was 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 responsible for the technical information in this news release.


Harvey Keats, Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

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