Donner Metals Ltd.

Donner Metals Ltd.

March 13, 2009 12:05 ET

RETRANSMISSION-Donner Metals Ltd.; New Discovery at Matagami: 2.20% Copper, 8.8 g/t Silver, 0.25 g/t Gold Over 3.95 Metres in Massive Sulphides

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2009) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that diamond drilling has discovered massive sulphide mineralization in the Daniel-1 area during testing of regional geophysical anomalies 16 kilometres northwest of Xstrata's operating Perseverance Mine and 26 kilometres northwest of the Matagami Mill. Diamond drill hole DAN-09-10 intersected 3.95 metres of massive sulphides grading 2.20% copper, 0.09% zinc, 8.8 g/t silver and 0.25 g/t gold from 345.13 to 349.08 metres. Mineralization is at 320 metres vertical depth from surface and is hosted within felsic and mafic volcanic/volcanoclastic rocks. The mineralization encountered by drilling at Daniel-1 is outside of the three Matagami mineralized belts (North Flank, South Flank and West Camp) and further demonstrates the potential for new discoveries in this well established camp.

The discovery of massive sulphide mineralization in the Daniel-1 area was the result of follow-up drilling of geophysical responses and sporadic copper, gold and zinc mineralization previously encountered by three historical drill holes. Two holes were drilled in this area. DAN-09-09 was drilled to test surface geophysics 200 metres west along strike from the historical drill holes. It intersected weak mineralization within intensely sericitized volcanoclastic rock. DAN-09-10 was drilled to test the down-dip extent of DAN-00-03 (1.0% copper over 0.95 metres) and an off-hole response in DAN-03-07. It intersected 3.95 metres of chalcopyrite-rich massive sulphides. DAN-09-11 was drilled 4 kilometres southwest of drill holes DAN-09-09 and DAN-09-10 testing a strong and isolated VTEM anomaly (from Xstrata/Donner surveys flown in 2007). It intersected two intervals of massive sulfides, 1.2 and 1.6 metres thick respectively, comprised of pyrite and pyrrhotite, explaining the conductor. No significant base metals were observed. Assays are pending.

Elsewhere, drilling was also conducted on targets in the Cavelier, and PD1 areas within the West Camp. Four holes were drilled in the Cavelier area. CAV-09-04 and CAV-09-05 did not encounter significant mineralization. CAV-09-06 intersected semi-massive sulphides (pyrrhotite, sphalerite) from 36.39 - 36.74 metres explaining a strong conductor detected from surface. Assays returned 1.63% zinc over 1.63 metres. CAV-09-07 intersected granodiorite. Three diamond drill holes were completed in the PD1 area with no significant mineralization encountered.

Two drills are on site. The next phase of the Matagami exploration program will focus on the newly generated, high priority targets within the South Flank that are characterized by geophysical anomalies with associated alteration/mineralization at the prolific Key Tuffite level as well as within the hanging wall stratigraphy where potential for stacked sulphide mineralization exists similar to the geological setting at Bracemac-McLeod. Follow-up of the Daniel-1 discovery will obviously be a component of future drill programs.


A total of 2,928 metres of drilling was completed in the results reported above as part of a regional drilling program. A total of 93,113 metres of diamond drilling in 190 drill holes has been completed on the Matagami Project since the activity under the Option and Joint Venture Agreement began in late 2006.

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 a scoping study that is focused on metallurgical testing, preliminary engineering studies using a ramp access and both preliminary capital and operating cost assessment prior to commencing the next stage of drilling on the deposits. The objective of the study is to provide an initial evaluation of the viability of mine development as the first step towards assessing the feasibility of production at Bracemac-McLeod. 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.

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.


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


Harvey Keats, Chief Executive Officer

To view drilling results for the Daniel-1, Cavelier, and PD areas, please click here:

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