VANCOUVER, BRITISH COLUMBIA–(Sept. 5, 2012) – Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (“Donner Metals” or the “Company”) (TSX VENTURE:DON)(FRANKFURT:D4M), is pleased to provide an update on the development for the Bracemac-McLeod Mine as reported to the Company by partner and project operator Xstrata Canada Corporation-Xstrata Zinc Canada Division (“Xstrata Zinc”).
Multi-face development continues on 9 fronts and total lateral development now stands at 5,550 metres. Mine pre-production activities should be completed by year-end and the initial production is on schedule to begin in the first quarter of 2013. The project is tracking on budget, with the contingency allocated to the additional ball mill. The status of project development at Bracemac-McLeod is summarized as follows:
Surface:
| Site administration facilities and infrastructure | Existing | |
| Matagami mill infrastructure (upgraded in 2007-2008) | Existing | |
| Tailings facility | Existing | |
| Railroad and highway (zinc and copper concentrate shipping) | Existing | |
| Haulage road to Matagami mill | Complete | |
| Ramp portal | Complete | |
| Stockpile and waste rock pads | Complete | |
| Service access road to portal | Complete | |
| Power, water service and mine water line to treatment facilities | Complete | |
| Power and access to vent/fill raise sites | Complete | |
| Electrical substation at Bracemac | Complete | |
| Communication tower at Bracemac | Complete | |
| Permanent surface mine dewatering pumping station | Complete | |
| Remaining Perseverance personnel relocation to Matagami Lake complex | Complete | |
| Surface garage and support buildings (to be augmented by Perseverance buildings) | Complete | |
| Perseverance office building transfer | In progress | |
| Perseverance garage transfer | In progress | |
| Permanent parking lot | In progress | |
| Mill and tailing capacity increase | In progress | |
| Additional ball mill to increase grinding capacity | In progress |
Underground:
| Ramp to Bracemac area and underground power supply at Bracemac | Complete | |
| Fill raise construction | Complete | |
| Temporary ventilation in fill raise | Complete | |
| Temporary heating units relocated from Perseverance to Bracemac | Complete | |
| Underground powder magazine and cap magazine | Complete | |
| Underground electrical substation | Complete | |
| Equipment purchase and transfer from the Perseverance Mine | Ongoing | |
| Underground garage at Bracemac | In progress | |
| Vent raise construction | In progress | |
| Underground dewatering system | In progress | |
| Underground storage #1 | Complete | |
| Underground storage #2 and #3 | In progress | |
| Refuge station #1 and #2 | Complete | |
| Refuge station #3 | In progress | |
| Ramps to McLeod zone | In progress | |
| Multi-face development to Bracemac ore lenses | In progress | |
| Definition diamond drilling at Bracemac | In progress |
Donner Metals’ CEO Harvey Keats commented on the progress made and ongoing construction saying, “As can be seen from the details of the project development, both on the surface and underground, Bracemac-McLeod is poised to replace the Perseverance Mine in feeding the Matagami mill.”
SUPPLEMENTARY INFORMATION
The Bracemac-McLeod deposit contains Proven and Probable Mineral Reserves of 3.7 million tonnes grading 9.60% zinc, 1.26% copper, 28.25g/t silver and 0.43g/t gold. Inferred Mineral Resources of 2.6 million tonnes grading 8.79% zinc, 1.31% copper, 38.84g/t silver and 1.06g/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 Québec. 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.
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
Cautionary Statement:
Certain phrases in this news release are “forward-looking statements”. Forward-looking statements are identified by wording such as “should be,” and “is on schedule.” Such statements are applicable specifically to the Bracemac-McLeod Deposit 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.
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
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Donner Metals Ltd.
Andrea Magee
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
[email protected]
www.donnermetals.com
