Client Update: Donner Metals

Q1 2013 Production and Potential Mine Expansion

September 19th News: McLeod Zone Extended Up-Dip: Exploration drilling intersects 2.83% copper, 13.09 g/t silver and 0.13 g/t gold over 19.35 meters

Most of the recent Donner Metals (TSX.V:DON) news has focused on the upcoming production at Donner and Xstrata Zinc’s new zinc/copper mine, which is reported on schedule and on budget to begin production in Q1 2013. Dave Patterson told me that during a site tour last week, it was shown how the buildings at Xstrata’s nearby Perseverance Mine are being moved and reassembled over at the new Bracemac-McLeod mine, and the work being done underground with the ramp development.

Perseverance mine is scraping the edges of their deposit, and the mine is anticipated to shut down in early 2013. For Donner, the plan is to have a stockpile ready and waiting for the onsite mill so that there are no lag times between the ending of one mine and the beginning of the next.

Exploration news from Wednesday includes a high-grade intercept of 2.83% copper over 19.35 meters up-dip in the McLeod Zone, right in the vicinity of the current mine plan.

From the resources currently in the mine plan there is an initial 4 year mine life – with the addition of the inferred resources adjacent to those known deposits, the mine life could become 7+ years.

Now having drilled up-dip, and with plans to investigate if the McLeod and McDeeps areas join together, this new mine is shaping up as the second largest ever discovered in the world-class Matagami Mining Camp, second place to the 25 million tonnes of Matagami Lake Mine, from the 1960′s.

This exploration update is good news for Donner Metals, because it demonstrates how much more there could be to find in this mining camp. The Donner/Xstrata exploration team has a pipeline of drill-ready targets with many moving steadily upwards, the way that the deposit at the Bracemac-McLeod mine has moved upwards (from a new drill hole discovery went from the bottom of the pyramid), and is now at the top and mere months away from full production.

Click here to read the company’s news release dated September 19, “McLeod Zone Extended Up-Dip: Exploration drilling intersects 2.83% copper, 13.09 g/t silver and 0.13 g/t gold over 19.35 metres.”