Donner Metals Ltd.: Bracemac-Mcleod Continues on Target
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/05/12 -- 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:
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Site administration facilities and infrastructure Existing
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Matagami mill infrastructure (upgraded in 2007-2008) Existing
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Tailings facility Existing
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Railroad and highway (zinc and copper concentrate Existing
shipping)
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Haulage road to Matagami mill Complete
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Ramp portal Complete
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Stockpile and waste rock pads Complete
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Service access road to portal Complete
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Power, water service and mine water line to Complete
treatment facilities
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Power and access to vent/fill raise sites Complete
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Electrical substation at Bracemac Complete
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Communication tower at Bracemac Complete
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Permanent surface mine dewatering pumping station Complete
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Remaining Perseverance personnel relocation to Complete
Matagami Lake complex
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Surface garage and support buildings (to be Complete
augmented by Perseverance buildings)
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Perseverance office building transfer In progress
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Perseverance garage transfer In progress
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Permanent parking lot In progress
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Mill and tailing capacity increase In progress
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Additional ball mill to increase grinding capacity In progress
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Underground:
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Ramp to Bracemac area and underground power supply Complete
at Bracemac
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Fill raise construction Complete
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Temporary ventilation in fill raise Complete
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Temporary heating units relocated from Perseverance Complete
to Bracemac
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Underground powder magazine and cap magazine Complete
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Underground electrical substation Complete
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Equipment purchase and transfer from the Ongoing
Perseverance Mine
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Underground garage at Bracemac In progress
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Vent raise construction In progress
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Underground dewatering system In progress
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Underground storage #1 Complete
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Underground storage #2 and #3 In progress
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Refuge station #1 and #2 Complete
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Refuge station #3 In progress
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Ramps to McLeod zone In progress
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Multi-face development to Bracemac ore lenses In progress
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Definition diamond drilling at Bracemac In progress
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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 Quebec. 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.
Contacts:
Donner Metals Ltd.
Andrea Magee
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
donner@bed-rock.com
www.donnermetals.com