Additional Information
Market: TSX-V
Sector: General Mining
EPIC: DON
Latest Price: 0.08  (0,00%)
52-week High: 2.70
52-week Low: 0.08
Market Cap: 1.16M
1 year chart
1 day chart
Donner Metals
donnermetals.com

 

Donner Metals Ltd is a Canadian development and exploration company focused on base and precious metal projects in Québec. Donner’s flagship project is a partnership with Xstrata Canada Corporation in the Matagami Mining Camp, covering both the current development of a new mine and on-going exploration activities. The project is located in the Abitibi region of central Québec and it is supported by Xstrata’s existing mine infrastructure, a highly experienced workforce, and an operating 3,000 tonnes per day mill. As well, the area is serviced by highway, power, airport, railway, and town-site infrastructure.

 

Donner Metals' drilling points to huge potential of Bracemac-McLeod mine

6th Mar 2013, 10:45 am by Ian Lyall
A 12.8 metre section contained 9.42% zinc, 2.51% copper, 35.7 grams per tonne silver and 0.81 grams per tonne of gold from depth of 932.4 metres. A 12.8 metre section contained 9.42% zinc, 2.51% copper, 35.7 grams per tonne silver and 0.81 grams per tonne of gold from depth of 932.4 metres.

 

Donner Metals (CVE:DON) said the latest drill results appear to point to the huge potential of the as yet untested zone of the Bracemac-McLeod mine, on the Matagami mining camp in Quebec.

One hole into an area called the McLeod Deep Zone, which is below the McLeod Zone, intersected what the company describes as “semi-massive sulphides”.

A 12.8 metre section contained 9.42% zinc, 2.51% copper, 35.7 grams per tonne silver and 0.81 grams per tonne of gold from depth of 932.4 metres.

“This result dramatically increases the likelihood that the two zones, separated by a 200-metre un-drilled gap, are connected by continuous high-grade sulphide mineralization,” the company said in a statement to investors.

“Five surface drills and one underground drill are currently active on the project, including three surface rigs at McLeod Deep.”

The McLeod Zone has a proven and probable mineral reserve of 2.1mln tonnes grading, 9.25% zinc, 1.18% copper, 24.98 grams of silver and 0.49 grams of gold, while the McLeod Deep Zone has 2.47mln tonnes in the lower confidence inferred category.

The current programme on McLeod Deep is an aggressive 35,000-metre drill programme designed to confirm the presence of mineralization between the bottom of the McLeod Zone, currently included in the mine plan, and the top of the McLeod Deep Zone.

In the same release Donner said production from the discovered and developed part of the deposit is “imminent”.

The Bracemac-McLeod mine, in the Matagami mining camp in Quebec, has been systematically de-risked and taken to the brink of production.

This has been done on time and on budget, yet the company has received very little recognition for this from the market. In fact quite the reverse: if you look at the share price over the last two and half years it seems to have been penalised.

Donner’s partner and 65% shareholder in the project is Xstrata Zinc (LON:XTA), which may explain why it has been successfully taken to the brink of production with remarkable efficiency. So far it has cost US$111mln out of a total budget of US$160mln.

With an initial four-year mine life the operation won’t set too many pulses racing.  And this perhaps is where the market misunderstands the Donner proposition.

For there is more to the company and the Bracemac-McLeod Mine than meets the eye.

The work on the McLeod Deep target has the potential to add a further seven years or more to the initial mine life.

Earlier exploratory holes pointed to a gold grade at an anomalous 1.1 grams per tonne, which is almost three times the average grade of the main deposit.

“Something is going on at McLeod Deep that hasn’t been seen in the rest of the camp,” said chairman David Patterson in a recent interview with Proactive Investors.

“We have this higher grade that points to something happening down there. It might be the heat source, but until we mine it out we won’t know.

“The geologists are pretty excited about drilling McLeod Deep. If it holds up to drill testing, then their excitement will be justified.”

The local infrastructure of the region is good, while Xstrata owns the Matagami Lake Mill, just two kilometres from the mine portal that will crush 3,000 tonnes of ore a day.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here