O/T Donner Metals Featured in JMWDonner has been featured in Canaccord's 2008 Special Edition wish list
Junior Mining Weekly | 11
19 December 2007
DONNER METALS LTD.
(DON : TSX-V : C$0.48)
Wendell Zerb
Adam Melnyk (Associate)
Donner Metals is a junior exploration company that has an option and JV arrangement with Xstrata Zinc Canada on the Matagami VMS Camp in Quebec. The Matagami project comprises 4,750 square kilometres and presently includes 350 mineral claims covering 841 square kilometres. Donner has the option to earn a 50% interest in the Matagami project by incurring $20.0 million in expenditures on exploration and development before May 31, 2011. Specifically, Donner must incur a minimum of $4.0 million a year in exploration (spent $8 million to date) and, in the event of a discovery, a further $5.0 million to establish an Inferred resource. Upon the expenditure of $20 million 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 such area by incurring up to $20 million on a feasibility study. As part of the agreement, Donner has also agreed to issue Xstrata 1.0 million shares.
The Matagami Mining Camp is host to 18 known VMS deposits including 10 past producers of varying size such as the Mattagami 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 8.6 billion lb of Zn and 853 million lb of Cu. It has established infrastructure, including the town of Matagami, railway, road, and a 2,350 tpd mill owned by Xstrata. Follow-up on an EM survey in 1999 led to the latest discovery in the camp, the Perseverance deposit. Xstrata has published a Measured and Indicated Resource at Perseverance of 5.2 million tonnes of 15.82% Zn, 1.24% Cu, 29.00 g/t Ag, and 0.38 g/t Au.
Donner has used Xstrata’s (Falconbridge) extensive historical database and new deep-penetrating 3D airborne geophysics to identify new targets in the belt. The company has been successful in intersecting new zinc- and copperbearing massive sulphides at Bracemac and McLeod on the Matagami project. Within the Matagami camp, mineralization is commonly associated with a stratigraphic horizon known as the Key Tuffite. Donner has intersected mineralization higher in the stratigraphy, opening the potential for new zones of mineralization in the area. Drilling is continuing to test this new stratigraphy as well as the Key Tuffite horizon. Additional drilling is required to outline the potential at Bracemac and throughout the project area; however, given the outstanding infrastructure, we believe discoveries of even modest tonnage could have excellent development potential. The company expects that additional property scale work will continue and that new gravity geophysical targets could represent significant accumulations of metal in this established VMS camp.
Donner (DON) will be the BUY of the year
