Junior miner powers higher on deposit development

Stockhouse Canadian Small and Micro-cap Stock Report for Friday, July 9, 2010

TORONTO (SHfn) – Donner Metals (TSX: V.DON, Stock Forum) shares climbed 56% to 28 cents on Friday after the micro cap miner said it has received notice from Xstrata Canada Corporation - Xstrata Zinc Canada Division that they will immediately begin development of the Bracemac-McLeod deposit in Quebec. Donner has the right to earn an initial 50% interest in the Matagami Project by completing exploration expenditures of $25 million and selecting claims to be included in five joint venture areas by May 31, 2011. Over the past eight months, Xstrata Zinc has conducted a definition drill program focused on the Bracemac-McLeod indicated resources of 3.62 million tonnes grading 11.52% zinc, 1.60% copper, 31.55 grams per tonne (g/t) silver, 0.49 g/t gold.

As well, shares of Metalex Ventures (TSX: V.MTX, Stock Forum) gained 25% to 55 cents as the junior explorer reported the first macro diamond results from the T1 bulk sample on the Metalex - Arctic Star Diamond (TSX: V.ADD, Stock Forum) joint venture in the James Bay lowlands, Ontario. Hole K06-14 sampled approximately 23 tons of kimberlite and 716 commercial size diamonds larger than 0.425mm and smaller than 3.35mm were recovered.

AQM Copper (TSX: V.AQM, Stock Forum), meanwhile, announced continuing drill results from the Zafranal project in Peru, which included 188 metres of 0.73% copper and 0.13 g/t gold. AQM stock popped 14% to 81 cents.

And, Zuni Holdings Inc., formerly MTI Global Inc. (TSX: T.MTI, Stock Forum) reported that, pursuant to the completion of the sale of MTI Polyfab and other aerospace-related assets to 3M Canada Holdings Ltd., its board of directors has declared a special cash distribution by way of return of capital in the amount of 26 cents per common share, payable to shareholders of record on July 21, 2010. MTI Global shares surged 11% to 30 cents.

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