Donner cuts more zinc at Matagami

Vancouver — Drilling by Matagami project partners Donner Metals (DON-V, DONFF-O) and Xstrata (XSRAF-O, XTA-L) has turned in further high-grade zinc intercepts from two different zones on the western Quebec property.

Three holes collared in the Bracemac area all cut significant mineralized intervals in the favourable Key Tuffite horizon. Hole BRC-07-52 intersected 13.55 metres (from 292 metres down-hole depth) grading 16.9% zinc, 0.84% copper and 26.7 grams silver per tonne.

Bracemac drilling has extended the Key Tuffite zone about 75 metres east — now traced across 150 metres east-west with a dip extension of about 70 metres.

McLeod area drilling also intersected significant sulphide mineralization; hole MC-05-18W6 cored 32.2 metres (from 845 metres depth) of 9.62% zinc, 1.3% copper and 10 grams silver, with a 12.4-metre section of 22.4% zinc. Testing the New McLeod zone, the hole was a wedge cut from a pilot hole designed to allow about 50-metre-spaced pierce-points into the Key Tuffite horizon.

The Old McLeod zone, about 225 metres updip from New McLeod, was also recently drilled, returning up to 18.3% zinc, 1.1% copper and 48.8 grams silver over 9.1 metres (from 547 metres depth) in hole MC-07-26.

Volcanogenic massive sulphide (VMS) mineralization throughout the Matagami area is widespread. The mining camp hosts 18 known VMS deposits that include 19 past-producing operations. Discovered in 1957, the main Matagami Lake deposit contained 25.6 million tonnes averaging 8.2% zinc, 0.56% copper and 20.9 grams silver and was mined from 1963-1988.

Donner is earning a 50% interest on the 4,738-sq.-km project area from Xstrata by spending $20-23 million on exploration before May 31, 2011. At earn-in, five separate joint ventures will be formed; Swiss-based Xstrata can earn back a 15% interest on each one by spending up to $20 million on a feasibility study.

Xstrata owns the nearby 2,600-tonne-per-day Matagami mill and plans to place its Perseverance VMS deposit — measuring 5.1 million tonnes of 15.8% zinc, 1.2% copper and 29 grams silver — into production in 2008.