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Client Update – Donner Metals
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July 13, 2010 01:35 PM
Right on the heels of the mine development decision announced Friday are more drill results from Donner Metals (TSXV: DON) Matagami Project in Québec. Friday’s news brought in volume over 3.3 million with the share price opening at $0.185 and closing at $0.28.
In a news release from Xstrata’s head office, Jean Desrosiers, VP of Mining Operations for Xstrata Zinc Canada commented: “We are delighted to be able to commence construction on the development of the Bracemac-McLeod Mine. The project is a low capital cost, high return project that will provide a continued feed of ore to Xstrata’s Matagami concentrator once the Perseverance Mine comes to the end of its life. The new mine will use existing processing infrastructure and will provide ongoing employment opportunities for the existing workforce at Perseverance. The new mine will also minimize its environmental footprint by using the closed Bell-Allard South mine pit to dig the new ramp.” He further goes on to say that the project is the result of a successful exploration joint venture with Donner Metals, and that the project will be managed and operated by Xstrata Zinc, while Donner has the right to earn in a 35% share by proportionately funding its share of the capital costs. That’s what you want to hear from a partner like Xstrata.
Yesterday’s drilling results bring home the fact that in addition to building a mine, there is more exploration underway working toward expanding the McLeod Deep discovery. Let’s look beyond the new mine and recall that the Donner/Xstrata team won the Mining Journal’s Outstanding Exploration Award for their new discoveries at Matagami. They used a new way of looking at the camp and discovered the fourth largest deposit in an area geologists have walked for decades, a mere four miles from the Matagami Lake Mill. The camp has demonstrated its potential with 18 known deposits, 10 former producers, and one current producing mine in the camp. This history of success and the remaining Bluesky potential are really exciting for Donner.
Besides having mine development underway, the potential for more new discoveries and further expansion of McLeod Deep are what makes Donner’s Matagami Project valuable today, and in the long run. They have taken the Bracemac-McLeod discovery all the way to mine development, and with a 5,000 square kilometer project area, infrastructure in place, and a partner who owns the on-site mill, there is a lot more in store for Donner in the Matagami camp.
This image has been resized. Click on image to view full size.
3d model of the Bracemac-McLeod Mine area including the ramp, as well as the exploration area around it and the new McLeod Deep Discovery down-dip.
This image has been resized. Click on image to view full size.
Longitudinal showing how much open area there is between the known Bracemac-McLeod resource and the new discovery.
http://www.grandich.com/
grandich.com
July 13, 2010 01:35 PM
Right on the heels of the mine development decision announced Friday are more drill results from Donner Metals (TSXV: DON) Matagami Project in Québec. Friday’s news brought in volume over 3.3 million with the share price opening at $0.185 and closing at $0.28.
In a news release from Xstrata’s head office, Jean Desrosiers, VP of Mining Operations for Xstrata Zinc Canada commented: “We are delighted to be able to commence construction on the development of the Bracemac-McLeod Mine. The project is a low capital cost, high return project that will provide a continued feed of ore to Xstrata’s Matagami concentrator once the Perseverance Mine comes to the end of its life. The new mine will use existing processing infrastructure and will provide ongoing employment opportunities for the existing workforce at Perseverance. The new mine will also minimize its environmental footprint by using the closed Bell-Allard South mine pit to dig the new ramp.” He further goes on to say that the project is the result of a successful exploration joint venture with Donner Metals, and that the project will be managed and operated by Xstrata Zinc, while Donner has the right to earn in a 35% share by proportionately funding its share of the capital costs. That’s what you want to hear from a partner like Xstrata.
Yesterday’s drilling results bring home the fact that in addition to building a mine, there is more exploration underway working toward expanding the McLeod Deep discovery. Let’s look beyond the new mine and recall that the Donner/Xstrata team won the Mining Journal’s Outstanding Exploration Award for their new discoveries at Matagami. They used a new way of looking at the camp and discovered the fourth largest deposit in an area geologists have walked for decades, a mere four miles from the Matagami Lake Mill. The camp has demonstrated its potential with 18 known deposits, 10 former producers, and one current producing mine in the camp. This history of success and the remaining Bluesky potential are really exciting for Donner.
Besides having mine development underway, the potential for more new discoveries and further expansion of McLeod Deep are what makes Donner’s Matagami Project valuable today, and in the long run. They have taken the Bracemac-McLeod discovery all the way to mine development, and with a 5,000 square kilometer project area, infrastructure in place, and a partner who owns the on-site mill, there is a lot more in store for Donner in the Matagami camp.
This image has been resized. Click on image to view full size.3d model of the Bracemac-McLeod Mine area including the ramp, as well as the exploration area around it and the new McLeod Deep Discovery down-dip.
This image has been resized. Click on image to view full size.Longitudinal showing how much open area there is between the known Bracemac-McLeod resource and the new discovery.
http://www.grandich.com/
grandich.com
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