September 2, 2010
DONNER METALS RECEIVES A POSITIVE FEASIBILITY STUDY FOR THE
BRACEMAC-MCLEOD DEPOSIT IN THE MATAGAMI BASE METAL CAMP IN
CENTRAL QUÉBEC
Vancouver, B.C., September 2, 2010 – Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSXV-DON),
reports that the Company has received a positive feasibility study on the Bracemac-McLeod deposit from Xstrata Canada
Corporation - Xstrata Zinc Canada Division ('Xstrata Zinc'). The study by Genivar Limited Partnership ('Genivar') was
commissioned by Xstrata Zinc and prepared on the basis of a 65% Xstrata, 35% Donner joint venture. The scope of the
feasibility study is focused on a threshold analysis of previously defined indicated resources and it does not assess the extension
of this mineralization, potential of near-by inferred resources or resources defined in the new McLeod Deep discovery.
Construction of the mine is underway and Donner has initiated its efforts to finance.
Summary
• Proven and probable mining reserve, including dilution, of 3.73 million tonnes grading 9.60% zinc, 1.26% copper, and
28.25g/t silver and 0.43g/t gold based on indicated and measured resources (massive and semi massive sulphides) of
3.39 million tonnes grading 11.31% zinc, 1.47% copper, 34.27g/t silver and 0.50g/t gold .
• 4 year life of mine (LOM) at a 2500 tonnes per day production rate.
• Potential to expand both reserve base and production rate.
• Construction of the Bracemac-McLeod mine has commenced (see news release dated July 9, 2010) with production
expected in late 2012 to early 2013 following the closure of Xstrata’s Perseverance mine.
• On current reserves, expected LOM production is 570,400 tonnes zinc, 39,755 tonnes copper, 46,973 Kg silver and
445 Kg gold.
• Total capital cost on a 65%/35% joint venture basis will be US$163.7 million.
• Capital requirements are split with approximately US$115.6 million (2010-2012) in preproduction development for
the Bracemac zones followed by US$48.1 million (2012-2014) to be incurred concurrently with production and cash
flow from Bracemac as the McLeod zone is developed.
• LOM operating costs are estimated at an average of US$73.00 per tonne of ore mined and include a capital recovery
charge of US$6.48 per tonne payable to Xstrata Zinc for use of the mill and tailings facility.
• Economic threshold analysis of the project on a joint venture basis returns a 8.1% internal rate of return and an NPV7
of US$3.4 million using zinc: $0.80 $US/lb, copper $2.50 $US/lb, silver $12.00 $US/ounce and gold $1000
$US/ounce with an exchange rate of $CDN 1.04 to the US dollar.
• The project is sensitive to metal prices, exchange rate and capital cost as primary impacts. For example, a 10%
increase in metal prices translates to a 12 fold increase in NPV and a 2 fold increase in internal rate of return.
• Exploration from underground will be conducted to evaluate inferred resources and to investigate the extent of
sulphide mineralization intersected in drilling that is not currently included in any resource category.
• Potential expansion of the mine with future development of McLeod Deep to be studied.
By providing this feasibility study, Xstrata Zinc has met its obligations under the Matagami Lake Option and Joint Venture
Agreement towards its back-in right on the South Flank area which includes the Bracemac-McLeod mine. This area will
become a 65%/35% joint venture while the remaining four project areas will become 50/50 joint ventures once Donner has
exercised its option by spending CDN$25 million. Donner has currently provided CDN$24.1 million to Xstrata Zinc towards
this requirement and has the remaining funds in its treasury. Donner may decide to vest in the project anytime up to May 31,
2011 and it is not required to contribute any capital until May 31, 2011. Donner will share in the project costs and revenue on a
Number: 13-10
TSX Venture Exchange Symbol: DON
Frankfurt Stock Exchange Symbol: D4M
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Donner Metals Ltd.
Suite 2150, 885 West Georgia Street, Vancouver, British Columbia, Canada V6C 3E8
Telephone: (604) 683-0564 Fax: (604) 602-9311 or Toll Free: 1-800-909-8311
E-mail: donner@bed-rock.com or Web: http://www.donnermetals.com
35% interest basis in the joint venture and has until May 31, 2011 to arrange for its share of project financing.
Additional geological information, including maps and sections, is available at www.donnermetals.com.
Feasibility Results:
All figures