OCT 10
5

Grandich Client Donner Metals Marches On

Donner Metals announced yesterday that Xstrata Zinc is conducting definition drilling at the PD1 Deposit in Matagami, Québec. This news is significant for Donner because it shows that there is a lot more to get out of the ground at the Matagami Mining Camp. In my September 7thpost on Donner I talked about how the PD1 deposit was shaping up nicely as a potential open pit nearby. Turns out Xstrata thinks so too, which apparently is why they are funding the drilling on the near-surface portion of the PD1 deposit to get it ready as another potential source of feed for Xstrata’s Mill. This news about PD1 in combination with the new Donner-Xstrata zinc, copper, silver, and gold mine really shows that Xstrata is serious about speeding things along. From my count, that’s 4 years of mine life from Bracemac-McLeod; another ~3 from McLeod Deep (and the open potential surrounding that inferred resource makes me want to look for more from there); plus PD1’s 1.45 million tonnes that could be another 15 months.

I’ve seen the mission statement on Donner’s website saying the strategy is to provide 15 years of mill feed for the on site Matagami Lake Mill owned by Xstrata. It looks to me like we could be pushing up to an unofficial, approximate 9 years worth of potential production already. I’m highly biased due to my working relationship but I do believe DON is proving to be the exception to the rule in the junior game where failure is the norm.