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Donner Metals Ltd.: 1.74 Million Tonnes Grading 4.55% Zinc, 1.16% Copper and 19.88g/t Silver Identified at the PD1 Deposit (ccnm)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2011) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that the Company has received a NI 43-101 compliant resource calculation for the PD1 deposit from partner Xstrata Canada Corporation - Xstrata Zinc Canada Division ('Xstrata Zinc'). The combined mineral resource (measured and indicated) is 1.74 million tonnes grading 4.55% zinc, 1.16% copper and 19.88g/t silver located between 25 and 515 metres vertical depth and is based on 24 new holes drilled in 2010 in the upper portion of the deposit, above 100 metres vertical depth, and 50 historical drill holes completed between 1973 and 1976 that defined the previous extent of mineralization. Measured resources of 0.6 million tonnes grading 4.34% zinc, 0.83% copper, 19.59g/t silver and 0.12g/t gold occur between 25 and 100 metres vertical depth. The remaining indicated resources are based solely on a re-evaluation of historical drill results.

The completion of this program resulted in the definition of a measured resource at PD1 above 100 metres vertical depth. On this basis, a decision can now be made to conduct a feasibility study on the exploitation by open pit of this portion of the deposit as feed to Xstrata's Matagami mill that could supplement production from Bracemac-McLeod.

Table 1: PD1 Measured and Indicated Resources
Category Tonnes Zinc

%
Copper

%
Silver

g/t
Gold

g/t
Specific

Gravity
Vertical

Depth

metres
Measured 596,193 4.34 0.83 19.59 0.12 4.26 25 to 100
Indicated 262,387 4.26 0.91 19.95 NS 4.33 100 to 200
Indicated 528,925 4.25 1.59 21.13 NS 4.30 200 to 300
Indicated 272,211 5.48 1.41 20.27 NS 4.30 300 to 400
Indicated 71,895 6.32 0.77 12.44 NS 4.30 400 to 500
Indicated 5,762 2.64 0.19 8.14 NS 4.30 500 to 515
Total Measured and Indicated Resources 1,737,373 4.55 1.16 19.88 - 4.29 25 to 515

The definition drill program on PD1 is now finished with a total of 13 new holes completed into the upper portion of the deposit since the last news release. The measured resource calculated for the upper portion of the deposit is based on 24 drill holes completed in 2010, combined with 14 historical drill holes completed between 1973 and 1976. Combined average drill spacing for the measured resource is approximately 20 metres. All remaining indicated resources are based solely on 36 historical drill holes with an average drill spacing of approximately 60 metres. The historical drill holes were included in the new resource estimate on the opinion of Xstrata Zinc Qualified Persons that these data give a reasonable representation of deposit geometry and assay results based on comparison with the 2010 drilling. Drill collar locations have been confirmed for most of the historical drill holes. A specific gravity of 4.3 is applied to all massive sulphide mineralization intersected by historical drilling on the basis of measurements taken from similar mineralization intersected by the 2010 drilling. No direct specific gravity measurements were taken during historical programs.

Table 2 provides composite results for 2010 drilling not previously reported. To view Table 2, please click here: http://media3.marketwire.com/docs/114table2.pdf.

The PD1 deposit is located 31.4 kilometres west-northwest of the operating Matagami mill via a paved and gravel all weather road. The deposit occurs in the north-western end of the West Camp trend which is a 30 kilometre long belt of volcanic rocks that correlate well with the Matagami sequence. The deposit is interpreted to occur within the Wabassee group, stratigraphically above the Key Tuffite, at a stratigraphic position broadly similar to the Bracemac and Upper Bracemac zones. Mineralization is composed of massive sulphides dominated by pyrite with lesser sphalerite, chalcopyrite, and pyrrhotite which subcrop below approximately 20-25 metres of overburden. Mineralization at PD1 dips at


Jan 14, 2011 07:14AM

Jan 14, 2011 10:04AM

kim
Jan 14, 2011 10:06AM
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