Donner Metals Ltd.: Update on Bracemac-McLeod Production
MONTREAL, QUÉBEC–(Marketwired – July 12, 2013) – Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M), reports on both the recent operation and anticipated operation at the Bracemac-McLeod Mine.
The Bracemac-McLeod Mine has reached commercial production and is processing ore at a rate of approximately 3,000 tonnes per day as expected under the revised mine plan (see press release dated July 5, 2012) since commencement of operations in mid-May of this year. Ore grades to date are below the average grades defined in the feasibility study prepared for the Bracemac-McLeod Mine in 2010 (the "Feasibility Study") due to lower stope grades as a result of preliminary resource modelling from underground drilling and processing of lower-grade development ore from the Bracemac-McLeod stockpile. The Matagami mill is performing above expectations as defined in the Feasibility Study with higher than anticipated recoveries and concentrate grades for both zinc and copper. Preliminary underground resource drilling has provided a new production and grade forecast for 2013 that anticipates lower grades for the remainder of the year.
Bracemac-McLeod Mine and Matagami Mill snapshot:
|Above Expectations||Within Expectations||Below Expectations|
|Mill and metallurgical performance: recoveries and concentrate grade
New grind circuit and mill capacity
|Mine production rate has met Feasibility Study target and is ramping up to the 3,000 tonnes per day mine plan||Ramp-up ore grades
2013 grade forecast
Performance to date is as follows (Table 1):
Bracemac-McLeod Mine: Production is within the Feasibility Study plan and is ramping up to an average of approximately 3,000 tonnes per day. Ore grades for both copper and zinc have been below those forecast in the Feasibility Study during the first two months of production as noted in Table 1. This is due in part to the sequencing of stopes and processing of the stockpiled lower grade development ore. Based on preliminary results from the underground resource drilling the grade forecast for 2013 reduces the anticipated ore grade for 2013 to an average of 6.79% zinc, 1.11% copper 32.98g/t silver and 0.3g/t gold.
|Current inventories for Bracemac-McLeod are:|
|Tonnes ready to drill||110,565|
|Tonnes ready to blast||10,402|
Matagami Mill: The Matagami mill performance related to Bracemac-McLeod ores is above expectations as described in the Feasibility Study in relation to recoveries and concentrate grades for both zinc and copper (see Table 1). It remains too early to understand for what period of time these improved results can be expected. The new ball mill is performing well and was successfully commissioned in early June. The addition of this grind capacity has added flexibility to the grinding process and added mill capacity in excess of that needed for the 3,000 tonnes per day production rate planned from Bracemac-McLeod.
Production from Bracemac-McLeod will be reduced in the months of July and August while the remaining Persévérance ore (100%-owned solely by Glencore Xstrata) is processed.
Additional information is available at www.donnermetals.com.
Glencore Xstrata is the project operator for the Matagami Project and all of Donner's joint ventures. As project operator, Glencore Xstrata is responsible for the execution of all development, production, smelting and refining activities related to the Bracemac-McLeod Mine and exploration programs conducted on the Matagami Project, including resource evaluation, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC. Sample preparation and assaying are conducted by ALS Chemex-Chimitec, of Val-d'Or, Québec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures).
Robin Adair (VP of Exploration) is a Qualified Person for Donner Metals Ltd. and is responsible for the technical information reported in this news release.
ON BEHALF OF THE BOARD OF
DONNER METALS LTD
Harvey Keats, Chief Executive Officer
Certain phrases in this news release are "forward-looking statements". Forward-looking statements are identified by wording such as "anticipated", "forecast" and "expected". Such statements are applicable specifically to the future anticipated results and performance related to the Bracemac-McLeod Mine. "Forward-looking statements" involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Further discussion of "forward looking statements" and the risks inherent to mineral exploration and development, in relation to Donner's activities, can be found on the Company's website atwww.donnermetals.com. The reader is cautioned not to place any undue reliance on any forward-looking statement.
To view Table 1, please visit the following link: http://media3.marketwire.com/docs/712don_table1.pdf