News

July 23, 2009

Donner Metals Is In A Win-Win Situation Now That Xstrata Zinc Is Accelerating Feasibility Work On Bracemac–McLeod

By Charles Wyatt

From the minute the joint venture between Donner Metals and Xstrata Zinc Canada made its two discoveries – first Bracemac and then McLeod - on the Matagami project in Quebec, it was a fair bet that the combined Bracemac-McLeod zinc deposit would be taken to production. The reason is simple enough. This deposit is situated only six kilometres south east of Xstrata’s 2,600 tonnes per day Matagami Mill Complex in the world class Matagami Mining Camp in Quebec. This prolific mining district hosts 18 known volcanic massive sulphide deposits, including 10 past producers of varying sizes, and including amongst those the giant Matagami Lake deposit. This boasted resources of 25.64 million tonnes of 8.2% zinc, 0.56% copper, 20.91 grammes per tonne silver and 0.41 grammes per tonne gold and was mined from 1963 to 1988 after discovery in 1957. In fact it is estimated that the area has produced of 8,600 million pounds of zinc and 853 million pounds of copper in its time - an amount which would make a hefty dent in the metal requirements of China even now.

The Matagami area is well serviced by established infrastructure. There’s the town of Matagami for one thing. There’s power, a permitted tailings facility, railway, airport, and well-developed road and highway networks. Xstrata Zinc is currently producing from its low-cost and wholly-owned Perseverance deposit which feeds its refurbished Mill Complex. Thus any future development under the Donner-Xstrata agreement will benefit from the established infrastructure and facilities - zinc...