Donner Metals Ltd.; New Discovery at Matagami: 2.20% Copper, 8.8 g/tSilver, 0.25 g/t Gold Over 3.95 Metres in Massive Sulphides

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2009) - Mr.
Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (TSX
VENTURE: DON)(FRANKFURT: D4M), reports that diamond drilling has
discovered massive sulphide mineralization in the Daniel-1 area
during testing of regional geophysical anomalies 16 kilometres
northwest of Xstrata's operating Perseverance Mine and 26 kilometres
northwest of the Matagami Mill. Diamond drill hole DAN-09-10
intersected 3.95 metres of massive sulphides grading 2.20% copper,
0.09% zinc, 8.8 g/t silver and 0.25 g/t gold from 345.13 to 349.08
metres. Mineralization is at 320 metres vertical depth from surface
and is hosted within felsic and mafic volcanic/volcanoclastic rocks.
The mineralization encountered by drilling at Daniel-1 is outside of
the three Matagami mineralized belts (North Flank, South Flank and
West Camp) and further demonstrates the potential for new discoveries
in this well established camp.
 
The discovery of massive sulphide mineralization in the Daniel-1 area
was the result of follow-up drilling of geophysical responses and
sporadic copper, gold and zinc mineralization previously encountered
by three historical drill holes. Two holes were drilled in this area.
DAN-09-09 was drilled to test surface geophysics 200 metres west
along strike from the historical drill holes. It intersected weak
mineralization within intensely sericitized volcanoclastic rock.
DAN-09-10 was drilled to test the down-dip extent of DAN-00-03 (1.0%
copper over 0.95 metres) and an off-hole response in DAN-03-07. It
intersected 3.95 metres of chalcopyrite-rich massive sulphides.
DAN-09-11 was drilled 4 kilometres southwest of drill holes DAN-09-09
and DAN-09-10 testing a strong and isolated VTEM anomaly (from
Xstrata/Donner surveys flown in 2007). It intersected two intervals
of massive sulfides, 1.2 and 1.6 metres thick respectively, comprised
of pyrite and pyrrhotite, explaining the conductor. No significant
base metals were observed. Assays are pending.
 
Elsewhere, drilling was also conducted on targets in the Cavelier,
and PD1 areas within the West Camp. Four holes were drilled in the
Cavelier area. CAV-09-04 and CAV-09-05 did not encounter significant
mineralization. CAV-09-06 intersected semi-massive sulphides
(pyrrhotite, sphalerite) from 36.39 - 36.74 metres explaining a
strong conductor detected from surface. Assays returned 1.63% zinc
over 1.63 metres. CAV-09-07 intersected granodiorite. Three diamond
drill holes were completed in the PD1 area with no significant
mineralization encountered.
 
Two drills are on site. The next phase of the Matagami exploration
program will focus on the newly generated, high priority targets
within the South Flank that are characterized by geophysical
anomalies with associated alteration/mineralization at the prolific
Key Tuffite level as well as within the hanging wall stratigraphy
where potential for stacked sulphide mineralization exists similar to
the geological setting at Bracemac-McLeod. Follow-up of the Daniel-1
discovery will obviously be a component of future drill programs.
 
SUMMARY
 
A total of 2,928 metres of drilling was completed in the results
reported above as part of a regional drilling program. A total of
93,113 metres of diamond drilling in 190 drill holes has been
completed on the Matagami Project since the activity under the Option
and Joint Venture Agreement began in late 2006.
 
Based on the Indicated Resource of 3,623,000 tonnes grading 11.52%
zinc, 1.60% copper, 31.55 g/t silver and 0.49 g/t gold at
Bracemac-McLeod, Xstrata Zinc is presently conducting a scoping study
that is focused on metallurgical testing, preliminary engineering
studies using a ramp access and both preliminary capital and
operating cost assessment prior to commencing the next stage of
drilling on the deposits. The objective of the study is to provide an
initial evaluation of the viability of mine development as the first
step towards assessing the feasibility of production at
Bracemac-McLeod. Additional geological information, including maps
and sections, is available at www.donnermetals.com.
 
PROJECT OVERVIEW
 
Donner has the option to earn a 50% participating joint venture
interest in the Matagami Project by incurring a total of $25 million
of expenditures on exploration and related work on or before May 31,
2011. Upon earn-in by Donner, five separate joint ventures will be
formed, covering the property and the area of interest. In each of
the five joint venture areas, Xstrata Zinc has the option to
earn-back a 15% interest in each area by incurring up to $20 million
on a bankable feasibility study.
 
The Matagami Project has an area of mutual interest of 4,750 square
kilometres and presently includes 3,340 mineral claims covering 801
square kilometres. The project covers the Matagami Mining Camp which
is a world-class mining district, with 18 known VMS deposits,
including 10 past producers of varying sizes, including the giant
Matagami Lake Deposit (25.64 million tonnes of 8.2% Zn, 0.56% Cu,
20.91 g/t Ag and 0.41 g/t Au) discovered in 1957 and mined from 1963
to 1988. The area is host to historical production of 8,600 million
pounds of Zn and 853 million pounds of Cu. The Matagami area is well
serviced by established infrastructure including the town of
Matagami, power, a permitted tailings facility, railway, and 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 2,600 t/day Matagami mill
complex. Any future development under the Donner-Xstrata agreement
will benefit from the established infrastructure and facilities. Zinc
concentrates produced at Matagami are refined at the Noranda Income
Fund zinc refinery in Valleyfield Quebec. Copper concentrates are
smelted at Xstrata's Horne smelter in Rouyn-Noranda and refined at
Xstrata's Canadian Copper Refinery in Montreal.
 
The Company's strategy is to explore for and discover zinc-copper
deposits in the Matagami Camp and to leverage the general
infrastructure and existing processing facilities within a known and
well-established cost structure for developing VMS deposits. Donner's
exploration objective is to investigate multiple stratigraphic
horizons with potential for VMS mineralization including the prolific
Key Tuffite horizon throughout the Matagami Camp. To date, Donner has
discovered new mineralization at Bracemac-McLeod and at Bell Channel.
Within the extensive project area there are numerous exploration
targets with excellent potential for additional discoveries.
 
SUPPLEMENTARY INFORMATION
 
Xstrata Zinc is the project operator for the Matagami Project and is
responsible for both fieldwork and resource evaluation including, but
not limited to, sampling, submittal of samples for assay, assay
verification, metallurgical evaluation and QA/QC. Assaying of samples
that form the basis of the resource calculation were carried out and
certified by ALS Chemex-Chimitec, of Val D'Or, Quebec (zinc, copper
and silver by atomic absorption, and gold by standard fire assay
procedures). Sample preparation was done by ALS Chemex of Val D'Or,
Quebec.
 
Robin Adair, VP of Exploration for the Company, is the 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
 
To view drilling results for the Daniel-1, Cavelier, and PD areas,
please click here: http://media3.marketwire.com/docs/don0312.pdf.
 
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
 
Contacts:
Donner Metals Ltd.
Harvey Keats
Chief Executive Officer
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
Email: donner@bed-rock.com
Website: www.donnermetals.com
 
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