ZINC-COPPER DEVELOPMENT: Bracemac-McLeod construction gets underway

QUEBEC - Xstrata Zinc Canada of Toronto has given the go-ahead to construction of the Bracemac-McLeod zinc-copper mine near Matagami. At full production, the mine will produce 80,000 tonnes of zinc and 10,000 tonnes of copper annually, reaching full production in the first quarter of 2013.

The project is a joint venture of Xstrata Zinc and Vancouver-based Donner Metals. Xstrata is the operator, and Donner has the right to earn a 35% share by funding a portion of the capital cost.

The total capital cost for the mine is approximately $158 million. The mine will provide 250 jobs for its life span of at least four years and will be located approximately 4.0 km from Xstrata Zinc's Matagami concentrator, which is currently supplied with ore from Xstrata Zinc's Perseverance mine.

Indicated resources at Bracemac-McLeod are 3.62 million tonnes grading 11.52% Zn, 1.60% Cu, 31.55g/t Ag and 0.49g/t Au. Additional information is available at www.DonnerMetals.com.