QUEBEC - The Bracemac-McLeod project, a 65% Xstrata Zinc and 35% Donner Metals venture, looks like it could be a profitable mine, according to the feasibility study prepared by Genivar. Construction on the mine near Matagami and Xstrata's Perseverance zinc-copper mine is already underway.
The Bracemac-McLeod deposit was discovered in 2007. It has proven and probable reserves of 3.73 million tonnes at 9.60% Zn, 1.26% Cu plus 28.25 g/t Ag and 0.43 g/t Au. The massive and semi-massive sulphides that make up the indicated and measured resources total 3.39 million tonnes at 11.31% Zn, 1.47% Cu, 34.27 g/t Ag and 0.50 g/t Au. As currently planned, these resources will support a 2,500-t/d mine for four years. Production is to begin in late 2012 or early 2013 as resources at the Perseverance mine are exhausted.
Building the new underground mine carries a pre-production price tag of US$1.63.7 million. Life of mine production is estimated to be 606 million lb of zinc, 83 million lb of copper, 1.5 million lb of silver and 13,090 oz of gold.
More information about Donner's activities in the Matagami area are available at www.DonnerMetals.com.