Donner Metals and Glencore: Bracemac-McLeod Mine Discovered in 2007 Production in 2013
Investor Presentation August 2013 TSX.V: DON TSX.V: DON
CAUTIONARY STATEMENT This presentation includes certain “forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terms such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”, or their conditional or future forms. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward- looking statement that may be made from time to time by the Company or on its behalf, except if required to do so by applicable securities laws.
TSX.V: DON
2 › Donner Metals Presentation › Bracemac-McLeod Mine › Joint venture exploration › Strategy for the future
TSX.V: DON
Strong, Complementary Management Team
Years of Juniors Majors Exploration Metallurgy Development Operation Finance Strategy Environment experience
David Patterson Chairman & 35 ü ü ü ü Director Harvey Keats 35 CEO & Director ü ü ü ü ü ü ü ü Normand Champigny, CFO, 31 ü ü ü ü ü ü ü ü President, Director Ron Tessier 40 VP Engineering ü ü ü ü ü ü Robin Adair 33 VP Exploration ü ü ü ü ü ü ü ü Kerry Sparkes 30 Director ü ü ü ü ü ü ü ü Ken Thorsen 35 Director ü ü ü ü ü ü ü ü Laurie Sadler 30 Director ü ü
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4 Capital Structure
Shares Outstanding 311,794,973 Toronto Venture Exchange DON Fully Diluted 401,909,123 Frankfurt Exchange D4M 52 week hi-lo $0.035-0.205 Institutionally Held Approx. 40%
TSX.V: DON Bracemac-McLeod The next Matagami Mine May 2013 production of zinc and copper in Québec
TSX.V: DON A Donner Metals/Glencore Joint Venture 686 km2 of prime Matagami Stratigraphy Located in a Mining-Friendly Jurisdiction
TSX.V: DON Copper
Underground at Zinc + Bracemac-McLeod: Copper Bracemac Main Zone Ore
TSX.V: DON Donner’s annualized production: 50 million lbs. of zinc, unhedged TSX.V: DON Matagami zinc concentrate 9 Resources and Reserves High-grade zinc, copper, silver and gold
Proven and Probable Reserves: Bracemac-McLeod
Bracemac-McLeod 3.73 Mt 9.6% Zn 1.3% Cu 28.25 g/t Ag 0.43 g/t Au
Measured and Indicated Resources: McLeod Copper Zone 0.24 Mt 1.0% Zn 1.3% Cu 7.80 g/t Ag 0.19 g/t Au
Inferred Resources: McLeod Deep Zone 2.50 Mt 9.2% Zn 1.2% Cu 39.81 g/t Ag 1.12 g/t Au West Zone 0.16 Mt 2.2% Zn 2.6% Cu 23.76 g/t Ag 0.19 g/t Au
TSX.V: DON Mine Development
› Partnership with Glencore (65% Glencore / 35% Donner) › Bracemac-McLeod Mine under construction - 90 kt Zn, 13 kt Cu/yr › Production began May 15, 2013 › Initial 4 year mine life, potential to expand to 7+
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11 Production underway, Development ongoing
Ramp Entrance Bracemac McLeod Bell Allard South Pit
Upper Zone KT Zone
170 Main Zone 230
290 Current Advancement 350
West McLeod
McLeod -750m Zone LEGEND 2010 Explora on corridors 2011 2012 Inferred resources 2013 not included in mine plan McLeod Deep Discovery 2014 2.47 MT (Inferred Resources) Open 2015 New sulphide intersections 2016
TSX.V: DON Established Infrastructure
TSX.V: DON Surface Key Tuffite
McLeod Deep West drilling McLeod
-500m McLeod Zone Reserves
Bottom of current mine plan
-1000m
McLeod Deep 2.47 MT Inferred Resources *Conceptual mine design
TSX.V: DON TSX.V: DON South Flank - Key Tuffite 3D Model
Matagami Town site Matagami Isle Dieu Mill Orchan West Ramp High-grade Portal (Undeveloped) Bell Allard 2 Kms
Historical Producer
Exploration Potential 1 Km Bracemac-McLeod Ramp access under construction
TSX.V: DON Looking at the surface of the Key Tuffite (paleo-sea floor) in its current position in the South Flank 16 Exploration Targets Pipeline Matagami Mill 3,000 tonnes per day
Development & produc on Bracemac-McLeod 3.7 MT Reserve Feasibility study McLeod Deep Defini on drilling West McLeod 1.7 MT 2.6 MT PD1 OP Scoping study Meas. + Ind. Resource Inf. Resource PD1 UG
West McLeod Delinea on drilling McLeod Up dip Bracemac- Orchan West Advanced 0.34 MT 15.9% Zn, 1.8% Cu McLeod extension Explora on DJV Daniel 1 Bell Channel 2.2% Cu/ 4.0 m 2% Cu/ 5 m 8.6% Zn/ 2.2m Radiore Discovery Cavalier 2.4% Cu/ 8.9m 0.29 MT 1.4% Zn, 1.5% Cu Galinee 14 North South Perseverance Radiore New Hosco Central Drill Targets TSX.V: Flank DON Flank North East Camp
17 › Generation of revenues from the mine Strategy for › Exploration and potential the future acquisitions, with a focus on Québec
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› Experienced exploration team
› Adaptable exploration plans
› Pipeline of high-quality drill targets
Bracemac-McLeod discovery - 2007
Production - May 2013 Intersecting the discovery hole - 2012 TSX.V: DON
19 Montréal 1 Place Ville Marie, bureau 2001 Montréal, QC H3B 2C4 T : 1-514-286-1665 Vancouver 1055 West Georgia Street, Suite 2480 Vancouver, BC V6E 0B6 T : 1-800-909-8311 www.donnermetals.com TSX.V: DON TSX.V: DON