TSX.V: DONA Donner Metals/Xstrata Zinc Joint Venture CAUTIONARY STATEMENT
Certain statements of this presentation contain forward looking information and future oriented financial information. The reader is cautioned that assumptions used in the preparation of such information, although considered accurate at the time of preparation, may prove incorrect. The actual results may vary materially from the information provided herein. Consequently, there is no representation that actual results achieved will be the same as those forecast. A full Cautionary Statement is available at www.donnermetals.com
TSX.V: DON
2 CAPITAL STRUCTURE Shares Outstanding: 224,603,493 Toronto Venture Exchange: DON Fully Diluted: 247,405,998 Frankfurt Exchange: D4M 52 Week Hi-Lo: $0.155 - $0.27 Institutionally held: approx. 50%
TSX.V: DON 3 Donner Metals Opportunity › Commercial production scheduled for Q1 2013 › Tracking on budget and on schedule › Established infrastructure › Experienced exploration and development teams › Strong partnership with Xstrata Zinc › Potential for new discoveries
Donner Metals Ltd. TSX.V: DON
TSX.V: DON www.donnermetals.com
4 MINE DEVELOPMENT
› Partnership with Xstrata Zinc (65% Xstrata / 35% Donner) › Bracemac-McLeod Mine construction is well underway › Production scheduled to begin in First Quarter 2013 › Initial 4 year mine life, with the potential to expand to 7+
TSX.V: DON
5 TRACKING ON BUDGET AND ON SCHEDULE
Ramp Entrance Bell Allard South Pit
Upper Bracemac Zone Bracemac KT Zone
170 Bracemac Main Zone 230
290 Advancement, September, 2012 350
West McLeod
McLeod -750m Zone LEGEND 2010 Explora on corridors 2011 2012 2013 McLeod Deep Discovery 2014 2.47 MT (Inferred Resources) Open 2015 Inferred resources 2016 not included in mine plan
TSX.V: DON AWARD-WINNING DISCOVERY IN WORLD-CLASS MINING CAMP
Surface Upper Bracemac Bracemac Main
Bracemac KT
West McLeod -500m
McLeod
-1000m
McLeod Deep
0 m 200 m
TSX.V:Key TuffiteDON Exploration Areas Bracemac-McLeod 3D Model 7 RESERVE AND RESOURCE BASE HIGH-GRADE ZINC AND COPPER DEPOSITS WITH SILVER AND GOLD
Donner-Xstrata Matagami Agreement Current Mine Plan Proven and Probable Reserves Deposit Production (Mt) % Zn % Cu Ag g/t Au g/t Depth (m) Scheduled South Bracemac-McLeod 2013 3.73 9.60 1.26 28.25 0.43 35-900 Flank 4 yr LOM
Expansion Resource Deposit (Mt) % Zn % Cu Ag g/t Au g/t Depth (m) Classification South McLeod Deep Inferred 2.47 9.20 1.22 40 1.10 600-1200 Flank McLeod West Inferred 0.16 2.20 2.60 24 0.20 400-600 McLeod Copper zone Indicated 0.24 0.96 1.25 7.80 0.19 600-700
West PD1 Measured 0.59 4.3 0.8 19.6 0.1 25-100 Camp Indicated 1.14 4.7 1.33 20.0 - 100-515
TSX.V: DON
8 Year-Round Ongoing Exploration of Multiple Targets with Stacked Horizons 2.7 Billion Years Ago Present Day
› Highly experienced award-winning exploration team › 4,737 km2 property area with huge exploration potential
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
Looking at the surface of the Key Tuffite (paleo-sea floor)
TSX.V: DON in its current position in the South Flank
10 Bracemac-McLeod Bracemac Main Zone Ore
Copper
Zinc + Copper
TSX.V: DON 11 Exploration Joint Ventures 4,737km2
Area of Interest Perseverance (100% Xstrata)
3 PD1 Deposit 4
Matagami 5 Matagami Xstrata Mill: 3000 1 TPD 2 6
Bracemac-McLeod Mine
0 5 10 10kilometers Km
1) South Flank JVA (Xstrata 65% - Donner 35%) - No further Back-in 2) Bracemac-McLeod JVA (Xstrata 65% - Donner 35%) - No further Back-in 3) North Flank JVA (Xstrata 50% - Donner 50%) - Xstrata Back-in option (15%) 4)TSX.V: Central DON Area JVA (Xstrata 50% - Donner 50%) - Xstrata Back-in option (15%) 5) West Camp JVA (Xstrata 50% - Donner 50%) - Xstrata Back-in option (15%) 6) East JVA (Xstrata 50% - Donner 50%) - Xstrata Back-in option (15%) Surface Key Tuffite
Deep McLeod West proposed drilling McLeod
-500m McLeod Zone
-1000m
McLeod Deep 2.47 MT Inferred Resources
TSX.V: DON EXPLORATION TARGETS PIPELINE
Matagami Mill 3,000 tonnes per day
Development & produc on Bracemac/McLeod 3.6 MT Reserve Feasibility study McLeod Deep 1.7 MT Defini on drilling West McLeod Meas. + Ind. Resource 2.6 MT PD1 OP Scoping study PD1 UG 2.6 MT Inf. Resource Inf. + Ind. Resource
McLeod Delinea on drilling
Bracemac Orchan West McLeod Advanced 0.34 MT 15.9% Zn, 1.8% Cu extension Explora on Daniel 1 Bell Channel 2.2% Cu/ 4.0 m 8.6% Zn, 0.14% Cu/ 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
14 $25 Million Sandstorm Financing July 13, 2011
Metal Purchase Agreement signed with Sandstorm Metals & Energy
› A unique form of financing with the first base metal stream › Upfront purchase payments of US$22.75 million § Copper stream § Precious metals stream (silver and gold) › Option to buy back from Sandstorm 50% of metal stream for US$17.5 million › $2.25 million private placement at $0.35
› 100% of Donner’s zinc production remains unhedged
TSX.V: DON TSX.V: DON Zinc price
TSX.V: DON Source: LME, Macquarie Research, August 2012 Summary
› Commercial production to begin in Q1 2013 › Tracking on budget and on schedule › Established infrastructure › Experienced exploration and development teams › Strong partnership with Xstrata Zinc › Potential for new discoveries › Future in Quebec focusing on base metals
TSX.V: DON Donner Metals Ltd. TSX.V
www.donnermetals.com 18 18 › Very strong exploration team
› Adaptable exploration plan
› Pipeline of quality targets
Bracemac-McLeod Exploration Discovery, 2007
Discovery drill hole intersected Ore Stockpile - 2012 TSX.V:in under DON ground development - 2012 19 19 www.donnermetals.comı
TSX.V: DON TSX.V: DON