With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
Donner Metals Ltd. is a Canadian development and exploration company focused on base and precious metal projects in Québec. Donner's flagship project is a partnership with Xstrata Canada Corporation in the world-class Matagami Mining Camp district, covering both the current development of a new mine and on-going exploration activities. The area is host to historical production of 8.6 billion pounds of zinc and 853 million pounds of copper since 1963. The Matagami project is located in the Abitibi region of central Québec and it is supported by Xstrata's existing mine infrastructure, a highly experienced workforce and an operating 2,950 tonne per day mill. As well, the area is serviced by highway, power, airport, railway and town site infrastructure. The Bracemac-McLeod deposit is located 6 kilometres from Xstrata's Matagami mill complex. Mineral concentrates produced in Matagami are processed and refined at Xstrata's facilities in Rouyn - Noranda and Montreal.
35% Donner, 65% Xstrata Zinc
Production scheduled for January 2013
Initial mine life of 4 years on current mining reserve (diluted) of 3.73 million tonnes grading 9.60% zinc, 1.26% copper, and 28.25g/t silver and 0.43g/t gold
Positive ROR at base case = $0.80Zinc, $2.50 Copper
+ 2.5 million tonnes in upside highgrade inferred resources identified
Inferred resources are open with high exploration potential
Numerous high-grade intersections outside of current resource envelope
The main access ramp reached 2,300 metres at Bracemac in early December, in advance of the scheduled year-end target, allowing full multi-face development to begin later in January. Total development now stands at 2,500 metres, including the main ramp to McLeod, three ramps turned off to the Bracemac Zones, and a turn-off to the backfill raise. The backfill raise, when completed, will be used as temporary ventilation until the ventilation raise is completed in the fall of 2012. Multi-faced development will now continue to the Bracemac Zones and the in the main ramps accessing the McLeod Zone.