T S X . V : D O N
T S X . V : D O N
1
Donner Metals and Xstrata Zinc :
From the discovery of Bracemac-McLeod in 2007
to the production in 2013
T S X . V : D O N
2
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
T S X . V : D O N
3
› Donner Metals
› Bracemac-McLeod
› Joint venture exploration
› Strategy for the future
Presentation
T S X . V : D O N
4
Management and Directors
David Patterson (Chairman, Director) • 20 years of experience with exploration stage mining
companies
Harvey Keats (CEO, Director)
• 25 years with senior positions at Falconbridge Ltd. • Former VP Exploration of Diamond Fields Resources,
where he was responsible for the exploration program at Voisey’s Bay
Normand Champigny (President)
• 31 years of experience in Québec and other jurisdictions • Chair of the Board of Directors of Minalliance and an
Executive Committee Member of the PDAC.
Robin Adair (VP Exploration)
• 25 years career with Falconbridge/Noranda, Exploration Manager – North America for zinc/copper
• He received his B.Sc. and M.Sc. in geology from the University of Alberta
Ron Tessier (VP Engineering)
• Over 40 years of experience in the mining industry, including in the Matagami Camp
• He managed the feasibility study at Perseverance Mine and oversaw its $160M construction by Xstrata
Kerry Sparkes (Director)
• 25 years of experience in exploration • Vice-President of Exploration for Rainy River Resources
Ken Thorsen (Director)
• Over 35 years of experience in the exploration business including President of Teck Exploration Ltd.
• Spent 21 years General Manager of Advanced Projects with Teck-Cominco
Laurie Sadler (Director)
• Founder and managing partner of Sadler, Weismiller, Spencer, Chartered Accountants (1984-2001)
• He holds an MBA from the University of Western Ontario
T S X . V : D O N
Shares Outstanding: 249,655,993 Fully Diluted: 274,711,948 52 Week Hi-Lo: $0.125 - $0.27 Market Capitalization: ~$40M
Toronto Venture Exchange: DON Frankfurt Exchange: D4M Institutionally held: approx. 50% Liquidity: ~$15M, no debt
5
Capital Structure
T S X . V : D O N
A Donner Metals/Xstrata Zinc Joint Venture
Bracemac-McLeod
The next Matagami Mine
Q2 2013 production of zinc and
copper in Québec
T S X . V : D O N
7
Mine Development
› Partnership with Xstrata Zinc (65% Xstrata / 35% Donner)
› Bracemac-McLeod Mine under construction - 90 kt Zn, 13 kt Cu / yr
› Production first part of Q2 2013, cash cost US$0.42 lb Zn
› Initial 4 year mine life, potential to expand to 7+
T S X . V : D O N
Tracking On Budget and On Schedule
-750m
2010
2011
2012
2013
2014
2015
2016
LEGEND
350
290
230
170
Ramp Entrance Bell Allard South Pit
McLeod Deep Discovery
2.47 MT (Inferred Resources)
West McLeod
Exploration corridors
Bracemac Main Zone
Upper Bracemac Zone Bracemac KT Zone
Inferred resources
not included in mine plan
Open
McLeod
Zone
Current Advancement
T S X . V : D O N
9
Proven and Probable Resources
Mt % Zn % Cu g/t Ag g/t Au Depth (m)
Bracemac-McLeod 3.7 9.6 1.3 28 0.43 35-900
Measured and Indicated Resurces
Mt % Zn % Cu g/t Ag g/t Au Depth (m)
McLeod copper
zone 0.24 1.0 1.3 7.8 0.19 600-700
PD1 (West Camp) 1.7 4.6 1.1 20 <0.1 25-515
Inferred Resources
Mt % Zn % Cu g/t Ag g/t Au Depth (m)
Deep McLeod 2.5 9.2 1.2 40 1.1 600-1,200
McLeod West 0.16 2.2 2.6 24 0.20 400-600
Resources and Reserves High-grade zinc, copper, silver and gold
T S X . V : D O N
10
Revenues by metal
(as of Nov 2012)
Production by metal
(feasibility)
3% 7%
36% 54%
3% 4%
33% 60%
copper copper zinc zinc
silver gold
silver gold
Revenues by metal
(consensus Nov 28 2012)
3% 6%
31% 60%
copper zinc
silver gold
zinc 1.06/lb $
copper 3.35/lb $
silver 31.52/oz $
gold 1,661/oz $
zinc 0.91/lb $
copper 3.57/lb $
silver 34.18/oz $
gold 1,725/oz $
zinc 0.80/lb $
copper 2.50/lb $
silver 12 /oz $
gold 1,000 /oz $
Production primarily from zinc, with copper, silver and gold
T S X . V : D O N
McLeod Deep proposed drilling
Key Tuffite
Surface
-500m
-1000m
*Conceptual mine design
T S X . V : D O N
Established Infrastructure
T S X . V : D O N
Copper
Zinc +
Copper
Underground at Bracemac-McLeod: Bracemac Main Zone Ore
T S X . V : D O N
14
Reduced Risk Optimization
› Existing infrastructure
› Production without ramp-up
› Qualified workforce from Persévérance
› Treatment by Xstrata
› Permitted
› Grinding circuit
› Developing in ore
› Backfilling
› Zinc Larox
› Precious metals
Bracemac-McLeod
T S X . V : D O N
Financing with Sandstorm Metals & Energy
Metal Purchase Agreement
› Payments : $US 32.75M, revenue from sales of copper and precious metals › Line of credit up to $US 4M › 100 % of zinc production remains unhedged › Other joint venture areas excluded
Cu
Au equivalent 20.8 M lbs
>2.75 US$ / lb, 0.80 US$/ lb Donner
<2.75 US$ / lb, 0.55 US$/ lb Donner <2.75 US$ / lb, 0.80 US$ / lb Donner
>2.75 US$ / lb, 1.05 US$ / lb Donner
>350 US$ / oz, 350 US$ / oz Donner
<350 US$ / oz, market price Donner
T S X . V : D O N
Large Area of Mutual Interest: 4,737km2
Located in Mining-Friendly Jurisdiction
T S X . V : D O N
17
South Flank - Key Tuffite 3D Model
Looking at the surface of the Key Tuffite (paleo-sea floor) in its current position in the South Flank
Matagami Town site
Bracemac-McLeod
Orchan West High-grade (Undeveloped)
Bell Allard
Historical Producer
Exploration Potential Ramp access under construction
Mill
2 Kms
Isle Dieu Matagami
Ramp Portal
T S X . V : D O N
18
Exploration Targets Pipeline
Drill Targets
Delineation drilling
Advanced Exploration
Discovery
Feasibility study Definition drilling Scoping study
Development & production Bracemac-McLeod
Orchan West
PD1 OP
Bell Channel
Galinee 14
Matagami Mill 3,000 tonnes per day
McLeod Deep West McLeod
West McLeod
8.6% Zn, 0.14% Cu/ 2.2m
Daniel 1
2.2% Cu/ 4.0 m
South
Flank Perseverance
North New Hosco Central
Camp North Flank
0.34 MT 15.9% Zn, 1.8% Cu
Radiore 2.4% Cu/ 8.9m
3.6 MT Reserve
1.7 MT Meas. + Ind. Resource
2.6 MT Inf. + Ind. Resource
Radiore East
PD1 UG
Bracemac- McLeod extension
Cavalier 0.29 MT 1.4% Zn, 1.5% Cu
2.6 MT Inf. Resource
McLeod Up dip
T S X . V : D O N
19
› Generation of revenues from the mine
› Exploration and potential acquisitions, with a focus on Quebec
Strategy for the future
T S X . V : D O N
20 20
› Experienced exploration team
› Adaptable exploration plans
› Pipeline of high-quality drill targets
Bracemac-McLeod discovery - 2007
Intersecting the discovery hole - 2012 Miners at surface - 2012
T S X . V : D O N
T S X . V : D O N
21
www.donnermetals.com
Montréal
1 Place Ville Marie, bureau 2001
Montréal, QC H3B 2C4
T : 514.286.1665
Vancouver
1055 West Georgia Street, Suite 2480
Vancouver, BC V6E 0B6
T : 1-800-909-8311