Cautionary Statement
Under no circumstances should any material in the Company’s press releases, web site information and corporate displays, among others, be construed as an offering of securities or of investment advice. The materials contained in the Company’s press releases, web site information and corporate displays, among others, constitute information only regarding Donner Metals Ltd. The reader should consult with his/her professional investment advisor regarding investments in securities. Junior public mining and exploration companies should be viewed as speculative investments. Such companies by nature carry a high level of risk. Anyone who cannot accept a risk of total and sudden loss of their capital should not own such securities. Speculators should also be aware that these stocks are subject to swings in price (both positive and negative) and liquidity that are not always related to the fundamentals of the underlying business.
Certain statements and/or graphics in the Company’s press releases, web site information and corporate displays, among others, constitute “forward-looking information” Forward-looking information is information that includes implied future performance and/or forecast information including information relating to, or associated with, exploration and or development of mineral properties. These statements or graphical information involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different (either positively or negatively) from any future results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements are identified by wording such as “scheduled (future sense)” “intend(s)”, “plan(s)” “expect(s)”, “believe(s)” “will” “estimate(s)”, “forecast”, “anticipate(s)”, “expect(s)”, , “may”, “should”, “goal”, “target”, “aim”, “may”, “would”, “could” or “should” or, in each case, the negative thereof, other variations thereon, comparable terminology or wording/graphical information that implies anticipated future results or deliverables.
Relating to exploration, the identification of exploration targets and any implied future investigation of such targets on the basis of specific geological, geochemical and geophysical evidence or trends are future-looking and subject to a variety of possible outcomes which may or may not include the discovery, or extension, or termination of mineralization. Further, areas around known mineralized intersections or surface showings may be marked by wording such as “open”, “untested”, “possible extension” or “exploration potential” or by symbols such as “?”. Such wording or symbols should not be construed as a certainty that mineralization continues or that the character of mineralization (e.g. grade or thickness) will remain consistent from a known and measured data point. The key risks related to exploration in general are that chances of identifying economical reserves are extremely small.
The geological prospectivity of areas which surround, or are adjacent to, deposits from which current production is occurring does not imply that future discoveries will be made, nor does it imply that, should a discovery be may, it will be economically produced. Current production from Xstrata Canada Corporation’s wholly-owned Perseverance mine and future statements relating to use of existing infrastructure and future benefits of existing infrastructure are forward-looking with respect to the impact on new discoveries. The record of past production in terms of metal and/or produced resources does not provide any increased likelihood that new discoveries will be made or that new discoveries can be economically developed. Historical estimates (non NI 43-101 compliant), related to undeveloped deposits, do not provide any increased probability that new discoveries will be made or that new discoveries can be economically developed. Therefore, there is no certainty that new discoveries will be commercially viable based on existing infrastructure and comparison with current operations, past production or historical resources.
The Company has published measured, indicated and inferred mineral resources and proven and probable mining reserves for the Bracemac-McLeod Deposit that conform to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). Under the definition of “Mineral Resource” (CIM Definition Standards on Mineral Resources and Mineral Reserves), a resources is “a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction.” The later part of this definition implies a forward-looking statement.
Statements relating to “mineral resources” (measured, indicated and inferred) for Bracemac-McLeod involve estimates and assumptions that the mineral resources described exists in the quantities, continuity, grade and thickness predicted between known data points. The designation of mineral resources as “inferred mineral resource”, “indicated mineral resource” and “measured mineral resource” follow the definitions under the Canadian Institute of Mining, Metallurgy and Petroleum - Definition Standards on Mineral Resources and Mineral Reserves as referenced under NI 43-101 Historical resources, where noted, are qualified following guidelines under NI 43-101.
The likelihood of exploring for, discovering or developing a deposit on the Matagami Project is subject to many risks. External risks associated with mineral projects are fluctuations in metal prices, adverse government policy changes, and adverse developments in the financial markets generally. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are interdependent.
Donner is a partner with Xstrata Canada Corporation in five joint ventures on the Matagami Project where mine development and exploration activities are conducted.
Bracemac-McLeod Feasibility Study: The feasibility study on the Bracemac-McLeod deposit, authored by Genivar Limited Partnership (“Genivar”) and Xstrata Canada Corporation - Xstrata Zinc Canada Division ('Xstrata Zinc'), contains forward-oriented financial information and project timing assumptions. Details and risks related to the use of such information are discussed below.
Information contained in the Company’s press releases, web site information, corporate displays, and postings on “SEDAR”, among others contain forward-looking information and future-oriented financial information regarding results and financial projections contained in the feasibility study on the Bracemac-McLeod deposit. This study was produced by Genivar and Xstrata Zinc. The Perseverance Mine (wholly-owned by Xstrata) The Matagami mill complex is operated by Xstrata Zinc. Xstrata Zinc and its predecessors (Falconbridge Limited, Noranda Inc, among others) have been operating at Matagami since 1963.
The forward-looking information and forward-orientated financial information are:
Note: Fluctuations in prices and unfavorable currency exchange rates constitute uncontrollable parameters.
The feasibility study on Bracemac-McLeod contains forecasts that can impact (either positively or negatively) the financial characteristics of the Bracemac-McLeod deposit as assessed under the feasibility study in terms of expected mine life, projected cash flows , projected internal rate of return, and realized value in relation to calculated Net Present Value.
Forward-looking statements or information related to Donner’s ability to finance its share of costs under the Matagami Joint Ventures pursuant to the Matagami Lake Joint Venture Agreement with Xstrata Canada Corporation (Xstrata)
The Company is currently operating under the Matagami Lake Option and Joint Venture Agreement (MLOJVA) relating to its participating interest in five joint ventures with Xstrata. Donner is required to fund its share of the joint venture expenditures. The funding requirements are subject to many risks such as:
The Company is subject to the laws and regulations relating to environmental matters, including provisions relating to reclamation, discharge of hazardous material and other matters. The Company conducts its exploration activities in compliance with applicable environmental protection legislation and is not aware of any existing environmental problems related to its properties that may cause material liability to the Company.
In specific relation to participation by Donner Metals in the construction of the Bracemac-McLeod mine or other capital intensive programs, Donner’s ability to finance its share of the project can be impacted by negative changes to forecast assumptions under the feasibility study and by adverse developments in the financial markets generally that may result in Donner’s inability to fund/finance exploration, mine construction, development and operations.
Although the Company believes that the expectations expressed in such forward-looking information and future-oriented financial information are based on reasonable assumptions available to management at the time the assumptions were made, such statements or information do not guarantee future performance success and no assurances can be given as to future results, levels of activity and achievements. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may impact realized results. Actual results or developments may differ materially from those in the forward-looking statements/information and may require achievement of a number of operational, technical, economic, financial and legal objectives. The forward-looking information and future-oriented financial information published by the Company are expressly qualified by this cautionary statement. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
Cautionary note to U.S. investors - This web site contains information about adjacent properties, specifically in relation to the Perseverance Deposit (owned 100% by Xstrata Zinc), on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on other properties are not necessarily indicative of mineral deposits on our properties. In addition, we advise that the Company is not an SEC registrant.
We disclose additional information regarding resource estimates and feasibility studies in accordance with NI 43-101. These disclosures can be found on our website and on SEDAR.