I had a late meeting today with the management of Donner Metals (DON-TSX-V $.09). They’re a client of mine. I must also tell you that I have no better friend in the junior resourcer business than company Chairman Dave Patterson ( so I’m highly bias but proud of it).Their latest press release shows what real confidence in the project, Xstrata Zinc has with partner Donner Metals on their Bracemac – McLeod discovery in Matagami, Québec. Earlier this week Donner reported that Xstrata Zinc is initiating a scoping study while step-out delineation drilling continues on the discovery. A scoping study is the first stage of the feasibility study process; what I think this means is that Xstrata has a sense that Donner may have already discovered enough tonnes to make their Bracemac – McLeod area viable – enough that Xstrata doesn’t need to bother waiting to see how large this discovery could grow to be or waiting for a published resource estimate. They must have a strong feeling that it’s already there, and are moving ahead.
The latest drill results in Donner’s October 27th news release show that the Bracemac – McLeod discovery continues to expand, and there’s still lots of room for it to continue growing. Xstrata is funding the scoping study so it runs alongside Donner’s delineation drilling.
It’s truly mind-boggling that a deposit this advanced has Donner’s stock trading at just $.09 a share and a market cap of less than $4 million. If you’re looking for companies that can more than survive the meltdown in the junior resource market, please allow me to suggest starting with Donner www.donnermetals.com
Thanks for the work you do on this blog. I’m new to it via Agora’s site but enjoying your view on things and especially looking for some great oversold gems.
Donner might be one but I also notice they have never traded above .70 cents since 2005 http://finance.yahoo.com/echarts?s=DON.V#chart4:symbol=don.v;range=my;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined — so I have to wonder why it is one of your best candidates. It is obvious the company has never been able to muster much of a following during the best of times so what can they do now?
Don’t companies like Crosshair provide a WAY bigger upside potential? If Crosshair (or others) got to 70 cents, they would still have plenty of room to grow. But Donner would have to reach it’s recent memory high.
Donner vs. CXX.
I have had both. Sold off CXX and have hung on to Donner. I met with the management team at the Calgary Gold show. It’s been a tough time to keep the faith. The Team took time to spend and answer questions from the small investor.
My opinion is that Donner has a large partner and CXX does not, Donner has infrastructure close by and CXX does not, Donner has zinc vs U308 an easy approval I think for permits. The path to buyout or production is smoother for Donner than Cross hair.
I am sure Peter likes both management teams – But I think Jr. Uranium companies will be the worst off going forward. Too much risk to compete with the little money that will be out there.
If I was smarter I should have sold everything last year.
Joel
This company has significant spending requirements under the joint venture agreement. Raising exploration dollars at this price (if it can be done) will be extremely dilutive. I sit on the sidelines.
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