The Valmond property is located about 50 km west of Matagami, Quebec. The property comprises 111 claims covering a surface area of about 62 km2. It covers a segment of more than 15 km along the gold-bearing Bapst Fault. An option agreement was concluded with Midland Exploration Inc. (“Midland”) in November 2013 for the Property. Donner may earn a 50% interest in the property in consideration of exploration expenditures totalling $2,500,000, including a firm commitment of $300,000 during the first year of the agreement, and cash payments totalling $250,000 over a period of four years. Midland will be the project operator for the duration of this option agreement.
The Valmond property covers, over more than 10 km, an important gold-bearing structure trending NW-SE, which hosts several historical gold occurrences with drill intercepts grading 2.3 g/t Au over 4.57 m and 5.22 g/t Au over 1.55 m. This structure has seen very little exploration in the past and the main showing known to date has been traced over more than 300 m along strike. This gold showing is characterized by an extensive hydrothermal alteration zone more than 70 m wide, where the deepest drill hole yielded a grade of 3.77 g/t Au over 1.50 m.
In December 2013, a geophysical program including a helicopter-borne VTEM survey totalling 900 line-km and an induced polarization survey totalling 48.1 km was completed. As a result, several new drilling targets were identified and proposed for drill-testing.
A drilling campaign totalling 1,450.2 m was completed in March 2014. Best results were obtained in drill hole VAL-14-02, which targeted the down-plunge extension of the main showing at about 350 m vertical depth. This hole was drilled to a total depth of 543.0 m and intersected altered intermediate tuffs with quartz veinlets and arsenopyrite stringers between 454.50 and 517.65 m, which yielded several anomalous gold values including 0.46 g/t Au over 0.60 m, 0.74 g/t Au over 0.64 m, 0.15 g/t Au over 1.00 m, 0.44 g/t Au over 0.85 m, and 0.10 g/t Au over 0.50 m. Two graphitic mineralized (locally up to 80% pyrite) mudstone thick horizons intersected higher up in the hole returned several gold anomalous sections including intervals that graded 0.30 g/t Au over 2.87 m 0.40 g/t Au over 1.0 m and 0.41 g/t Au over 0.29 m. Several IP and VTEM anomalies well located laterally at a distance ranging from 2.0 to 2.5 km that were not tested during this campaign remain priority targets and subsequent drill-testing is recommended.