Published on: 2/5/2014 11:00:51 AM Print | Font Sizes:  Normal Text Large Text

Detour Gold updates resource estimate

By: Northern Ontario Business staff

In an updated NI 43-101 resource estimate, Detour Gold has announced a mine life of 21.7 years for its Detour Lake Mine north of Cochrane. Current mineral reserves stand at 15.5 million ounces of gold (476 million tonnes grading 1.02 g/t gold).

“We are very pleased with this life-of-mine plan update for the Detour Lake Mine,” said Pierre Beaudoin, Detour’s COO, in a news release.

“This improved mine plan demonstrates positive economics and, as we continue to optimize the operation, we certainly expect further improvements. Our technical team and external consultants have worked together to confirm the robustness of our block model and validating our mineral reserves. In addition, we have applied an elevated cutoff grade to maximize our return on investment.”

Highlights of the report include proven and probable open pit reserves of 15.5 million ounces contained gold and 21.7 years of mine life with mill throughput increasing from 55,000 to 61,000 tpd in 2017.

Life-of-mine average annual gold production is approximately 660,000 ounces at total cash costs of $723 per ounce sold.

Over the next five years, average annual gold production of approximately 600,000 ounces at total cash costs of $759 per ounce sold.

The new resource estimate, which has been filed with SEDAR, comes two weeks after the company indicated it had fallen short of its 2013 operation targets.

Detour Gold reported gold production of 232,287 ounces for the mine’s first year of operation, which is below its lower end guidance of 240,000 ounces.

The company cited an unplanned shutdown at its mill in December as part of the problem, but said milling rates had since returned to pre-shutdown levels.

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