Detour Gold is reporting an initial mineral resource for its Zone 58N, which is located six kilometres south of the Detour Lake gold mine.
The mineral resource estimate is comprised of an indicated resource of 2.87 million tonnes grading 5.80 grams per tonne for 534,300 ounces of gold, and an inferred resource of 0.97 million tonnes grading 4.35 grams per tonne for 136,100 ounces of gold.
"Detour Gold is in the fortunate position of having a large mineral reserve base of 16 million ounces supporting a mine life of 23 years,” said Michael Kenyon, Detour Gold’s interim CEO, in a July 26 news release. “The strategy undertaken over the last few years in advancing Zone 58N is to leverage the infrastructure we have in this prospective gold camp by finding high-grade satellite deposits within trucking distance to our mill.
“With this initial resource at Zone 58N, which remains open at depth, and other prospective targets we have identified in our exploration programs, we are beginning to demonstrate the benefits of this strategy, and look forward to further advancing Zone 58N and other future discoveries on our large 647-square-kilometre land position."
The company said metallurgical testing shows the mineralization can be processed at Detour’s existing plant.
More details on Zone 58N will be included in the technical report to be filed for Detour’s updated life-of-mine plan.
The company said it would now undertake a cost evaluation for an advanced underground exploration program, including site access and surface infrastructure, and underground development (i.e. access to mineralized zones and platform for further exploration drilling).
Subject to a positive evaluation, the company would determine the appropriate timeline for the program, the release said.
Detour Lake gold mine is located 300 kilometres northeast of Timmins and 185 kilometres by road northeast of Cochrane.
It has a mine life of about 23 years with an average gold production of 659,000 ounces per year, and includes the development of the West Detour project, which is currently being permitted.