The Detour Lake project is currently 40 per cent complete and remains on schedule for gold production in the first quarter of 2013.
Detour Gold commenced construction of the mine in November, 2010. As of October 31, 2011, $1 billion has been committed towards project expenditures, including $547 million which has been incurred.
Procurement for equipment has been completed and more than 90 per cent of major contracts have been awarded. The operations senior management team and the first two mine operating teams are in place. The delivery and assembly of mining equipment is ahead of schedule.
The company anticipates that pre-production capital costs for Detour Lake will reach $1.45 billion (includes approximately $50 million in contingency). The revised guidance is based on cost escalation since the June, 2011 project control estimate driven mainly by higher key consumable input and labour costs, updated infrastructure requirements and increased expenditures to maintain the production schedule.
The process plant building is expected to be enclosed by the end of November. During the winter months, Detour Gold will focus on installing most of the mill equipment, including the SAG and ball mills and gyratory crusher, which are scheduled to start arriving at site prior to year-end. Installation of the 20 leach tanks is nearly complete.
The company has started the construction of the haul road to access the open pit and is planning to start pre-stripping activities later this month. Six of the initial hauling trucks (CAT 795F) are fully assembled. The first hydraulic shovel (RH340) is assembled and one electric shovel is at site. Training of the first two operating crews is well underway.
“The increased pressure on capital costs for projects has been a challenge for all of us building mines,” said Gerald Panneton, president and CEO of Detour Gold in a press release. “Our team has done an exceptional job in controlling costs in this inflationary environment and, as such, most of the equipment purchases are in line with the feasibility study. Detour Lake remains on track to produce gold in early 2013.”
