Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to report that it has filed today a Technical
Report for the updated National Instrument 43-101 compliant mineral
resource estimate for its Detour Lake gold project in northern Ontario
announced on July 2, 2008. The Company has provided additional
information in the Technical Report, which includes cut-off grade
sensitivities ranging from 0.30 to 0.90 g/t gold for the Base Case
US$700/oz engineered pit design, a preliminary mining schedule and
improvements of the pit slopes. The result of this work is described
below.
Gerald Panneton, President and CEO of Detour Gold commented: "We are
continuing to advance Detour Lake towards development and production. The
project is remarkably strong at US$700/oz gold price with nearly 10
million ounces grading 1.91 g/t at a cut-off grade as high as 0.90 g/t
and up to 15 million ounces grading 1.02 g/t at a cut-off grade as low
as 0.30 g/t. This will provide Detour Gold with flexibility during
production depending on the gold price environment and will help secure
our profitability. The preliminary mining schedule, which supports our
expansion from 30,000 tpd to 60,000 tpd in Year 3, shows that Detour
Lake will be the largest gold operation in North America. There is
potential to further increase the resource base especially to the west
of the Calcite Zone and below the former open pit. We are awaiting
results for 40% of our Phase II program and our Phase III program of
30,000 metres is underway. We expect to deliver a positive feasibility
study as we proceed with a final pit design and reserve estimates,
possibly by year-end. It is our goal to make Detour Gold the next
premium intermediate gold producer."
Cut- off Grade Sensitivities on the Base Case US$700/oz Engineered
Pit Design
In the press release issued on July 2, 2008, the Company provided
sensitivities to gold price for the Base Case (0.50 g/t cut-off grade).
The Company has now run sensitivities on a range of cut-off grades for
the Base Case. The results clearly indicate that even at a cut-off grade
of 0.90 g/t, the deposit still contains a measured and indicated
resource of 8.4 million ounces of gold at a grade of 1.95 g/t with an
additional 1.7 million ounces at a grade of 1.75 g/t in the inferred
category.
|
Measured
Category |
Indicated
Category |
Measured and Indicated
Categories |
Inferred
Category |
Cut-off
Grade
(g/t Au) |
Tonnes
(millions) |
Grade
(g/t Au) |
Tonnes
(millions) |
Grade
(g/t Au) |
Tonnes
(millions) |
Grade
(g/t Au) |
Gold Ounces
(000's) |
Tonnes
(millions) |
Grade
(g/t Au) |
Gold Ounces
(000's) |
| 0.30 |
54.1 |
1.32 |
300.8 |
1.02 |
354.9 |
1.07 |
12,168 |
102.6 |
0.89 |
2,936 |
| 0.40 |
45.4 |
1.50 |
245.5 |
1.17 |
290.9 |
1.22 |
11,454 |
80.0 |
1.04 |
2,684 |
| 0.50 |
38.8 |
1.68 |
204.1 |
1.32 |
242.9 |
1.38 |
10,763 |
63.9 |
1.19 |
2,452 |
| 0.60 |
33.7 |
1.86 |
172.4 |
1.46 |
206.0 |
1.53 |
10,113 |
52.5 |
1.33 |
2,252 |
| 0.70 |
29.4 |
2.03 |
147.4 |
1.60 |
176.9 |
1.67 |
9,506 |
43.4 |
1.48 |
2,061 |
| 0.80 |
26.2 |
2.19 |
127.5 |
1.73 |
153.7 |
1.81 |
8,948 |
36.7 |
1.61 |
1,901 |
| 0.90 |
23.4 |
2.35 |
111.1 |
1.86 |
134.5 |
1.95 |
8,426 |
31.1 |
1.75 |
1,748 |
Note: Gold values are capped at 20 g/t.
Preliminary Mining Schedule
A preliminary mining schedule was prepared for the development of the
Detour Gold project and is presented below. The mining schedule is based
on a mining rate of 30,000 tpd for Year 1 and Year 2, followed by an
increase to 60,000 tpd for subsequent mining years until the end of the
mine life. The schedule is created using five (5) mining phases, about 3
to 4 years per phase including a starter pit to allow for a higher
average grade and a lower stripping ratio to maximize the return on the
investment. A cut-off grade of 0.50 g/t is used and the schedule
consists of all mineral categories (i.e. measured, indicated and
inferred). The preparation of this preliminary mining schedule does not
include mining dilution and gold recovery factor.
| |
PP |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
Yr 6 |
Yr 7 |
Yr 8 |
Yr 9 |
| Ore (MT) |
0 |
10.82 |
11. 85 |
21.60 |
21.60 |
21.61 |
21.61 |
21.60 |
21. 61 |
21.58 |
| Grade (g/t Au) |
- |
1.25 |
1.29 |
1.42 |
1.17 |
1.16 |
1.33 |
1.25 |
1.26 |
1.30 |
| Insitu oz (000's oz) |
0 |
433 |
493 |
984 |
815 |
805 |
924 |
866 |
875 |
903 |
| Rock (MT) |
6.18 |
41.43 |
51. 81 |
110. 77 |
121.46 |
134. 74 |
140. 55 |
144.75 |
146.73 |
143.81 |
| Overburden (MT) |
15.00 |
12.50 |
12.50 |
12.50 |
12.50 |
5.18 |
0 |
0 |
0 |
0 |
| Waste (MT) |
21.18 |
53.93 |
64.31 |
123.27 |
133.96 |
139.92 |
140.55 |
144.75 |
146. 74 |
143.81 |
| Strip ratio |
- |
4.99 |
5.43 |
5.71 |
6.20 |
6.47 |
6.50 |
6.70 |
6.79 |
6.66 |
| |
Year 10 |
Year 11 |
Year 12 |
Year 13 |
Year 14 |
Year 15 |
Year 16 |
Total |
| Ore (MT) |
21.61 |
21.60 |
21.61 |
21.59 |
21.61 |
21.59 |
3.28 |
306.77 |
| Grade (g/t Au) |
1.50 |
1.42 |
1.25 |
1.41 |
1.38 |
1.54 |
1.93 |
1.34 |
| Insitu oz (000's oz) |
1,042 |
990 |
871 |
978 |
962 |
1,070 |
204 |
13,215 |
| Rock (MT) |
142.11 |
137.90 |
135.70 |
132.04 |
126.11 |
124.34 |
17.64 |
1,858 |
| Overburden (MT) |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
70.18 |
| Waste (MT) |
142.11 |
137.90 |
135.70 |
132.04 |
126.11 |
124.34 |
17.64 |
1,928 |
| Strip ratio |
6.58 |
6.38 |
6.28 |
6.12 |
5.84 |
5.76 |
5.37 |
6.29 |
Pit Slope Design Upside Potential
Subsequent to the mineral resource update of July 2, 2008, results from
acoustic televiewer (ATV) surveys carried out in three exploration holes
targeting the footwall slopes indicated that the pit slopes could be
steepened to 53 degrees from 49 degrees in certain portions of the
footwall. These improvements will be incorporated in the final pit
design of the feasibility study currently underway.
Further improvements are expected, especially at the west end of the
deposit, as the Company completes its infill drill program (remaining
Phase II and Phase III) and incorporates them in the US$700/oz
engineered pit design.
Detailed Engineered Pit Design Resource Estimate (reported on July 2,
2008)
On July 2, 2008, the Company reported a mineral resource update based on
a detailed engineered pit design. The measured and indicated gold
resources increased 125% from 4.8 million ounces to 10.8 million ounces
while the inferred gold resources decreased 20% from 3.0 million ounces
to 2.4 million ounces. Based on a cut-off grade of 0.50 g/t gold and a
gold price of US$700/oz, the in-pit resources included in a detailed
engineered pit design is shown below.
June 2008 Detailed Engineered Pit Design Resource Estimate
Base
Case US$700/oz
| |
Tonnes
(millions) |
Grade Capped
at 20 g/t Au
(g/t Au) |
Gold Ounces
(capped)
(000's) |
| Measured
(M) |
38.8 |
1.68 |
2,099 |
| Indicated (I) |
204.1 |
1.32 |
8,664 |
| Total
(M&I) |
242.9 |
1.38 |
10,763 |
| Inferred |
63.9 |
1.19 |
2,452 |
Notes:
- The mineral resources are classified as measured, indicated and
inferred, and comply with the CIM mineral resource definitions
referenced in National Instrument 43-101.
- Base case assumes a gold price of US$700/oz gold and $US
exchange rate of $1.10.
- Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
- The quantity and grade of reported inferred resources in this
estimation are conceptual in nature and there has been insufficient
exploration to define these inferred resources as an indicated or
measured resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured resource category.
Timeline
Release of the remaining Phase II drill results (approximately 68,000
metres) is expected over the next six months. The Phase III program of
30,000 metres is currently underway to properly continue the infill of
the deposit on a 40 metre by 40 metre grid and to expand the deposit to
the west of the Calcite Zone.
Detour Gold plans to order its long-lead items (i.e. SAG and ball mills)
before the end of month. Ongoing optimization studies are currently
underway for the design pit and process design flowsheet. Work is
underway for the Environmental Impact Assessment, which is expected to
be completed by early 2009.
NI 43-101 Compliant Technical Report
The Company has filed a NI 43-101 compliant Technical Report on SEDAR,
which is also available on the Company's website - http://www.detourgold.com/Detour Lake.
The following Qualified Persons have participated in the preparation of
the report: Patrice Live, Eng. of BBA Inc. prepared the fully designed
and engineered open pit resource, and provided and reviewed the costs
estimates used in the resource estimates; Kurt Breede, P.Eng. of Watts,
Griffis and McOuat Limited audited the mineral resource estimate
prepared by Thon Consulting and compiled the technical report; Lawrence
Melis, P.Eng. of Melis Engineering Ltd. supervised and conducted all the
metallurgical work done to date; and Luiz Castro, P.Eng. of Golder
Associates supervised and conducted all the geotechnical work done to
date and provided the pit slope information used in the designed and
engineered open pit resource.
All the names mentioned above have reviewed the content of this news
release.
All samples from the Company's drilling programs are processed and
analyzed at SGS Minerals Services in Don Mills, Ontario (accredited to
ISO/IEC 17025).
For further information, please contact:
Gerald Panneton, President and CEO
Tel: (416) 304.0800
Laurie Gaborit, Director Investor Relations
Tel: (416) 304.0581
Detour Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street,
Suite 2040, Toronto, Ontario M5J 2J1
Forward-Looking Information
This press release contains certain forward-looking information as
defined in applicable securities laws (referred to herein as
"forward-looking statements"). Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"continues", "forecasts", "projects", "predicts", "intends",
"anticipates" or "believes", or variations of, or the negatives of, such
words and phrases, or statements that certain actions, events or
results "may", "could", "would", "should", "might" or "will" be taken,
occur or be achieved. Specifically, this press release includes
forward-looking statements regarding: the Company's planned drilling
program and estimate of the quantity and quality of its mineral
resources. Inherent in forward-looking statements are risks,
uncertainties and other factors beyond the Company's ability to predict
or control. These risks, uncertainties and other factors include, but
are not limited to, the uncertainties involved in interpreting
geological data and other risks involved in the gold exploration and
development industry as well as those risk factors listed in the
Company's Annual Information Form (AIF), Item 4.4 -- "Description of
Business - Risk Factors" filed on SEDAR. Readers are cautioned that the
list of factors included in the AIF is not exhaustive of the factors
that may affect the forward-looking statements. Actual results and
developments are likely to differ, and may differ materially, from those
expressed or implied by the forward-looking statements contained in
this press release. Such statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to, the
following assumptions: the Company's exploration and development
activities on the Detour Lake Property will proceed in accordance with
the Company's current timetables; and the Company's resource estimates,
geological and metallurgical assumptions (including with respect to the
size, grade and recoverability of mineral resources) and operational and
price assumptions on which the resource estimates are based, are
accurate. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's actual
results, performance or achievements to be materially different from any
of its future results, performance or achievements expressed or implied
by forward-looking statements. All forward-looking statements herein
are qualified by this cautionary statement. Accordingly, readers should
not place undue reliance on forward-looking statements. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information or
future events or otherwise, except as may be required by law.
Information Concerning Estimates of Mineral Resources
This news release uses the terms 'measured', 'indicated' and 'inferred'
resources. Detour Gold advises investors that although these terms are
recognized and required by Canadian regulations (under National
Instrument 43-101 Standards of Disclosure for Mineral Projects), the
U.S. Securities and Exchange Commission does not recognize them.
Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into
reserves. In addition, 'inferred resources' have a great amount of
uncertainty as to their existence, and economic and legal feasibility.
It cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, or economic studies except for
Preliminary Assessment as defined under 43-101. Investors are cautioned
not to assume that part or all of an inferred resource exists, or is
economically or legally mineable.
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