Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") is
pleased to report that it anticipates concluding a pre-feasibility study
for the Detour Lake gold project in the second quarter of 2009 followed
by a feasibility study later this year.
Since late 2008, the mining industry is experiencing substantial
declines for input costs for both capital and operating parameters,
which the Detour Lake project is expecting to benefit from. The Company
expects that the time frames for the pre-feasibility and feasibility
studies will allow the Company's engineering consultants to maximize
opportunities for both cost reductions and project enhancements.
The pre-feasibility study currently underway is being prepared by
Met-Chem Canada Inc. ("Met-Chem") in conjunction with the additional
consulting firms noted below. Metallurgical tests have been completed
and conclude excellent gold recoveries ranging from 91% to 95%. The
process plant design is expected to incorporate both a gravity circuit
and a standard carbon-in-pulp (CIP) circuit for gold recovery. Trade-off
studies to determine the appropriate throughput rate for the deposit
currently suggest an optimized rate of 40,000 to 50,000 tonnes per day.
Tailings and infrastructure studies, being conducted by AMEC Earth and
Environmental (a Division of AMEC Americas Limited) and Ausenco Minerals
Canada Inc. respectively, are well advanced. The Company is also
proceeding with the re-permitting of the existing right of way for the
construction of the power line and connection to the existing power
grid.
The Company is advancing work on the next block model for a new mineral
resource and reserve estimate to be used in the pre-feasibility study.
To date, Detour Gold has outlined a measured and indicated resource of
10.8 million ounces (242.9 million tonnes grading 1.38 g/t gold) and an
inferred resource of 2.4 million ounces (63.9 million tonnes grading
1.19 g/t gold), based on a detailed engineered pit design at US$700/oz
gold price (refer to July 2, 2008 Press Release).
Results from an additional 102,000 metres of infill diamond drilling
(completed since the last resource estimate of July 2, 2008) will be
incorporated in the pre-feasibility study. In total, the study will
incorporate the results from approximately 225,000 metres of drilling by
the Company in the project database totaling approximately 788,000
metres of drilling. Scott Wilson Roscoe Postle Associates Inc. of
Toronto has been retained to independently audit the new mineral
resource estimate for the study. The Company has also retained SGS
Geostat Ltée of Blainville (Montreal) to conduct further gold assay
capping studies. Current studies suggest that a higher capping grade
could be used in the upcoming pre-feasibility study than the 20 g/t gold
previously used. Following the audit of the mineral resource estimate,
BBA Inc. of Montreal will be providing the mineral reserve statement and
design of the proposed engineered open pit.
In this current economic climate of declining costs for key mine inputs
and expected reduction in delivery time for long-lead items, Detour Gold
cancelled its Letter of Award for a SAG and two ball mills, which it
had placed in the third quarter of 2008. At this time, the Company has
not entered into any commitments on long-lead items or construction
contracts.
The Company continues with further diamond drilling on site for
additional resource confirmation. As well, with the hiring of new key
engineering and project staff, Detour Gold is well positioned to deliver
two engineering studies in 2009 on one of the largest undeveloped gold
projects in Canada.
For further information, please contact:
Gerald Panneton, President and CEO Laurie Gaborit, Director Investor
Relations
Tel: (416) 304.0800 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.
|