Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") reports the results of an updated independent mineral
resource estimate on the Block A property, a 50/50 joint venture between
Trade Winds Ventures Inc. ("Trade Winds") (operator of the JV) and
Detour Gold, located near Detour Gold's Detour Lake gold project in
northern Ontario. This updated estimate contained within an open pit
shell was completed by Watts, Griffis and McOuat Limited ("WGM"),
Consulting Geologists and Engineers of Toronto, Canada and complies with
National Instrument 43-101 ("NI 43-101") Standards of Disclosure for
Mineral Projects.
In-pit Mineral
Resource Estimate for Block A (100%) (at a cut-off of 0.5 g/t Au) |
Resource Category |
Tonnes |
Grade Capped |
Gold Ounces |
|
(millions) |
(g/t Au) |
(000's) |
Indicated |
36.4 |
1.02 |
1,200 |
Inferred |
8.3 |
1.04 |
277 |
Notes:
(1) The mineral resources are classified as indicated and inferred, and
comply with the CIM mineral resource definitions referenced in National
Instrument 43-101.
(2) Base case assumes a gold price of US$700/oz gold and US$ exchange
rate of $1.18.
(3) Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(4) 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.
(5) The tonnages and grades quoted are undiluted. Gold grades were
capped at values ranging from 10 g/t to 100 g/t based on statistical
analysis.
This mineral resource estimate is an update of Trade Winds' December
2006 Technical Report by Golder Associates Ltd. and contains data from
an additional 53 diamond drill holes totaling 13,095 metres completed in
2007. The 2007 drilling program targeted near-surface gold
mineralization of the M Zone in the eastern portion of the deposit,
which enabled the use of a Lerch-Grossman optimized pit shell to
generate a preliminary in-pit mineral resource.
The mineral resources described above are contained within two pit
shells: the M Zone pit and the North Walter Lake pit. The North Walter
Lake pit is located approximately 300 metres to the north of the M Zone
pit and contains 2.7% of the total mineral resources reported above. The
North Walter Lake pit contains 37,500 ounces of gold in the indicated
category (1.4 million tonnes grading 0.86 g/t Au (capped)) and 2,500
ounces of gold in the inferred category (0.1 million tonnes grading 0.69
g/t Au (capped)).
Both the M Zone pit and North Walter Lake pit cross the claim boundary
on the eastern side of Block A onto Detour Gold's Detour Lake property
(mining lease). The portion of the mineral resources of both pits within
Detour Gold's property includes 114,000 ounces of gold in the indicated
category (3.3 million tonnes grading 1.09 g/t Au (capped)) and 31,000
ounces of gold in the inferred category (1.0 million tonnes grading 0.97
g/t Au (capped)). These specific mineral resource figures are excluded
from those reported above for Block A.
Gold Price and Cut-off Grade Sensitivity Analysis
A gold price sensitivity analysis was completed applying identical input
cost parameters at the US$700/oz base case. Gold prices of US$575/oz,
and US$825/oz were used to create discrete pit shells with operational
cut-off grades of 0.50 g/t, 0.40 g/t and 0.30 g/t Au. Results of this
study are presented below.
|
|
|
Indicated
Category |
Inferred
Category |
Gold Price
US$/oz |
Cut-off
Grade
(g/t Au) |
Strip
Ratio |
Tonnes
(millions) |
Grade
(g/t Au) |
Gold Ounces
Capped
(000's) |
Tonnes
(millions) |
Grade
(g/t Au) |
Gold Ounces
Capped
(000's) |
$575 |
0.50 |
3.90 |
26.2 |
1.08 |
908 |
3.1 |
1.28 |
127 |
|
0.40 |
2.95 |
32.4 |
0.96 |
997 |
3.9 |
1.11 |
138 |
|
0.30 |
2.17 |
40.3 |
0.84 |
1,086 |
5.0 |
0.94 |
150 |
$700 |
0.50 |
4.68 |
36.4 |
1.02 |
1,200 |
8.3 |
1.04 |
277 |
|
0.40 |
3.37 |
46.7 |
0.90 |
1,348 |
11.4 |
0.88 |
322 |
|
0.30 |
2.37 |
60.5 |
0.77 |
1,502 |
15.0 |
0.75 |
362 |
$825 |
0.50 |
5.61 |
42.5 |
1.00 |
1,361 |
13.0 |
1.00 |
421 |
|
0.40 |
4.00 |
55.5 |
0.87 |
1,548 |
17.9 |
0.85 |
490 |
|
0.30 |
2.77 |
73.2 |
0.74 |
1,746 |
24.2 |
0.72 |
560 |
Mineral Resource Estimate Parameters and Method- The block model mineral resources was estimated within a
Lerch-Grossman pit shell using MineSight(r) software based on the
concept of a large-scale open pit with the pit parameters indicated
below. The cost estimates used in the study were compiled by WGM
utilizing public information from similar operations and from various
suppliers and contractors.
Exchange Rate |
C$
1.18 = US$ 1.00 |
Recovery |
91% |
Ore Mining Costs |
C$
1.70/tonne |
Waste Mining
Costs |
C$
1.60/tonne |
Processing Costs |
C$
6.38/tonne |
G & A |
C$
1.38/tonne |
Refining Costs |
US$
6.00/oz |
Royalty |
2% |
- Detailed metallurgical work has not been completed on Block A.
For the purposes of the mineral resource estimate, WGM utilized gold
recovery rates compiled from public information from Detour Gold and
other similar deposits.
- An overall pit wall angle of 24 degrees for overburden and 48
degrees for bedrock were used in the study. This overall angle
considered a 35 metre wide ramp system within the angle calculation.
- A three-dimensional (3D) geological and block model was
generated using GEMS(c) software. The block model matrix size of
10x15x10 metres (width x length x height) was selected with consultation
with the engineering team from WGM and was based on the size that was
deemed suitable for an open pit mining scenario. A Minesight(r) model
was created with the exact parameters for use with the Lerch-Grossman
algorithm.
- The database used for this mineral resource estimate comprised
602 diamond drill holes totalling 114,951 metres of drilling completed
by Trade Winds from 2003 to 2007 and 112,464 metres of historical
drilling completed by Placer Dome and prior operators.
- All drill holes are diamond drill core with the majority of
the samples collected and assayed at approximately 1 metre sample
intervals.
- The composite interval selected was 3 metres downhole.
- Densities were determined for representative rock samples
using industry standard methods. The average value for each domain was
applied to the block model with a background density of 2.80
tonnes/metre3 for areas outside the domain boundaries.
- Geological rock type coding in the drill hole database led to
the development of the 3D lithological domain models. These domains were
utilized in the grade variography studies and in the grade
interpolation constraints.
- For the treatment of outliers, each statistical domain was
evaluated separately. The statistical domains were capped at values
ranging from 10 g/t Au to 100 g/t Au in combination with search
restrictions on values greater than 20 g/t Au for some of the domains.
The procedure used allows the deposit to retain the high grade assays
while limiting their influence during the interpolation.
- Ordinary Kriging was used for all domains and grade
interpolation at the domain boundaries relied upon the soft/hard
boundary determination from the statistical grade contact profiles.
- The interpolation was carried out in multiple passes with
increasing search ellipsoid dimensions. Classification for all models
was based primarily on the pass number followed by an adjustment to the
class model, based on a diamond drilling density map (core area and at
depth) and the distance to the closest sample used in the interpolation
using the variography results for guidance.
Quality Assurance and Quality Control ("QA/QC") Program
Trade Winds has implemented a quality control program to ensure best
practices in sampling and analysis of the core samples. The core is
first logged then sawn in half during the sampling process with the
remaining half being retained for verification and reference purposes.
During sample collection and assaying, there is an established QC
procedure for using standards, duplicates and blanks. The core samples
were divided into batches of 20 prior to shipment. In each batch, there
would be a minimum of one standard, one duplicate sample and one blank
sample. It is Trades Winds' policy that duplicates are inserted after
high grade gold mineralized samples, especially those with visible gold.
The samples are delivered in sealed bags direct to ALS-Chemex
Laboratories preparation facility in Rouyn-Noranda, Québec, Canada.
Sample pulps are shipped from there to ALS-Chemex Laboratories in
Mississauga Ontario, Canada for analysis. Trade Winds used Chemex
AU-AA23, which is a 30 g fire assay with AA finish similar to the
analytical technique used by Rocklabs Ltd. supplier of the QA/QC
standard. Samples returning greater than 10 g/t Au were automatically
processed using a fire assay-gravimetric finish. Total metallic assays
for gold were also performed on selected intervals. All sample batches
assayed by Chemex included a standard multi-element ICP package. The
coarse rejects are kept in Rouyn-Noranda for re-assaying purposes for a
period of six months and then returned to the Trade Winds site where
they are stored in a locked shipping container at the exploration site.
NI 43-101 Compliant Report
The mineral resource estimate block model was completed by Pierre
Desautels, P.Geo, a Senior WGM Associate Geologist. The Lerch-Grossman
pit shells and final mineral resource estimates were completed by Gordon
Zurowski P.Eng, a Senior WGM Associate Mining Engineer. The material in
this news release has been reviewed and approved by Mr. Desautels and
Mr. Zurowski of WGM, both Qualified Person as defined by NI 43-101 and
by Stephen Wallace, P.Geo, VP Exploration of Trade Winds, also a
Qualified Person as defined by NI 43-101. The complete NI 43-101
Technical Report will be filed on SEDAR at www.SEDAR.com within 45 days.
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 Detour Gold/Trade Winds Joint
Venture's estimate of the quantity and quality of its mineral resources.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which are beyond Detour Gold's ability
to predict or control and may cause Detour Gold'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. These risks, uncertainties and other factors
include, but are not limited to, gold price volatility, changes in debt
and equity markets, the uncertainties involved in interpreting
geological data, increases in costs, environmental compliance and
changes in environmental legislation and regulation, interest rate and
exchange rate fluctuations, general economic conditions and other risks
involved in the gold exploration and development industry, as well as
those risk factors discussed in the section entitled "Description of
Business - Risk Factors" in Detour Gold's 2008 annual information form.
Such forward-looking statements are also based on a number of
assumptions which may prove to be incorrect, including, but not limited
to, assumptions about the following: the availability of financing for
exploration and development activities; the estimated timeline for the
development of the Detour Lake Project; the supply and demand for, and
the level and volatility of the price of, gold; the accuracy of resource
estimates and the assumptions on which the resource estimates are
based; market competition; ongoing relations with employees and local
communities; and general business and economic conditions. Accordingly,
readers should not place undue reliance on forward-looking statements.
Detour Gold undertakes no obligation to update publicly or otherwise
revise any forward-looking statements contained herein 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 'indicated' and 'inferred' resources.
The Company 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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