Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to report that the Company has signed a Letter of
Award with FLSmidth Minerals Inc. for the procurement of two 36'X20' (14
megawatts) semi-autogenous (SAG) mills, two 26'X40' (15 megawatts) ball
mills, and one 60"X113" gyratory crusher for the proposed plant
facility at its 100% owned Detour Lake gold project in Ontario. In
addition, the Company is purchasing eight drive systems for the two
lines of SAG and ball mills from ABB Switzerland Ltd.
The current delivery time for this equipment is approximately one year
but the Company has requested delivery in the second half of 2011.
Construction of the 55,000 tonnes per day (tpd) open pit operation is
expected to start in late 2010 following receipt of permits with gold
production commencing in early 2013. Detour Lake is expected to be among
the largest gold operations in North America.
Gerald Panneton, President and CEO, stated: "Management's decision to
order the long lead-time equipment at this time is based on confirming
the throughput capacity for the processing plant combined with the
feasibility study nearing its completion. We are taking advantage of
this current market where we are seeing cost savings and reduced
delivery times."
The Company expects to complete the feasibility study prior to the end
of the second quarter of 2010. For the mineral reserve estimate, the
Company is using a gold price of US$850/oz (representing the last
three-year average) and a cut-off grade of 0.5 g/t gold (compared to 0.6
g/t gold in the pre-feasibility study). The feasibility study will
include:
- Approximately 85,000 metres of the 2009 drilling program results
added in the database for the reserve and resource estimates
- Metallurgical test results indicating that the grinding can be
increased to 90 microns (from 75 microns in the pre-feasibility study)
without any significant loss in overall gold recovery (remaining over
91%)
- Additional crushing capacity added to the front end of the
grinding circuit to maximize throughput to 55,000 tpd versus 45,000 tpd
in the pre-feasibility study
- Addition of a third cell for the tailings management facility
to accommodate the expected increase in mineral reserves
With the positive impact of the additional drilling and using a
lower cut-off grade in the reserve estimate, the Company is expected to
exceed 10 million ounces in reserves. As a result, the mine is expected
to be in operation beyond the 14.5 years estimated in the
pre-feasibility study and achieve an average gold production of over
600,000 ounces per year.
André Allaire, Eng., Director Mining and Metals for BBA Inc. (the lead
firm for the Detour Lake feasibility study), Qualified Person under
National Instrument 43-101, has approved the throughput capacity of
55,000 tpd and has reviewed the content of this news release.
About Detour Gold
Detour Gold is a Canadian gold exploration and development company with a
highly experienced management and technical team whose primary focus is
to advance the development of its flagship Detour Lake gold project
located in northeastern Ontario.
The Company is completing a feasibility study and expects to release the
results prior to the end of the second quarter of 2010. In parallel,
the Company is advancing the permitting and engineering development
work.
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"). Specifically, this press release
contains forward-looking statements regarding the construction of the
open pit operation at Detour Lake, the size of the operation, the
commencement of gold production and the average gold production, the
completion of the feasibility study, Detour Gold's expected reserves and
the expected mine life. 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 2009 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 Project; the supply and demand for, and the level and
volatility of the price of, gold; the accuracy of reserve and resource
estimates and the assumptions on which the reserve and resource
estimates are based; the receipt of necessary permits; market
competition; ongoing relations with employees and impacted 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.
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