West Detour Development

The West Detour (formerly "Block A") near-surface gold deposit is located less than 1 kilometre west of the Detour Lake pit and contains a mineral reserve of 1.8 million ounces of gold (60.9 million tonnes averaging 0.94 g/t).   

The Company is currently in the process of permitting the West Detour project. It filed an Environmental Study Report (“ESR”) with provincial authorities at the end of January 2017. However, the Company was subsequently notified by one of its Aboriginal partners that it had made a request for a federal environmental assessment process. While the Company believes that the ESR meets both the provincial and federal environmental standards, the provincial process typically takes one year compared to two to three years for the federal process. The Company has not yet been notified of the government’s decision.

The Company’s updated life of mine plan filed on March 22, 2017 for the Detour Lake operation, which includes the development of the West Detour project, accommodates the potential timing of a Federal environmental assessment process.

The West Detour project consists of two pits: the North pit containing 187,000 ounces of gold in reserves and the West Detour pit containing reserves of 1.7 million ounces of gold.

The development of the North pit is scheduled to start in 2019 using a contractor (at a maximum rate of 7 Mt per year due to the small size of the pit), which provides flexibility for either an earlier start-up under a provincial process or a delayed start-up under a lengthy federal process. In the second scenario, the plant feed would be supplemented by LG Fines and/or lower grade material until the permit is received. Once depleted, the Company plans to use the North pit as a mine water pond during the operations.

The development of the West Detour pit is now scheduled to commence in 2025, ramping up to a maximum mining rate of 35 Mt per year. It assumes initial contractor pre-stripping followed by a combination of small equipment and shared usage of the Detour Lake pit fleet. The Company contemplates using the West Detour pit, once depleted, for tailings and/or waste rock deposition.