Recent Developments

Recent Developments (Updated October 28, 2015)

Q3 2015 Summary

Detour Gold reported 2015 second quarter results on October 28, 2015. 

View the related press release:
15 10 28 - Detour Gold Reports Third Quarter 2015 Results


Detour Lake Mine – Q3 2015 Operational Results

  • Gold production totaled 128,222 ounces.
  • The mill facility processed 5.2 million tonnes (Mt) of ore or an average of 56,015 tonnes per day (tpd). Although the mill reached record milling rates of 2,750 tpoh during the quarter, mill operating time was at 85% due to unscheduled downtime to replace the SAG mill pulp lifters and the 410-conveyor belt. Both were expected to last to the fourth quarter planned shutdown.
  • Head grade averaged 0.86 grams per tonne (g/t) for the quarter, with September averaging 0.92 g/t. Recoveries averaged 90%.
  • A total of 23.5 Mt (ore and waste) was mined in the third quarter (equivalent to mining rates of 255,000 tpd for Phase 1 and 2), in line with plan. Phase 2 pre-stripping totaled 1.9 Mt for the quarter.
  • At the end of the quarter, run-of-mine stockpiles increased to 3.3 Mt grading 0.67 g/t.
  • During July and August, approximately 92,000 tonnes of ‘fines’ (enriched portion of the low-grade stockpile) were incrementally fed into the plant. This second test continued to support the economics of this process, which is anticipated to be incorporated into the life of mine plan update.
  • Total cash costs and all-in sustaining costs for the third quarter of 2015 were US$766 per ounce sold1 and US$1,071 per ounce sold1, respectively. Total cash costs were higher than plan as a result of more tonnes mined combined with an increased drilled and blasted inventory, and repairs required at the processing plant. The further weakening of the Canadian dollar benefitted costs despite the adverse impact of the currency hedges for the quarter.
  • Unit costs were in line with plan for the third quarter. Processing costs continued to trend downward as a result of favourable electricity rates and lower consumables, which more than offset the costs related to the two unplanned shutdowns during the quarter.

Detour Lake Mine Operation Statistics:

Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
Ore mined (Mt) 6.50 6.37 3.82 4.30 4.20
Waste mined (Mt) 17.00 19.08 15.97 15.39 14.71
Total mined (Mt)2 23.49 25.45 19.79 19.69 18.91
Strip ratio (waste:ore) 2.6 3.0 4.2 3.6 3.5
Mining rate (tpd)2 255,000 280,000 220,000 214,000 206,000
Ore milled (Mt) 5.15 5.19 4.30 4.71 4.53
Head grade (g/t Au) 0.86 0.82 0.84 0.85 0.88
Recovery (%) 90 91 91 91 90
Mill throughput (tpd) 56,015 57,015 47,797 51,142 49,186
Mill availability (%) 85 88 78 83 81
Ounces produced1(oz) 128,222 125,348 105,572 116,770 115,344
Ounces sold (oz) 126,241 123,296 104,497 124,913 106,334
Average realized price1 (US$/oz) $1,164 $1,215 $1,232 $1,240 $1,275
Total cash cost per oz sold1 (US$/oz) $766 $734 $939 $886 $955
AISC per oz sold1,3 (US$/oz) $1,071 $1,030 $1,321 - -
Mining (Cdn$/t mined) $2.69 $2.42 $3.16 $3.22 $2.98
Milling (Cdn$/t milled) $8.64 $8.81 $11.78 $10.17 $10.09
G&A (Cdn$/t milled)4 $3.19 $2.72 $3.89 $3.30 $3.25

Note: Mill availability is defined as mill operating time. Totals may not add up due to rounding. 


Detour Gold confirms its 2015 guidance as follows:

2015 Guidance
Gold production (oz) 475,000-525,000
Total cash costs ($/oz sold)1 US$780-$850
All-in sustaining costs ($/oz sold)1 US$1,050-$1,150
Sustaining capital expenditures US$90-$100 M
Capitalized stripping costs US$10 M*

* With no cash deferred stripping costs expected for the fourth quarter, the total for 2015 stands at US$10 M versus plan of US$20-25 M.

For the fourth quarter, mining rates are expected to range between 250,000 and 260,000 tpd. The scheduled November plant shutdown for the liner replacement has been extended to replace the damaged ball mill trunnion on one of the grinding lines. The plant is still expected to process approximately 5 Mt of ore during the fourth quarter.

Exploration expenditures for 2015 increased to approximately $8 million with this summer 30,000 metre drilling program at Lower Detour.

The LOM plan update remains on track for completion in January 2016 and will be released along with the 2016 guidance.

The following price and cost assumptions were used to forecast the 2015 guidance: gold price of US$1,200/oz, diesel fuel price of US$0.82 per litre, power cost of US$0.04 per kilowatt hour, and exchange rate of $1.00US:$1.15Cdn. 

1 Refer to the section on Non-IFRS Financial Performance Measures in the MD&A for the relevant periods.
2 For 2015, total mined and mining rate include both Phase 1 and 2.
3 For AISC, the Company adopted this measure effective January 1, 2015.
4 G&A costs include site G&A, infrastructure, environmental and Aboriginal costs. 

Technical Information
The scientific and technical content of this news release has been reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.

Non-IFRS Financial Performance Measures
The Company has included non-IFRS measures in this website page. The Company believes that this measure, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Refer to the Company's MD&A for the relevant periods for further details.

NI 43-101 Disclosure:
On February 4, 2014, Detour Gold announced an updated mine production plan for the Detour Lake project. The NI 43-101 compliant Technical Report for this update was filed on SEDAR on February 4, 2014. The following QPs participated in this update:  BBA Inc., under the direction of André Allaire, Eng., Acting President and CEO and Patrice Live, Eng., Director Mining; SGS Canada Inc., under the direction of Yann Camus, Eng., Project Engineer and Maxime Dupéré, P.Geo., Senior Geologist; and AMEC Environment & Infrastructure, a Division of AMEC Americas Limited, David G. Ritchie M.Eng., P.Eng, Senior Associate Geotechnical Engineer and Geotechnical Engineering Group Manager.