detour-lake-mine-recent-development

Recent Developments

Recent Developments (Updated May 2, 2016)

Q1 2016 Summary

Detour Gold reported first quarter 2016 operating results on April 27, 2016.

View the related press release:
16 04 27 - Detour Gold Reports First Quarter 2016 Results

 

2016 First Quarter Operational Results

  • Gold production totaled 127,136 ounces, at the low end of the Company’s quarterly guidance range, based on mill throughput of 4.7 million tonnes (Mt) at an average grade of 0.91 grams per tonne (g/t) and average recoveries of 91.4%.
  • The mill throughput rate was approximately 5% below the design rate during the quarter mainly due to limited power draw on one of the SAG mills and coarser material being processed which impacted milling rates. The SAG mill is back to full power following the April planned shutdown.
  • A total of 21.0 Mt (ore and waste) was mined in the first quarter (equivalent to mining rates of 231,000 tpd), lower than plan primarily as a result of lower availability of the rope shovels and slower progress in Phase 2 to remove the old mining infrastructure and to mine around the former Campbell pit.
  • At the end of the first quarter, run-of-mine stockpiles increased to 6.1 Mt grading 0.64 g/t (approximately 125,000 ounces).
  • Total cash costs of US$637 per ounce sold for the first quarter benefitted from a favourable foreign exchange rate and lower than budget prices for electricity and diesel fuel. All-in sustaining costs of US$824 per ounce sold also benefitted from a slower capital expenditure profile during the quarter.
  • The planned shutdown scheduled for the 410-conveyor was successfully completed in the first half of April. The newly commissioned system consists of two conveyors designed to minimize downtime and de-bottleneck the front end of the circuit by allowing a higher throughput (from 4,000 to a maximum of 5,000 tpoh). During this scheduled plant shutdown, the liners were replaced on both the SAG and ball mills.
  • The Company is expecting to file an environmental assessment for West Detour with the Ontario Ministry of Natural Resources in the third quarter of 2016. Operational permits will largely comprise amendments to Detour Gold’s existing approvals.

Detour Lake Mine Operation Statistics:

  Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Ore mined (Mt) 5.8 6.3 6.5 6.4 3.8
Waste mined (Mt) 15.2 15.7 17.0 19.1 16.0
Total mined (Mt) 21.0 22.0 23.5 25.5 19.8
Strip ratio (waste:ore) 2.6 2.5 2.6 3.0 4.2
Mining rate (tpd) 231,000 239,000 255,000 280,000 220,000
           
Ore milled (Mt) 4.7 5.1 5.2 5.2 4.3
Head grade (g/t Au) 0.91 0.98 0.86 0.82 0.84
Recovery (%) 91 91 90 91 91
Mill throughput (tpd) 52,165 55,522 56,015 57,015 47,797
Mill availability (%) 88 86 85 88 78
Ounces produced (oz) 127,136 146,417 128,222 125,348 105,572
Ounces sold (oz) 137,608 132,209 126,241 123,296 104,497

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”.

NI 43-101 Disclosure:
On January 25, 2016, 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 January 25, 2016. The report was prepared by the Detour Gold Technical Services Department, led by Drew Anwyll, Senior Vice President Technical Services, a Qualified Person (QP) under National Instrument 43-101.

 

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