Recent Developments

Recent Developments (Updated April 28, 2015)

Q1 2015 Summary

Detour Gold reported its 2015 first quarter results on April 28, 2015. 

View the related press release:
15 04 28 - Detour Gold Reports First Quarter 2015 Results


Detour Lake Mine - Q1 2015 Operational Results

  • Gold production totaled 105,572 ounces, approximately 4% below the lower end of the guidance range for the first quarter of 2015.

  • For the period, the mill facility processed 4.3 million tonnes (Mt) of ore or an average of 47,797 tonnes per day (tpd) at recoveries of 91%. Processed grade was 0.84 grams per tonne (g/t), in line with projections for the quarter.

  • Mill operating time at 78% was below expectations for the quarter as a result of operational challenges in the first half of the quarter with conveyors and ore movement in the stockpile dome, which were intensified by the extreme cold weather. The 410 conveyor belt was replaced in early January and wet ore mined from the bottom of the pit caused freezing in the stockpile dome. With these issues largely resolved by mid-February, the processing plant has operated at design capacity of 55,000 tpd for the last 82 days. 

  • Blast hole drilling rates increased significantly in the first quarter resulting in a 88% increase in blasted inventory (up to 3.1 Mt by the end of March), which has resulted in higher shovel productivity, especially on the CAT7495 shovels by providing the opportunity for double-side loading.

  • A total of 19.4 Mt was mined in Phase 1 (equivalent to mining rates of 215,000 tpd), approximately 3% lower than the annual budgeted rate of 222,000 tpd. The Detour Lake mine operated with a reduced shovel fleet during the quarter as a result of a series of mechanical failures, including the loss of a CAT7495 shovel in March for approximately two weeks to replace the boom and dipper arms. Phase 1 tonnage shortage from the first quarter has been recovered in April.

2014 Detour Lake Mine Operation Statistics:

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Ore mined (Mt) 4.88 2.89 4.20 4.30 ; 3.83
Waste mined (Mt) 14.29 16.11 14.71 15.39 15.97
Total mined (Mt) 19.17 19.00 18.91 19.69 19.79
Strip ratio (waste:ore) 2.9 5.6 3.5 3.6 4.2
Mining rate (tpd) 213,000 209,000 206,000 214,000 220,000

Ore milled (Mt) 4.08 4.42 4.53 4.71 4.30
Head grade (g/t Au) 0.90 0.91 0.88 0.85 0.84
Recovery (%) 91 91 90 91 91
Mill throughput (tpd) 45,282 48,569 49,186 51,142 47,797
Mill availability (%) 80 83 81 83 78
Ounces produced1 (oz) 107,154 117,366 115,344 116,770 105,572
Ounces sold (oz) 84,560 107,206 106,334 124,913 104,497
 Average realized price2,3 (US$/oz) $1,235  $1,294  $1,275  $1,240  $1,232 
 Total cash cost per oz sold2 (US$/oz) $976  $941  $941  $874  $925 
 AISC per oz sold2,4 (US$/oz) $1,307 
 Mining (Cdn$/t mined) $2.87  $2.87  $2.98  $3.22  $3.16 
 Milling (Cdn$/t milled) $11.13  $11.25  $9.70  $9.76  $11.35 
 G&A (Cdn$/t milled)5 $3.68  $3.46  $3.25  $3.30  $3.89 

Note: mill availability is defined as mill operating time. For Q1 2015, mechanical availability was 89% and utilization was 88% giving 78% operating time.

  • Phase 2 pre-stripping, which does not impact production before 2017, started in February with smaller equipment than plan due to poor ground conditions. A total of 420,000 tonnes was mined in Phase 2 during the quarter. Since early April, Phase 2 mining rates have improved to budgeted rates with the introduction of a CAT6030 excavator, as originally planned. The Company is expecting to recover the first quarter shortfall before the end of the year.

  • Mining rates (Phase 1 and 2) have been at budgeted levels of 238,000 tpd for the last 97 days, with the last 69 days averaging 250,000 tpd.

  • At the end of the quarter, run-of-mine stockpiles were at 0.5 Mt grading 0.69 g/t and are scheduled to be further re-built during the year.

  • Total cash costs for the first quarter of 2015 were US$925 per ounce sold2 and all-in sustaining costs were US$1,307 per ounce sold2, higher than plan due to lower production and one-time costs of US$5 million incurred to repair the 410 conveyor belt and for unscheduled maintenance on the shovel fleet.


Detour Gold confirms its 2015 guidance as follows:
2015 Guidance
Gold production (oz) 475,000-525,000
Total cash costs ($/oz sold)2 US$780-$850
All-in sustaining costs ($/oz sold)2 US$1,050-$1,150
  • Total cash costs2 are expected to be at approximately US$900 per ounce sold for the first nine months of 2015 and then decline to below US$700 per ounce sold in the fourth quarter. This significant reduction reflects the higher gold production and the building of stockpile inventories in the fourth quarter.

  • Expected sustaining capital expenditures and capitalized stripping costs for 2015 remain as previously stated at approximately US$90 to $100 million and US$20 to $25 million, respectively.

  • Exploration expenditures for 2015 are expected to increase to US$8 million as the Company is planning to complete a 30,000 metre drilling program at Lower Detour.

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 For Q1 2015, total mined and mining rate include both Phase 1 and 2.
2 Refer to the section on Non-IFRS Financial Performance Measures in the MD&A for the relevant periods.
3 Commencing in 2015, the Company has adjusted the definition of realized gold price to include the impacts of realized gains and losses on gold derivative instruments. Prior periods have been adjusted.
4 For AISC, the Company adopted this measure effective January 1, 2015.
5 G&A costs include 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.