Recent Developments (Updated January 21, 2014)
Q4 2013 Summary
Detour Gold reported its fourth quarter and full year operational update on the Detour Lake mine on January 21, 2014.
View the related press release: 14 01 21 – Q4 Operating Results
- Gold production of 232,287 oz for first year of operation (slightly below lower end guidance of 240,000oz)
- Gold sales totaled 212,522 oz1 at an average realized price of US$1,318/oz2
- Sustaining capital of Cdn$196 M incurred during the year, excluding any deferred stripping costs
- Cash and short-term investments totaling approximately Cdn$96 M at year end (higher than projected as a result of favourable timing of harmonized sales tax refunds)
Detour Lake Mine - Fourth Quarter Summary
In the fourth quarter, the mill processed 3.4 Mt of ore at an average grade of 0.81 g/t with recoveries of 92% for gold production of 81,877 oz. Gold sales totaled 95,000 oz1 at an average realized price of US$1,269 /oz2.
The mill facility (both grinding lines) processed an average of 37,090 tonnes per day (tpd). Prior to the unplanned shutdown in December, throughput rates had reached 47,581 tpd in November with a record day at 63,700 tonnes on November 16, 2013.
Mill availability for both October and November averaged 82.5%. Availability was significantly reduced in December due to a four-day planned shutdown and a mechanical failure of the pre-leach thickener which caused the mill to shut down for an additional 15 days. Repairs to the torque cage structure and rakes were successfully completed and operations restarted on January 2, 2014 (refer to news releases of December 23, 2013 and January 2, 2014). During these downtime periods, the Company completed a number of mill related repairs and improvements, which should have a positive impact on near-term performance (i.e. installation of the shuttle chute to the two secondary crushers, replacement of the liners to the primary crusher and SAG mills, and replacement of the mill grates for both SAG mills).
The open pit operation mined 20.9 Mt during the fourth quarter, of which 4.08 Mt was ore and 16.8 Mt was waste (including 5.35 Mt of overburden and till) for a quarterly strip ratio of 4.1 to 1. At the end of December, the run-of-mine ore stockpiles contained over 2.41 Mt grading 0.82 g/t.
Detour Lake Mine Operation Statistics:
|Ore tonnes mined (Mt)
|Tonnes milled (Mt)
|Mill grade (g/t Au)
|Ounces produced (oz)(1)(2)
(1)During the commercial period (September 1 to year-end), the Detour Lake mine produced 105,898 oz of gold.
Mining rates during the fourth quarter averaged 203,000 tpd, excluding the contractor overburden removal contract. Mining rates averaged 222,000 tpd in December 2013.
In November and December 2013, the Company took delivery of an additional hydraulic shovel (CAT 6060) along with three haul trucks (CAT 795F). The Company now has a mining fleet of 23 haul trucks, three hydraulic shovels (CAT 6060), one excavator (CAT 6030), and two rope shovels (CAT 7495). The Company has ordered a second excavator (CAT 6030), which is expected to be delivered in the second quarter.
(1)Gold ounces sold exclude the 2% royalty paid in-kind.
(1)Refer to Non-IFRS Financial Performance Measures section at the end of this page.
Upcoming News Flow
The Company expects to announce the following updates in the first quarter of 2014:
- 2014 operational and financial guidance (end of January)
- Life of mine plan and year-end 2013 mineral reserve/resource update for Detour Lake (early February)
- Fourth quarter and full-year 2013 financial results (early March)