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Toronto, Ontario (Sept. 9, 2009) – Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) is pleased to report positive results from the pre-feasibility study for a proposed open pit mine at its 100% owned Detour Lake gold project in northeastern Ontario. The pre-feasibility study was compiled by Met-Chem Canada (“Met-Chem”) with the participation and contribution of prominent industry consultants. All figures are in US dollars except where noted.Highlights of the Pre-feasibility Study (base case using US$775/oz gold)
- Proven and probable open pit reserves of 8.81 million ounces contained gold with a waste to ore ratio of 3.8 to 1
- 14.5 years life of mine (LOM) at mill throughput of 45,000 tonnes per day (tpd)
- Average annual gold production of approximately 560,000 ounces
- Average LOM cash operating costs of $404/oz
- At $775/oz, pre-tax Net Present Value (NPV) of $621 million at a 5% discount rate generating an Internal Rate of Return (IRR) of 13.5%
- At $900/oz, pre-tax NPV of $1.19 billion at a 5% discount rate generating an IRR of 20.1%
- Estimated start up capital costs of $844 million
- Opportunities to improve project economics for feasibility study
- Global measured and indicated mineral resources of 17.3 million ounces (inclusive of mineral reserves) and 5.2 million ounces in the inferred category
Gerald Panneton, President and CEO of Detour Gold stated: “The completion of the pre-feasibility study, less than three years since the acquisition of the project, is a major milestone for the Company. As a result of our efforts, the Detour Lake deposit is Canada’s largest undeveloped gold reserve and ranks sixth among the top ten largest gold reserves in North America, with 8.8 million ounces. The positive results confirmed the Detour Lake deposit as a future significant gold producer with a long mine life located within a stable political environment. We are continuing with the feasibility study and believe that we can further enhance the project economics with improvements to the capital costs and by expanding the mineral reserves by continuing our drilling program throughout 2009. Other significant trade-off studies currently underway include increasing the mill throughput without significant capital costs and evaluating other tailing deposition scenarios to reduce costs for the tailings infrastructure. Detour Gold is also focusing on the other remaining key deliverables required to start a mine development, which include receipt of permits, negotiation of First Nations agreements and securing project financing. We expect to announce a debt advisor in the near future to evaluate project financing options and oversee the independent review of the project to assist the feasibility study completion.”
View full press release Detour Gold Receives Positive Pre-Feasibility Study for Its Detour Lake Gold Project in Ontario.
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