TORONTO, ONTARIO--(Marketwire - April 24, 2012) - Detour Gold Corporation (News - Market indicators) ("Detour Gold" or the "Company") reports on the construction progress of its 100% owned Detour Lake open pit gold mine in northeastern Ontario. The project remains on budget and on schedule for gold production to start in the first quarter of 2013. All dollar amounts are in Canadian dollars.
The following project development milestones have recently been achieved:
- Project construction reached 60% completion mark on March 31, 2012
- 230 kV power line construction completed
- Open pit pre-stripping and mining activities ramping up
- Installation of milling equipment advancing well
- New peak in construction activities with 1,250 workers at site
- Over 200 Detour Gold employees at site and Cochrane office
Gerald Panneton, President and CEO of Detour Gold commented, "The Detour Lake project construction is advancing as planned with no change in the forecast capital expenditures of $1.45 billion. The Company has sufficient cash to complete the project construction. We are on schedule for gold production to commence in the first quarter of 2013."
Pre-production capital cost estimates for Detour Lake remain unchanged at $1.45 billion, of which approximately $736 million has been spent as of March 31, 2012. Approximately $1.17 billion of the total $1.45 billion of project expenditures has been committed. To date, 98% of all contracts have been awarded. The Company has approximately $866 million in cash and short-term investments, sufficient to fully finance the remaining project expenditures.
The process plant building was completely enclosed in December and all MPEI (mechanical, piping, electrical and instrumentation) contractors are now mobilized at site. The major mill grinding components, including the gyratory crusher, secondary crushers, SAG and ball mills and motors are all at site. Status of construction progress has now reached 60% completion and includes:
- All 20 leach tanks have been installed
- Secondary crusher building has been completed and transferred to MPEI
- Installation of the first line of SAG and ball mills is advancing well and installation of the second line has commenced
- Installation of CIP tanks and other mechanical equipment such as pumps, compressors, screens and HVAC (heating, ventilation, and air conditioning) is well underway
- Primary crusher structure nearing completion
- Truck wash facility is commissioned and operational
Construction of the second 45 kilometre segment of the 230 kV powerline between Pinard and Island Falls was completed in March. Hydro One is expected to connect the powerline to the grid in the third quarter of 2012, in advance of the commissioning schedule for the mills. While the project site is already connected on 115 kV, this last connection will deliver up to 100 MW of electricity.
Pre-production Mining Activities
The 2012 pre-stripping operation is underway and is supported by six haul trucks and two hydraulic shovels. With the recent addition of a second shift and a second shovel, the production rates are increasing and have now reached 70,000 tpd (tonnes per day). The Company is targeting to have up to 3 million tonnes of ore available for processing prior to the commencement of operations.
In preparation for the 2013 production plan, an additional 12 haulage trucks and two large cable shovels are expected to arrive during the year. This will bring the total at site to 20 haulage trucks with four shovels (two of 34 m3 and two of 48 m3). The delivery of the haulage trucks has started and three are now being assembled. The first of the two large cable shovels (48 m3) is expected to be operational by late summer. A significant portion of these deliveries will be leased under the Company's US$150 million lease facility with CAT Finance.
Civil construction of the first cell of the Tailings Management Area continues to advance on schedule.
Start of Commissioning Activities
The construction team delivered the first permanent maintenance facility to the commissioning team at the end of March. The truck wash facility is now fully operational.
In addition, Detour Gold has commissioned three of the four wings (300 of 400 en-suite rooms) of the permanent camp, which will allow for construction activities to peak this summer with up to 1,500 rooms being available.
Appointment of Vice President, Finance
Detour Gold has appointed James Mavor as Vice President, Finance. Mr. Mavor is a mining finance professional with over 18 years of experience in the mining industry. Prior to joining Detour Gold, he served as the Vice President and Treasurer for Barrick Gold Corporation from 2007 to 2012, where he had global responsibility for all treasury activities and liquidity management including banking, lending and trading relationships. From 1994 to 2007 at Barrick, Mr. Mavor successively advanced from the positions of Operations Controller, Director of Treasury Operations to Vice President of Investor Relations. Mr. Mavor is a Chartered Accountant (CA) and received a Bachelor of Science in Electrical Engineering from Queen's University.
About Detour Gold
Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Specifically, this press release contains forward-looking statements regarding the expected start of gold production in the first quarter of 2013, the scheduled powerline connection; the estimated pre-production capital costs and the sufficiency of funds to finance the remaining project expenditures; the target of up to 3 million tonnes of ore available for processing prior to the commencement of operations; the delivery of equipment in 2012; and commissioning of one of the large shovel by end of summer. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold's ability to predict or control and may cause Detour Gold's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the section entitled "Risk Factors" in Detour Gold's February 7, 2012 short form prospectus and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the supply and demand for gold, and the level and volatility of the price of gold; the availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the expected mine life; anticipated gold production; gold recovery; the development schedule; cash operating costs and other costs; the financial analysis for the project; capital costs; sensitivity to metal prices and other sensitivities; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.