TORONTO, Feb. 22, 2018 /CNW/ - Detour Gold
Corporation (TSX: DGC) ("Detour Gold" or the "Company") today
reports its updated mineral reserves and resources as of
December 31, 2017. All amounts are in
U.S. dollars unless otherwise indicated. The complete mineral
reserve and resource statement can be found at the end of this news
release.
2017 Year-end Mineral Reserves
Mineral reserves at
December 31, 2017 were 15.8 million
ounces of gold. The decrease from year-end 2016 is attributable to
mining depletion at the Detour Lake pit. There was no change to the
gold price assumption of $1,000 per
ounce at an exchange rate of 1.00US:1.10CDN for estimating mineral reserves. In 2017,
there was no infill drilling targeting mineral reserves within the
Detour Lake pit and West Detour project. Based on the expected
throughput rates projected in the March
2017 LOM plan, the remaining mineral reserve life of the
Detour Lake mine is approximately 22 years as of December 31, 2017.
Measured and indicated resources of 3.9 million ounces and
inferred resources of 1.2 million ounces were essentially unchanged
from year-end 2016. There was no change to the gold price
assumption of $1,200 per ounce at an
exchange rate of 1.00US:1.10CDN for
estimating mineral resources.
Qualified Persons
Drew
Anwyll, P.Eng., Senior Vice President Technical Services,
has approved the scientific and technical information contained in
this news release.
The mineral reserve and mineral resource estimates for the
Detour Lake operation (except for the North pit mineral resources)
were prepared under the supervision of Drew
Anwyll, P.Eng., Senior Vice President Technical Services and
the mineral resources for the North pit were prepared by
Paul Daigle, P.Geo, of P. Daigle
Consulting Services, both Qualified Persons as defined by Canadian
Securities Administrators National Instrument 43-101 "Standards of
Disclosure for Mineral Projects".
Conference Call
The Company will host a conference
call on Friday, March 9, 2018 at
10:00 AM E.T. where senior management
will discuss the 2017 operational and financial results.
Access the conference call as follows:
- Via webcast, go to www.detourgold.com and click on the "Q4 2017
Results Conference Call and Webcast" link on the home page
- By phone toll free in Canada
and the United States
1-800-319-4610
- By phone internationally 416-915-3239
A playback will be available until April
9, 2018 by dialing 604-674-8052 or 1-855-669-9658 within
Canada and the United States, using pass code 2102.
The webcast and presentation slides will be archived on the
Company's website.
About Detour Gold
Detour Gold is an intermediate gold
producer in Canada that holds a
100% interest in the Detour Lake mine, a long life large-scale open
pit operation. Detour Gold's shares trade on the Toronto Stock
Exchange under the trading symbol DGC.
Mineral Reserve and Resource Tables (Effective
December 31, 2017)
Mineral
Reserves
|
|
Tonnes (millions)
|
Grade (g/t Au)
|
Contained Gold Ounces (000's oz)
|
Detour Lake
Pit
|
Proven
|
87.9
|
1.24
|
3,504
|
|
Probable
|
338.4
|
0.93
|
10,064
|
|
P&P
|
426.3
|
0.99
|
13,568
|
West Detour
Project
|
|
|
|
|
|
West Detour
Pit
|
Proven
|
1.9
|
0.96
|
60
|
|
Probable
|
53.0
|
0.94
|
1,596
|
|
North
Pit
|
Probable
|
6.0
|
0.98
|
187
|
|
P&P
|
60.9
|
0.94
|
1,843
|
LG
Fines
|
Probable
|
20.9
|
0.60
|
403
|
Total
P&P
|
|
508.0
|
0.97
|
15,814
|
|
|
|
|
|
Mineral
Resources
|
|
Tonnes (millions)
|
Grade (g/t Au)
|
Contained
Gold Ounces (000's)
|
Detour Lake
Pit
|
Measured
|
17.3
|
1.32
|
735
|
|
Indicated
|
71.2
|
0.98
|
2,255
|
|
M+I
|
88.5
|
1.05
|
2,991
|
West Detour
Project
|
|
|
|
|
|
West Detour
Pit
|
Measured
|
0.3
|
0.93
|
9
|
|
Indicated
|
28.5
|
0.88
|
806
|
|
|
|
|
|
|
North
Pit
|
Indicated
|
2.1
|
0.93
|
64
|
|
M+I
|
31.0
|
0.88
|
878
|
Total
M+I
|
|
119.5
|
1.01
|
3,869
|
|
|
|
|
|
Detour
Lake Pit
|
Inferred
|
35.7
|
0.79
|
906
|
West Detour
Project
|
|
|
|
|
|
West Detour
Pit
|
Inferred
|
9.2
|
0.95
|
280
|
|
North
Pit
|
Inferred
|
0.1
|
0.85
|
2
|
Total
Inferred
|
|
44.9
|
0.82
|
1,188
|
Notes:
|
1.
|
The Company's mineral
reserve and mineral resource estimates as at December 31, 2017 are
classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For
Mineral Resources and Mineral Reserves" adopted by the CIM Council
(as amended, the "CIM Definition Standards") in accordance with the
requirements of National Instrument 43-101 "Standards of Disclosure
for Mineral Projects" ("NI 43-101"). Mineral reserve and mineral
resource estimates reflect the Company's reasonable expectation
that all necessary permits and approvals will be obtained and
maintained.
|
2.
|
Mineral reserves were
estimated using a gold price of $1,000/oz and mineral resources
were estimated using a gold price of $1,200/oz at a US$/C$ exchange
rate of 1.10.
|
3.
|
Mineral reserves and
resources were based on a cut-off grade of 0.50 g/t Au.
|
4.
|
LG Fines (sourced
from material grading 0.40-0.50 g/t Au) classified as Measured and
Indicated were reported as Probable mineral reserves and included
in the mine plan.
|
5.
|
Further information,
including key assumptions, parameters, and methods used to estimate
mineral resources and mineral reserves are described in the
Technical Report on the Detour Lake operation, dated March 22,
2017.
|
6.
|
Mineral resources are
reported exclusive of mineral reserves. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Mineral resources are constrained within an economic pit
shell.
|
7.
|
Totals may not add
due to rounding.
|
Information Concerning Estimates of Mineral Reserves and
Resources
These estimates have been prepared in accordance
with the requirements of Canadian securities laws, which differ
from the requirements of United
States' securities laws. The terms "mineral reserve",
"proven mineral reserve and "probable mineral reserve" are Canadian
mining terms as defined in accordance with NI 43-101 and the CIM
Definition Standards. The CIM Definition Standards differ from the
definitions in the United States
Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7")
under the United States Securities Act of 1933, as amended. Under
SEC Guide 7, a "final" or "bankable" feasibility study is required
to report mineral reserves, the three-year historical average price
is used in any mineral reserve or cash flow analysis to designate
mineral reserves and the primary environmental analysis or report
must be filed with the appropriate governmental authority. In
addition, the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" are defined in NI 43-101 and recognized by Canadian
securities laws but are not defined terms under SEC Guide 7 or
recognized under U.S. securities laws. U.S. investors are cautioned
not to assume that any part or all of mineral deposits in these
categories will ever be upgraded to mineral reserves. "Inferred
mineral resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever by upgraded to a higher
category. Under Canadian securities laws, estimates of "inferred
mineral resources" may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable.
Accordingly, these mineral reserve and mineral resource estimates
and related information may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the
United States federal laws and the rules and regulations
thereunder, including SEC Guide 7.
Mineral resources are not mineral reserves, and do not have
demonstrated economic viability, but do have reasonable prospects
for economic extraction. Measured and indicated mineral
resources are sufficiently well defined to allow geological and
grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the
economic viability of the resource. Inferred mineral
resources are estimated on limited information not sufficient to
verify geological and grade continuity or to allow technical and
economic parameters to be applied. Inferred mineral resources
are too speculative geologically to have economic considerations
applied to them to enable them to be categorized as mineral
reserves. There is no certainty that mineral resources of any
category can be upgraded to mineral reserves through continued
exploration.
Detour Gold's mineral reserve and mineral resource figures are
estimates and Detour Gold can provide no assurances that the
indicated levels of gold will be produced or that Detour Gold will
receive the gold price assumed in determining its mineral
reserves. Such estimates are expressions of judgment based on
knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may
significantly change when new information becomes available.
While the Company believes that these mineral reserve and mineral
resource estimates are well established and the best estimates of
Detour Gold's management, by their nature mineral reserve and
mineral resource estimates are imprecise and depend, to a certain
extent, upon analysis of drilling results and statistical
inferences which may ultimately prove unreliable. If the
Company's mineral reserve or mineral reserve estimates are
inaccurate or are reduced in the future, this could have an adverse
impact on Detour Gold's future cash flows, earnings, results or
operations and financial condition.
Detour Gold estimates the future mine life of the Detour Lake
operation. Detour Gold can give no assurance that its mine life
estimate will be achieved. Failure to achieve this estimate
could have an adverse impact on Detour Gold's future cash flows,
earnings, results of operations and financial condition.
Forward-Looking Information
This press release and
the documents incorporated by reference herein contain certain
forward-looking information as defined in applicable securities
laws (referred to herein as "forward-looking statements").
Forward-looking statements relate to future events or future
performance and reflect current expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to: (i) mineral reserve and resource estimates; (ii) future
exploration potential and the timing and scope of future
exploration; (iii) future production estimates; (iv) assumptions
relating to recovered grade, average ore recovery, mining dilution
and other mining parameters set out in the technical reports,
studies and disclosure of the Company; (v) anticipated revenues,
operating cash flow and other revenue metrics set out in the
Company's disclosure materials; (vi) mine expansion potential and
expected mine life; (vii) expected time frames for completion of
permitting and regulatory approvals; (viii) estimated future
capital and operating expenditures; (ix) future gold prices; and *
sources of and anticipated financing requirements. All statements
other than statements of historical fact are forward-looking
statements. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates",
"targets", or "believes", or variations of, or the negatives of,
such words and phrases or state that certain actions, events or
results "may", "could", "would", "should", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements involve risks, uncertainties and
other factors which may cause Detour Gold's actual results,
performance, prospects or achievements to be materially different
than those 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, a reduction in the Company's available cash resources,
failure to meet estimated or planned gold production, failure to
meet estimated or planned cash costs, failure to meet estimated or
planned capital expenditures, changes or delays in mining
development and exploration plans, changes in project parameters,
risks related to the receipt of regulatory approvals, environmental
compliance and changes in environmental legislation and regulation,
delays in the consultation and permitting process for West
Detour, as well as those risk factors discussed in the
section entitled "Description of Business - Risk Factors" in Detour
Gold's 2016 AIF and in the continuous disclosure documents filed by
Detour Gold on and available on SEDAR at www.sedar.com.
Market price fluctuations in gold, as well as increased capital
or production costs or reduced recovery rates may render ore
reserves containing lower grades of mineralization uneconomic and
may ultimately result in a restatement of mineral reserves.
The extent to which mineral resources may ultimately be
reclassified as proven or probable mineral reserves is dependent
upon the demonstration of their profitable recovery. Economic
and technological factors which may change over time always
influence the evaluation of mineral reserves or mineral
resources. The Company has not adjusted mineral resource
figures in consideration of these risks and, therefore, the Company
can give no assurances that any mineral resource estimate will
ultimately be reclassified as proven and probable mineral
reserves.
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.
SOURCE Detour Gold