Detour Gold Corporation

Detour Gold Corporation

January 12, 2011 12:33 ET

Detour Gold Initiates Infrastructure Construction Activities at Detour Lake and Starts 2011 Exploration Program

TORONTO, ONTARIO--(Marketwire - Jan. 12, 2011) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to provide an update on initial infrastructure construction activities and the 2011 exploration program for its flagship Detour Lake gold project in northeastern Ontario.

Detour Gold is planning to release a mineral reserve and resource update in early 2011, following a successful 2010 expansion drilling program of 107,000 metres to the west of the current open pit design.

Infrastructure Construction Activities

Following receipt of the provincial permit to commence construction at Detour Lake and the powerline permit, Detour Gold has initiated construction activities at site. Construction of the 1,000-man camp is progressing as scheduled and can currently accommodate 400 people. Completion of the construction camp is scheduled for the end of April 2011.

After awarding the construction contract for the transmission line to Detour Lake Constructors ("DLC") in December 2010, a partnership led by Peter Kiewit Infrastructure Co. with Moose Cree Constructors Inc. (Moose Cree First Nation), New Post Constructors LP (Taykwa Tagamou Nation) and Wahgoshig First Nation as Partners, DLC started the clearing of the right-of-way in preparation for installing the first 135 kilometre segment of the powerline from the site to Island Falls power station. This first powerline segment is scheduled to be completed in the fall of 2011. In addition, three of the five 1.2 mega watt units for the temporary power station have been installed.

The plant site excavation is progressing on schedule in preparation for the first pour of concrete during the first quarter of 2011. These activities will be followed with steel erection in the second and third quarter of 2011 and with process plant building enclosure in the last quarter of 2011.

Procurement and Contracts

The Company has now committed over C$500 million in project expenditures. The following contracts have been placed in the last month:

  • Two RH 340 shovels (one diesel and one electric powered)
  • Earthworks
  • Concrete batch plant
  • Concrete works package (approximately 50,000 m3
  • Steel package (approximately 6,000 tonnes)

2011 Exploration Program

Detour Gold is planning a C$14 million exploration program for 2011 on its large Detour Lake property. The program will target five areas:

  • Western extension of Detour Lake deposit: 50,000 metres on a 40 metre by 40 metre spacing for potentially defining additional reserves;
  • Sunday Lake property (earning 50% interest from Conquest Resources Limited): 60 line-kilometre induced polarization (IP) survey in January 2011 to be followed by a minimum of 2,500 metres of core drilling;
  • Lower Detour Deformation Zone: Mobile Metal Ion (MMI) survey of approximately 5,000 samples and a 60 line-kilometre induced polarization (IP) survey. Following the results of the surveys, the Company expects to drill test several targets along this 40 kilometre structure, which is showing similarities to the Sunday Lake Deformation Zone that hosts the Detour Lake deposit;
  • Western end of the Detour lake property: 75 line-kilometre induced polarization (IP) survey after obtaining positive MMI results from the 2010 survey; and
  • Block A (50% joint venture with Trade Winds Ventures Inc.): 30,000 metres of drilling to infill the M Zone pit shell on a 40 metre by 40 metre spacing and to test several other targets.

New Appointments

Christian Brousseau (Eng.), Project Manager

Mr. Brousseau is a mechanical engineer with over 19 years of experience in mining project development and operations. Prior to joining Detour Gold, Mr. Brousseau spent the last five years as an independent consultant working at the Canadian Malartic Project for Osisko Mining Corporation and at the Éléonore Project for Goldcorp Inc. He also spent seven years with Falconbridge (now Xstrata) holding progressive management positions at Raglan, the Sudbury operations. He also participated in the construction and commissioning of the Noranda Converter in 1998. Mr. Brousseau received his engineering degree from École Polytechnique of Montréal and completed his MBA at University of Montréal in 2010.

Jean-Francois Dupont (Eng.), Process Plant Superintendant

Mr. Dupont is a mining engineer with 15 years of experience in processing plants. Prior to joining Detour Gold, he spent the last 14 years with Barrick Gold Corporation where he has progressed through various positions in metallurgical technical services and operations. Recently, he was the corporate comminution specialist for Barrick providing technical support to 16 processing plants located worldwide. He has a broad array of practical experience in process operations, management and technical studies for comminution, flotation, gold leaching, gravity gold concentration, carbon management and tailings disposal. He graduated from Laval University, Québec.

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.

Forward-Looking Information

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 successful completion of certain construction activities for the Company's Detour Lake project and exploration to be carried out in 2011. 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 actual results, performance or achievements to be materially different from any of 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 "Description of Business - Risk Factors" in Detour Gold's 2009 annual information form. 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 availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; 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. 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.

Contact Information

  • Detour Gold Corporation
    Gerald Panneton
    President and CEO
    (416) 304.0800
    Detour Gold Corporation
    Laurie Gaborit
    Director Investor Relations
    (416) 304.0581
    Detour Gold Corporation
    Royal Bank Plaza, South Tower
    200 Bay Street, Suite 2200
    Toronto, Ontario M5J 2J1