Detour Gold Corporation

Detour Gold Corporation

February 18, 2009 16:30 ET

Detour Gold Provides Update on Detour Lake Project

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2009) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to report that it anticipates concluding a pre-feasibility study for the Detour Lake gold project in the second quarter of 2009 followed by a feasibility study later this year.

Since late 2008, the mining industry is experiencing substantial declines for input costs for both capital and operating parameters, which the Detour Lake project is expecting to benefit from. The Company expects that the time frames for the pre-feasibility and feasibility studies will allow the Company's engineering consultants to maximize opportunities for both cost reductions and project enhancements.

The pre-feasibility study currently underway is being prepared by Met-Chem Canada Inc. ("Met-Chem") in conjunction with the additional consulting firms noted below. Metallurgical tests have been completed and conclude excellent gold recoveries ranging from 91% to 95%. The process plant design is expected to incorporate both a gravity circuit and a standard carbon-in-pulp (CIP) circuit for gold recovery. Trade-off studies to determine the appropriate throughput rate for the deposit currently suggest an optimized rate of 40,000 to 50,000 tonnes per day. Tailings and infrastructure studies, being conducted by AMEC Earth and Environmental (a Division of AMEC Americas Limited) and Ausenco Minerals Canada Inc. respectively, are well advanced. The Company is also proceeding with the re-permitting of the existing right of way for the construction of the power line and connection to the existing power grid.

The Company is advancing work on the next block model for a new mineral resource and reserve estimate to be used in the pre-feasibility study. To date, Detour Gold has outlined a measured and indicated resource of 10.8 million ounces (242.9 million tonnes grading 1.38 g/t gold) and an inferred resource of 2.4 million ounces (63.9 million tonnes grading 1.19 g/t gold), based on a detailed engineered pit design at US$700/oz gold price (refer to July 2, 2008 Press Release).

Results from an additional 102,000 metres of infill diamond drilling (completed since the last resource estimate of July 2, 2008) will be incorporated in the pre-feasibility study. In total, the study will incorporate the results from approximately 225,000 metres of drilling by the Company in the project database totaling approximately 788,000 metres of drilling. Scott Wilson Roscoe Postle Associates Inc. of Toronto has been retained to independently audit the new mineral resource estimate for the study. The Company has also retained SGS Geostat Ltee of Blainville (Montreal) to conduct further gold assay capping studies. Current studies suggest that a higher capping grade could be used in the upcoming pre-feasibility study than the 20 g/t gold previously used. Following the audit of the mineral resource estimate, BBA Inc. of Montreal will be providing the mineral reserve statement and design of the proposed engineered open pit.

In this current economic climate of declining costs for key mine inputs and expected reduction in delivery time for long-lead items, Detour Gold cancelled its Letter of Award for a SAG and two ball mills, which it had placed in the third quarter of 2008. At this time, the Company has not entered into any commitments on long-lead items or construction contracts.

The Company continues with further diamond drilling on site for additional resource confirmation. As well, with the hiring of new key engineering and project staff, Detour Gold is well positioned to deliver two engineering studies in 2009 on one of the largest undeveloped gold projects in Canada.

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "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" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding: the Company's planned drilling program and estimate of the quantity and quality of its mineral resources. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in interpreting geological data and other risks involved in the gold exploration and development industry as well as those risk factors listed in the Company's Annual Information Form (AIF), Item 4.4 - "Description of Business - Risk Factors" filed on SEDAR. Readers are cautioned that the list of factors included in the AIF is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: the Company's exploration and development activities on the Detour Lake Property will proceed in accordance with the Company's current timetables; and the Company's resource estimates, geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources) and operational and price assumptions on which the resource estimates are based, are accurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company'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. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Information Concerning Estimates of Mineral Resources

This news release uses the terms 'measured', 'indicated' and 'inferred' resources. Detour Gold advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

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, North Tower,
    200 Bay Street, Suite 2040,
    Toronto, Ontario M5J 2J1