Detour Gold Corporation

TSX : DGC


Detour Gold Corporation

December 23, 2013 08:25 ET

Detour Gold Reports an Unplanned Mill Shutdown Due to Pre-Leach Thickener Failure

TORONTO, ONTARIO--(Marketwired - Dec. 23, 2013) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") reports that the processing plant was shut down on the afternoon of December 17 due to mechanical issues with the pre-leach thickener system. Initial indications from last week suggested that a restart of the system could be addressed with the removal of densified slurry within the thickener, however, further inspection over the weekend found structural damage to the torque cage.

The repairs to the torque cage are expected to start on December 24. Management estimates that the processing plant will restart prior to year-end.

It is expected that the processing plant will resume operation at approximately 50,000 tonnes per day (tpd). With all five crushers and SAG mills having been relined in a planned shutdown in the first half of December 2013, no major planned down-time is expected in the first quarter of 2014.

Operating Update

Mining rates have continued to improve in December with an average of 238,000 tpd to date (excluding the overburden removal contract which will cease today).

The mine has a higher grade inventory of blasted in-pit ore and stockpiled ore totaling approximately 847,000 tonnes grading 1.07 g/t (diluted).

Site management is taking the opportunity during this shutdown to do additional maintenance work. This includes the installation of the shuttle chute to the second secondary crusher following the successful testing of the first shuttle chute.

2013 Guidance

Assuming no processing plant operations during the last two weeks of December, the Company estimates the following results for 2013:

  • Gold production of 81,000 ounces for Q4 2013 (231,000 ounces for 2013)
  • Total cash costs for the post-commercial production period of approximately US$1,100 per ounce
  • A cash balance of approximately US$80 million at December 31, 2013

About Detour Gold

Detour Gold is an emerging mid-tier gold producer in Canada. The Company is ramping up its 100% owned Detour Lake mine to a long life, large scale open pit operation. The Detour Lake mine has proven and probable reserves of 15.6 million ounces of gold.

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 starting the repairs of the torque cage of the thickener on December 24, the processing plant restarting prior to year-end, the processing plant resuming operation at approximately 50,000 tpd, no major planned down-time expected in the first quarter of 2014, total gold production of 81,000 ounces for Q4 2013 (231,000 ounces for 2013), total cash costs for the post-commercial production period of US$1,100 per ounce, and a cash balance of approximately US$80 million at December 31, 2013. 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 "Description of Business - Risk Factors" in Detour Gold's 2012 AIF 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 availability of financing for exploration and development activities; operating and capital costs; the Company's ability to attract and retain skilled staff; the mine development schedule; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for development projects and other operations; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; 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.

Contact Information

  • Detour Gold Corporation
    Paul Martin
    Interim CEO
    (416) 304.0800

    Detour Gold Corporation
    Laurie Gaborit
    Director Investor Relations
    (416) 304.0581