TORONTO, ONTARIO--(Marketwire - Feb 11, 2013) - Detour Gold Corporation (DGC.TO) ("Detour Gold" or the "Company") is pleased to report that the ramp-up of the first production line of the processing plant is advancing at its Detour Lake open pit gold mine in northeastern Ontario.
The first production line started with low-grade material on January 12, 2013 and was followed by ore grade material. The ramp-up of the first production line is progressing with the SAG mill, the pebble crusher, and the ball mill all in operation. After close to one month of operation, and despite the usual teething issues, the operation team is happy to report that the fundamental parts of the circuits operate well. Next step will be the start-up of the secondary crusher to increase throughput.
The gold inventory (in CIP and electrowinning) has been increasing in the circuit since start-up. It is expected to reach the level required to allow the first gold pour in mid-February.
In parallel, the electrical and instrumentation work on the second production line is progressing well and start-up is expected in March 2013.
Mining rates continue to increase and are scheduled to reach 150,000 tpd in early 2013. The fourth shovel was commissioned in December 2012. Currently, the Company has a mining fleet of 20 haul trucks and four shovels, which more than meets the requirements of the 2013 mining operation.
"A start-up is never easy and we are experiencing typical challenges as we proceed with the ramp-up of the Detour Lake gold mine," commented Gerald Panneton, President and CEO. "On behalf of our Board of Directors, we want to publicly acknowledge our team for consistently delivering as we continue to make steady progress. We are fortunate to have such a dedicated team."
2013 Guidance Unchanged
For 2013, the Company''s guidance remains unchanged:
- Gold production ranging between 350,000 and 400,000 ounces of gold
- Total cash costs of between $800/oz and $900/oz (to be reported after commercial production is declared)
About Detour Gold
Detour Gold is an emerging mid-tier gold producer in Canada. The Detour Lake open pit mine is expected to produce an average of 657,000 ounces of gold annually over a period of 21.5 years. 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 pour of the first gold bar in mid-February 2013, start-up of the second production line in March 2013, the mining rate reaching 150,000 tpd in early 2013, gold production ranging between 350,000 and 400,000 ounces of gold in 2013, total cash costs of between $800/oz and $900/oz once commercial production is declared and annual production of 657,000 ounces of gold over a period of 21.5 years. 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 the Business - Risk Factors" in Detour Gold''s 2011 annual information form 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.
- Investment & Company Information
President and CEO
Detour Gold Corporation
Director Investor Relations
Detour Gold Corporation
Royal Bank Plaza, South Tower
200 Bay Street, Suite 2200
Toronto, Ontario M5J 2J1