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Canada's largest undeveloped gold reserve with 8.8 million ounces in reserves
* Feasibility study underway
* Opportunities to improve project economics
* Average annual gold production of approximately 560,000 ounces at cash operating costs of $404/oz
* At $900/oz, pre-tax NPV of $1.19 billion at a 5% discount rate generating an IRR of 20.1%
Overview
The Detour Lake project is located on the northern most, relatively under-explored, Abitibi Greenstone Belt in northeastern Ontario. The property encompasses 265 square kilometres, including the Detour Lake deposit, which contains an open pit reserve of 8.8 million ounces of gold averaging 1.15 g/t. The Detour Lake deposit is situated in the area of the former Detour Lake mine, which was operated by Placer Dome and produced 1.8 million ounces of gold from 1983 to 1999. In addition, Detour Gold has a 50% interest in Block A located west of the Detour Lake project, which host an indicated resource of 1.2 million ounces.
The Detour Lake project is approximately eight kilometres west of the Ontario-Quebec border and 180 kilometres northeast of Cochrane, Ontario. Access to the property is available via the Detour Lake mine road, an extension of Highway 652 from Cochrane, as well as by air to the site's 1.6 kilometre gravel airstrip.
Detour Lake project - Location & general geology
Click to enlarge
Project History
The Detour Lake mine was discovered by Amoco Petroleum Limited in 1974. Most of the past exploration and mine development has been carried out by four main operators, including Amoco, Campbell Red Lake Mines, Placer Dome and Pelangio Mines Inc.
Amoco conducted the initial work between 1974 and 1979, followed by Campbell between 1979 and 1987, Placer Dome between 1987 and 1999 and Pelangio between 1999 and 2006. A minor amount of work was also completed by a number of small companies, such as Global Energy Limited, Gowest Amalgamated and Destor Resources Exploration.
The first mining activity at the property was by Campbell between 1983 and 1986, utilizing open pit methods. Campbell and then Placer Dome mined the deposit by underground methods until July 1999. Details regarding the original open pit are limited, but indications are that small-scale equipment and a selective mining approach were used. The open pit extended to a depth of approximately 120 metres with an estimated strip ratio of 4.5:1 (excluding low grade ore). Underground mining was conducted from the 120 metre level to approximately 785 metre below surface. Access for mining was provided by a 600 metre shaft located approximately 150 metre west of the open pit, as well as a series of ramps extending to the 785 metre level.
Past production totalled approximately 1,764,986 ounces of gold from the milling of just over 14.3 million tonnes of ore at an average recovered grade of 3.82 g/t, including 5.2 million tonnes grading 2.57 g/t (430,516 ounces) from the open pit and 9.1 million tonnes grading 4.98 g/t (1,464,431 ounces) from underground. Average mill recoveries were 93.2 %.
From 2004 to 2006, Pelangio drilled 127 holes totalling 29,780 metres. Results from this recent work outlined a near-surface gold resource (0 to 250 metres) of 160,000 ounces in the indicated category and 850,000 ounces in the inferred category.
Detour Gold
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