Detour Gold (TSX:DGC, StockForum), a Toronto-based gold exploration and development firm with primary focus on its Detour Lake project, announced its Life of Mine Plan for its wholly-owned Detour Lake open pit mine located in northeastern Ontario.
The updated plan affirms a 21.7 year operating life with present mineral resources sitting at 15.5 million ounces of gold based on 476 million tonnes grading 1.02 g/t Au.
Full details of Detour's National Instrument 43-101 or NI 43-101 can be found at SEDAR and on the company's website.
According to the news release Detour Lake contains proven and probable pit reserves of 15.5 million ounces contained gold with throughput growing from 55,000 to 61,000 tpd in 2017 with the average annual gold production hitting approximately 660,000 ounces at total cash costs of $723 per ounce sold.
Detour Lake's life of mine sustaining capital is expected to top out at $1.14 billion plus $614 million for deferred stripping with an undiscounted pre-tax cash flow of $6.5 billion and an undiscounted after-tax cash flow of $5.1 billion.
Detour Gold COO, Pierre Beaudin, commented, “We are very pleased with this life of mine plan update for the Detour Lake mine.”
Beaudin continued, “This improved mine plan demonstrates positive economics and, as we continue to optimize the operation, we certainly expect further improvements. Our technical team and external consultants have worked together to confirm the robustness of our block model and validating our mineral reserves. In addition, we have applied an elevated cut-off grade to maximize our return on investment.”
He then summed up, “Starting this year, we will be investigating a number of opportunities which could have a positive impact on costs and gold production. Detour Lake is a long-lived asset with potential for additional growth with the Block A project and continued regional exploration.”
Detour Gold was in the news recently when the company provided 2014 guidance.
Shares climbed 5.55% on the news to $7.14 per share.
Currently there are 138.2m outstanding shares with a market cap of $986.4 million.