Detour Gold reveals life of mine plan for Detour Lake mine in Ontario

5 February 2014 (Last Updated February 5th, 2014 18:30)

Canadian gold mining company Detour Gold has unveiled an updated life of mine plan for its 100%-owned Detour Lake open pit mine located in the north-east of Ontario.

Canadian gold mining company Detour Gold has unveiled an updated life of mine plan for its 100%-owned Detour Lake open pit mine located in the north-east of Ontario.

The gold deposit was acquired by Detour Gold in 2006 and is located approximately 8km west of the Ontario and Québec border and 180km north-east of Cochrane.

Detour Gold noted that the new mine production plan supports a 21.7 year operating life with the current mineral reserves standing at 15.5 million ounces of gold.

Plans call for production to be increased from 55,000t per day to 61,000t per day in 2017.

"The mine plan reflects our operating experience gained in the last two years in pioneering the pit and in the last year operating the process plant."

The company expects that over the next five years, average annual gold production will be approximately 600,000oz at total cash costs of C$759 ($684.9) per ounce.

Detour Lake's life of mine has a sustaining capital of C$1.14bn ($1.03bn) in addition to C$614m ($555m) for deferred stripping.

Detour's updated mine plan measures in-pit resources of 54 million tonnes, grading at 1.15g per tonne in block A, representing 2 million ounces of gold.

Detour Gold COO Pierre Beaudoin said the improved mine plan demonstrates positive economics and that the company expects further improvements.

"The mine plan reflects our operating experience gained in the last two years in pioneering the pit and in the last year operating the process plant," Beaudoin said.

"The mine plan optimises the first five years, while addressing our operational risks. With the design modification to centre-line, the tailings construction management allows effective decoupling from the mine with a transition to self-execution."

According to the company, the total gold production over the life-of-mine is estimated to be 14.3 million ounces, averaging 660,000oz annually, and the waste to ore ratio is estimated at 3.5 to 1.

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