Global measured and indicated mineral resources of 20.5 million ounces (inclusive of mineral reserves)
Advancing North America's 4th Largest Gold Reserves Towards Development
Message: Provides Update on Detour Lake Project
| February 18, 2009 |
| Detour Gold Provides Update on Detour Lake Project |
| TORONTO, ONTARIO--(Marketwire - Feb. 18, 2009) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to report that it anticipates concluding a pre-feasibility study for the Detour Lake gold project in the second quarter of 2009 followed by a feasibility study later this year. Since late 2008, the mining industry is experiencing substantial declines for input costs for both capital and operating parameters, which the Detour Lake project is expecting to benefit from. The Company expects that the time frames for the pre-feasibility and feasibility studies will allow the Company's engineering consultants to maximize opportunities for both cost reductions and project enhancements. The pre-feasibility study currently underway is being prepared by Met-Chem Canada Inc. ("Met-Chem") in conjunction with the additional consulting firms noted below. Metallurgical tests have been completed and conclude excellent gold recoveries ranging from 91% to 95%. The process plant design is expected to incorporate both a gravity circuit and a standard carbon-in-pulp (CIP) circuit for gold recovery. Trade-off studies to determine the appropriate throughput rate for the deposit currently suggest an optimized rate of 40,000 to 50,000 tonnes per day. Tailings and infrastructure studies, being conducted by AMEC Earth and Environmental (a Division of AMEC Americas Limited) and Ausenco Minerals Canada Inc. respectively, are well advanced. The Company is also proceeding with the re-permitting of the existing right of way for the construction of the power line and connection to the existing power grid. The Company is advancing work on the next block model for a new mineral resource and reserve estimate to be used in the pre-feasibility study. To date, Detour Gold has outlined a measured and indicated resource of 10.8 million ounces (242.9 million tonnes grading 1.38 g/t gold) and an inferred resource of 2.4 million ounces (63.9 million tonnes grading 1.19 g/t gold), based on a detailed engineered pit design at US$700/oz gold price (refer to July 2, 2008 Press Release). Results from an additional 102,000 metres of infill diamond drilling (completed since the last resource estimate of July 2, 2008) will be incorporated in the pre-feasibility study. In total, the study will incorporate the results from approximately 225,000 metres of drilling by the Company in the project database totaling approximately 788,000 metres of drilling. Scott Wilson Roscoe Postle Associates Inc. of Toronto has been retained to independently audit the new mineral resource estimate for the study. The Company has also retained SGS Geostat Ltee of Blainville (Montreal) to conduct further gold assay capping studies. Current studies suggest that a higher capping grade could be used in the upcoming pre-feasibility study than the 20 g/t gold previously used. Following the audit of the mineral resource estimate, BBA Inc. of Montreal will be providing the mineral reserve statement and design of the proposed engineered open pit. In this current economic climate of declining costs for key mine inputs and expected reduction in delivery time for long-lead items, Detour Gold cancelled its Letter of Award for a SAG and two ball mills, which it had placed in the third quarter of 2008. At this time, the Company has not entered into any commitments on long-lead items or construction contracts. The Company continues with further diamond drilling on site for additional resource confirmation. As well, with the hiring of new key engineering and project staff, Detour Gold is well positioned to deliver two engineering studies in 2009 on one of the largest undeveloped gold projects in Canada. |
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