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Detour Gold Corporation

Mining Companies - Gold Companies

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Detour Gold Corporation is a Canadian gold exploration and development company with an experienced management and technical team whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario. Detour Gold listed on the Toronto Stock Exchange Under the symbol (TSX:DGC) and OTC under the symbol (DRGDF). SP on 15 Sep was 30.96.


Share Structure

Shares Issued and Outstanding:   82.65 M

Options:  4.64 M

Warrants: 0.50 M

Fully Diluted:    87.79 M



On January 31, 2007 Detour Gold acquired the Detour Lake property, which hosts the former Detour Lake Mine that produced 1.8 million ounces of gold. In just over three years, the Company has drilled over 400,000 metres of drilling and completed a feasibility study. The Detour Lake deposit is now Canada's largest undeveloped gold reserve with 11.4 million ounces.

The positive results of the feasibility study confirmed the Detour Lake deposit as a future significant gold producer with an average annual gold production of 649,000 ounces over a mine life of 16 years. The Company plans to start mine development by late 2010, subject to obtaining receipt of Provincial permits and finalizing Aboriginal agreements. With gold production expected to commence in early 2013, Detour Lake will be among the largest gold operations in North America.



Detour Gold Drilling Program

Detour Gold reported on July 6, 2010 assay results for its 2010 drilling campaign at the Detour Lake gold project in northern Ontario. The 2010 drilling campaign of 90,000 metres is nearly 90% complete. The program is focusing on the western extension of the Detour Lake open pit deposit between section 17,540E and 18,000E on a 40X40 metre drill spacing. Thus far, the Company has completed 78,352 metres in 154 holes. The results of August 3, 2010 include an additional 25 holes totaling 13,620 metres (including one hole abandoned for 42 metres). The first set of results from the 2010 drilling program was released on April 28, 2010.

The Company plans to issue an updated mineral resources and reserves statement for the year-end, which will include the 2010 drilling program. Drill results to date indicate that the gold mineralization continues west of the current US$850 pit shell, which is expected to have a positive impact on the mineral resources and reserves. The current mineral reserves (proven and probable) currently stand at 11.4 million ounces of gold (347.5 million tonnes averaging 1.02 g/t) (Technical Report filed on SEDAR on June 30, 2010).

2010 Drilling Program: Surface plan view and Long section

2010 Drill Results

Maps and Sections  

Pre Feasibility Study Highlights Year end 2009

*Open pit mineral reserves of 8.8 million ounces of gold at a gold price of US$775 per ounce

*Waste to ore ratio of 3.8 to 1

*14.5 years life of mine (LOM) at mill throughput of 45,000 tonnes per day

*Average annual gold production of approximately 560,000 ounces

*Average LOM total cash operating costs of US$420 per ounce

*Pre-production capital costs of US$844 million

*At $775 per ounce, pre-tax Net Present Value (NPV) of $621 million at a 5% discount rate

*generating an Internal Rate of Return (IRR) of 13.5%

*At $900 per ounce, pre-tax NPV of $1.19 billion at a 5% discount rate generating

an IRR of 20.1%

*Global measured and indicated mineral resources of 17.3 million ounces (inclusive of

mineral reserves)

2010 NI 43-101 Presented in May  2010

Detour Lake project

On May 25, 2010, the Company reported positive results from the feasibility study for a

proposed open pit mine at Detour Lake. The feasibility study was compiled by BBA Inc.

(“BBA”) with the participation and contribution of prominent industry consultants. The NI 43-

101 compliant Technical Report was filed on SEDAR ( on June 30, 2010 and is

available on the Company’s website.

The main highlights of the feasibility study results are shown below. Reference can be made to

the press release dated May 25, 2010 or NI 43-101 Technical Report for more details.

§ Proven and probable open pit reserves of 11.4 million ounces of contained gold with a waste

to ore ratio of 3.3 to 1

§ 16 years life of mine (LOM) at mill throughput ranging from 55,000 to 61,000 tonnes per day

§ Average annual gold production of approximately 649,000 ounces

§ Average LOM cash operating costs of US$437/oz

§ First three years cash operating costs averaging US$386/oz with gold production totaling 1.9

million ounces

§ At US$850/oz, pre-tax Net Present Value (NPV) of US$1.03 billion at a 5% discount rate

generating an Internal Rate of Return (IRR) of 14.4%

§ Estimated start-up capital costs of US$992,000 assuming a Cdn/US exchange rate of 1.1:1

Discussion: Note the progress of the exploration from year-end 2009 to Q2 2010. There was an increase in Life of Mine from 14 years to 16 years. Additionally, the estimated annual production went from 560K/year to 649K Oz/year.


Joint Venture Agreement

The Company is involved in a jointly controlled operation. This joint operation incurs expenditures related to a mineral

exploration property which are expensed in the period they are incurred.

In April 2009, the Company entered into a joint venture agreement with Trade Winds Ventures Inc. (“Trade Winds”) for the

50/50 joint venture on the Block A property located immediately west of the Detour Lake property. Trade Winds earned

its 50% interest in the property by completing its exploration commitment of $7,500. The new agreement formalizes the

operating relationship between the parties, which was previously governed by a binding Letter of Intent.

The agreement provides that the Company can become the operator of the joint venture upon the completion of a feasibility

study, provided the Company’s interest is 50% or more. The Block A property is subject to a 1% net smelter royalty that

the Company may acquire upon a payment of $1,000, in which Trade Winds may acquire a one-half interest pursuant to a

contribution of $500.



Year end 2009

Year End Cash 268M

Short Term Liabilities 3.7M

Financing Activities 323M

Exploration Expenses 27M

Salaries/Admin etc 4M

Annual Lost Diluted (.78)


Detour Gold Completes C$282 Million Bought Deal Financing





Gerald S. Panneton, President, Chief Executive Officer and Director

Peter Crossgrove, B. Comm., C.M., M.B.A., Director and Non-Executive Co-chairman

Michael Kenyon, MSc., Director and Executive Chairman

Et al

Senior Mgt

Gerald S. Panneton, President, Chief Executive Officer and Director

Paul Martin, CA, Chief Financial Officer

Pierre Beaudoin, Senior Vice President Capital Projects

Pat Donovan, P.Geo., Vice President Corporate Development

Julie Galloway, LL.B., B.A. (Hons), Vice President, General Counsel and Corporate Secretary

New Releases

Detour Gold Amends Letter of Agreement With Conquest Resources for Claims Adjacent to the Detour Lake Project

TORONTO, ONTARIO -- (MARKET WIRE) -- 08/10/10 -- Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") announces that it has amended a previously executed letter of agreement (the "LOA") with Conquest Resources Limited ("Conquest") pursuant to which Detour Gold will purchase Conquest's Aurora and Tie-In claim blocks (the "Aurora Claims") and will have the option to acquire a 50% interest in Conquest's Sunday Lake claim block (the "Sunday Lake Claims") located immediately south and east of the Company's Detour Lake project, respectively (the "Transaction").

Media And Analysts

*Shareholder Conference This is a treasure trove of information, and gives a good overview of progress to date, and the vision going forward.









 *Personal Disclusure: I don't own any shares of Detour Gold.

Comments (1)Add Comment
Brian Boutilier
written by brian boutilier, September 18, 2010
So, I posted Detour. The data base already holds Trade Winds/TWD which Detour is 50/50 with to the West, and Conquest which they just optioned 2 properties from to the East. Cheers

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