TORONTO, July 25, 2018 /CNW/ - Detour Gold Corporation
(TSX: DGC) ("Detour Gold" or the "Company") reports an initial
independent mineral resource estimate for the Zone 58N gold deposit
located six kilometres south of its 100% owned Detour Lake gold
mine.
The mineral resource estimate is comprised of an Indicated
resource of 2.87 million tonnes grading 5.80 g/t for 534,300 ounces
of gold and an Inferred resource of 0.97 million tonnes grading
4.35 g/t for 136,100 ounces of gold.
Mineral
Resources
|
Tonnes
(millions)
|
Grade
(g/t
Au)
|
Contained
Gold
Ounces
|
Zone 58N
|
Indicated
|
2.87
|
5.80
|
534,300
|
Inferred
|
0.97
|
4.35
|
136,100
|
Note: Numbers may not
total due to rounding.
|
|
|
|
|
|
|
Michael Kenyon, Interim CEO,
commented: "Detour Gold is in the fortunate position of having a
large mineral reserve base of 16.0 million ounces supporting a mine
life of 23 years. The strategy undertaken over the last few years
in advancing Zone 58N is to leverage the infrastructure we have in
this prospective gold camp by finding high grade satellite deposits
within trucking distance to our mill. With this initial resource at
Zone 58N, which remains open at depth, and other prospective
targets we have identified in our exploration programs, we
are beginning to demonstrate the benefits of this strategy, and
look forward to further advancing Zone 58N and other future
discoveries on our large 647 km2 land position."
The resource estimate for Zone 58N incorporates the assay
results from 332 diamond drill holes totaling 109,700 metres. Drill
spacing is approximately 25 x 25 metres in the upper 500 metres of
the deposit and 40 x 40 metres below 500 metres. The mineral
resource model only considers mineralized zones that are
potentially mineable by underground extraction and contained within
the modelled wireframes. The block model was prepared and
constrained using 3D wireframes of geological domains that are
associated with gold mineralization. Grade estimation was
interpolated into blocks using a combination of Inverse Distance
Cubed (ID3) and Nearest Neighbor (NN). The mineral resource was
reported using a gold cut-off grade of 2.2 g/t and a minimum true
thickness of 3 metres.
The gold mineralization within Zone 58N is hosted in a swarm of
tonalitic dykes that intrude mafic volcanic rocks and are spatially
controlled by the margin of a large intermediate intrusion. Gold
mineralization is found in quartz-tourmaline-carbonate veins
containing less than 5% sulphides. The east-west mineralized system
extends along a strike length of 450 metres, from surface to a
depth of 800 metres. It remains open for expansion at depth.
Metallurgical testing performed on a total of 31 composites has
confirmed that Zone 58N mineralization is amendable for processing
through the existing Detour Lake processing plant. All composites
were tested for grinding, gravity separation and cyanide leaching
of both gravity products (concentrate and tails). Based on these
initial tests, gold recovery is estimated at 97.5% for the stated
mineral resource grade.
To view Zone 58N figures, click on the following link:
https://www.detourgold.com/operations/exploration/default.aspx
Further details regarding Zone 58N mineral resource will be
included in the Technical Report to be filed for the updated life
of mine plan for the Detour Lake operation.
Next Steps
The Company is proceeding with a cost
evaluation for an advanced underground exploration program. This
program would include site access and surface infrastructure, and
underground development (i.e. access to mineralized zones and
platform for further exploration drilling). Subject to a positive
evaluation, the Company would determine the appropriate timeline
for the program.
Qualified Persons
The mineral resource estimate for
Zone 58N was prepared under the supervision of Réjean Sirois, Eng.,
Vice President Geology and Resources for G Mining Services Inc., a
Qualified Person as defined by Canadian Securities Administrators
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" ("NI 43-101").
The scientific and technical information contained in this news
release was reviewed and approved by Réjean Sirois, Eng. and
Drew Anwyll, P.Eng., Senior Vice
President Technical Services for Detour Gold, a Qualified Person as
defined by NI 43-101.
Notes on Estimation Method
- Reported in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") standards for mineral resources
and reserves, adopted by CIM Council, as amended.
- All HQ and NQ core assays obtained by analytical methods
described in the March 2017 Technical
Report under Section 11.3.3. Quality Assurance and quality control
procedures included the systematic insertion of blanks, standards,
and duplicates into the sample stream.
- Mineral resources reported at a cut-off grade of 2.2 g/t Au,
using a gold price of US$1,300 per
ounce and a US$/C$ exchange rate of 1.25 with an assumed mining
dilution of 12%.
- Mineralized domains were modeled using selections of
mineralized intervals based on varying degrees of visual alteration
(sulphide, sericite, and quartz veining) due to good correlation
with the gold mineralization. Based on the nuggetty nature of the
gold mineralization and limited strike length continuity, a
grade-based approach to establish domains was not used.
- Mineral resource encompasses 10 domains, each defined by its
individual 3D wireframe with a minimum true thickness of 3.0
metres. Domains are subvertical, strike east-west, with the two
largest domains plunging 85 degrees to the east.
- High grade gold assays were capped at values ranging from 20 to
120 g/t Au depending on the domain.
- Bulk density value of 2.7 t/m3.
- Interpolation completed using 2 metre composites. The block
grade estimate used 1-pass nearest neighbor (NN) and 4-pass Inverse
Distance Cubed (ID3) interpolation method.
- Block model uses block sizes of 5 x 3 x 5 metres.
- Mineral resources are not mineral reserves as they do not have
demonstrated economic viability.
About Detour Gold
Detour Gold is an intermediate gold
producer in Canada that holds a
100% interest in the Detour Lake mine, a long life large-scale open
pit operation. Detour Gold's shares trade on the Toronto Stock
Exchange under the trading symbol DGC.
For further information, please contact:
Michael Kenyon, Interim
CEO
Tel: (416)
304.0800
Laurie Gaborit, VP Investor
Relations
Tel: (416) 304.0581
Detour Gold Corporation, Commerce Court West, 199 Bay Street,
Suite 4100, P.O. Box 121, Toronto,
Ontario M5L 1E2
Information Concerning Estimates of Mineral Reserves and
Resources
These estimates have been prepared in accordance
with the requirements of Canadian securities laws, which differ
from the requirements of United
States' securities laws. The terms "mineral reserve",
"proven mineral reserve and "probable mineral reserve" are Canadian
mining terms as defined in accordance with NI 43-101 and the CIM
Definition Standards. The CIM Definition Standards differ from the
definitions in the United States
Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7")
under the United States Securities Act of 1933, as amended. Under
SEC Guide 7, a "final" or "bankable" feasibility study is required
to report mineral reserves, the three-year historical average price
is used in any mineral reserve or cash flow analysis to designate
mineral reserves and the primary environmental analysis or report
must be filed with the appropriate governmental authority. In
addition, the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" are defined in NI 43-101 and recognized by Canadian
securities laws but are not defined terms under SEC Guide 7 or
recognized under U.S. securities laws. U.S. investors are cautioned
not to assume that any part or all of mineral deposits in these
categories will ever be upgraded to mineral reserves. "Inferred
mineral resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever by upgraded to a higher
category. Under Canadian securities laws, estimates of "inferred
mineral resources" may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable.
Accordingly, these mineral reserve and mineral resource estimates
and related information may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the
United States federal laws and the rules and regulations
thereunder, including SEC Guide 7.
Mineral resources are not mineral reserves, and do not have
demonstrated economic viability, but do have reasonable prospects
for economic extraction. Measured and indicated mineral
resources are sufficiently well defined to allow geological and
grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the
economic viability of the resource. Inferred mineral
resources are estimated on limited information not sufficient to
verify geological and grade continuity or to allow technical and
economic parameters to be applied. Inferred mineral resources
are too speculative geologically to have economic considerations
applied to them to enable them to be categorized as mineral
reserves. There is no certainty that mineral resources of any
category can be upgraded to mineral reserves through continued
exploration.
Detour Gold's mineral reserve and mineral resource figures are
estimates and Detour Gold can provide no assurances that the
indicated levels of gold will be produced or that Detour Gold will
receive the gold price assumed in determining its mineral
reserves. Such estimates are expressions of judgment based on
knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may
significantly change when new information becomes available.
While the Company believes that these mineral reserve and mineral
resource estimates are well established and the best estimates of
Detour Gold's management, by their nature mineral reserve and
mineral resource estimates are imprecise and depend, to a certain
extent, upon analysis of drilling results and statistical
inferences which may ultimately prove unreliable. If the
Company's mineral reserve or mineral reserve estimates are
inaccurate or are reduced in the future, this could have an adverse
impact on Detour Gold's future cash flows, earnings, results or
operations and financial condition.
Cautionary Note regarding Forward-Looking
Information
This news release contains certain
forward-looking information and forward-looking statements, as
defined in applicable securities laws (collectively referred to
herein as "forward-looking statements"). Forward-looking statements
reflect current expectations or beliefs regarding future events or
the Company's future performance. All statements other than
statements of historical fact are forward-looking statements.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "continues", "forecasts",
"projects", "predicts", "intends", "anticipates", "targets" or
"believes", or variations of, or the negatives of, such words and
phrases or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance or achievements to differ materially
from those expressed or implied by such forward-looking
statements. All forward-looking statements, including those
herein are qualified by this cautionary statement.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking statements in this
news release speak only as of the date of this news release or as
of the date or dates specified in such statements.
Specifically, this press release contains forward-looking
statements regarding the Company proceeding with a cost evaluation
for an advanced underground exploration program and, subject to a
positive evaluation, determining the appropriate timeline for the
program. Inherent in forward-looking statements are risks,
uncertainties and other factors beyond the Company's ability to
predict or control. These risks, uncertainties and other
factors include, but are not limited to, the results of the final
revised life of mine plan, gold price volatility, changes in debt
and equity markets, the uncertainties involved in interpreting
geological data, increases in costs, environmental compliance and
changes in environmental legislation and regulation, support of the
Company's Aboriginal communities, interest rate and exchange rate
fluctuations, general economic conditions and other risks involved
in the gold exploration, development and production industry, as
well as those risk factors listed in the section entitled
"Description of Business - Risk Factors" in Detour Gold's 2017
Annual Information Form ("AIF") and in the continuous disclosure
documents filed by Detour Gold on and available on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing list of
factors is not exhaustive of the factors that may affect
forward-looking statements. Actual results and developments and the
results of the final revised life of mine plan are likely to
differ, and may differ materially or materially and adversely, from
those expressed or implied by forward-looking statements, including
those contained in this news release. Such statements are
based on a number of assumptions which may prove to be incorrect,
including, but not limited to, assumptions about the following: the
availability of financing for exploration and development
activities; operating and capital costs; results of operations; the
Company's available cash resources; the Company's ability to
attract and retain skilled staff; the mine development and
production schedule and related costs; dilution control;
sensitivity to metal prices and other sensitivities; the supply and
demand for, and the level and volatility of the price of, gold;
timing of the receipt of regulatory and governmental approvals for
development projects and other operations; the timing and results
of consultations with the Company's Aboriginal partners; the supply
and availability of consumables and services; the exchange rates of
the Canadian dollar to the U.S. dollar; energy and fuel costs;
required capital investments; estimates of net present value and
internal rate of returns; the accuracy of mineral reserve and
mineral resource estimates, production estimates and capital and
operating cost estimates and the assumptions on which such
estimates are based; market competition; ongoing relations with
employees and impacted communities and general business and
economic conditions; and general business and economic
conditions.
The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking statements whether as a result
of new information or future events or otherwise, except as may be
required by law. If the Company does update one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those or other
forward-looking statements.
SOURCE Detour Gold